Exam 20: Product Liability

Jason sold Sally a car manufactured by ABC Corp.After driving the car for a couple hours,Sally found that the brakes did not function properly making it extremely difficult for her to control the car.When she finally reached home,she called Jason demanding her money back.Jason claimed that she should call ABC Corp. ,who was the manufacturer.According to Jason,he was simply selling the car.Which of the following defenses is Jason using to save himself?

If a seller gives a written warranty for a product to a consumer,the warranty must be designated as full or limited.

Strict liability was first promulgated in the Restatement (Second)of Torts in section 402A.

Under the Magnuson-Moss Act,if a seller gives a consumer a full warranty on consumer goods whose price exceeds $10,the seller:

Manufacturers who fail to inspect their products before being shipped can be liable for negligence.

In a chain of distribution involving defective component parts,the parts may move ________ from their manufacturer to the manufacturer of a product in which those parts are used,and then to a wholesaler and a retailer before reaching the eventual buyer.

Under the product liability theory of recovery known as strict liability,which parties may be held liable? (Answer using the majority rule used in most states. )

As demonstrated by the case in the text,Holiday Motor Corp.v.Walters,not all courts recognize the crashworthiness doctrine.However,courts that do recognize this doctrine must determine whether a manufacturer:

John buys a machine for $10,000 under a contract that excludes consequential damages and limits the buyer's remedies to repair and replacement of defective parts.John later discovers that the machine is not working properly.Under these circumstances if the remedy of limitation is enforceable,to what extent will John be successful?

In order to be liable under the implied warranty of merchantability,a seller must be a merchant.

Jones purchased a second hand car from Ralph with an assurance of no problems in the car. If the car turns out to have a mechanical problem,Jones will succeed in his claim under express warranty.

An implied warranty is created by operation of law rather than stated by the seller or written in a contract.

The case in the text,Lincoln Composites,Inc.v.Firetrace USA,LLC,which of the following was not a holding of the court?

The preemption defense rests on a federal supremacy premise-the notion that federal law overrides state law when the two conflict or when state law stands in the way of the objectives underlying federal law.

Lazur Corp.entered into a contract with Baker Suppliers,Inc.to purchase a used word processor from Baker.Lazur was engaged in the business of selling new and used word processors to the general public.The contract required Baker to ship the goods to Lazur by common carrier pursuant to the following provision in the contract: "FOB - Baker Suppliers,Inc.loading dock." Baker also represented in the contract that the word processor had been used for only 10 hours by its previous owner.The contract included the provision that the word processor was being sold "as is" and this provision was in larger and different type style than the remainder of the contract.With regard to the contract between Lazur and Baker:

The case in the text,Giddings & Lewis,Inc.v.Industrial Risk Insurers,is an example of how:

Joe is going on a "survival hike" in the desert.He goes to a sporting goods store,describes the hike,and asks the salesman to select suitable hiking boots for him.The boots the salesman suggests are well made and are appropriate for normal hiking,but are not suitable for Joe's plans.Relying on the salesman's selection,Joe buys the boots.After he suffers personal injury because the boots prove inadequate for the survival hike,Joe sues the store.Joe can recover under:

In the case in the text,Bissinger v.New Country Buffet,what was one reason why the intermediate court held that the trial court's decision to grant the suppliers' motion for summary judgment was proper?

Which of the following statements about the Restatement (Third)of Torts is false?

Which of the following distinguishes the Restatement (Third)from section 402A?