Question 1

The warranty of title for the sale of goods found in the Code:

Accepted Answer

A) may be excluded with the phrase "as is." 
B) will vest title under Article 2A. 
C) may not be excluded or modified by the seller. 
D) will apply regardless of whether it is provided for in the contract unless the parties have specifically excluded it. 
A) may be excluded with the phrase "as is." 
B) will vest title under Article 2A. 
C) may not be excluded or modified by the seller. 
D) will apply regardless of whether it is provided for in the contract unless the parties have specifically excluded it.

Question 2

An implied warranty exists by operation of law.

Accepted Answer

A) True 
 B)False

Question 3

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) 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) Voluntary assumption of the risk. 
C) Misuse or abuse of the product. 
D) Subsequent alteration of the product by the plaintiff.

Question 4

A warranty of title may be included only by specific language or by certain circumstances.

Accepted Answer

A) True 
 B)False

Question 5

Under comparative negligence, the court apportions damages between parties in proportion to the degree of fault or negligence it finds against them.

Accepted Answer

A) True 
 B)False

Question 6

Comment (m) to Section 402A provides that the basis of strict liability rests solely in tort and, therefore, is not subject to contractual defenses.

Accepted Answer

A) True 
 B)False

Question 7

Under Alternative A of the Code's horizontal privity provision, a corporation may bring a case against the manufacturer of a defective product for breach of the warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 8

Few obstacles to recovery in warranty cases present serious problems to plaintiffs in strict liability actions brought pursuant to Section 402A because this section was drafted largely to avoid such obstacles.

Accepted Answer

A) True 
 B)False

Question 9

Contributory negligence is a defense to a warranty of merchantability cause of action.

Accepted Answer

A) True 
 B)False

Question 10

Mark tells Leslie that his stereo has quadraphonic speakers because he was told that when he bought it.Leslie buys the stereo, but it does not have quadraphonic speakers.Is Mark liable for breach of warranty?

Accepted Answer

A) No, because he did not know his statement was false. 
B) No, because he did not promise her that the speakers were quadraphonic. 
C) Yes, because the statement was false. 
D) Yes, because Mark was not acting in good faith. 
A) No, because he did not know his statement was false. 
B) No, because he did not promise her that the speakers were quadraphonic. 
C) Yes, because the statement was false. 
D) Yes, because Mark was not acting in good faith.

Question 11

Whether an implied warranty arises out of the circumstances under which the parties enter into a contract may depend on:

Accepted Answer

A) the type of contract entered into. 
B) the seller's merchant or non-merchant status. 
C) applicability of other statutes. 
D) All of the above. 
E) None of the above. 
A) the type of contract entered into. 
B) the seller's merchant or non-merchant status. 
C) applicability of other statutes. 
D) All of the above. 
E) None of the above.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

In bringing a warranty action, the buyer must prove that:

Accepted Answer

A) a warranty existed. 
B) the warranty has been breached. 
C) the breach of the warranty proximately caused the loss suffered. 
D) All of the above. 
E) None of the above. 
A) a warranty existed. 
B) the warranty has been breached. 
C) the breach of the warranty proximately caused the loss suffered. 
D) All of the above. 
E) None of the above.

Question 14

Horizontal privity pertains to remote sellers within the chain of distribution.

Accepted Answer

A) True 
 B)False

Question 15

The main provision of the Restatement (Third) of Torts, Section 2, recognizes three types of product defects: manufacturing defects, design defects, and failure to warn.

Accepted Answer

A) True 
 B)False

Question 16

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) the product reaches the consumer without substantial change in the condition in which it is sold. 
D) the consumer abuses the product. 
A) the consumer misuses the product. 
B) the consumer alters the product before he or she uses it. 
C) the product reaches the consumer without substantial change in the condition in which it is sold. 
D) the consumer abuses the product.

Question 17

Statutes of repose were enacted to give consumers more rights against large manufacturers.

Accepted Answer

A) True 
 B)False

Question 18

In the In Re L.B.Trucking, Inc.case:

Accepted Answer

A) warranty provisions of the UCC did not apply because the sale of goods was merely incidental to the service aspect of the contract. 
B) Thomas's statements were found by the court to be mere puffing or sales talk. 
C) Southern States was found to have breached both express and implied warranties. 
D) Durham did not rely on Thomas's statements, so they could not be considered warranties. 
A) warranty provisions of the UCC did not apply because the sale of goods was merely incidental to the service aspect of the contract. 
B) Thomas's statements were found by the court to be mere puffing or sales talk. 
C) Southern States was found to have breached both express and implied warranties. 
D) Durham did not rely on Thomas's statements, so they could not be considered warranties.

Question 19

An express warranty within the meaning of the Code is created by which of the following?

Accepted Answer

A) A sample. 
B) A description. 
C) A promise. 
D) All of the above. 
A) A sample. 
B) A description. 
C) A promise. 
D) All of the above.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 22: Product Liability: Warranties and Strict Liability

The warranty of title for the sale of goods found in the Code:

An implied warranty exists by operation of law.

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

A warranty of title may be included only by specific language or by certain circumstances.

Under comparative negligence, the court apportions damages between parties in proportion to the degree of fault or negligence it finds against them.

Comment (m) to Section 402A provides that the basis of strict liability rests solely in tort and, therefore, is not subject to contractual defenses.

Under Alternative A of the Code's horizontal privity provision, a corporation may bring a case against the manufacturer of a defective product for breach of the warranty of merchantability.

Few obstacles to recovery in warranty cases present serious problems to plaintiffs in strict liability actions brought pursuant to Section 402A because this section was drafted largely to avoid such obstacles.

Contributory negligence is a defense to a warranty of merchantability cause of action.

Mark tells Leslie that his stereo has quadraphonic speakers because he was told that when he bought it.Leslie buys the stereo, but it does not have quadraphonic speakers.Is Mark liable for breach of warranty?

Whether an implied warranty arises out of the circumstances under which the parties enter into a contract may depend on:

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

In bringing a warranty action, the buyer must prove that:

Horizontal privity pertains to remote sellers within the chain of distribution.

The main provision of the Restatement (Third) of Torts, Section 2, recognizes three types of product defects: manufacturing defects, design defects, and failure to warn.

Product liability exists if:

Statutes of repose were enacted to give consumers more rights against large manufacturers.

In the In Re L.B.Trucking, Inc.case:

An express warranty within the meaning of the Code is created by which of the following?

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

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

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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