Question 1

The warranty of merchantability is found in Section 402A of the Restatement of the Law of Torts.

Accepted Answer

A) True 
 B)False  False

Question 2

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  True

Question 3

Despite 402A's bar of contributory negligence in strict liability cases, some courts apply comparative negligence to strict liability cases.

Accepted Answer

A) True 
 B)False  True

Question 4

Jennifer purchased a used refrigerator from her next-door neighbor, a mail carrier.When she took it home and plugged it in, the refrigerator burst into flames.The seller in this case is in breach of the implied warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 5

The Code does not permit a seller to seek to impose time limits within which a warranty is effective.

Accepted Answer

A) True 
 B)False

Question 6

Discuss the various means by which states have limited the punitive damages a plaintiff can collect in a product liability lawsuit.

Accepted Answer

a.The Magnuson-Moss Warranty Act is a fe

Question 7

Eric bought a new snowmobile from the North Pole Manufacturing Company.After buying the machine, Eric then modified the spark plugs and a few other things 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 in tort.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 8

Hubert bought heavy-duty, sharp hedge clippers to trim the hedges in his yard.In the process of using the clippers, he severely cut his hand.He is now suing the manufacturer because the clippers are unreasonably dangerous.Can he recover? Explain.

Accepted Answer

It is doubtful that Hubert will be able

Question 9

Bob rented a lawn mower from Scott Rentals.The lawn mower wheel was loose when Bob picked up the mower.When he began to use it, the wheel fell off, causing the mower to tip over onto his foot.Under what theory can Bob hold Scott liable for his injuries?

Accepted Answer

A) Breach of warranty of merchantability. 
B) Strict liability in tort for a defective condition. 
C) Both of the above. 
D) Neither theory is applicable to leases. 
A) Breach of warranty of merchantability. 
B) Strict liability in tort for a defective condition. 
C) Both of the above. 
D) Neither theory is applicable to leases.

Question 10

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.

Question 11

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 12

Jared drives his 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 barred from suing the manufacturer, because he voluntarily assumed the risk of the defective brakes.

Accepted Answer

A) True 
 B)False

Question 13

Define and discuss horizontal and vertical privity.Explain the effect of the Code and the courts on the concept of privity of contract.

Accepted Answer

A principle of law in the nineteenth cen

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 for 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 for 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 16

Ed buys a car from a friend "as is." The friend tells him, "In my opinion, this car is in excellent mechanical condition." The friend has made an express warranty.

Accepted Answer

A) True 
 B)False

Question 17

Misuse or abuse of the product is a defense to an action brought under 402A of the Restatement (Second) of Torts.

Accepted Answer

A) True 
 B)False

Question 18

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 sports car 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 sports car capable of speeds in excess of 150 mph.

Question 19

In Greene v.Boddie-Noell Enterprises, Inc., the court found that the fact that the plaintiff was burned proved the product was dangerously defective.

Accepted Answer

A) True 
 B)False

Question 20

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.In this situation:

Accepted Answer

A) Lydia can sue Karen for breach of the warranty of merchantability, because the exerciser is not fit for the ordinary purpose intended. 
B) Karen can sue the manufacturer for breach of the warranty of merchantability, because she was the original buyer. 
C) Lydia cannot sue Karen for the warranty of merchantability because Karen is not a merchant. 
D) Lydia cannot sue Karen, because they are not in privity of contract. 
A) Lydia can sue Karen for breach of the warranty of merchantability, because the exerciser is not fit for the ordinary purpose intended. 
B) Karen can sue the manufacturer for breach of the warranty of merchantability, because she was the original buyer. 
C) Lydia cannot sue Karen for the warranty of merchantability because Karen is not a merchant. 
D) Lydia cannot sue Karen, because they are not in privity of contract.

Exam 22: Product Liability: Warranties and Strict Liability

The warranty of merchantability is found in Section 402A of the Restatement of the Law of Torts.

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.

Despite 402A's bar of contributory negligence in strict liability cases, some courts apply comparative negligence to strict liability cases.

Jennifer purchased a used refrigerator from her next-door neighbor, a mail carrier.When she took it home and plugged it in, the refrigerator burst into flames.The seller in this case is in breach of the implied warranty of merchantability.

The Code does not permit a seller to seek to impose time limits within which a warranty is effective.

Discuss the various means by which states have limited the punitive damages a plaintiff can collect in a product liability lawsuit.

Hubert bought heavy-duty, sharp hedge clippers to trim the hedges in his yard.In the process of using the clippers, he severely cut his hand.He is now suing the manufacturer because the clippers are unreasonably dangerous.Can he recover? Explain.

Bob rented a lawn mower from Scott Rentals.The lawn mower wheel was loose when Bob picked up the mower.When he began to use it, the wheel fell off, causing the mower to tip over onto his foot.Under what theory can Bob hold Scott liable for his injuries?

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

Jared drives his 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 barred from suing the manufacturer, because he voluntarily assumed the risk of the defective brakes.

Define and discuss horizontal and vertical privity.Explain the effect of the Code and the courts on the concept of privity of contract.

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

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

Ed buys a car from a friend "as is." The friend tells him, "In my opinion, this car is in excellent mechanical condition." The friend has made an express warranty.

Misuse or abuse of the product is a defense to an action brought under 402A of the Restatement (Second) of Torts.

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

In Greene v.Boddie-Noell Enterprises, Inc., the court found that the fact that the plaintiff was burned proved the product was dangerously defective.

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.In this situation:

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

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Transfer of Title and Risk of Loss

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

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Formation and Internal Relations of General Partnerships

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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

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