Question 1

If the seller of goods is an expert and gives an opinion with regard to the goods, the seller may be liable for breach of warranty.

Accepted Answer

A) True 
 B)False

Question 2

Karen decided to sell her stair step exerciser, because she wasn't using it as much as she thought she would. Her friend Lydia bought it from Karen for $100. The first day that Lydia used the exerciser, it fell apart, injuring Lydia's ankle. Lydia:

Accepted Answer

A)  can sue Karen for breach of the warranty of merchantability, because the exerciser is not fit for the ordinary purpose intended. 
B)  cannot sue Karen for breach of the warranty of merchantability, because Karen did not expressly warrant the quality of the exerciser. 
C)  cannot sue Karen for the warranty of merchantability because this warranty was not implied in this situation. 
D)  cannot sue Karen, because they are not in privity of contract. 
A)  can sue Karen for breach of the warranty of merchantability, because the exerciser is not fit for the ordinary purpose intended. 
B)  cannot sue Karen for breach of the warranty of merchantability, because Karen did not expressly warrant the quality of the exerciser. 
C)  cannot sue Karen for the warranty of merchantability because this warranty was not implied in this situation. 
D)  cannot sue Karen, because they are not in privity of contract.

Question 3

Strict product liability exists if:

Accepted Answer

A)  the consumer misuses the product. 
B)  the consumer alters the product before he or she uses it. 
C)  a defective, unreasonably dangerous product reaches the consumer or user without substantial change in the condition in which it is sold. 
D)  the consumer gives the manufacturer or seller notice of the defect. 
A)  the consumer misuses the product. 
B)  the consumer alters the product before he or she uses it. 
C)  a defective, unreasonably dangerous product reaches the consumer or user without substantial change in the condition in which it is sold. 
D)  the consumer gives the manufacturer or seller notice of the defect.

Question 4

An implied warranty is found in the language of a sales contract.

Accepted Answer

A) True 
 B)False

Question 5

a. What is the Magnuson-Moss Warranty Act? What is its purpose? 
b. What is a statute of repose? Why have some states adopted such statutes?

Accepted Answer

a. The Magnuson-Moss Warranty Act is a f

Question 6

The UCC permits a seller to limit or modify the buyer's remedies for breach of warranty:

Accepted Answer

A)  in all cases. 
B)  except for unconscionable limitations or exclusions of consequential damages. 
C)  in no cases, as this would be contrary to public policy. 
D)  except when the seller seeks to limit the time within which the warranty is effective. 
A)  in all cases. 
B)  except for unconscionable limitations or exclusions of consequential damages. 
C)  in no cases, as this would be contrary to public policy. 
D)  except when the seller seeks to limit the time within which the warranty is effective.

Question 7

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

Accepted Answer

A)  A chair produced without inserting the appropriate screws. 
B)  A product with a defective design that is nevertheless the "state of the art." 
C)  Vodka that is 100 proof and makes people drunk and causes liver damage after years of heavy use. 
D)  A plastic chair that breaks when a 350 pound man sits in it. 
A)  A chair produced without inserting the appropriate screws. 
B)  A product with a defective design that is nevertheless the "state of the art." 
C)  Vodka that is 100 proof and makes people drunk and causes liver damage after years of heavy use. 
D)  A plastic chair that breaks when a 350 pound man sits in it.

Question 8

Both design and manufacturing defects can subject a manufacturer or seller to product liability.

Accepted Answer

A) True 
 B)False

Question 9

The liability of manufacturers and sellers of goods for a defective product or for its failure to perform adequately may be based on one or more of the following: negligence, misrepresentation, violation of a statutory duty, warranty, and strict liability in tort.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is NOT included within the Code definition of merchantability?

Accepted Answer

A)  Reasonably fit for the ordinary purposes for which the goods are used. 
B)  Pass without objection in the trade under the contract description. 
C)  In the case of fungible goods that they be of a quality that exceeds the description and be above average. 
D)  Be of fair, average quality. 
A)  Reasonably fit for the ordinary purposes for which the goods are used. 
B)  Pass without objection in the trade under the contract description. 
C)  In the case of fungible goods that they be of a quality that exceeds the description and be above average. 
D)  Be of fair, average quality.

Question 11

Barry buys a car from a dealer, which is sold to him "as is" and "with all faults." The next day, the engine blows up. Barry can sue the dealer for breach of the implied warranty of fitness.

Accepted Answer

A) True 
 B)False

Question 12

Under the CISG, the seller must deliver goods, unless otherwise agreed, that are fit for the purposes for which goods of the same description would ordinarily be used.

Accepted Answer

A) True 
 B)False

Question 13

a. Under the Code, what constitutes an "express" warranty? How does an express warranty arise? 
b. Which of the following would be an express warranty? Explain. 
(1) "This is the best computer available in town." 
(2) "This car has new brakes." 
(3) "This sample is just like the one in the box." 
(4) "In my opinion, this is a better video recorder than the one made by RCA." 
(5) "As a mechanic, I think this car is in good running order and should give you no problems for at least three months."

Accepted Answer

a. An express warranty is an explicit un

Exam 22: Product Liability Warranties and Strict Liability

If the seller of goods is an expert and gives an opinion with regard to the goods, the seller may be liable for breach of warranty.

Karen decided to sell her stair step exerciser, because she wasn't using it as much as she thought she would. Her friend Lydia bought it from Karen for $100. The first day that Lydia used the exerciser, it fell apart, injuring Lydia's ankle. Lydia:

Strict product liability exists if:

An implied warranty is found in the language of a sales contract.

a. What is the Magnuson-Moss Warranty Act? What is its purpose? b. What is a statute of repose? Why have some states adopted such statutes?

The UCC permits a seller to limit or modify the buyer's remedies for breach of warranty:

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

Both design and manufacturing defects can subject a manufacturer or seller to product liability.

The liability of manufacturers and sellers of goods for a defective product or for its failure to perform adequately may be based on one or more of the following: negligence, misrepresentation, violation of a statutory duty, warranty, and strict liability in tort.

Which of the following is NOT included within the Code definition of merchantability?

Barry buys a car from a dealer, which is sold to him "as is" and "with all faults." The next day, the engine blows up. Barry can sue the dealer for breach of the implied warranty of fitness.

Under the CISG, the seller must deliver goods, unless otherwise agreed, that are fit for the purposes for which goods of the same description would ordinarily be used.

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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