Question 1

The Magnuson-Moss Warranty Act is administered by the Interstate Commerce Commission (ICC).

Accepted Answer

A) True 
 B)False

Question 2

It is possible to create an express warranty by accident and with no intent.

Accepted Answer

A) True 
 B)False

Question 3

A seller's statement of opinion,or "puffing",establishes an express warranty.

Accepted Answer

A) True 
 B)False

Question 4

Written disclaimers must be conspicuously displayed to be valid.

Accepted Answer

A) True 
 B)False

Question 5

Strict liability can be effectively disclaimed with a clear and conspicuous disclaimer.

Accepted Answer

A) True 
 B)False

Question 6

A defect in packaging would exist where a package easily allows a child to access a dangerous medicine or poison.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not necessary in order for the implied warranty of fitness for a particular purpose to apply to a sale of goods?

Accepted Answer

A)  The seller knows or has reason to know of the buyer's intended use of the good. 
B)  The seller is a merchant. 
C)  The seller states that the goods will serve the purpose of the buyer's intended use. 
D)  The buyer relies on the seller's skill and judgment. 
E)  The goods are purchased. 
A)  The seller knows or has reason to know of the buyer's intended use of the good. 
B)  The seller is a merchant. 
C)  The seller states that the goods will serve the purpose of the buyer's intended use. 
D)  The buyer relies on the seller's skill and judgment. 
E)  The goods are purchased.

Question 8

Any defect present in a manufactured product is considered a defect in manufacture.

Accepted Answer

A) True 
 B)False

Question 9

Under the consumer expectation test,a food product is unmerchantable if a foreign object in that product causes injury to a person.

Accepted Answer

A) True 
 B)False

Question 10

The correction of a defect defense generally applies when a product is redesigned.

Accepted Answer

A) True 
 B)False

Question 11

The implied warranty of merchantability includes a warranty that goods delivered in groups are of a consistent quality.

Accepted Answer

A) True 
 B)False

Question 12

Article 2A of the Uniform Commercial Code (UCC)establishes warranties that apply to lease transactions.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements would most likely create an express warranty?

Accepted Answer

A)  "This is the best used car available in town." 
B)  "This painting is worth a fortune." 
C)  "Others would gladly pay $20,000 for this car." 
D)  "You look like a million bucks in that dress." 
E)  "This car has been driven only 20,000 miles." 
A)  "This is the best used car available in town." 
B)  "This painting is worth a fortune." 
C)  "Others would gladly pay $20,000 for this car." 
D)  "You look like a million bucks in that dress." 
E)  "This car has been driven only 20,000 miles."

Question 14

Under an implied warranty of merchantability,the goods must be fit for the ordinary purposes for which they are used.

Accepted Answer

A) True 
 B)False

Question 15

Where a seller has breached a warranty,what is the buyer's normal measure of damages?

Accepted Answer

A)  the difference between the contract price and the value of the good as it actually is 
B)  The difference between the contract price and the value of the good as it was warranted 
C)  the difference between the contract price and the amount the buyer could receive by reselling the good 
D)  the difference between the value of the good as warranted and the value of the good as it actually is 
E)  the difference between the value of the good before it was purchased and the value in the buyer's hands after purchase 
A)  the difference between the contract price and the value of the good as it actually is 
B)  The difference between the contract price and the value of the good as it was warranted 
C)  the difference between the contract price and the amount the buyer could receive by reselling the good 
D)  the difference between the value of the good as warranted and the value of the good as it actually is 
E)  the difference between the value of the good before it was purchased and the value in the buyer's hands after purchase

Question 16

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

Accepted Answer

A)  negligence 
B)  comparative negligence 
C)  contributory negligence 
D)  strict liability in tort 
E)  res ipsa loquitur 
A)  negligence 
B)  comparative negligence 
C)  contributory negligence 
D)  strict liability in tort 
E)  res ipsa loquitur

Question 17

When a product is found to be defective because of a failure to warn,it means that:

Accepted Answer

A)  the manufacturer made an unreasonably dangerous product that consumers should have been told about. 
B)  the product would not have been unreasonably dangerous if consumers had been warned about certain dangers of the product. 
C)  a state of the art design is acceptable so long as consumers are warned that there are no safer designs available. 
D)  the manufacturer did not meet its duty to warn against all possible dangers that might exist in connection with a product. 
E)  the manufacturer is liable for the defective product due to its contributory negligence. 
A)  the manufacturer made an unreasonably dangerous product that consumers should have been told about. 
B)  the product would not have been unreasonably dangerous if consumers had been warned about certain dangers of the product. 
C)  a state of the art design is acceptable so long as consumers are warned that there are no safer designs available. 
D)  the manufacturer did not meet its duty to warn against all possible dangers that might exist in connection with a product. 
E)  the manufacturer is liable for the defective product due to its contributory negligence.

Question 18

In terms of the conspicuous display of a warranty disclaimer,the courts construe "conspicuous" as noticeable to the plaintiff.

Accepted Answer

A) True 
 B)False

Question 19

Under strict liability for products liability,all parties in the chain of distribution are potentially liable for injuries caused by a product.

Accepted Answer

A) True 
 B)False

Question 20

The damages recoverable in a strict liability action are governed by federal law.

Accepted Answer

A) True 
 B)False

Exam 19: Warranties and Product Liability

The Magnuson-Moss Warranty Act is administered by the Interstate Commerce Commission (ICC).

It is possible to create an express warranty by accident and with no intent.

A seller's statement of opinion,or "puffing",establishes an express warranty.

Written disclaimers must be conspicuously displayed to be valid.

Strict liability can be effectively disclaimed with a clear and conspicuous disclaimer.

A defect in packaging would exist where a package easily allows a child to access a dangerous medicine or poison.

Which of the following is not necessary in order for the implied warranty of fitness for a particular purpose to apply to a sale of goods?

Any defect present in a manufactured product is considered a defect in manufacture.

Under the consumer expectation test,a food product is unmerchantable if a foreign object in that product causes injury to a person.

The correction of a defect defense generally applies when a product is redesigned.

The implied warranty of merchantability includes a warranty that goods delivered in groups are of a consistent quality.

Article 2A of the Uniform Commercial Code (UCC)establishes warranties that apply to lease transactions.

Which of the following statements would most likely create an express warranty?

Under an implied warranty of merchantability,the goods must be fit for the ordinary purposes for which they are used.

Where a seller has breached a warranty,what is the buyer's normal measure of damages?

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

When a product is found to be defective because of a failure to warn,it means that:

In terms of the conspicuous display of a warranty disclaimer,the courts construe "conspicuous" as noticeable to the plaintiff.

Under strict liability for products liability,all parties in the chain of distribution are potentially liable for injuries caused by a product.

The damages recoverable in a strict liability action are governed by federal law.

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Third-Party Rights and Discharge

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