Deck 25: Product Liability: Warranties and Torts

Question 1

A full warranty allows the seller to require the buyer to assume the shipping cost of returning the good(s)for repair.

Answer 1

False

Question 2

No law requires a seller to make an express warranty.

Answer 2

True

Question 3

A seller who makes a written express warranty for consumer goods costing more than $50 must conform to FTC regulations.

Answer 3

False

Question 4

A merchant has greater potential warranty liability than does a casual seller.

Question 5

An express warranty can be made orally or in writing.

Question 6

An express warranty can be disclaimed even if it was a critical part of the bargain to the buyer.

Question 7

An express warranty is basically any statement of fact or promise made about the goods that becomes part of the basis of the bargain.

Question 8

Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach.

Question 9

A warranty may be express or implied.

Question 10

An implied warranty arises automatically from the fact a sale has been made.

Question 11

Negligence and fraud are easy to prove in a mass production world.

Question 12

When a buyer makes a purchase without relying on the seller's skill and judgment,no warranty of fitness for a particular purpose exists.

Question 13

An express warranty arises when goods are purchased based on a catalog illustration.

Question 14

Whenever a sale of goods is made,certain warranties are implied unless they are expressly excluded.

Question 15

It is necessary to the creation of an express warranty that the seller use formal words such as "warrant" or "guarantee."

Question 16

A seller cannot be held liable for the breach of an express warranty if the seller honestly believed that the warranted statement was true.

Question 17

Plaintiffs suing for damages caused by a defective product are limited to taking action only against the manufacturer(s)of such goods.

Question 18

The requirement of privity of contract to allow recovery in a sales contract has been widely rejected.

Question 19

Ordinarily,a seller's opinion about the good(s)cannot be treated as a warranty.

Question 20

The right to sue for damages sustained from a defective product is reserved exclusively to the buyer of such goods.

Question 21

The warranties of both merchantability and fitness for a particular purpose exist under the Convention on Contracts for the International Sale of Goods (CISG).

Question 22

Under what type of warranty is the seller obligated to fix or replace a defective product within a reasonable time at no cost to the buyer?

A) full
B) express
C) limited
D) implied

Question 23

An action for negligence rests upon common law tort principles.

Question 24

The defendant in a defective product suit may be:

A) the seller.
B) the manufacturer.
C) the manufacturer of a component part.
D) all of the above.

Question 25

The scope of warranties remains the same regardless of whether the seller is a merchant or a casual seller.

Question 26

Only the parties to a sales contract could sue each other under the traditional concept of:

A) exclusivity of contract.
B) privity of contract.
C) privacy of contract.
D) priority of contract.

Question 27

An auto manufacturer is excused from liability if it can be shown the defect was in a component part purchased from a manufacturer.

Question 28

Which of the following is not a product liability theory that protects buyers and allows them to recover for injury and economic loss?

A) express warranty
B) implied warranty
C) strict tort liability
D) assumption of the risk

Question 29

Unless otherwise agreed,every merchant seller warrants that goods are sold free of any rightful claim by any third party.

Question 30

In most instances,the mere fact that a sale was made gives rise to a(n):

A) express warranty.
B) limited warranty.
C) implied warranty.
D) full warranty.

Question 31

Which of the following statements made by the seller does not likely constitute an express warranty?

A) "This looks beautiful on you."
B) "This is 100 percent wool."
C) "This motor generates 100 horsepower."
D) "This is a 3.2 liter rotary engine."

Question 32

The theories of product liability are mutually exclusive.

Question 33

If a merchant sells a lawn mower that will not cut any type of grass,there is a breach of the warranty of merchantability.

Question 34

The federal regulation of express warranties:

A) applies only to limited warranties.
B) applies to a seller who makes a written express warranty for a consumer product costing more than $10.
C) requires all express warranties to be full warranties.
D) requires an implied warranty to be designated as either full or limited.

Question 35

A warranty is limited if:

A) only the original buyer is covered by the warranty.
B) the buyer must pay any cost for repair or replacement of a defective product.
C) it covers only part of the product purchased.
D) all of the above.

Question 36

In applying the "foreign substance/natural substance" liability test in the sale of food or drink,courts hold that there is liability if the seller does not deliver to the buyer goods of the character that the buyer reasonably expected.

Question 37

If an express warranty is breached:

A) the warrantor is not liable if due care was exercised in the manufacture or handling of the product
B) the seller has no warranty obligation if the buyer had the opportunity to inspect the goods before purchasing them.
C) the warrantor is not liable if (s)he honestly believed that the warranty was true.
D) the warrantor is always liable.

Question 38

Manufacturers who prepare goods to the buyer's specifications are under exceptionally stringent warranty obligations for fitness for a particular use.

Question 39

If there is a written contract,a disclaimer of the implied warranty of merchantability must be conspicuous.

Question 40

An exclusion of warranties made in the manner specified by the Uniform Commercial Code is not unconscionable.

Question 41

A disclaimer or exclusion of the warranty of merchantability will be invalid if:

A) the goods cost $500 or more.
B) the defects in the goods are obvious to all buyers.
C) it is made at the time of the sale.
D) it is not conspicuously set forth in a writing.

Question 42

The warranty of merchantability guarantees that the:

A) party in question is a merchant.
B) product is fit for the ordinary purposes for which it is sold.
C) product will remain fit for its normal use for the applicable statute of limitations period.
D) product can be resold by the buyer if the buyer does not want to keep it.

Question 43

The theories of product liability

A) are mutually exclusive.
B) are not mutually exclusive.
C) are set forth exclusively in the UCC.
D) are set forth exclusively in the common law.

Question 44

Sal was at home going through his normal workout when he bent his barbell bar.Sal is a professional bodybuilder,and this fact is obvious from his appearance.Sal went to his local sporting-goods store and was approached by a clerk wishing to assist him.Sal told the clerk about his problem and the clerk asked Sal to wait while an appropriate bar was located.The clerk presented Sal with a bar that the clerk said "is just what you need for your type of weight requirements." Sal paid for the bar and was returning home when he stopped at a health food restaurant.The drink that he ordered had an unusual taste,but the food establishment refused a refund.Sal became ill from the drink,which,as it turned out,had a toxic substance in it.Sal had to be hospitalized.When Sal was able to work out again,he attached the weights to the new bar and lifted the bar under his chin.The bar snapped in the middle and severely cut Sal.Sal is angry about the drink and the barbell.What are the applicable warranties involved? Does Sal have a cause of action?

Question 45

Regarding the sale of food or drink,there is an implied warranty that:

A) the food item is of average quality.
B) the food item is fit for human consumption.
C) that no foreign substances such as a nail or screw will be found.
D) all of the above.

Question 46

An examination of goods excludes any implied warranty with respect to a defect that:

A) is apparent after a reasonable examination is made.
B) will not be apparent without chemical analysis.
C) will not be apparent until the goods are processed or used in manufacturing.
D) is unknown to all parties and is not detectable by reasonable examination.

Question 47

With used or secondhand goods,what is fit for normal use will be:

A) a higher standard than with new goods.
B) a lower standard than with new goods.
C) the same standard as with new goods.
D) not applicable since the goods are not new.

Question 48

Thelma purchased a used truck from Hall that had been manufactured by International Harvester.To work on the truck engine,Thelma had to have the cab of the truck raised.When it was so raised,the cab fell unexpectedly and fatally injured Thelma.Suit was brought for her wrongful death against Hall and International Harvester.The suit was based on theories of negligence,strict tort liability,and breach of warranty.The defense was raised that there was no liability because the sale to Thelma had been made "as is" and the truck was a used truck.Were these defenses valid?

Question 49

Which of the following must be proven by a plaintiff to recover for strict liability in tort?

A) negligence of the seller or manufacturer
B) recklessness of the seller or manufacturer
C) unreasonably dangerous defects in goods that cause harm
D) privity of contract between the manufacturer and the buyer

Question 50

By the mere act of selling,a warranty is made that the:

A) goods are the finest available.
B) seller's title is good and the transfer is rightful.
C) price is the lowest available.
D) all of the above.

Question 51

Arthur was looking for a Father's Day gift for his dad,Tony.Tony was a cigar smoker but Arthur was a nonsmoker.Arthur went to a cigar store and was looking around when the proprietor suggested Arthur try a new imported cigar.The proprietor touted this new cigar as "just like the great Cuban cigars." Arthur was reluctant but did light one of the cigars,which had a pleasant aromatic smell and took about five to six minutes to be consumed.On this basis,Arthur bought a box of the cigars and presented them to his father as a gift.When the father smoked one of the cigars,it gave off an acrid smell and was completely consumed in less than two minutes.When Arthur saw this,he was very upset and asked his father to try another.The same situation was repeated with the acrid odor and the cigar burning down very quickly like a cigarette.
After Arthur tried unsuccessfully to return the cigars for a refund,Arthur filed a small claims court action against the store.The case was based on the failure of the purchased cigars to conform to the sample,breach of the implied warranty of merchantability,and the misleading statement "just like the Cuban cigars." Discuss the probable outcome of the case.

Question 52

Strict tort liability is applied:

A) independently of the UCC.
B) without regard to privity of contract.
C) despite negligence on the part of the plaintiff.
D) all of the above.

Question 53

How do the warranty provisions under the CISG compare to the provisions of the UCC?

A) In most instances,the standards are the same.
B) In all instances,the standards are the same.
C) The CISG standards are stricter when compared to the UCC standards.
D) The standards are completely different.

Question 54

Which of the following implied warranties is created when the buyer relies on the seller to pick out the goods that the buyer requires to meet a stated need?

A) conformity to description
B) Merchantability
C) fitness for a particular purpose
D) conformity to a sample or model