Exam 20: Warranties and Product Liability

A lien is an encumbrance on a property to satisfy or protect a claim for payment of a debt.

Express warranties cannot be disclaimed in contracts.

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

Puffery creates an express warranty.

Krissa, a horse breeder, shows Maggie, a customer looking for a new stallion for her breeding program, a stallion and tells her that the stallion is very fertile and can easily breed twenty mares per year. Krissa's statement is

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

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

Paltry Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim. Paltry is most likely liable for

A failure to exercise reasonable care is negligence.

Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached

SurgeStop Company makes electrical cords and other connectors for elec?tronic devices. Rollo files a product liability suit against SurgeStop, alleg?ing a warning defect. In deciding whether to hold SurgeStop liable, the court may consider

Barry buys a bulldozer from Big Sandbox Equipment Company. Barry is unaware that there is a lien against the bulldozer when he buys it. Under the UCC, if the creditor reposes the bulldozer, Barry

A seller does not have to provide a written warranty for consumer goods.

Dependable Appliances, Inc., and Elaine 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

Ceramic Tile Company designs and makes floor tiles. In a product liability suit based on negligence, Ceramic could be liable for vio?lating its duty of care with respect to

Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers. Merchant assures National that it has valid title to the goods. Under the UCC, a warranty of title arises

An action in strict product liability requires that the product not be in a defective condition when the defendant sells it.

General descriptions take precedence over inconsistent samples.

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

Suppliers are generally required to expect reasonably foreseeable misuses of their products.