Deck 20: Warranties and Product Liability

Question 1

The statute of limitations for breach of warranty under the UCC is?

A)thirty days.
B)one year.
C)four years.
D)unlimited.

Answer 1

C

Question 2

Express warranties must be in writing.

Answer 2

False

Question 3

A statute of repose places an absolute limit on when a lawsuit may be filed regardless of when the defect is discovered.

Answer 3

True

Question 4

Myrtle walks into Hank's Hardware Store and says,"I need metal storage shelves that can hold 500 pounds." Hank directs her to a metal storage shelving system.Myrtle buys the shelving recommended by Hank.When Myrtle puts 475 pounds of weight on the bottom shelf,it breaks.Hank's Hardware breached the warranty of merchantability.

Question 5

Which of the following warranties provides that the goods will be fit for the ordinary purposes for which they are used?

A)Express.
B)Merchantability.
C)Fitness for a particular purpose.
D)Title.

Question 6

Privacy is required in strict product liability cases.

Question 7

Under which of the following warranties must the seller be a merchant?

A)Express warranties.
B)Implied warranty of merchantability.
C)Implied warranty of fitness for a particular purpose.
D)Both b and c.

Question 8

Under the UCC,no warranty of title arises unless the contract is in writing.

Question 9

Which of the following statements could create an express warranty?

A)"This is the best car available in town."
B)"This motorcycle will double in value in the next ten years."
C)"These tires have 10,000 miles on them."
D)"This antique is quite a bargain."

Question 10

An express warranty can be created by which of the following?

A)An affirmation of fact or promise.
B)A description.
C)A model.
D)All of the above.

Question 11

Many states prohibit a seller from disclaiming implied warranties in the sale of consumer goods.

Question 12

Generally,the parties to a contract may limit or alter the damages recoverable for a breach of warranty,as long as their actions are not unconscionable.

Question 13

Mark,a power tool salesman,promises Jill,a customer,that the Turbo Power Hedge Trimmer 1000 will easily cut through bamboo up to 3 inches thick.Mark's statement constitutes an express warranty if Jill purchases the hedge trimmer.

Question 14

A product liability case may be brought in warranty,negligence,or strict liability,but it must have the element that a person or business has been hurt by goods.

Question 15

In a strict product liability case,proof that the defendant acted reasonably is a defense.

Question 16

An express warranty may be created by a sample.

Question 17

In the case Goodman v.Wenco Foods,Inc.,the Court ruled that Wendy's breached the implied warranty of merchantability as its hamburgers were unfit for their ordinary purpose.

Question 18

A tag attached to a tree in a nursery identifying the tree as a Southern Magnolia creates an express warranty.

Question 19

The Magnuson-Moss Warranty Act requires sellers to give written warranties.

Question 20

In a tort case,the statute of limitations runs from the time the defect was discovered.

Question 21

In order to disclaim a warranty of fitness for a particular purpose,a merchant:

A)need do nothing; such a warranty will not exist unless the merchant intends to create the warranty.
B)must make the disclaimer orally and directly to the buyer.
C)may disclaim the warranty with any language that is clear and conspicuous.
D)None of the above.Implied warranties cannot be disclaimed.

Question 22

Henry,a tomato producer,purchases 15 gallons of a new herbicide from GardenWorld to get rid of weeds.Henry bought the herbicide without consultation with GardenWorld for suggestions.Although Henry correctly knew that any herbicide would kill the weeds in his garden,after he sprayed the new herbicide,he realized that it did not kill the weeds.The weeds even seemed to grow! Did GardenWorld breach a warranty?

A)Yes, the implied warranty of fitness for a particular purpose.
B)Yes, an express warranty.
C)Yes, the implied warranty of merchantability.
D)No, as Henry did not consult with the merchant.

Question 23

M & E sold a lathe "AS IS" to Brenna.M & E has disclaimed:

A)strict liability.
B)liability for negligence.
C)all implied warranties.
D)all of the above.

Question 24

Which of the following is not guaranteed under an implied warranty?

A)The goods are free of hidden security interests or liens.
B)The goods are not subject to a rightful claim by a third party.
C)The goods are merchantable.
D)The goods may be returned for a refund or replaced in the event of any defect.

Question 25

Alice's Aspirin Inc.,produces and packages aspirin for sale to retail stores.Bob buys a bottle of Alice's aspirin at Dahl's Food Stores.Two days later Bob's friend,Hank,takes two aspirin while at Bob's house.Within minutes,Hank is very ill and is rushed to the hospital,where it is found that a defect in the aspirin caused the reaction.Which of the following is correct?

A)Hank can sue both Alice's Aspirin Inc.and Dahl's under tort theories because he is an injured party due to the defective product.
B)Hank cannot sue anyone because he assumed the risk of taking the aspirin.
C)Hank cannot sue anyone because he is not in privity with Dahl's or Alice's.
D)Hank can sue but will not be able to recover consequential damages for his medical expenses.

Question 26

Lemon laws,which assist consumers who have purchased automobiles that turn out to be "lemons,":

A)are enacted by state legislatures.
B)are enacted by Congress.
C)are included in the warranty provisions of the UCC.
D)have been preempted by the Magnuson-Moss Warranty Act.

Question 27

Crytrin Manufacturing,Inc.contracted with Molfrey,Inc.to manufacture three large pieces of equipment.The contract contained a clause stating that Crytrin agreed to repair or replace any defective equipment,but that was the only remedy Molfry would have.This clause:

A)is an effective disclaimer.
B)will not keep Molfry from obtaining consequential damages since, under the UCC, consequential damages cannot be excluded.
C)is a limitation of remedy clause, which limits or excludes normal remedies permitted under the Code.
D)limits any express warranties made by Crytrin.

Question 28

A sales representative at Oxtren,Inc orally told the purchasing agent at Wety,Inc.that its industrial saw is exceptional.Which statement is correct concerning the claim that the saw is exceptional?

A)The claim is an express warranty.
B)The claim is an implied warranty of merchantability.
C)The claim is not a warranty because it is not in writing.
D)The claim is not a warranty because it is sales puffery.

Question 29

In the case Uniroyal Goodrich Tire Company v.Martinez,the Texas Supreme Court ruled that:

A)the manufacturer had to use a safer design even though the warnings were adequate.
B)the manufacturer was no liable as the warnings were sufficient.
C)the tire had a manufacturing defect.
D)the manufacturer breached the implied warranty of merchantability.

Question 30

A merchant seller who would like to exclude the warranty of merchantability can do so by doing which of the following?

A)The merchant can sell the goods "As Is."
B)The merchant can sell the goods "With All Faults."
C)The merchant can write conspicuously that the warranty of MERCHANTABILITY is excluded.
D)All of the above.

Question 31

Van is using his wrench as a hammer when the wrench breaks and a piece flies off,injuring his neighbor who is helping Van change a tire on Van's car.If Van sues the tool manufacturer,its best defense will be:

A)consent.
B)warranties have been disclaimed.
C)product misuse.
D)that the claim is an economic loss only.

Question 32

In order to establish strict liability,the plaintiff must prove that:

A)The seller sells normally the kind of product that was defective.
B)There was a contracxtual relation between the plaintiff and the manufacturer.
C)The manufacturer breached his duty of due care,
D)All of the above.

Question 33

In the case Goodman v.Wenco Foods,Inc.,the Supreme Court of North Carolina addressed the issue of:

A)Implied warranty of title.
B)Implied warranty of merchantability.
C)Implied warranty of fitness for a particular purpose.
D)Strict product liability.

Question 34

A sales representative at Oxtren,Inc.orally told the purchasing agent at Wety,Inc.that its industrial saw will cut through metal up to 5 inches thick.Wety purchased the saw.Which statement is correct concerning the claim that the saw can cut through metal up to five inches thick?

A)The claim is an express warranty.
B)The claim is an implied warranty of merchantability.
C)The claim is not a warranty because it is not in writing.
D)The claim is not a warranty because it is sales puffery.

Question 35

Daddy buys an electric car for his 10-year-old son.Daddy follows the directions for assembly carefully,but the son gets an injuring shock when he sits in the car.If Daddy and son sue the manufacturer for negligence,they will:

A)be successful only if they can prove that the car manufacturer knew of the defect and failed to correct it.
B)be successful only if they can prove that the car manufacturer failed to use reasonable care in designing, manufacturing, or warning the purchasers about intended uses and foreseeable misuses.
C)lose, because the son has no privity of contract and therefore no standing to sue.
D)not be successful if the car was sold "AS IS."

Question 36

In a breach of warranty case,the buyer must:

A)notify the seller of defects within a reasonable time.
B)bring any lawsuit no later than three years after the defect was discovered.
C)extend the statute of limitations in writing rather than orally if they choose to allow a longer time for bringing suit.
D)notify the seller of defects within six months of their discovery or they cannot bring a lawsuit.

Question 37

If a product is sold "as is",that means that:

A)the seller disclaimed all express warranties, but he may still be held liable on the basis of breach of implied warranty of merchantability.
B)the seller disclaimed all implied warranties.
C)the seller attempted to disclaim warranties, but that is not allowed by the UCC.
D)the seller disclaimed the warranty of title.

Question 38

Bill is injured while standing on the corner of Hollyhock and Vine when Mia's new Hog speeds out of control because of a defective part.In most jurisdictions,Bill:

A)can sue the motorcycle manufacturer even though he was only a bystander.
B)cannot sue the motorcycle manufacturer because his injuries are personal injuries as opposed to economic loss.
C)cannot sue the motorcycle manufacturer because the lemon laws require arbitration.
D)cannot sue the motorcycle manufacturer because there is no privity of contract.

Question 39

Which of the following would be a breach of the implied warranty of merchantability?

A)A knife that cuts its user when slicing a bagel.
B)A radio that does not pick up FM signals.
C)A match that burns a spot in the carpet when accidentally dropped.
D)A watch that does not keep accurate time after getting wet.

Question 40

When Angelena was shopping for a new lawn mower,the salesman,Mark,told her the model she was interested in cuts an 18" swath and the only maintenance it needs is an oil change and a new sparkplug at the beginning of each mowing season.He hands her a warranty booklet which describes that model as a mulching mower and says it has a five-year full warranty.The booklet also disclaims "any warranties or statements made by any agent or salesperson or that appear elsewhere in this booklet." The effect of the written disclaimer is:

A)that it is valid to disclaim only the written warranties within the booklet.
B)that it is valid to disclaim both oral and written warranties.
C)it does not disclaim either the oral or written warranties.
D)that it disclaims the oral warranties, but not the written warranties.

Question 41

The plaintiff,Donald Laird (Laird)has a bachelor of science degree in animal science from the University of Nebraska,had previously been employed at the university's swine research center,had managed a feed mill in North Platte,had been employed as a herdsman for Hog Breeders,Incorporated,had worked for five years for Armour & Company at its feeder pig operations,and was a branch manager of the Scribner Co-op,Inc.(Co-op)for 14 years,until February 1986.Laird's assistant manager while at the Co-op was Gary Ruwe.When Laird quit the Co-op,Ruwe became the manager.In March 1986,Laird went to Co-op to purchase some feed ingredients for his hogs.In speaking with Ruwe,Laird learned that the Co-op grain bin was not operating properly and therefore the corn was not drying properly.If the corn does not dry properly,it can collect mold and insects.Laird said he would take 1300 bushels of corn if Ruwe could pull the corn out of the middle of the grain bin.The corn was delivered to Laird where he noticed some damaged corn and an odor that indicated that the corn may have mold.Laird did not reject the shipment,however.Laird then began to feed the corn to his hogs.The boars began to develop pneumonia,began vomiting,and would not eat regularly.When it was time for the sows to farrow,the sows had an abnormally high number of miscarriages and stillborns.The ultimate conclusion was that the corn delivered was tainted with vomitoxins,a toxic substance that made the corn unmarketable as feed.Laird sued the Co-op for breach of the implied warranties of fitness for a particular purpose and merchantability.In order to recover under the warranty of fitness for a particular purpose what does Laird have to prove? What is the implied warranty of merchantability? Does Laird have a successful claim with this warranty?

Question 42

A common problem in cases of express warranty is being able to separate statements that create express warranties from statements that do not.Discuss what type of statements create an express warranty and four indications that a statement is likely to create an express warranty.

Question 43

Explain what the warranty of title and the warranty against claims of infringement are.

Question 44

How do the tort theories of negligent product liability and strict product liability differ from each other? List and describe the elements an injured party must establish for recovery under each cause of action.

Question 45

Kyle is the owner of a motorcycle company.His tire supplier having gone out of business,he asked several tire manufacturers for samples.He selected one manufacturer,based on the quality of the rubber,the tread depth and the price,and ordered 1000 tires.When he received his order,he found that the quality did not match that of the sample.In particular,the tread depth was much lesser than that of the sample.What recourse does Kyle have?

Question 46

Inez contracted with Filippo Furnaces Co.for the installation of a new furnace.Inez selected the furnace she wanted,accepting no suggestions from Filippo Furnaces' heating engineer.The furnace operated fine,but it did not heat the entire house.The size of the blower on the furnace was too small to accommodate the third floor of the house.Inez sued Filippo Furnaces Co.for the breach of the implied warranties of merchantability and fitness.What result?