Exam 21: Warranties and Product Liability

Only a statement made after a contract is entered into can be an express warranty.

A seller must warn those who buy a product of harm that could result from the foreseeable misuse of the product.

Imported Carpets Store and Jill enter into a contract for a sale of an Oriental rug.Imported Carpets,a merchant who deals in goods of the kind sold,generally describes the goods,details technical specifications,and shows a sample.Under the UCC,if these are inconsistent

Any product may be made entirely safe for all consumption.

A seller must use words such as "warrant" to make an express warranty.

Horizon Corporation makes cell phones.Inez files a product liability suit against Horizon,alleging a design defect.Under the Restatement (Third)of Torts: Products Liability,in deciding whether to hold Horizon liable,the court may consider

Strict liability applies to the suppliers of component parts.

A design defect is not the sort of product defect that will support the imposition of liability on a strict product liability basis.

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires.Good Tire is a merchant who deals in goods of the kind sold.Under the UCC,an implied warranty of merchantability arises

Promises of fact made during the bargaining process are not express warranties.

Cold Stuf,Inc.,makes snowboards,which it sells to Deep Freeze Sports Store (DFS).DFS sells Cold Stuf boards to consumers,including Ed.Ed is injured while using the board.In a product liability suit based on strict liability,Ed may recover from

A contract can contain both a warranty of merchantability and a warranty of fitness for a particular purpose.

A product is unmerchantable if an accident could arise in connection with the goods.

Only the manufacturer of a defective product can be strictly liable for an injury or damage caused by the product.

Fun Toyz Corporation makes skateboards,which it sells to consumers,including Holly and Ira.Due to a defect,Holly is injured while using her new board.Ira's board has the same defect,but he is not injured.In a product liability suit based on strict product liability,Fun Toyz may be liable to

A merchant can disclaim an implied warranty of merchantability.

Sweet Candy,Inc.,and Tasty Treats Stores enter into a contract for a sale of candy.Sweet,a merchant who deals in goods of the kind sold,makes express warranties in connection with the sale.Under the UCC,at the time a contract is formed,an express warranty can be disclaimed or modified

The Magnuson-Moss Warranty Act modifies UCC warranty rules to some extent in consumer transactions.

Gretel,an obese individual,files a suit against Hot n' Tasty,Inc.,alleging that its food is unhealthy because,as is well known,it contains high levels of salt and sugar.Gretel's suit is most likely to

Farm Equip,Inc.,makes farming machinery.Gail discovers that her Farm Equip tractor is defective and sues the maker for product liability based on negligence.To win,Gail must show that