Question 1

It does not matter whether or not the buyer dealt directly with the manufacturer because:

Accepted Answer

A)  the obvious danger rule is not used anymore as defense. 
B)  liability based on negligence does not involve a contractual relationship. 
C)  the manufacturer's duty of care does not extend to all persons who might foreseeably be injured. 
D)  obviousness of the danger is not a factor that is considered in determining liability. 
A)  the obvious danger rule is not used anymore as defense. 
B)  liability based on negligence does not involve a contractual relationship. 
C)  the manufacturer's duty of care does not extend to all persons who might foreseeably be injured. 
D)  obviousness of the danger is not a factor that is considered in determining liability. B

Question 2

In order to exclude the implied warranty of merchantability,the seller must put the exclusion in writing.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following requirements must be satisfied by the sellers according to the Magnuson-Moss Warranty Act and the Federal Trade Commission (FTC)guidelines when they give a written warranty?

Accepted Answer

A)  It should be included in more than one document. 
B)  It should include a clear description of what is covered, but never include what is excluded from the warranty. 
C)  It should include the time the warranty begins and its duration. 
D)  It should allow the seller to choose between a refund and a replacement after the product has been repaired a number of times. 
A)  It should be included in more than one document. 
B)  It should include a clear description of what is covered, but never include what is excluded from the warranty. 
C)  It should include the time the warranty begins and its duration. 
D)  It should allow the seller to choose between a refund and a replacement after the product has been repaired a number of times. C

Question 4

If a consumer brings suit against the manufacturer,the retailer is relieved of its responsibility for the fitness and merchantability of the goods.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of strict liability?

Accepted Answer

A)  Courts never hold the retailer liable if the manufacturer is available for suit. 
B)  The application of strict liability varies among states. 
C)  Most states hold that plaintiffs can recover for purely economic losses under strict liability. 
D)  The essential element for strict product liability is that the product is not defective. 
A)  Courts never hold the retailer liable if the manufacturer is available for suit. 
B)  The application of strict liability varies among states. 
C)  Most states hold that plaintiffs can recover for purely economic losses under strict liability. 
D)  The essential element for strict product liability is that the product is not defective.

Question 6

Which of the following statements is true of the obvious danger rule in the context of product liability?

Accepted Answer

A)  Traditionally, middlemen had a duty to warn customers of obvious dangers. 
B)  It has to be implemented more frequently in order to be effective. 
C)  A manufacturer need not issue a warning even after learning that the product is dangerous. 
D)  It holds that the unmistakable presence of danger is a factor in determining liability. 
A)  Traditionally, middlemen had a duty to warn customers of obvious dangers. 
B)  It has to be implemented more frequently in order to be effective. 
C)  A manufacturer need not issue a warning even after learning that the product is dangerous. 
D)  It holds that the unmistakable presence of danger is a factor in determining liability.

Question 7

Under the Magnuson-Moss Warranty Act and the Federal Trade Commission (FTC)regulations,the seller is not required to give a written warranty.

Accepted Answer

A) True 
 B)False

Question 8

A court is most likely to find a disclaimer of warranty unconscionable:

Accepted Answer

A)  if the goods sold "as is" or "with all faults" are sold without any warranties. 
B)  if the plaintiff is a merchant trying to recover for property damage or economic loss. 
C)  in the case of a conspicuous disclaimer. 
D)  in the case of a personally injured consumer. 
A)  if the goods sold "as is" or "with all faults" are sold without any warranties. 
B)  if the plaintiff is a merchant trying to recover for property damage or economic loss. 
C)  in the case of a conspicuous disclaimer. 
D)  in the case of a personally injured consumer.

Question 9

An express warranty is created when a seller:

Accepted Answer

A)  makes an affirmation of fact or promise concerning the goods that becomes part of the basis of the bargain. 
B)  uses descriptive terms as a part of the bargaining process, but the buyer does not take it into consideration when making the purchase. 
C)  sells goods meant for use for ordinary purposes. 
D)  avoids using a sample or model as the basis for the contract. 
A)  makes an affirmation of fact or promise concerning the goods that becomes part of the basis of the bargain. 
B)  uses descriptive terms as a part of the bargaining process, but the buyer does not take it into consideration when making the purchase. 
C)  sells goods meant for use for ordinary purposes. 
D)  avoids using a sample or model as the basis for the contract.

Question 10

Define the different situations in which courts can hold manufacturers liable for negligence.

Accepted Answer

The basic rule of negligence is that a p

Question 11

Which of the following is true of a statute of repose?

Accepted Answer

A)  It is a significant change in the law for people who are injured by products that cause immediate injury. 
B)  It bars the bringing of a tort-based product liability suit usually after five years from the date the product is first sold to a user. 
C)  The people covered by statutes of repose now can bring suit even if their injury is not discovered within the statutory period. 
D)  The tort statute of limitations gives people one or two years from the time they discover their injury in which to bring their suit. 
A)  It is a significant change in the law for people who are injured by products that cause immediate injury. 
B)  It bars the bringing of a tort-based product liability suit usually after five years from the date the product is first sold to a user. 
C)  The people covered by statutes of repose now can bring suit even if their injury is not discovered within the statutory period. 
D)  The tort statute of limitations gives people one or two years from the time they discover their injury in which to bring their suit.

Question 12

A seller may create an express warranty by merely giving an opinion.

Accepted Answer

A) True 
 B)False

Question 13

A full warranty means:

Accepted Answer

A)  it excludes and limits payments for consequential damages. 
B)  the warrantor will fix or replace any defective product free of charge. 
C)  it has to cover the whole product and not cover only part of the product. 
D)  the warrantor is required to fulfill the warranty terms if the problem was caused by damage to the product through unreasonable use. 
A)  it excludes and limits payments for consequential damages. 
B)  the warrantor will fix or replace any defective product free of charge. 
C)  it has to cover the whole product and not cover only part of the product. 
D)  the warrantor is required to fulfill the warranty terms if the problem was caused by damage to the product through unreasonable use.

Question 14

When a seller uses descriptive terms and the buyer takes them into consideration when making the purchase,the seller has expressly warranted that the goods she delivers will meet that description.

Accepted Answer

A) True 
 B)False

Question 15

Implied warranties:

Accepted Answer

A)  imposed by law are absolute. 
B)  protect the buyer in ownership of the goods bought. 
C)  warrant that the goods are free of any liens or claims of other parties. 
D)  establish certain responsibilities on the seller for the quality of the goods sold. 
A)  imposed by law are absolute. 
B)  protect the buyer in ownership of the goods bought. 
C)  warrant that the goods are free of any liens or claims of other parties. 
D)  establish certain responsibilities on the seller for the quality of the goods sold.

Question 16

The warranty of title differs from other warranties in that it protects buyers in ownership of the goods bought.

Accepted Answer

A) True 
 B)False

Question 17

A manufacturer who is sued on the basis of industry wide liability may try to defend on the grounds that:

Accepted Answer

A)  it manufactured the product that caused the injury to the plaintiff. 
B)  it manufactured the product with a disclaimer. 
C)  the risks from its product were lower than those from other manufacturers. 
D)  the market share of its product was more than alleged by the plaintiff. 
A)  it manufactured the product that caused the injury to the plaintiff. 
B)  it manufactured the product with a disclaimer. 
C)  the risks from its product were lower than those from other manufacturers. 
D)  the market share of its product was more than alleged by the plaintiff.

Question 18

Implied warranties imposed by law are absolute.

Accepted Answer

A) True 
 B)False

Question 19

Salman,a high-school senior,bit into a chicken bone in a chicken burger in his high-school cafeteria.He had difficulty in breathing,and with some effort,expelled a small bone from his throat.He hurt his esophagus and had to be hospitalized for a few days.Salman brought suit against the school,claiming breach of warranty of merchantability in the food served to him in the cafeteria.What test should be applied to determine whether there was a breach of warranty of merchantability because of the presence of a bone in the meal served to Salman?

Accepted Answer

Students' answers may vary.Some courts,u

Question 20

All states hold that plaintiffs can recover for purely economic losses under strict liability.

Accepted Answer

A) True 
 B)False

Exam 20: Warranties and Product Liability

It does not matter whether or not the buyer dealt directly with the manufacturer because:

In order to exclude the implied warranty of merchantability,the seller must put the exclusion in writing.

Which of the following requirements must be satisfied by the sellers according to the Magnuson-Moss Warranty Act and the Federal Trade Commission (FTC)guidelines when they give a written warranty?

If a consumer brings suit against the manufacturer,the retailer is relieved of its responsibility for the fitness and merchantability of the goods.

Which of the following is true of strict liability?

Which of the following statements is true of the obvious danger rule in the context of product liability?

Under the Magnuson-Moss Warranty Act and the Federal Trade Commission (FTC)regulations,the seller is not required to give a written warranty.

A court is most likely to find a disclaimer of warranty unconscionable:

An express warranty is created when a seller:

Define the different situations in which courts can hold manufacturers liable for negligence.

Which of the following is true of a statute of repose?

A seller may create an express warranty by merely giving an opinion.

A full warranty means:

When a seller uses descriptive terms and the buyer takes them into consideration when making the purchase,the seller has expressly warranted that the goods she delivers will meet that description.

Implied warranties:

The warranty of title differs from other warranties in that it protects buyers in ownership of the goods bought.

A manufacturer who is sued on the basis of industry wide liability may try to defend on the grounds that:

Implied warranties imposed by law are absolute.

All states hold that plaintiffs can recover for purely economic losses under strict liability.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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