Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 unable to recover from the manufacturer,because he voluntarily assumed the risk of the defective brakes.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

Accepted Answer

A) A chair produced without inserting the appropriate screws. 
B) A product with a defective design that is nevertheless the "state of the art." 
C) Vodka that is 100 proof and makes people drunk and causes liver damage after years of heavy use. 
D) All of the above are defects under 402A. 
A) A chair produced without inserting the appropriate screws. 
B) A product with a defective design that is nevertheless the "state of the art." 
C) Vodka that is 100 proof and makes people drunk and causes liver damage after years of heavy use. 
D) All of the above are defects under 402A.

Question 4

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 or certain circumstances exist. 
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 or certain circumstances exist.

Question 5

An implied warranty exists by operation of law.

Accepted Answer

A) True 
 B)False

Question 6

Terrell asks a salesperson what size of water heater he should buy for a twenty-unit motel.If Terrell purchases a tank based on the salesperson's suggestion,the salesperson's recommendation is:

Accepted Answer

A) an express warranty of merchantability regarding the water heater. 
B) an implied warranty of merchantability regarding the water heater. 
C) an implied warranty of fitness for a particular purpose. 
D) no warranty, but only a statement of opinion. 
A) an express warranty of merchantability regarding the water heater. 
B) an implied warranty of merchantability regarding the water heater. 
C) an implied warranty of fitness for a particular purpose. 
D) no warranty, but only a statement of opinion.

Question 7

Geoff's fiancée,Susan,comes to meet his parents for the weekend.On Saturday morning,while using Geoff's mother's hair dryer,the blower short-circuits sending sparks across the guest room.Susan's angora sweater and her hands are covered with tiny burns.Susan's mother is a lawyer and wants her to sue the seller of the dryer for breach of warranty.Can she?

Accepted Answer

A) No, because horizontal privity would extend only to members of the family. 
B) No, because privity would require that Geoff's mother sue. 
C) Yes, since she is a guest in the home of the buyer, the warranties would extend to her in most states. 
D) Yes, since under the Code all reasonable users are protected from injury. 
A) No, because horizontal privity would extend only to members of the family. 
B) No, because privity would require that Geoff's mother sue. 
C) Yes, since she is a guest in the home of the buyer, the warranties would extend to her in most states. 
D) Yes, since under the Code all reasonable users are protected from injury.

Question 8

An express warranty requires that the warranty be expressed in words.

Accepted Answer

A) True 
 B)False

Question 9

The word "merchantability" must be mentioned in a disclaimer of an implied warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 10

Section 402A of the Restatement applies only if the defective product is unreasonably dangerous.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 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 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 14

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 15

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 16

Leslie purchased 100 flower pots from a local merchant.Warranties which are not included in her sales contract,but exist by "operation of law," are the:

Accepted Answer

A) express warranties. 
B) exclusive warranties. 
C) quasi warranties. 
D) implied warranties. 
A) express warranties. 
B) exclusive warranties. 
C) quasi warranties. 
D) implied warranties.

Question 17

Implied warranties may be excluded by course of performance,course of dealing,or usage of trade.

Accepted Answer

A) True 
 B)False

Question 18

Bradley buys a television set that turns out to be stolen.He can sue the seller for breach of warranty.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

If the buyer inspects the goods before entering into the contract,then implied warranties:

Accepted Answer

A) still apply to any defects. 
B) will in no circumstances be applicable. 
C) do not apply to defects that are apparent upon reasonable inspection. 
D) None of the above. 
A) still apply to any defects. 
B) will in no circumstances be applicable. 
C) do not apply to defects that are apparent upon reasonable inspection. 
D) None of the above.

Exam 22: Product Liability: Warranties and Strict Liability

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

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 unable to recover from the manufacturer,because he voluntarily assumed the risk of the defective brakes.

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

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

An implied warranty exists by operation of law.

Terrell asks a salesperson what size of water heater he should buy for a twenty-unit motel.If Terrell purchases a tank based on the salesperson's suggestion,the salesperson's recommendation is:

An express warranty requires that the warranty be expressed in words.

The word "merchantability" must be mentioned in a disclaimer of an implied warranty of merchantability.

Section 402A of the Restatement applies only if the defective product is unreasonably dangerous.

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

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

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

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

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

Leslie purchased 100 flower pots from a local merchant.Warranties which are not included in her sales contract,but exist by "operation of law," are the:

Implied warranties may be excluded by course of performance,course of dealing,or usage of trade.

Bradley buys a television set that turns out to be stolen.He can sue the seller for breach of warranty.

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

If the buyer inspects the goods before entering into the contract,then implied warranties:

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 and 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

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