Exam 16: Warranties and Product Liability

Dependable Appliances,Inc.,and Elaine enter into a contract for a sale of kitchen appliances.Dependable,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability.Under the UCC,this means that the goods are reasonably

A manufacturer's duty of care extends to the inspection and test-ing of products bought to incorporate in the final product.

Bob is shopping in Carl's Hardware Store when a nail gun in use by Dan,one of Carl's employees,fires without warning and hits Bob in the leg.Carl checks the gun and discovers that it was assembled improperly.Bob files a suit against Eagle Tools,Inc.,the manufacturer of the gun,for product liability,on the ground of strict liability.What are the elements for an action based on strict liability? In whose favor is the court likely to rule and why?

John is an art dealer with special expertise in modern art.Rachel comes to John's gallery to purchase a modern art painting as an investment.John showsher several paintings that he says are high quality and will increase in value in the next ten years.John's statement is

Krissa,a horse breeder,shows Maggie,a customer looking for a new stallion for her breeding program,a stallion and tells her that the stallion is very fertile and can easily breed twenty mares per year.Krissa's statement is

Mountain Bikes,Inc.(MBI),and Nero enter into a contract for a sale of a mountain bike.MBI,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by

ValuRich Tools,Inc.,sells tools,tool parts,and related supplies under "full" warranties.Under the Magnuson-Moss Warranty Act,this means that ValuRich must provide

Promises of fact made during the bargaining process are express warranties.

The brakes on a River Valley Railroad train malfunction and it rolls towards main-te-nance workers on the tracks.Everyone gets out of the way except Dick,who wants to show off.The train hits Dick,who sues Stops-it,Inc.,the brakes' manufacturer.Stops-it can raise the defense ofThe brakes on a River Valley Railroad train malfunction and it rolls towards main-te-nance workers on the tracks.Everyone gets out of the way except Dick,who wants to show off.The train hits Dick,who sues Stops-it,Inc.,the brakes' manufacturer.Stops-it can raise the defense of

A seller does not have to use words such as "warrant" to make an express warranty.

To support the imposition of strict product liability,a product must be substantially changed from the time it is sold to the time an injury occurs.

Recovery in a product liability case may be limited when it can be shown that the plaintiff misused the product.

Toyoda Company buys gas pedals and other parts from suppliers and puts them in its vehicles without changing their composition.If the pedals or other parts are defective,strictly liable for any damage caused by the defects are

Suppliers are generally required to expect reasonably foreseeable misuses of their products.

Barry buys a bulldozer from Big Sandbox Equipment Company.Barry is unaware that there is a lien against the bulldozer when he buys it.Under the UCC,if the creditor reposes the bulldozer,Barry

In sales law,a warranty is an assurance by one party of the existence of a fact on which the other party can rely.

Regal Autos,Inc.,sells cars to consumers.To avoid liability for oral ex-press warranties,each sales agreement should note that a car is sold

Dwayne,an electrician,files a suit against Electro Mechanix,Inc.,alleging that its circuit breakers are unreasonably dangerous due to the possibility of electrical shock.Dwayne's suit is most likely to

Goldtone Corporation makes cell phones.Haji files a product liabil-ity suit against Goldtone,alleging a design defect.In deciding whether to hold Goldtone liable,the court may consider an alternative design's

Fred goes to Carla,a knowledgeable dog breeder,and tells her that he wants to get a dog that will be good with small children.Carla sells Fred a dog.When Fred takes the dog home,it bites both his small children and causes them serious injuries.Fred can sue Carla for breach of