Deck 24: Products Liability: Warranties and Strict Liability in Tort

Question 1

The Code does not label the warranty of title as an implied warranty, despite the fact that it arises out of the sale and not from the words or conduct of the parties.

Answer 1

True

Question 2

An express warranty does not require that the warranty be expressed in written words.

Answer 2

True

Question 3

The U.S.Consumer Product Safety Commission's estimate that the cost of deaths, injury, and property damage from consumer product incidents is about $800 million each year led Congress to pass three major federal product liability statutes between 2006 and 2010.

Answer 3

False

Question 4

Fitness for a particular purpose and merchantability are implied warranties that apply only to sales by merchants.

Question 5

Cailee has a garage sale at which she sells a defective food processor to Dylan.Cailee will be liable to Dylan in strict tort liability under Section 402A of the Restatement of Torts if he is injured using the product.

Question 6

The use of a sample or model is a means of creating an implied warranty.

Question 7

Bradley buys a television set that turns out to be stolen.He can sue the seller for breach of warranty.

Question 8

Reliance is a necessary element in any breach of warranty case.

Question 9

Jennifer purchased a used refrigerator from her next-door neighbor, a mail carrier.When she took it home and plugged it in, the refrigerator burst into flames.The seller in this case is in breach of the implied warranty of merchantability.

Question 10

Bart buys a car from a friend "as is." The friend tells him, "In my opinion, this car is in excellent mechanical condition." The friend has made an express warranty.

Question 11

In a warranty action, the seller has the burden of proving defenses based on the buyer's conduct.

Question 12

Article 2A, in a provision analogous to Article 2's warranty of title provision, protects the lessee's right to possession and use of the goods from claims of other parties arising from an act or omission of the lessor.

Question 13

Section 402A of the Restatement applies only if the defective product is unreasonably dangerous.

Question 14

The Federal Trade Commission administers the Magnuson-Moss Warranty Act.

Question 15

The warranty of merchantability is found in Section 402A of the Restatement of the Law of Torts.

Question 16

Hurst's Used Tires could not be held liable on a theory of strict liability in tort.

Question 17

The word "merchantability" must be mentioned in a disclaimer of an implied warranty of merchantability.

Question 18

Despite Section 402A's bar of contributory negligence in strict liability cases, some courts apply comparative negligence to strict liability cases.

Question 19

Barry buys a car from a dealer, which is sold to him "as is." If the next day, the engine blows up, Barry can sue the dealer for breach of the implied warranty for fitness.

Question 20

The early common law required privity of contract before a plaintiff could sue a defendant for breach of warranty.

Question 21

The Magnuson-Moss Warranty Act was enacted to protect purchasers of consumer goods.

Question 22

If the seller of goods is an expert and gives an opinion with regard to the goods, the seller may be liable for breach of warranty.

Question 23

Statutes of repose were enacted to give consumers more rights against large manufacturers.

Question 24

Which of the following is generally NOT a defense to a claim against a manufacturer under 402A?

A)Contributory negligence on the part of the plaintiff
B)Express assumption of the risk
C)Misuse or abuse of the product
D)Subsequent alteration of the product by the plaintiff

Question 25

Which of the following would NOT be considered a breach of the warranty of merchantability in some jurisdictions?

A)A piece of glass in a bottle of cola
B)A stone in a can of vegetable soup
C)A cherry pit in a can of cherry pie filling
D)A leaking plastic bottle containing bleach

Question 26

Lucille bought a new lawn mower on sale at a local discount store.The mower did not come with an instruction book, nor did it have warning labels placed near dangerous parts of the mower.If Lucille injures herself while using this mower, she can claim that she purchased a defective product.

Question 27

Which of the following products would impose strict liability in tort according to Section 402A?

A)Popcorn containing large amounts of genuine butter
B)150-proof Virgin Island rum
C)A chain saw sold with the safety shielding removed
D)A sports car capable of speeds in excess of 150 MPH

Question 28

Leslie purchased 100 flower pots from a local merchant.Warranties which are not included in her sales contract, but exist by "operation of the law," are the:

A)express warranties.
B)exclusive warranties.
C)quasi warranties.
D)implied warranties.

Question 29

Implied warranties may arise from course of dealing or usage of trade in leases of personal property under Article
2A of the Code, but not in sales of goods under Article 2.

Question 30

Both design and manufacturing defects can subject a manufacturer or seller to products liability.

Question 31

Under the Magnuson-Moss Warranty Act, a seller who makes a written warranty cannot disclaim any implied warranty.

Question 32

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

A)A chair produced without inserting the appropriate screws
B)A product with a defective design that is "state of the art" and the manufacturer, even if it knew of the design hazard, could not have designed a safer product given existing technology
C)Vodka that is 100-proof and contains a warning that it can make people drunk and cause liver damage after years of heavy use
D)All of these are defects under 402A.

Question 33

Under Alternative A of the Code's horizontal privity provision, a corporation may bring a case against the manufacturer of a defective product for breach of the warranty of merchantability.

Question 34

Horizontal privity pertains to remote sellers within the chain of distribution.

Question 35

The warranty of fitness for a particular purpose:

A)is an implied warranty that applies only to merchant sellers.
B)requires that the seller know that the buyer is relying on the seller's expertise in selecting a product for the buyer's specific purpose.
C)requires no proof of reliance in a case for breach of warranty.
D)All of these.

Question 36

Statements in advertisements and catalogs do not constitute express warranties.

Question 37

Which of the following is NOT included within the Code definition of merchantability?

A)Reasonably fit for the ordinary purposes for which the goods are used
B)Pass without objection in the trade under the contract description
C)In the case of secondhand goods that they be of a quality that matches that of new goods of the same type.
D)Are of fair, average quality.

Question 38

Misuse or abuse of the product is a defense to an action brought under 402A of the Restatement.

Question 39

The warranty of title for the sale of goods found in Article 2 of the Code:

A)may be excluded with the phrase "as is."
B)is labeled as an implied warranty.
C)may not be excluded or modified by the seller.
D)will apply regardless of whether it is provided for in the contract unless the parties have specifically excluded it or it is excluded by certain circumstances.

Question 40

The liability of manufacturers and other sellers of goods for a defective product may be based on all but which of the following?

A)Negligence and misrepresentation
B)Violation of a statutory duty
C)Warranty and criminal liability
D)Strict liability in tort

Question 41

Product liability exists if the:

A)consumer misuses the product.
B)consumer alters the product before he or she uses it.
C)product reaches the consumer without substantial change in the condition in which it is sold.
D)consumer takes the product gratuitously.

Question 42

In bringing a warranty action, the buyer must prove:

A)whether the warranty was express or implied.
B)that breach of the warranty proximately caused the loss suffered.
C)reliance on the affirmations, promises, descriptions, samples, or models the seller made or used.
D)All of these.

Question 43

Mark tells Leslie that his stereo has quadraphonic speakers because he was told that when he bought it.Leslie buys the stereo, but it does not have quadraphonic speakers.Is Mark liable for breach of warranty?

A)No, because he did not know his statement was false.
B)No, because he did not promise her that the speakers were quadraphonic.
C)Yes, because the statement was false.
D)Yes, because Mark was not acting in good faith.

Question 44

Which of the following is not an express warranty?

A)Restating facts or market figures about a product
B)The opinion of an expert in a certain field regarding a product in that field
C)A statement of the product specifications
D)The seller's opinion of the value of goods

Question 45

An obligation of the merchant-seller that the goods are reasonably fit for general purposes for which they are manufactured and sold, and the goods are of fair, average quality is known as:

A)a warranty of merchantability.
B)strict liability.
C)an express warranty.
D)the warranty of fitness for a particular purpose.

Question 46

Implied warranties under the Code:

A)may arise from course of dealing or usage of trade.
B)are a result of specific language in the sales contract.
C)continue the common law rule of caveat emptor.
D)are intended to protect the seller rather than the buyer.

Question 47

Geoff's fiancée, Susan, comes to meet his parents for the weekend.On Saturday morning, while using Geoff's mother's hair dryer, the blower short-circuits sending sparks across the guest room.Susan's angora sweater and her hands are covered with tiny burns.Susan's mother is a lawyer and wants her to sue the seller of the dryer for breach of warranty.Can she?

A)No, because horizontal privity would extend only to members of the family.
B)No, because privity would require that Geoff's mother sue.
C)Yes, since she is a guest in the home of the buyer, the warranties would extend to her in most states.
D)Yes, since under the Code all reasonable users are protected from injury.

Question 48

Alice is browsing in a commercial art gallery when she sees a painting that she likes.Roger, who is the manager of the gallery, tells her that the painting is a genuine Leroy Neiman work.Based upon that representation, Alice buys the work for $5,000.She later discovers that the painting is only a cheap copy of the original that is worth no more than $50.Roger has breached:

A)an express warranty to Alice that the painting is a Neiman work.
B)the warranty of merchantability.
C)no express warranties, because his statement was merely an opinion.
D)an express warranty, the warranty of merchantability, and the warranty of fitness for a particular purpose.

Question 49

Eric bought a new snowmobile from the North Pole Manufacturing Company.After buying the machine, Eric then modified the spark plugs and a few other things in order to soup it up.In February, just after a snowfall, Eric was driving the snowmobile when it tipped over, trapping him beneath it.His leg was severely burned when it lodged against one of the spark plugs.Eric now wants to sue North Pole for strict liability in tort.Eric:

A)will likely win the suit, because of the faulty design of the snowmobile.
B)will likely lose the suit, because the machine has been altered since its manufacture.
C)has assumed the risk of using the snowmobile.
D)cannot sue the manufacturer, because horizontal privity is lacking.

Question 50

Article 2A carries over the warranty provisions of Article 2 with relatively minor revision to reflect differences in:

A)style.
B)leasing terminology.
C)leasing practices.
D)All of these.

Question 51

A, a wholesale distributor, sells to B, a retail dealer, a set of defective tires manufactured by X, a reputable manufacturer.Both A and B believed the tires to be in perfect condition, although neither party has inspected the tires.C purchases the tires from B and is injured because the defective tires blew out.Who, if anyone, is liable to C in strict liability?

A)A, B, and X share liability to C under strict liability.
B)Only X, who manufactured the tires, has strict liability.
C)Only B, who sold the defective tires to C, has strict liability.
D)No one has strict liability in this case.

Question 52

Hubert bought heavy-duty, sharp hedge clippers to trim the hedges in his yard.In the process of using the clippers, he severely cut his hand.He is now suing the manufacturer on the basis that the clippers are unreasonably dangerous.Can he recover? Explain.

Question 53

Greg has been in the business of selling encyclopedias for twenty years.Margaret agreed to buy a set if Greg would also bring her a bookcase for them.Greg bought one and sold it to Margaret along with the books.While shelving the books, she ran her hand over the back edge of the shelves and cut herself severely.The wood was not finished on that side and nails were protruding through the shelf.Can Margaret sue Greg under strict liability?

A)Yes, because the bookcase was in an unreasonably dangerous condition.
B)Yes, because the bookcase was defective.
C)No, because she was not a true consumer under Section 402A.
D)No, because Greg is not a seller under Section 402A.

Question 54

Matt tells Ron that the snow boots he is selling offer protection for temperatures of 20° below zero.Ron orders a pair for his trip to Greenland.Upon delivery, Ron sees that the box states "will protect your feet in temperatures down to 30° below zero." The first night's temperature goes down to 27 below.Ron suffers frostbite on all of his toes.Ron then sues for breach of warranty.What is the result?

A)Breach, because the later express warranty is valid.
B)No breach, because Matt's statement was merely opinion.
C)No breach, because Matt said 20° below zero.
D)No breach, because Matt is allowed to be wrong.

Question 55

What are the essential requirements for strict product liability?

Question 56

Kera rented a lawn mower from Scott Rentals.The mower wheel was loose when she picked it up.When she began to use the mower, the wheel fell off, causing the mower to tip over onto her foot.Under what theory can Kera hold Scott liable for her injuries?

A)Breach of warranty of merchantability
B)Breach of warranty of title
C)Strict liability in tort for a defective design
D)All of these.

Question 57

No implied warranty exists:

A)if it is disclaimed in any manner.
B)if it applies to hidden defects that are not apparent upon examination.
C)as to defects that an examination ought to have revealed, where the buyer examined the goods as fully as he desired or where the buyer refused to examine the goods.
D)All of these.

Question 58

Which Code section contains the warranty of merchantability?

A)2-205
B)2-207
C)2-312
D)2-314

Question 59

What are the general Code requirements for a disclaimer of warranties? What specific requirements exist for a disclaimer of the warranty of merchantability and the warranty of fitness?

Question 60

Karen decided to sell her stair step exercise machine, because she wasn't using it as much as she thought she would. Her friend Lydia bought it from Karen for $100.If the first day that Lydia used the stair stepper it fell apart, injuring
Lydia's ankle:

A)Lydia can sue Karen for breach of the warranty of merchantability, because the stair stepper is not fit for its ordinary purpose.
B)Karen can sue the manufacturer for breach of the warranty of merchantability, because she was the original buyer.
C)Lydia cannot sue Karen for warranting that the stair stepper is reasonably fit for its ordinary purpose, because Karen is not a merchant.
D)Lydia cannot sue Karen, because they are not in privity of contract.