Deck 19: Warranties and Product Liability

Question 1

Rienhardt Manufacturers contracts Shillingworth Mining to purchase quartz ores.Upon inspection of a particular shipment,Rienhardt discovers that most of the ores are of substantially lesser quality than the average quality standard of that grade.Shillingworth Mining has breached the ________.

A) implied warranty of merchantability
B) implied warranty of fitness for human consumption
C) statute of limitations of strict liability
D) statute of repose of strict liability

Answer 1

A

Question 2

Where there has been a breach of warranty,the buyer or lessee may sue the seller or lessor to recover ________ damages.

A) compensatory
B) exemplary
C) punitive
D) incidental

Answer 2

A

Question 3

Damages that are generally equal to the difference between the value of the goods as warranted and the actual value of the goods accepted at the time and place of acceptance is known as ________ damages.

A) punitive
B) liquidated
C) compensatory
D) exemplary

Answer 3

C

Question 4

A warranty that is created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet certain standards of quality,description,performance,or condition is known as a(n)________.

A) implied warranty
B) warranty of title
C) warranty disclaimer
D) express warranty

Question 5

Which of the following is true of a statement of opinion?

A) It is a type of implied warranty.
B) It is a seller's commendation of goods.
C) It is a buyer's commendation of goods.
D) It is a type of express warranty.

Question 6

What was the doctrine of caveat emptor in sales or lease contracts?

A) It was a law that balanced risk of loss between seller and buyer.
B) It was a law that stated the risk of loss was completely on the buyer.
C) It was a law that stated the risk of loss was completely on the seller.
D) It was a law that required no risk of loss between seller and buyer.

Question 7

A commendation of goods,made by a seller or lessor that does not create an express warranty is referred to as a(n)________.

A) statement of opinion
B) implied warranty
C) guarantee
D) express warranty

Question 8

Alan buys a toaster from a retail store where he is promised by the salesperson that the toaster will operate optimally for two years at the least.The salesman's assurance is an example of a(n)________.

A) express warranty
B) liability
C) statement of opinion
D) disclaimer

Question 9

Sam expresses interest in buying a motorbike from Jake,a salesman.In an attempt to force a sale,Jake promises Sam that the motorbike in question is capable of providing a mileage of 70 miles for every gallon of gas in its tank.Jake's promise is an example of ________.

A) a disclaimer
B) puffing
C) an express warranty
D) slander

Question 10

Anthony buys an electric stove from a home appliance shop that provides him with a complete 48-month warranty.The shop guarantees that the stove will be repaired or replaced for free during this period.This is an example of a(n)________.

A) full warranty
B) limited warranty
C) implied warranty of merchantability
D) implied warranty of fitness for a particular purpose

Question 11

A statement that negates express and implied warranties is known as a ________.

A) warranty disclaimer
B) limited warranty
C) strict liability
D) statement of opinion

Question 12

A heading printed in uppercase letters or a typeface that is larger than the rest of the body of a sales or lease contract is meeting the UCC's requirement of ________ for warranties.

A) obscurity
B) conspicuity
C) crashworthiness
D) nebulousness

Question 13

Andy is interested in purchasing a fridge from Tim,a salesman.In an attempt to force a sale,Tim claims that the fridge is the best of its kind in the contemporary market.Tim's claim is an example of ________.

A) a statement of opinion
B) an express warranty
C) a full warranty
D) slander

Question 14

A(n)________ is a warranty that applies to food or drink consumed on or off the premises of restaurants,grocery stores,fast-food outlets,and vending machines.

A) statement of opinion
B) express warranty
C) explicit guarantee
D) implied warranty of fitness for human consumption

Question 15

A ________ is a seller's or lessor's express or implied assurance to a buyer or lessee that the goods sold or leased meet certain quality standards.

A) breach
B) caveat emptor
C) warranty
D) liability

Question 16

What of the following is true of an "as is" disclaimer?

A) It limits all implied warranties.
B) It limits all express warranties.
C) It is a type of implied warranty.
D) It is a type of express warranty.

Question 17

What type of transaction is covered under the Magnuson-Moss Warranty Act?

A) consumer transactions
B) commercial transactions
C) industrial transactions
D) government transactions

Question 18

Which of the following is true of an implied warranty of merchantability?

A) It is made by the buyer or lessee.
B) It is implied by law if the seller or lessor is a nonmerchant.
C) It is implied by law if the seller or lessor is a merchant.
D) It has to be explicitly expressed in the contract.

Question 19

Mark goes to Tony's Lumber Yard to buy some lumber to build a new roof for his cabin.Mark tells Tony,the lumber yard owner,to provide him an exact type of wood that can resist the wood decay caused due to the damp environment around the cabin.Mark buys the lumber after Tony assures him that the wood is exactly what Mark is looking for.But the dampness affects the wood and it caves in.What warranty has Tony explicitly breached by not providing Mark the lumber he needed?

A) express warranty
B) statement of opinion
C) implied warranty of fitness for human consumption
D) implied warranty of fitness for a particular purpose

Question 20

The ________ is a federal statute,passed in 1975,that regulates written warranties on consumer products.

A) Purchaser's Act
B) Industry Loss Warranty Act
C) Magnuson-Moss Warranty Act
D) Consumer Warranty Act

Question 21

Kirsten just bought a car that had a one-year warranty stating that it covered cost of parts,but not labor.It also stated that the automobile warranty only covered the powertrain part of the automobile,and no other part.What kind of warranty did Kirsten's car have?

A) full warranty
B) limited warranty
C) warranty disclaimer
D) implied warranty of fitness for a particular purpose

Question 22

Aclusia Seacrafts manufactures motorboats based on a poorly assembled prototype of a motorboat.It ships these substandard motorboats to its retailers.Which of the following will consumers injured by such motorboats cite as a defect in a strict liability lawsuit against Aclusia Seacrafts?

A) defect in design
B) defect in packaging
C) failure to warn
D) failure to provide adequate instructions

Question 23

Diane bought an action figure for her son David from Terrence's Toy Shop.The packaging did not mention that the toy contained small detachable parts.David accidentally swallowed and choked on one of the detachable parts and had to be taken to the hospital.On which of the following charges can Diane sue Terrence's Toy Shop for damages?

A) negligence
B) disparagement
C) battery
D) slander

Question 24

The term ________ refers to the doctrine which applies to strict liability actions that says a plaintiff who is contributorily negligent for his or her injuries is responsible for a proportional share of the damages.

A) strict liability
B) crashworthiness
C) comparative fault
D) contributory negligence

Question 25

To assert ________ as a defense,the defendant must prove that the plaintiff knew and appreciated the danger inherent in the product.

A) a supervening event
B) assumption of the risk
C) generally known dangers
D) abnormal misuse

Question 26

________ refers to monetary damages that are awarded to punish a defendant who either intentionally or recklessly injured the plaintiff.

A) Compensatory damages
B) Special damages
C) Punitive damages
D) General damages

Question 27

________ is a tort doctrine that makes manufacturers,distributors,wholesalers,retailers,and others in the chain of distribution of a defective product liable for the damages caused by the defect,irrespective of fault.

A) Absolute liability
B) Contingent liability
C) Legal liability
D) Strict liability

Question 28

Which of the following statements is true about strict liability?

A) It applies liability to all parties in the chain of distribution.
B) It consists of liability with fault.
C) It requires privity of contract between the plaintiff and the defendant.
D) It covers casual sales and transactions by nonmerchants.

Question 29

________ is a tort related to defective products in which the defendant has breached a duty of due care and caused harm to the plaintiff.

A) Defamation
B) Negligence
C) Embezzlement
D) Assault

Question 30

Which of the following is evaluated using a risk-utility analysis?

A) defect in packaging
B) defect in design
C) failure to add disclaimer
D) failure to provide adequate instructions

Question 31

A man tries to swallow a pen as part of a circus act.The pen becomes lodged in his throat and he is taken to a hospital for immediate medical attention.The man sues the company that manufactured the pen.Which of the following would be the best defense for the pen manufacturer in this lawsuit?

A) It can claim that the product carried generally known dangers.
B) It can claim that the product was abnormally misused.
C) It can claim that the injury was caused by a supervening event.
D) It can claim that the injury was caused by an intervening event.

Question 32

As defined by the Magnuson-Moss Warranty Act,a warranty that covers the costs of parts,but not the labor,to fix a defective product is defined as a(n)________.

A) full warranty
B) implied warranty
C) limited warranty
D) warranty disclaimer

Question 33

Which of the following is true of strict liability?

A) Strict liability is liability with fault.
B) Only the manufacturer of a defective product is strictly liable for the injuries caused by that product.
C) Strict liability does not require the injured person to prove that the defendant breached a duty of care.
D) Defendants cannot claim monetary recovery in cases of strict liability.

Question 34

The term ________ refers to a defense that says a person who is injured by a defective product but has been negligent and is partially responsible for his or her own injuries cannot recover from the defendant.

A) contributory negligence
B) strict liability
C) partial comparative negligence
D) comparative fault

Question 35

A full warranty is an example of a(n)________.

A) express warranty
B) limited warranty
C) implied warranty of fitness for a particular purpose
D) implied warranty of fitness for human consumption

Question 36

Which of the following is a similarity between the tort doctrine of negligence and the tort doctrine of strict liability?

A) Both cover casual transactions by nonmerchants.
B) Both apply to services and products.
C) Both require that the defendant be at fault.
D) Both apply to cases of product liability.

Question 37

A(n)________ refers to an alteration or a modification of a product by a party in the chain of distribution that absolves all prior sellers from strict liability.

A) foreseeable event
B) assumption of risk
C) abnormal misuse
D) supervening event

Question 38

As defined by the Magnuson-Moss Warranty Act,a warranty which guarantees that a defective product will be repaired or replaced free during the warranty period is known as a(n)________.

A) "as is" disclaimer
B) full warranty
C) warranty disclaimer
D) limited warranty

Question 39

Which of the following is true of the Magnuson-Moss Warranty Act?

A) It is administered by the Federal Trade Commission.
B) It governs commercial transactions.
C) It requires a seller or lessor to make an express written warranty on all products.
D) It covers written warranties pertaining to industrial transactions.

Question 40

Which of the following is a similarity between full warranty and limited warranty?

A) Both fall under the category of express warranties made by warrantors.
B) Both require the warrantor to indicate whether there is a time limit on the full warranty.
C) Both limit the scope of the warranty involved in some way.
D) Both relate to the industrial transactions covered by the Magnuson-Moss Warranty Act.

Question 41

The plaintiff in a product liability lawsuit has suffered $100 worth of damages from an automobile accident.A defect in the manufacture of the plaintiff's vehicle is found to be 70 percent responsible for the accident,while the plaintiff's own negligence is 30 percent responsible.Under the doctrine of comparative negligence,how much would the defendant-the manufacturer of the vehicle-have to pay the plaintiff in damages?

A) $70
B) $30
C) $100
D) $40

Question 42

Which of the following is a similarity between the doctrines contributory negligence and comparative negligence?

A) Both doctrines pertain to plaintiffs who contributed to his or her own injuries.
B) Both assess liability to be proportionate to the degree of fault of each party.
C) Both disallow the plaintiff from recovering damages from the defendant.
D) Both prevent the defendant from recovering damages from the plaintiff.

Question 43

The plaintiff in a product liability lawsuit has suffered $100 worth of damages from an automobile accident.A defect in manufacture of the plaintiff's vehicle is found to be 20 percent responsible for the accident,while the plaintiff's own negligence is 80 percent responsible.Under the doctrine of contributory negligence,how much can the plaintiff expect to receive in damages from the defendant?

A) $20
B) $60
C) $100
D) The defendant would not have to pay any amount in damages to the plaintiff.

Question 44

Leonard had incurred an injury due to a defective product on December 15,2011.He had purchased the defective product on December 15,2010 from Astralibra Inc.The state of his residence has enacted a statute of repose for strict liability to be three years and enforced the doctrine of comparative fault.Leonard decides to sue Astralibra Inc.for strict liability on December 15,2016.Which of the following is true in this scenario?

A) Leonard can only sue for contributory negligence against Astralibra Inc.
B) Leonard can only sue for comparative fault against Astralibra Inc.
C) Leonard can only sue for negligence against Astralibra Inc.
D) Leonard is denied the right to sue Astralibra Inc.

Question 45

________ doctrine is a doctrine that says automobile manufacturers are under a duty to design automobiles so they take into account the possibility of harm from a person's body striking something inside the automobile in the case of a car accident.

A) Strict liability
B) Crashworthiness
C) Transferred intent
D) Proximate cause

Question 46

Sengreen Inc.is a shipbuilding company that supplies ships and boats for the U.S.Navy.One of its shipments included a defective boat,which collapsed in the middle of a U.S.Navy drill due to its weak sail.Which of the following frees Sengreen from any product liability in this case?

A) generally known dangers
B) government contract defense
C) abnormal misuse
D) supervening event

Question 47

Wilson,a plumber working for Fastfix Repairs,is hired by John to install a radiator manufactured by Multilever Machines.After the installation,the radiator fails to work due to a defective internal component.Under the doctrine of comparative negligence,which of the following parties is liable for the radiator's failure?

A) Wilson
B) John
C) Multilever Machines
D) Fastfix Repairs

Question 48

Clive buys a rifle from Greenwood Defense and goes hunting.During the hunting expedition,he accidentally shoots himself in the foot.Given that Greenwood Defense supplies to private individuals only,which of the following defenses can Greenwood Defense use against a strict liability lawsuit that Clive files against it?

A) supervening event
B) generally known dangers
C) abnormal misuse
D) government contract defense

Question 49

Firecars Inc.purchases cars from Santeno Automobiles and replaces the engines of these cars with racecar engines to boost the cars' speeds.One of Firecar's customers buys such a car and is injured in the process due to a defect in the car engine.Which of the following defenses can Santeno Automobiles use against a strict liability lawsuit that the customer files against it?

A) generally known dangers
B) crashworthiness
C) supervening event
D) assumption of risk

Question 50

When the containers of a product are not tamperproof,it is termed as a ________.

A) defect in manufacture
B) defect in design
C) defect in packaging
D) failure to warn

Question 51

________ is a defect that occurs when a manufacturer does not provide detailed directions for safe assembly and use of a product.

A) Crashworthiness
B) Failure to provide adequate instructions
C) Defect in manufacture
D) Defect in design

Question 52

________ refers to a statute that limits the seller's liability to a certain number of years from the date when the product was first sold.

A) Statute of limitations
B) Statute of frauds
C) Statute of general application
D) Statute of repose

Question 53

Dorothy purchases a chair that was made by Woode Designs,Inc.While making the chair,the legs were not fixed properly to the base.When Dorothy sits on the chair,it breaks and she is injured.In a strict liability lawsuit,which of the following can Dorothy cite as a defect in the chair?

A) failure to provide adequate instructions
B) defect in packaging
C) failure to warn
D) defect in manufacture

Question 54

Natura Cosmetics produces a hair color product and discloses its dangerous side effects on the packaging along with the instructions.Natalie purchases the product and follows the instructions of its use correctly after having read about the side effects.She is later injured by the product due to the side effects described by the packaging.She files a strict liability lawsuit against Natura Cosmetics.Which of the following defenses can Natura Cosmetics successfully use against Angela?

A) generally known dangers
B) assumption of the risk
C) foreseeable event
D) crashworthiness

Question 55

Kicker's,Inc.released a new kind of candy bar,but failed to mention on the packaging that the bar contains gluten and nuts.Consequently,many consumers who are allergic to these items suffered from severe allergic reactions on the consumption of these bars.Which of the following can the injured customers cite as a defect in a strict liability lawsuit against Kicker's?

A) defect in design
B) defect in packaging
C) failure to warn
D) crashworthiness

Question 56

In the course of swerving to avoid another vehicle,Eugene accidentally rammed his car into a tree.While the initial blow did not injure him,he was involved in a "second collision." which resulted from Eugene banging his head against the dashboard.Eugene sued the manufacturer of his car for strict liability.Which of the following doctrines does the court adopt with regard to Eugene's lawsuit?

A) transferred intent doctrine
B) fair use doctrine
C) crashworthiness doctrine
D) attractive nuisance doctrine

Question 57

Angela buys a paper shredder from Pencila Stationeries.She attempts to cut her hair short using the paper shredder and is injured in the process.She files a strict liability lawsuit against Pencila Stationeries.Which of the following defenses can Pencila Stationeries successfully use against Angela?

A) generally known dangers
B) abnormal misuse
C) foreseeable event
D) crashworthiness

Question 58

________ refers to a statute that requires an injured person to bring an action within a certain number of years from the time that he or she was injured by a defective product.

A) Statute of limitations
B) Statute of frauds
C) Statute of repose
D) Statute of general application

Question 59

Liam has incurred injury due to a defective product on December 15,2011.He purchased the defective product on December 15,2010 from Bluestone Inc.The state of his residence has enacted a statute of limitations for strict liability to be three years and enforced the doctrine of comparative fault.Which of the following would be the last date that Liam can sue Bluestone?

A) December 15, 2010
B) December 15, 2013
C) December 15, 2017
D) December 15, 2014

Question 60

________ refers to a defect that occurs when a manufacturer does not place information about the dangers of using a product on its packaging,causing injury if the dangers are unknown.

A) Failure to warn
B) Defect in manufacture
C) Defect in design
D) Crashworthiness

Question 61

A warranty that covers the costs of parts,but not the labor,to fix a defective product is a limited warranty.

Question 62

The Magnuson-Moss Warranty Act requires a seller or lessor to make an express written warranty on all products.

Question 63

All manufacturers,distributors,wholesalers,retailers,lessors,and subcomponent manufacturers involved in a transaction constitute the chain of distribution in a strict liability claim.

Question 64

A seller's affirmation of the value of goods creates an express warranty.

Question 65

An implied warranty of fitness for human consumption is a warranty that applies to food or drink consumed on or off the premises of restaurants.

Question 66

A statement of opinion is a commendation of goods made by a seller or lessor.

Question 67

Implied warranties of quality cannot be disclaimed.

Question 68

A warranty that arises when a seller or lessor warrants that the goods will meet the buyer's or lessee's expressed needs is called implied warranty of fitness for a particular purpose.

Question 69

A warranty disclaimer extends the warranty given by the warrantor.

Question 70

Strict liability requires the injured person to prove that the defendant breached a duty of care.

Question 71

For a warranty to qualify as a full warranty,the warrantor must guarantee that a defective product will be repaired or replaced free during the warranty period.

Question 72

The disclaimer of the implied warranty of fitness for a particular purpose must be in writing.

Question 73

Product liability is defined as the liability of manufacturers,sellers,and others for the injuries caused by defective products.

Question 74

All parties in the chain of distribution of a defective product are strictly liable for the injuries caused by that product.

Question 75

Written disclaimers must be conspicuously displayed to be valid.

Question 76

Strict liability is liability with fault.

Question 77

An implied warranty is created when a seller makes an affirmation of fact or promise about the goods.

Question 78

The Magnuson-Moss Warranty Act governs commercial and industrial transactions.

Question 79

A seller's "puffing" creates an express warranty.

Question 80

A seller's or lessor's express or implied assurance to a buyer or lessee that the goods sold or leased meet certain quality standards is called a warranty.