Deck 22: A: Warranties and Product Liability

Question 1

A seller who makes a statement that relates to the value or worth of the goods creates an express warranty.

Answer 1

False

Question 2

To constitute an express warranty,a representation must be in writing.

Answer 2

False

Question 3

A full warranty requires free repair or replacement of any defective part.

Answer 3

True

Question 4

General descriptions take precedence over inconsistent samples.

Question 5

Merchants are required to warrant that the goods they sell or lease are fit for the particular purpose for which a buyer or lessee will use the goods.

Question 6

Express warranties displace inconsistent implied warranties with no exception.

Question 7

To avoid strict product liability,a manufac?turer must make a product entirely safe for all uses.

Question 8

Statutes of repose places outer times limit on product liability actions.

Question 9

The types of product defects that have traditionally been recognized in product liability law include design defects.

Question 10

Only the manufacturer of a defective product can be strictly liable for an injury or damage caused by the product.

Question 11

A seller must warn those who purchase its product of the harm that can result from the foreseeable misuse of the product.

Question 12

A manufacturer's liability to an injured party on a strict product liability theory can be almost unlimited.

Question 13

Due care must be exercised in designing a product.

Question 14

An implied warranty or merchantability,an implied warranty of fitness for a particular purpose,and an express warranty can exist in a single transaction.

Question 15

An action in strict product liability requires that the goods be substantially changed from the time the product is sold to the time the injury is sustained.

Question 16

Merchants are absolute insurers against all accidents arising in connection with the goods.

Question 17

Misrepresentation on a label is not enough to show an intent to induce the reliance of anyone who may use the product.

Question 18

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

Question 19

A warranty of title cannot be disclaimed.

Question 20

A public policy underlying the imposition of strict product liability is that a manufacturer who makes an unsafe product should be put out of business.

Question 21

Country Style,Inc. ,makes landscaping tools.Under the Restatement (Third)of Torts: Products Liability,Country could be liable for a warning defect if there is a foreseeable risk of harm posed by a product and

A)the omission of a warning renders the product not reasonably safe.
B)there is a reasonable alternative design.
C)there is a lack of care in making of the product.
D)there is insufficient insurance coverage.

Question 22

Horizon Corporation makes cell phones.Ginvera files a product liabil?ity suit against Horizon,alleging a design defect.Under the Restate?ment (Third)of Torts: Products Liability,in deciding whether to hold Horizon liable,the court may consider the "reasonableness" of

A)the manufacturer's intentions.
B)the seller's method of accounting.
C)the manufacturer's quality control efforts.
D)an available alternative design.

Question 23

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires.Good Tire is a merchant who deals in goods of the kind sold.Under the UCC,an implied warranty of merchantability arises

A)automatically in sales contracts.
B)only if the buyer asks for it.
C)only if the seller does not expressly disclaim it.
D)only in conjunction with lease contracts,not sales contracts.

Question 24

Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store,telling the clerk that she wants the shoes to climb Mount Sharptop.The spikes come out of the shoes when Sigrud is on the side of the mountain,caus?ing her to be injured in a fall.Rockridge most likely breached

A)an express warranty.
B)an implied warranty of fitness for a particular purpose.
C)an implied warranty of merchantability.
D)a warranty of title.

Question 25

Universal 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.Universal is most likely liable for

A)a commonly known danger.
B)fraud.
C)privity.
D)puffery.

Question 26

Oven Products Company makes microwave ovens.Pico discovers that his Oven Products oven is defective and sues the maker for product liabil?ity based on strict liability.To win,Pico must show that

A)Oven Products sold the oven to Pico.
B)Pico knew and appreciated the risk caused by the defect.
C)Pico suffered an injury caused by the defect.
D)the "defect" was a commonly known danger.

Question 27

Sweet Candy,Inc. ,and Tasty Treats Stores enter into a contract for a sale of candy.Sweet,a merchant who deals in goods of the kind sold,makes express warranties in connection with the sale.Under the UCC,at the time a contract is formed,an express warranty can be disclaimed or modified

A)by clear,conspicuous language called to the buyer's attention.
B)by implied affirmations of fact relating to the goods.
C)in any way that the seller sees fit for the ordinary purpose.
D)in no way.

Question 28

Dorothy eats a candy bar made and sold by Eastwich Candy Corporation and becomes ill.Dorothy files a suit against Eastwich,alleging that the candy bar was not merchantable.Merchantable food is food that is fit to eat on the basis of

A)consumer expectations.
B)what constitutes a perfect condition.
C)its maker's intentions.
D)its producer's experience.

Question 29

Sea Locate,Inc. ,makes and sells marine navigation equipment,through inde?pendent salespersons,to retailers for resale to consumers.The Magnuson-Moss Warranty Act covers

A)implied warranties,oral statements,and written promises.
B)only implied warranties that consumers are aware of.
C)only a salesperson's oral statements.
D)only a seller's written promises.

Question 30

Oceanic Vessels,Inc. ,and Pacific Harbor Company enter into a contract for a sale of a barge.Oceanic 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

A)only if Oceanic did not know about and could not have discovered the defect.
B)only if Oceanic did not know about the defect.
C)only if Oceanic knew about or could have discovered the defect.
D)regardless of what Oceanic knew or could have discovered.

Question 31

Toyoda Company buys gas pedals and other parts from subcontractors and puts them in its vehicles without changing their composition.If the pedals or other parts are defective,strictly liable for any damage caused by the defects are

A)neither Toyoda nor the subcontractors.
B)Toyoda and the subcontractors.
C)the subcontractors only.
D)Toyoda only.

Question 32

Cold Stuf,Inc. ,makes snowboards,which it sells to Deep Freeze Sports Store (DFS).DFS sells Cold Stuf boards to consumers,in?cluding Ed.Ed is in?jured while using the board.In a product liabil?ity suit based on strict li?ability,Ed may recover from

A)Cold Stuf only.
B)Cold Stuf or DFS.
C)DFS only.
D)no one.

Question 33

Stable Tool Company makes hedge trimmers.Troy is injured while using a Stable trimmer and sues the company for product liability based on neg?ligence.To win,Troy must show that

A)Stable did not use due care with respect to the trimmer.
B)Stable misrepresented a material fact regarding the trimmer.
C)Troy was experienced in the use of trimmers.
D)Troy was in privity of contract with Stable.

Question 34

Dwayne,an electrician,files a suit against Electro Mechanix,Inc. ,alleging that its circuit breakers are unreasonably dangerous due to the possibility of electrical shock.Dwayne's suit is most likely to

A)fail,because Dwayne assumes the risk if he uses an Electro product.
B)fail,because Dwayne is a knowledgeable user.
C)succeed,because the danger is open and obvious.
D)succeed,because Electro's products are not safe for all uses.

Question 35

Regional Lumber Company and Superior Builders Corporation enter into a contract for a sale of wood products.Regional,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.Under the UCC,if these are inconsistent

A)all implied warranties displace all express warranties.
B)all express warranties displace all implied warranties.
C)the implied warranty of fitness for a particular purpose takes precedence.
D)the implied warranty of merchantability takes precedence.

Question 36

Musical Tones,Inc. ,sells fifty MP3 players to Noise Stores,Inc.To avoid liability for most implied warranties,Musical should state in writing that the players are sold

A)as is.
B)by a merchant.
C)in perfect condition.
D)with no known defects.

Question 37

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,this type of title warranty arises

A)automatically in most lease contracts.
B)only if the lessee asks for such a warranty.
C)only if the lessor expresses such a warranty.
D)only in conjunction with sales contracts,not lease contracts.

Question 38

Summer Breeze,Inc. ,contracts for the sale of fifty ceiling fans to Island Décor store.Tyrone buys one of fans from the store.The applicable statute of limitations prescribes a period of four years.To bring a product liability claim against Summer Breeze,Tyrone must file a suit within four years of

A)Tyrone's discovery of an injury.
B)the date of the fan's sale to Island Décor.
C)the year of the fan's manufacture.
D)the date of the fan's sale to Tyrone.

Question 39

Parker,a salesperson for Quality Textiles,Inc. ,shows Rosa,a fabric buyer for Style Clothing Company,samples of cloth,stating that any ship?ment will match the samples.This statement is

A)an express warranty.
B)an implied warranty.
C)a warranty of title.
D)puffery.

Question 40

The brakes on a train owned by Western & Eastern Railroad Company malfunction.The train rolls towards main?te?nance workers on the tracks.Everyone gets out of the way except Vincent,who wants to show off.The train hits Vincent,who sues United Hydraulics,Inc. ,the brakes' manufacturer.United Hydraulics can raise the defense of

A)a component-part manufacturer.
B)assumption of risk.
C)consumer expectations.
D)product misuse.

Question 41

Bob is shopping in Carl's Hardware Store when a nail gun in use by Dan,one of Carl's employees,fires without warning and hits Bob in the leg.Carl checks the gun and discovers that it was assembled improperly.Bob files a suit against Eagle Tools,Inc. ,the manufacturer of the gun,for product liability,on the ground of strict liability.What are the elements for an action based on strict liability? In whose favor is the court likely to rule?

Question 42

General Construction Company (GCC)tells Industrial Supplies,Inc. ,that it needs an adhesive to do a particular job.Industrial provides a five-gallon bucket of a certain brand.When it does not perform to GCC's speci?fications,GCC sues Industrial,which claims,"We didn't expressly promise anything." What should GCC argue?