Deck 21: Warranties and Product Liability

Question 1

Merchants are required to warrant that the goods they sell are fit for their ordinary purpose.

Answer 1

True

Question 2

A contract can contain both a warranty of merchantability and a warranty of fitness for a particular purpose.

Answer 2

True

Question 3

The Magnuson-Moss Warranty Act modifies UCC warranty rules to some extent in consumer transactions.

Answer 3

True

Question 4

An implied warranty of merchantability arises in every sale or lease by a merchant who deals in goods of the kind sold or leased.

Question 5

A contract cannot contain both implied and express warranties.

Question 6

Advertisements can include express warranties.

Question 7

A seller must provide a written warranty for consumer goods.

Question 8

A manufacturer's duty of care does not extend to the inspection and testing of products bought to incorporate in the final product.

Question 9

An express warranty cannot be limited.

Question 10

A warranty against infringement is a promise by the seller that the product was constructed in a workmanlike manner.

Question 11

Only a statement made after a contract is entered into can be an express warranty.

Question 12

Warranties of title do not arise in most sales contracts.

Question 13

Express warranties displace all inconsistent implied warranties.

Question 14

A product is unmerchantable if an accident could arise in connection with the goods.

Question 15

A merchant can disclaim an implied warranty of merchantability.

Question 16

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 17

A seller must use words such as "warrant" to make an express warranty.

Question 18

A product liability action may be based on warranty theory.

Question 19

An expression of opinion by a seller will not usually create a warranty.

Question 20

Promises of fact made during the bargaining process are not express warranties.

Question 21

City Car Company and Dave's Autos enter into a contract for a sale of motor vehicles.City assures Dave's that it has valid title to the vehicles.Under the UCC,a warranty of title arises

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

Question 22

A manufacturer's liability to an injured party on a strict product liability theory is limited to a refund or a replacement of the defective product.

Question 23

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,a warranty of title 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 24

To succeed in a strict product liability suit,an injured plaintiff must show that a product's defect was the proximate cause of the injury.

Question 25

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

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

Question 26

Any product may be made entirely safe for all consumption.

Question 27

Big Screen Video Corporation sells high-definition television sets.Under most circumstances,Big Screen Video will be presumed to have warranted that its title to the TVs is

A)the same as each brand's name.
B)none of the choices-a warranty of title is not presumed.
C)good and valid.
D)the best that money can buy.

Question 28

Olga,a salesperson for Pre-owned Cars & Trucks,Inc.,tells Quincy,"This is the best car I've ever seen." This statement is

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

Question 29

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

Question 30

An inadequate warning is not a product defect that will support the imposition of liability on a strict product liability basis.

Question 31

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 32

A public policy underlying the imposition of strict product liability is that consumers should be protected against unsafe products.

Question 33

To support the imposition of strict product liability,a product must be substantially changed from the time it is sold to the time an injury occurs.

Question 34

In many states,the plaintiff's negligence is a defense that may be raised in a product liability suit based on strict liability.

Question 35

A design defect is not the sort of product defect that will support the imposition of liability on a strict product liability basis.

Question 36

A product is not so unreasonably dangerous as to support the imposition of liability in a strict product liability suit solely because a less dangerous alternative was commercially feasible but was not produced.

Question 37

One requirement for a product liability suit based on strict liability is a failure to exercise reasonable care.

Question 38

Privity of contract between the plaintiff and the defendant is required to bring a product liability suit based on negligence.

Question 39

Strict liability applies to the suppliers of component parts.

Question 40

A seller must warn those who buy a product of harm that could result from the foreseeable misuse of the product.

Question 41

Ceramic Tile Company designs and makes floor tiles.In a product liability suit based on negligence,Ceramic could be liable for violating its duty of care with respect to

A)neither the design nor the making of the tiles.
B)the design and the making of the tiles.
C)the design of the tiles only.
D)the making of the tiles only.

Question 42

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 43

Regal Autos,Inc.,sells cars to consumers.To avoid liability for oral express warranties,each sales agreement should note that a car is sold

A)as is.
B)in perfect condition.
C)subject to warranties included in the written contract only.
D)with no known defects.

Question 44

Musical,Inc.,sells fifty MP3 players to Noise Stores,Inc.To avoid liability for most implied warranties,in some states Musical could simply 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 45

GR8 Skates Company makes and sells a pair of skates to Hugh.GR8 fails to exercise "due care" to make the skates safe,and Hugh is injured as a result.GR8 is most likely liable for

A)assumption of risk.
B)knowledgeable use.
C)negligence.
D)product misuse.

Question 46

Mountain Bikes,Inc.(MBI),and Nero enter into a contract for a sale of a mountain bike.MBI,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by

A)displacing the UCC as the primary source of warranty rules.
B)making warranties easier to understand.
C)prohibiting disclaimers of warranties.
D)requiring sellers to give written warranties for consumer goods.

Question 47

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 48

Farm Equip,Inc.,makes farming machinery.Gail discovers that her Farm Equip tractor is defective and sues the maker for product liability based on negligence.To win,Gail must show that

A)Farm Equip sold the tractor to Gail.
B)Gail knew and appreciated the risk caused by the defect.
C)Gail suffered an injury caused by the defect.
D)the "defect" was a commonly known danger.

Question 49

Fun Toyz Corporation makes skateboards,which it sells to consumers,including Holly and Ira.Due to a defect,Holly is injured while using her new board.Ira's board has the same defect,but he is not injured.In a product liability suit based on strict product liability,Fun Toyz may be liable to

A)Holly and Ira.
B)Holly only.
C)Ira only.
D)no one.

Question 50

ValuRich Tools,Inc.,sells tools,tool parts,and related supplies under "full" warranties.Under the Magnuson-Moss Warranty Act,this means that ValuRich must provide

A)a choice between a refund or replacement if a product cannot be fixed and repair or replacement of defective parts.
B)neither a choice of a refund or replacement,or repair of defective parts.
C)only a choice of a refund or replacement if a product cannot be fixed.
D)only repair or replacement of defective parts.

Question 51

Imported Carpets Store and Jill enter into a contract for a sale of an Oriental rug.Imported Carpets,a merchant who deals in goods of the kind sold,generally describes the goods,details technical specifications,and shows a sample.Under the UCC,if these are inconsistent

A)the general description displaces the sample.
B)the general description displaces the technical specifications.
C)the sample takes precedence over the general description.
D)the sample takes precedence over the technical specifications.

Question 52

Sari buys a new sport utility vehicle (SUV)from Terrific Cars & Trucks,Inc.The most important factor in determining whether an express warranty is created is whether

A)Sari expresses to Terrific what she wants warranted.
B)Sari's desire for the SUV becomes part of her motivation to deal.
C)Terrific expresses to Sari what it expects of its customers.
D)Terrific promise becomes part of the basis of the bargain.

Question 53

Forest & Field Company makes and leases a backhoe to Zach.Due to a defect attributable to Forest & Field's negligence,Zach is injured in an accident in which his neighbor Aron is also hurt.In a product liability suit based on negligence,Forest & Field may be liable to

A)Aron only.
B)no one.
C)Zach and Aron.
D)Zach only.

Question 54

Neil goes to Oil Shop to change the oil in his car.Perry,the service technician,learns that Neil plans to take a trip and advises the use of a certain type of oil.The oil breaks down during the trip,damaging the car.Neil may recover from Oil Shop for breach of

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 55

Oceanic Vessels,Inc.,and Pacific Harbor Company enter into a contract for a sale of a boat.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 56

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 57

Trucks & Trailers,Inc.(T&T),and United Delivery Service enter into a contract for a lease of trucks.T&T is a merchant who deals in goods of the kind leased.Under the UCC,an implied warranty of merchantability arises

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

Question 58

Dependable Appliances,Inc.,and Elain enter into a contract for a sale of kitchen appliances.Dependable,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability.Under the UCC,this means that the goods are reasonably

A)fit for the buyer's particular purpose.
B)fit for the ordinary purpose for which such goods are used.
C)suitable for resale at an acceptable price.
D)the best quality that money can buy.

Question 59

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 60

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

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

Question 61

Pharma Company,Oral Meds Corporation,and Narco,Inc.,are drug makers.Medico Company and Lab Source,Inc.,are drug distributors.In a suit against all of these parties in which market-share liability is imposed,most likely to be liable are

A)neither the distributors nor the manufacturers.
B)the distributors and the manufacturers.
C)the distributors only.
D)the manufacturers only.

Question 62

Gretel,an obese individual,files a suit against Hot n' Tasty,Inc.,alleging that its food is unhealthy because,as is well known,it contains high levels of salt and sugar.Gretel's suit is most likely to

A)fail,because salt and sugar are not unhealthy ingredients in food.
B)fail,because the danger is well known to a reasonable consumer.
C)succeed,because consumers are not aware of the danger.
D)succeed,because the food is most likely a cause of Gretel's obesity.

Question 63

The brakes on a Coastal Railroad train malfunction and it rolls towards maintenance workers on the tracks.Everyone gets out of the way except Dick,who wants to show off.The train hits Dick,who sues Everest,Inc.,the brakes' manufacturer.Everest can raise the defense of

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

Question 64

Safe-Rite Company makes electrical cords and other connectors for electronic devices.Tina files a product liability suit against Safe-Rite,alleging a warning defect.Under the Restatement (Third)of Torts: Products Liability,in deciding whether to hold Safe-Rite liable,the court may consider

A)neither the characteristics of expected users nor the content of any warning.
B)only the characteristics of expected users.
C)only the content of any warning.
D)the characteristics of expected users and the content of any warning.

Question 65

Horizon Corporation makes cell phones.Inez files a product liability suit against Horizon,alleging a design defect.Under the Restatement (Third)of Torts: Products Liability,in deciding whether to hold Horizon liable,the court may consider

A)neither the effect of an alternative design on the products' costs and life nor the range of consumer choice among products.
B)only the effect of an alternative design.
C)only the range of products.
D)the effect of an alternative design and the range of products.

Question 66

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 and why

Question 67

Open Country,Inc.,makes grills,camp ovens,and other outdoor cooking appliances.Under the Restatement (Third)of Torts: Products Liability,Open Country could be liable for a warning defect if there is a foreseeable risk of harm posed by one of its products 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)none of the choices.

Question 68

Oven Products Company makes microwave ovens.Pico discovers that his Oven Products oven is defective and sues the maker for product liability 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 69

Cold Stuf,Inc.,makes snowboards,which it sells to Deep Freeze Sports Store (DFS).DFS sells Cold Stuf boards to consumers,including Ed.Ed is injured while using the board.In a product liability suit based on strict liability,Ed may recover from

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

Question 70

Cutter Company makes and sells table saws,which are designed to be safe if used properly.Erin buys a Cutter saw and lends it to her neighbor Frank.To reach a toolbox on a high shelf in his garage,Frank props the saw at an angle against a cabinet and climbs onto the saw.Frank loses his footing,slips off the saw,falls on the blade,and is injured.He files a product liability suit against Cutter,on the ground of negligence.On what basis could the maker prevail