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Business Law
Exam 24: Product Liability: Warranties and Torts
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Question 1
Multiple Choice
In most instances, the mere fact that a sale was made gives rise to a(n) :
Question 2
True/False
A defective product can injure intangible economic interests.
Question 3
Multiple Choice
At every sale, the seller makes an implied warranty that:
Question 4
Multiple Choice
With used or secondhand goods, what is fit for normal use is generally:
Question 5
True/False
A disclaimer of warranties made in the manner specified by the Uniform Commercial Code is not unconscionable.
Question 6
Multiple Choice
If an express warranty is breached:
Question 7
True/False
Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach.
Question 8
Essay
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 9
True/False
A catalog illustration can become the basis of an express warranty.
Question 10
True/False
A merchant has greater potential warranty liability than does a casual seller.
Question 11
Multiple Choice
All of the following apply to strict tort liability except:
Question 12
True/False
A full warranty requires the purchaser to pay for the shipping cost of returning the product for repair.
Question 13
True/False
In applying the "foreign substance/natural substance" liability test in the sale of food or drink, some courts refuse to impose warranty liability if the thing in the food that caused the harm was naturally present.