Question 1

The Consumer Product Safety Improvement Act of 2008 includes rules covering the resale of goods such as in a garage sale.

Accepted Answer

A) True 
 B)False

Question 2

A consent decree is similar to a no-contest plea in a criminal proceeding.

Accepted Answer

A) True 
 B)False

Question 3

The Federal Trade Commission does not have the authority to halt deceptive ads.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following terms is not an express warranty?

Accepted Answer

A) "nonskid" 
B) "nonbreakable" 
C) "shelled" 
D) All of the above are express warranties. 
A) "nonskid" 
B) "nonbreakable" 
C) "shelled" 
D) All of the above are express warranties.

Question 5

Proof of negligence in product design or manufacture allows recovery of punitive damages.

Accepted Answer

A) True 
 B)False

Question 6

Describe three defenses to product liability.

Accepted Answer

Misuse of the product,unless the misuse

Question 7

The opposite of caveat emptor is:

Accepted Answer

A) negligence. 
B) privity requirements. 
C) strict tort liability. 
D) none of the above 
A) negligence. 
B) privity requirements. 
C) strict tort liability. 
D) none of the above

Question 8

Stating a lamp is a "Tiffany lamp" and stating it is "in the Tiffany style" are both making the same kind of warranty.

Accepted Answer

A) True 
 B)False

Question 9

Privity in negligence product liability cases is:

Accepted Answer

A) not required. 
B) more stringent than in UCC cases. 
C) determined by the relationship of the injured party to the buyer. 
D) none of the above 
A) not required. 
B) more stringent than in UCC cases. 
C) determined by the relationship of the injured party to the buyer. 
D) none of the above

Question 10

The term "AS THEY STAND" serves to disclaim:

Accepted Answer

A) the implied warranty of merchantability. 
B) the implied warranty of fitness for a particular purpose. 
C) both a and b 
D) none of the above unless it is in writing 
A) the implied warranty of merchantability. 
B) the implied warranty of fitness for a particular purpose. 
C) both a and b 
D) none of the above unless it is in writing

Question 11

The following warning appears on a sticker attached to a hover board: ​
Risk of Death and Serious Injury
Whenever you ride on vehicle,you risk injured [sic] from loss of controls [sic] and fallings [sic].To ride safely,you must read and follow all the instructions and warnings in this user manual.
​What is the effect of the warning?

Accepted Answer

A) ​The warning serves to disclaim the liability of the manufacturer of the hover board for injuries resulting from use. 
B) ​The warning serves to disclaim the liability of the manufacturer of the hover board for injuries resulting from the failure to follow the manual. 
C) The warning serves to disclaim the liability of the manufacturer for all use and design defects. 
D) The warning serves to disclaim the liability of the manufacturer for all express and implied warranties. 
A) ​The warning serves to disclaim the liability of the manufacturer of the hover board for injuries resulting from use. 
B) ​The warning serves to disclaim the liability of the manufacturer of the hover board for injuries resulting from the failure to follow the manual. 
C) The warning serves to disclaim the liability of the manufacturer for all use and design defects. 
D) The warning serves to disclaim the liability of the manufacturer for all express and implied warranties.

Question 12

"These dresses are 100% cotton" is an example of an express warranty.

Accepted Answer

A) True 
 B)False

Question 13

Section 402A covers:

Accepted Answer

A) manufacturers. 
B) retailers. 
C) those who sell products out of their home. 
D) all of the above 
A) manufacturers. 
B) retailers. 
C) those who sell products out of their home. 
D) all of the above

Question 14

Privity of contract is a direct contractual relationship between the parties.

Accepted Answer

A) True 
 B)False

Question 15

The implied warranty of merchantability requires:

Accepted Answer

A) proof that the seller is a merchant. 
B) proof that the buyer relied on a merchant. 
C) proof of a defective product. 
D) all of the above 
A) proof that the seller is a merchant. 
B) proof that the buyer relied on a merchant. 
C) proof of a defective product. 
D) all of the above

Question 16

The foreign/natural test for food items is different from the liability issues under the reasonable expectation test.

Accepted Answer

A) True 
 B)False

Question 17

Proof that a manufacturer was aware of a defect in its product but did not correct it is proof of negligence.

Accepted Answer

A) True 
 B)False

Question 18

The turf materials used to provide surface cushioning on children's playgrounds have been found to contain lead at levels high enough to harm children.There are 11,000 so-called "rubber crumb" playgrounds in the United States and the lead levels were found in all manufacturers' products.The levels around the fields may not be dangerous,but the "crumbs" break off and if those crumbs are ingested by children,lead levels could be dangerous.Which of the following statements is true?​

Accepted Answer

A) ​The manufacturers of the rubber crumb playgrounds could be liable for lead injuries to children even if they were unaware of the lead presence or risk. 
B) ​The manufacturers of the rubber crumb playgrounds would not be liable to the children because there is no privity of contract. 
C) Unless the manufacturers of the rubber crumb playgrounds made "lead-free" claims, they would not be liable for any injuries to the children. 
D) both b and c 
A) ​The manufacturers of the rubber crumb playgrounds could be liable for lead injuries to children even if they were unaware of the lead presence or risk. 
B) ​The manufacturers of the rubber crumb playgrounds would not be liable to the children because there is no privity of contract. 
C) Unless the manufacturers of the rubber crumb playgrounds made "lead-free" claims, they would not be liable for any injuries to the children. 
D) both b and c

Question 19

Coca-Cola found a fungicide in its Simply Orange and Minute Maid orange juices.The fungicide was the result of a spray used by Brazilian orange growers who then sold their oranges to Coca-Cola.Which best describes Coca-Cola's liability to customers who purchase the juice?

Accepted Answer

A) Coca-Cola is not liable because it did not know about the fungicide. 
B) The Brazilian growers are not liable because there is no privity with the juice purchasers. 
C) Coca-Cola is liable for a defect in its products. 
D) Coca-Cola is liable under tort theory but not contract. 
A) Coca-Cola is not liable because it did not know about the fungicide. 
B) The Brazilian growers are not liable because there is no privity with the juice purchasers. 
C) Coca-Cola is liable for a defect in its products. 
D) Coca-Cola is liable under tort theory but not contract.

Question 20

Product packaging stating that the line is "ideal for use on boat or dock" is mere puffery and not an express warranty.

Accepted Answer

A) True 
 B)False

The Consumer Product Safety Improvement Act of 2008 includes rules covering the resale of goods such as in a garage sale.

A consent decree is similar to a no-contest plea in a criminal proceeding.

The Federal Trade Commission does not have the authority to halt deceptive ads.

Which of the following terms is not an express warranty?

Proof of negligence in product design or manufacture allows recovery of punitive damages.

Describe three defenses to product liability.

The opposite of caveat emptor is:

Stating a lamp is a "Tiffany lamp" and stating it is "in the Tiffany style" are both making the same kind of warranty.

Privity in negligence product liability cases is:

The term "AS THEY STAND" serves to disclaim:

"These dresses are 100% cotton" is an example of an express warranty.

Section 402A covers:

Privity of contract is a direct contractual relationship between the parties.

The implied warranty of merchantability requires:

The foreign/natural test for food items is different from the liability issues under the reasonable expectation test.

Proof that a manufacturer was aware of a defect in its product but did not correct it is proof of negligence.

Coca-Cola found a fungicide in its Simply Orange and Minute Maid orange juices.The fungicide was the result of a spray used by Brazilian orange growers who then sold their oranges to Coca-Cola.Which best describes Coca-Cola's liability to customers who purchase the juice?

Product packaging stating that the line is "ideal for use on boat or dock" is mere puffery and not an express warranty.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Exam 13: Product Advertising and Liability

The Consumer Product Safety Improvement Act of 2008 includes rules covering the resale of goods such as in a garage sale.

A consent decree is similar to a no-contest plea in a criminal proceeding.

The Federal Trade Commission does not have the authority to halt deceptive ads.

Which of the following terms is not an express warranty?

Proof of negligence in product design or manufacture allows recovery of punitive damages.

Describe three defenses to product liability.

The opposite of caveat emptor is:

Stating a lamp is a "Tiffany lamp" and stating it is "in the Tiffany style" are both making the same kind of warranty.

Privity in negligence product liability cases is:

The term "AS THEY STAND" serves to disclaim:

"These dresses are 100% cotton" is an example of an express warranty.

Section 402A covers:

Privity of contract is a direct contractual relationship between the parties.

The implied warranty of merchantability requires:

The foreign/natural test for food items is different from the liability issues under the reasonable expectation test.

Proof that a manufacturer was aware of a defect in its product but did not correct it is proof of negligence.

Coca-Cola found a fungicide in its Simply Orange and Minute Maid orange juices.The fungicide was the result of a spray used by Brazilian orange growers who then sold their oranges to Coca-Cola.Which best describes Coca-Cola's liability to customers who purchase the juice?

Product packaging stating that the line is "ideal for use on boat or dock" is mere puffery and not an express warranty.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Business Competition: Antitrust

Business and Intellectual Property Law

Management of Employee Conduct: Agency

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters