Question 1

The use of a sample or model is another means of creating an implied warranty.

Accepted Answer

A) True 
 B)False

Question 2

Eric bought a new snowmobile from the North Pole Manufacturing Company. After buying the machine, Eric then modified it in order to soup it up. In February, just after a snowfall, Eric was driving the snowmobile, when it tipped over, trapping him beneath it. His leg was severely burned. Eric now wants to sue North Pole for strict liability. Eric:

Accepted Answer

A)  will likely win the suit, because of the faulty design of the snowmobile. 
B)  will likely lose the suit, because the machine has been altered since its manufacture. 
C)  has assumed the risk of using the snowmobile. 
D)  cannot sue the manufacturer, because horizontal privity is lacking. 
A)  will likely win the suit, because of the faulty design of the snowmobile. 
B)  will likely lose the suit, because the machine has been altered since its manufacture. 
C)  has assumed the risk of using the snowmobile. 
D)  cannot sue the manufacturer, because horizontal privity is lacking.

Question 3

Which of the following products would impose strict liability in tort according to Section 402A?

Accepted Answer

A)  Popcorn containing large amounts of genuine butter. 
B)  150-proof Virgin Island rum. 
C)  A chainsaw sold with the safety shielding removed. 
D)  A Ferrari capable of speeds in excess of 150 mph. 
A)  Popcorn containing large amounts of genuine butter. 
B)  150-proof Virgin Island rum. 
C)  A chainsaw sold with the safety shielding removed. 
D)  A Ferrari capable of speeds in excess of 150 mph.

Question 4

Fitness for a particular purpose and merchantability are implied warranties that apply only to sales by commercial vendors.

Accepted Answer

A) True 
 B)False

Question 5

Alec buys a car stereo and he later discovers it had been stolen by the seller. He can sue the seller for breach of warranty.

Accepted Answer

A) True 
 B)False

Question 6

Harold drives his brand new car knowing that the brakes are defective and has an accident in which the car is damaged and he is injured. He will likely be unable to recover from the manufacturer, because he voluntarily assumed the risk of the defective brakes.

Accepted Answer

A) True 
 B)False

Question 7

Terrell asks a salesperson what size of water heater he should buy for a twenty-unit motel. If Terrell purchases a tank based on the salesperson's suggestion, the salesperson's recommendation is:

Accepted Answer

A)  an express warranty of merchantability regarding the water heater. 
B)  an implied warranty of merchantability regarding the water heater. 
C)  an implied warranty of fitness for a particular purpose. 
D)  no warranty, but only a statement of opinion. 
A)  an express warranty of merchantability regarding the water heater. 
B)  an implied warranty of merchantability regarding the water heater. 
C)  an implied warranty of fitness for a particular purpose. 
D)  no warranty, but only a statement of opinion.

Question 8

An obligation of the merchant-seller that the goods are reasonably fit for general purposes for which they are manufactured and sold, and the goods are of fair average quality is known as:

Accepted Answer

A)  a warranty of merchantability. 
B)  strict liability. 
C)  an express warranty. 
D)  a warranty of fitness for a particular purpose. 
A)  a warranty of merchantability. 
B)  strict liability. 
C)  an express warranty. 
D)  a warranty of fitness for a particular purpose.

Question 9

Which of the following is not an express warranty?

Accepted Answer

A)  Restating facts or market figures about a product. 
B)  The opinion of an expert in a certain field regarding a product in that field. 
C)  A statement of the product specifications. 
D)  The seller's opinion of the value of goods. 
A)  Restating facts or market figures about a product. 
B)  The opinion of an expert in a certain field regarding a product in that field. 
C)  A statement of the product specifications. 
D)  The seller's opinion of the value of goods.

Question 10

The Code requires that the affirmations, promises, or descriptions the seller makes be relied on by the buyer to be an express warranty.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following does not create an express warranty within the meaning of the Code?

Accepted Answer

A)  A sample. 
B)  A description. 
C)  A promise. 
D)  An offer to buy on credit. 
A)  A sample. 
B)  A description. 
C)  A promise. 
D)  An offer to buy on credit.

Question 12

Which of the following is generally NOT a defense to a claim against a manufacturer under 402A?

Accepted Answer

A)  Contributory negligence on the part of the plaintiff. 
B)  Express voluntary assumption of the risk. 
C)  Misuse or abuse of the product. 
D)  Subsequent alteration of the product by the plaintiff. 
A)  Contributory negligence on the part of the plaintiff. 
B)  Express voluntary assumption of the risk. 
C)  Misuse or abuse of the product. 
D)  Subsequent alteration of the product by the plaintiff.

Question 13

An express warranty requires that the warranty be expressed in words.

Accepted Answer

A) True 
 B)False

Question 14

The Restatement (Third) of Torts: Products Liability has replaced the Second Restatement in all but four of the states.

Accepted Answer

A) True 
 B)False

Question 15

Implied warranties under the Code:

Accepted Answer

A)  depend on the type of contract or sale entered into. 
B)  are a result of specific language in the sales contract. 
C)  continue the common law rule of caveat emptor . 
D)  are intended to protect the seller rather than the buyer. 
A)  depend on the type of contract or sale entered into. 
B)  are a result of specific language in the sales contract. 
C)  continue the common law rule of caveat emptor . 
D)  are intended to protect the seller rather than the buyer.

Question 16

Section 402A imposes strict liability in tort if:

Accepted Answer

A)  the defendant was engaged in the business of selling a product such as the defective one, 
B)  the defect in the product existed when it left the defendant's hands 
C)  the plaintiff sustained physical harm or property damage by using or consuming the product, 
D)  All of these are elements of strict liability in tort. 
A)  the defendant was engaged in the business of selling a product such as the defective one, 
B)  the defect in the product existed when it left the defendant's hands 
C)  the plaintiff sustained physical harm or property damage by using or consuming the product, 
D)  All of these are elements of strict liability in tort.

Question 17

Shirley purchased a used electric pressure cooker from a yard sale in her neighborhood. When she used it for the first time, the pressure cooker  exploded. The seller in this case is in breach of the implied warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 18

Under the CISG, if at the time of entering into the sales contract, the buyer knew or could not have been unaware of the lack of conformity, the seller is not liable for the warranty of particular purpose, ordinary purpose, or sale by sample or model.

Accepted Answer

A) True 
 B)False

Question 19

Geoff's fiancée, Susan, comes to meet his parents for the weekend. On Saturday morning, while using Geoff's mother's hair dryer, the blower short-circuits sending sparks across the guest room. Susan's angora sweater and her hands are covered with tiny burns. Susan's mother is a lawyer and wants her to sue the seller of the dryer for breach of warranty. Can she?

Accepted Answer

A)  No, because horizontal privity would extend only to members of the family. 
B)  No, because privity would require that Geoff's mother sue. 
C)  Yes, since she is a guest in the home of the buyer, the warranties would extend to her in most states. 
D)  Yes, since under the Code all reasonable users are protected from injury. 
A)  No, because horizontal privity would extend only to members of the family. 
B)  No, because privity would require that Geoff's mother sue. 
C)  Yes, since she is a guest in the home of the buyer, the warranties would extend to her in most states. 
D)  Yes, since under the Code all reasonable users are protected from injury.

Question 20

Matt tells Ron that the snow boots he is selling are capable of protection at temperatures of 20° below zero. Ron orders a pair for his trip to Greenland. Upon delivery the box states "will protect your feet in temperatures down to 30° below zero." The first night's temperature goes down to 27 below. Ron suffers frostbite on all of his toes. Ron then sues for breach of warranty. What is the result?

Accepted Answer

A)  Breach, because the latter express warranty is valid. 
B)  No breach because Matt's statement was merely opinion. 
C)  No breach because Matt said 20° below zero. 
D)  No breach because Matt is allowed to be wrong. 
A)  Breach, because the latter express warranty is valid. 
B)  No breach because Matt's statement was merely opinion. 
C)  No breach because Matt said 20° below zero. 
D)  No breach because Matt is allowed to be wrong.

Exam 22: Product Liability Warranties and Strict Liability

The use of a sample or model is another means of creating an implied warranty.

Which of the following products would impose strict liability in tort according to Section 402A?

Fitness for a particular purpose and merchantability are implied warranties that apply only to sales by commercial vendors.

Alec buys a car stereo and he later discovers it had been stolen by the seller. He can sue the seller for breach of warranty.

Harold drives his brand new car knowing that the brakes are defective and has an accident in which the car is damaged and he is injured. He will likely be unable to recover from the manufacturer, because he voluntarily assumed the risk of the defective brakes.

Terrell asks a salesperson what size of water heater he should buy for a twenty-unit motel. If Terrell purchases a tank based on the salesperson's suggestion, the salesperson's recommendation is:

An obligation of the merchant-seller that the goods are reasonably fit for general purposes for which they are manufactured and sold, and the goods are of fair average quality is known as:

Which of the following is not an express warranty?

The Code requires that the affirmations, promises, or descriptions the seller makes be relied on by the buyer to be an express warranty.

Which of the following does not create an express warranty within the meaning of the Code?

Which of the following is generally NOT a defense to a claim against a manufacturer under 402A?

An express warranty requires that the warranty be expressed in words.

The Restatement (Third) of Torts: Products Liability has replaced the Second Restatement in all but four of the states.

Implied warranties under the Code:

Section 402A imposes strict liability in tort if:

Shirley purchased a used electric pressure cooker from a yard sale in her neighborhood. When she used it for the first time, the pressure cooker exploded. The seller in this case is in breach of the implied warranty of merchantability.

Under the CISG, if at the time of entering into the sales contract, the buyer knew or could not have been unaware of the lack of conformity, the seller is not liable for the warranty of particular purpose, ordinary purpose, or sale by sample or model.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance Breach and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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