Question 1

What is the difference between an express warranty and an implied warranty?

Accepted Answer

The answer of What is the difference between an express...

Question 2

Product liability refers to the liability manufacturers or other sellers have only to immediate purchasers for physical injury caused by defective products they place on the market.

Accepted Answer

A) True 
 B)False

Question 3

____________________ refers to the contract relationship that exists between a seller and a buyer.

Accepted Answer

The answer of ____________________ refers to the contract relationship that...

Question 4

The Magnuson-Moss Warranty Act covers only ____________________ warranties.

Accepted Answer

The answer of The Magnuson-Moss Warranty Act covers only ____________________...

Question 5

Is it possible to hold a seller liable for injuries caused by a defective product in spite of showing due care?

Accepted Answer

The answer of Is it possible to hold a seller...

Question 6

A warranty obligation imposed by law upon the seller is a(n) ____________________ warranty.

Accepted Answer

The answer of A warranty obligation imposed by law upon...

Question 7

List and briefly describe the three types of defects that are the cornerstone of a person's case in a lawsuit for product liability based on a defective product.

Accepted Answer

The answer of List and briefly describe the three types...

Question 8

An oral warranty made by the seller before or at the time of a sale that is contrary to the terms stated in the written warranty is not binding.

Accepted Answer

A) True 
 B)False

Question 9

The implied warranty of merchantability applies only to merchants who sell to other merchants.

Accepted Answer

A) True 
 B)False

Question 10

The Magnuson-Moss Warranty Act requires manufacturers to provide written warranties.

Accepted Answer

A) True 
 B)False

Question 11

According to the Magnuson-Moss Warranty Act, which of the following statements is true?

Accepted Answer

A)  The law requires manufacturers and sellers to give written warranties. 
B)  The law replaced UCC warranty law. 
C)  If a written warranty is given by a manufacturer, the implied warranties of merchantability and fitness for a purpose cannot be eliminated. 
D)  Does not differentiate between a full warranty and a limited warranty.

Question 12

In a sale of goods, the use of the term "as is" indicates

Accepted Answer

A)  to the buyer that there are no implied warranties upon which the buyer may depend. 
B)  that in a sale the seller warrants that the goods are merchantable. 
C)  to the buyer that a sales contract needs no consideration. 
D)  that the sale includes most implied warranties.

Question 13

Quinby ordered a snowplow, specifying that it must be suitable for heavy-duty use on country roads. Quinby found the snowplow not at all suitable for this use. The seller of the plow may be held liable for breach of warranty of

Accepted Answer

A)  description. 
B)  quality. 
C)  trade name. 
D)  fitness for a particular purpose.

Question 14

Under Article 2 of the UCC goods sold by merchants may be covered by a warranty. An example of an express warranty would be a warranty of

Accepted Answer

A)  fitness for a purpose. 
B)  merchantability. 
C)  conformity to the description of the purchased goods. 
D)  conformity to those goods purchased according to usage in the trade.

Question 15

Grill Lovers, a Manufacturing Co. that makes gas grills for outdoor cooking, sold several of its grills to Premier Home Company located in a large city. Ferris, who purchased a gas grill from Premier, was seriously injured while grilling steaks outside for a family outing. The injury resulted from a manufacturing defect in the gas line which caused an explosion as he was cooking over the grill. In order to be successful in his lawsuit, which is based on strict liability, Ferris must present proof that

Accepted Answer

A)  he was in privity of contract with Premier Home Company. 
B)  Grill Lovers had a duty to sell a safe product and that the product purchased was not safe. 
C)  a warranty existed on the product and that there was a breach of warranty by Grill Lovers. 
D)  the product was unreasonably dangerous when it left the manufacturer's or other seller's control and that he suffered an injury.

Question 16

Below are four statements made by salespeople to customers. In each case, a customer made a purchase relying on the statement, the statement proved to be false, and the customer suffered a loss. Which statement would most likely serve as the basis for a successful suit for breach of warranty?

Accepted Answer

A)  "This watch will last a lifetime." 
B)  "You won't find anything like this for the same amount of money anywhere." 
C)  "These spark plugs should give you better gasoline mileage." 
D)  "This material is fireproof and approved by Underwriters' Laboratories."

Question 17

The test of merchantability in the case of foods is generally what a reasonable person can expect to find in the food. Which of the following would most likely show a breach of this warranty?

Accepted Answer

A)  A cherry pit in a piece of cherry pie 
B)  A chicken bone in a chicken sandwich 
C)  A fish bone in a bowl of vegetable soup 
D)  A grapefruit seed in a glass of grapefruit juice

Question 18

Martin Taylor purchased an electric shaver for cash from the Arco Department Store for $125.95. The following manufacturer's statement was printed on a tag attached to the razor: "Warranted for ninety days from date of purchase against original factory imperfections in materials and workmanship." Taylor took the razor for a slight adjustment two weeks after he bought it. He expressed some concern about the short warranty period of ninety days offered by the manufacturer. The store manager replied, "Don't worry, I will give you an additional store warranty of one year against all defects and, if necessary, will replace the razor with a new one." This statement by the store manager would be

Accepted Answer

A)  binding, because an oral warranty given after a sales contract is valid without consideration if Taylor can prove that it was given. 
B)  binding, because it is based on common usage in the trade, and most razors carry such a guarantee. 
C)  not binding, because it is based upon past consideration. 
D)  not binding, because the store manager's statement is mere sales talk or "puffing.

Question 19

Marla went to Office Works to purchase a thumb drive to use in gathering research material for an article that her college advisor asked her to write for the school newspaper. She asked for suggestions as to a good brand of thumb drive to purchase. The store manager who waited on her said that the USRDV brand was the "best buy out of all the brands the store carried." This statement was

Accepted Answer

A)  sales puffing. 
B)  an express warranty. 
C)  a warranty of purpose. 
D)  a warranty of description.

Question 20

An express warranty to be valid must be based on ____________________ not just someone's opinion.

Accepted Answer

The answer of An express warranty to be valid must...

Exam 18: Product Liability Law

What is the difference between an express warranty and an implied warranty?

Product liability refers to the liability manufacturers or other sellers have only to immediate purchasers for physical injury caused by defective products they place on the market.

____________________ refers to the contract relationship that exists between a seller and a buyer.

The Magnuson-Moss Warranty Act covers only ____________________ warranties.

Is it possible to hold a seller liable for injuries caused by a defective product in spite of showing due care?

A warranty obligation imposed by law upon the seller is a(n) ____________________ warranty.

List and briefly describe the three types of defects that are the cornerstone of a person's case in a lawsuit for product liability based on a defective product.

An oral warranty made by the seller before or at the time of a sale that is contrary to the terms stated in the written warranty is not binding.

The implied warranty of merchantability applies only to merchants who sell to other merchants.

The Magnuson-Moss Warranty Act requires manufacturers to provide written warranties.

According to the Magnuson-Moss Warranty Act, which of the following statements is true?

In a sale of goods, the use of the term "as is" indicates

Quinby ordered a snowplow, specifying that it must be suitable for heavy-duty use on country roads. Quinby found the snowplow not at all suitable for this use. The seller of the plow may be held liable for breach of warranty of

Under Article 2 of the UCC goods sold by merchants may be covered by a warranty. An example of an express warranty would be a warranty of

Below are four statements made by salespeople to customers. In each case, a customer made a purchase relying on the statement, the statement proved to be false, and the customer suffered a loss. Which statement would most likely serve as the basis for a successful suit for breach of warranty?

The test of merchantability in the case of foods is generally what a reasonable person can expect to find in the food. Which of the following would most likely show a breach of this warranty?

An express warranty to be valid must be based on ____________________ not just someone's opinion.