Exam 19: Warranties and Product Liability

In a breach of express warranty action,the amount of recoverable compensatory damages is generally equal to the difference between (1)the value of the goods as warranted and (2)the actual value of the goods accepted at the time and place of acceptance.

________ warranties are created when a seller or lessor affirms that the goods he or she is selling or leasing meet certain standards of quality,description,performance,or condition.

Manufacturers and sellers are not strictly liable for failing to warn of generally known dangers.

The doctrine of caveat emptor means "to the victor go the spoils."

Defense and other contractors that manufacture products to government specifications are not usually liable if the product causes injury.

Which of the following is true about statutes of limitation and statutes of repose?

The implied warranty of merchantability can be disclaimed by using the word "merchantability" or by saying that the item is sold "as is" or "with all faults."

For the contributory negligence defense to apply in a product liability action,the defendant must prove that (1)the plaintiff knew and appreciated the risk and (2)the plaintiff voluntarily assumed the risk.

In a product liability action,the plaintiff typically relies on ________ or ________.

Article 3 of the Uniform Commercial Code (UCC)establishes certain warranties that apply to the sale of goods.

Which of the following is not one of the common classifications of product liability defects?

Implied warranties are created when a seller or lessor affirms that the goods he or she is selling or leasing meet certain standards of quality,description,performance,or condition.

Punitive damages are not allowed in strict liability actions.

Kathy has decided to purchase a used boat.The dealer shows her a boat and tells her it's only three years old and is in excellent condition.Kathy is relatively new to sailing and has told this to the dealer.He tells her that the boat is worth $20,000 but he will sell it to her for $16,000.A few weeks later she discovers that the boat is actually eight years old,had sunk and been salvaged and that many things that appeared to be in excellent condition were in fact in poor condition but had been made to look good by the dealer.She has the boat appraised and it's actually worth $8,000.If she sues the dealer what will she recover and why?

When there has been a breach of warranty,the buyer or lessee may sue the seller or lessor to recover ________ damages.

The Magnuson-Moss Warranty Act covers ________ warranties related to ________ products.

In the landmark case Greenman v.Yuba Power Products,Inc.,the California Supreme Court adopted the doctrine of negligence as a basis for product liability actions.

Under the defense of comparative negligence,a party who is partially at fault for causing his or her own injuries is barred from recovering damages from the defendant in a product liability action.

Barbara purchases a Radartel cellular phone.One of the reasons she bought this was for security because she lives alone and often travels alone.After using the phone for about a week,she noticed that the rechargeable batteries (supplied in the phone by the maker)lasted a shorter time than claimed by the manufacturer.One evening a few days later,Barbara was in bed (but not yet asleep)and heard someone in her living room.She picked up the cellular phone from beside her bed and attempted to make an emergency call to 911,but the batteries were dead.She panicked and stayed in her bed motionless.About five minutes later the burglar came into her bedroom,at which point she screamed.As he then tried to climb out the bedroom window she hit him with a lamp,but he kicked it back at her injuring her.The burglar got away and was never caught.Barbara sues Radartel,the maker of the phone.Prior to the lawsuit she returned the phone to the store where she bought it and learned that the batteries were defective,at which point she was provided with new batteries which have worked properly since then.Discuss the likely basis for Barbara's suit,the defenses that Radartel might raise,and the likely outcome.

Article ________ of the Uniform Commercial Code (UCC)establishes warranties that apply to lease transactions.