Question 1

The warranty of fitness for a particular purpose applies only to merchants.

Accepted Answer

A) True 
 B)False

Question 2

Goods sold "with all faults" are sold without the implied warranties of merchantability and fitness for a particular purpose.

Accepted Answer

A) True 
 B)False

Question 3

Under the theory of industry wide liability,when it is impossible to successfully identify the particular manufacturer that caused the harm,courts will:

Accepted Answer

A)  apportion liability among manufacturers based on market share. 
B)  make the plaintiff identify a likely manufacturer. 
C)  withhold liability among the firms in that industry that could have produced the product. 
D)  prohibit further manufacturing of the product. 
A)  apportion liability among manufacturers based on market share. 
B)  make the plaintiff identify a likely manufacturer. 
C)  withhold liability among the firms in that industry that could have produced the product. 
D)  prohibit further manufacturing of the product.

Question 4

A consumer who misuses a product:

Accepted Answer

A)  can hold the manufacturer liable even if the manufacturer uses a defense of strict product liability by knowingly assuming an obvious risk of injury by the consumer. 
B)  may not recover under the theory of strict liability. 
C)  will recover under the theory of strict liability if the misuse was not foreseeable. 
D)  cannot hold the manufacturer liable for not designing the product so that it could not be altered even if the danger it created was foreseeable. 
A)  can hold the manufacturer liable even if the manufacturer uses a defense of strict product liability by knowingly assuming an obvious risk of injury by the consumer. 
B)  may not recover under the theory of strict liability. 
C)  will recover under the theory of strict liability if the misuse was not foreseeable. 
D)  cannot hold the manufacturer liable for not designing the product so that it could not be altered even if the danger it created was foreseeable.

Question 5

Which of the following is a test of merchantability for all sales contracts?

Accepted Answer

A)  The goods conform to any promises or statements of fact made on the container or label. 
B)  The goods are of different kind, quality, and quantity within each unit. 
C)  The goods need not necessarily be packaged or labeled adequately. 
D)  The goods conform to the general description of the goods available in the market. 
A)  The goods conform to any promises or statements of fact made on the container or label. 
B)  The goods are of different kind, quality, and quantity within each unit. 
C)  The goods need not necessarily be packaged or labeled adequately. 
D)  The goods conform to the general description of the goods available in the market.

Question 6

Who among the following are held liable for negligence for failing to inspect and for misrepresenting the character of goods or their fitness for a particular purpose?

Accepted Answer

A)  Retailers 
B)  Manufacturers 
C)  Distributors 
D)  Wholesalers 
A)  Retailers 
B)  Manufacturers 
C)  Distributors 
D)  Wholesalers

Question 7

A few state courts have declared their state's statute of repose unconstitutional because it:

Accepted Answer

A)  gives people time from the date they discover their injury in which to bring their suit. 
B)  refrains people to bring a suit who are injured by products such as asbestos or DES that cause injury immediately. 
C)  denies people the right to seek redress for their injuries when they had no chance to discover their injuries within the statutory period. 
D)  does not bar the bringing of a tort-based product liability suit after a certain number of years from the date the product is first sold to a user. 
A)  gives people time from the date they discover their injury in which to bring their suit. 
B)  refrains people to bring a suit who are injured by products such as asbestos or DES that cause injury immediately. 
C)  denies people the right to seek redress for their injuries when they had no chance to discover their injuries within the statutory period. 
D)  does not bar the bringing of a tort-based product liability suit after a certain number of years from the date the product is first sold to a user.

Question 8

Under the Uniform Commercial Code,the implied warranty of merchantability applies to the sale of food or drink.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true of the Federal Trade Commission (FTC)?

Accepted Answer

A)  It applies to all sellers of a "consumer product" that costs less than $5. 
B)  It requires a seller of consumer goods to give a written warranty, either full or limited. 
C)  It enforces the disclosure provisions of the warranty act and regulations. 
D)  It does not permit consumers to sue the maker for failure to fulfill the terms of the warranty. 
A)  It applies to all sellers of a "consumer product" that costs less than $5. 
B)  It requires a seller of consumer goods to give a written warranty, either full or limited. 
C)  It enforces the disclosure provisions of the warranty act and regulations. 
D)  It does not permit consumers to sue the maker for failure to fulfill the terms of the warranty.

Question 10

The implied warranty of merchantability focuses on whether the goods are fit for a particular purpose.

Accepted Answer

A) True 
 B)False

Exam 20: Warranties and Product Liability

The warranty of fitness for a particular purpose applies only to merchants.

Goods sold "with all faults" are sold without the implied warranties of merchantability and fitness for a particular purpose.

Under the theory of industry wide liability,when it is impossible to successfully identify the particular manufacturer that caused the harm,courts will:

A consumer who misuses a product:

Which of the following is a test of merchantability for all sales contracts?

Who among the following are held liable for negligence for failing to inspect and for misrepresenting the character of goods or their fitness for a particular purpose?

A few state courts have declared their state's statute of repose unconstitutional because it:

Under the Uniform Commercial Code,the implied warranty of merchantability applies to the sale of food or drink.

Which of the following statements is true of the Federal Trade Commission (FTC)?

The implied warranty of merchantability focuses on whether the goods are fit for a particular purpose.

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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