Exam 15: Warranties and Product Liability

City Car Company and Dave's Autos enter into a contract for a sale of motor vehicles.City assures Dave's that it has valid title to the vehicles.Under the UCC,a warranty of title arises

Oven Products Company makes microwave ovens.Pico discovers that his Oven Products oven is defective and sues the maker for product liability based on strict liability.To win,Pico must show that

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

A manufacturer's duty of care does not extend to the inspection and testing of products bought to incorporate in the final product.

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

Big Screen Video Corporation sells high-definition television sets.Under most circumstances,Big Screen Video will be presumed to have warranted that its title to the TVs is

Forest & Field Company makes and leases a backhoe to Zach.Due to a defect attributable to Forest & Field's negligence,Zach is injured in an accident in which his neighbor Aron is also hurt.In a product liability suit based on negligence,Forest & Field may be liable to

A manufacturer's liability to an injured party on a strict product liability theory is limited to a refund or a replacement of the defective product.

Mountain Bikes,Inc.(MBI),and Nero enter into a contract for a sale of a mountain bike.MBI,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by

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.

Express warranties displace all inconsistent implied warranties.

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

Fact Pattern 15-1 Bret, a representative of Concrete Products, Inc. assures Dependable Construction Company (DCC) that Concrete’s cement will not crack within a certain range of temperatures. DCC uses the product. When cracks develop within the stated temperature range, DCC files a suit against Concrete. -Refer to Fact Pattern 15-1.Suppose that the court rules against Concrete.The manufacturer might have avoided that result by

In sales law,a warranty is an assurance by one party of the existence of a fact on which the other party can rely.

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

An express warranty cannot be limited.

Bob is shopping in Carl's Hardware Store when a nail gun in use by Dan,one of Carl's employees,fires without warning and hits Bob in the leg.Carl checks the gun and discovers that it was assembled improperly.Bob files a suit against Eagle Tools,Inc. ,the manufacturer of the gun,for product liability,on the ground of strict liability.What are the elements for an action based on strict liability? In whose favor is the court likely to rule and why?

One requirement for a product liability suit based on strict liability is a failure to exercise reasonable care.

Dependable Appliances,Inc. ,and Elain enter into a contract for a sale of kitchen appliances.Dependable,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability.Under the UCC,this means that the goods are reasonably