Question 1

Which of the following products would impose strict liability in tort according to Section 402A?

Accepted Answer

A) Popcorn containing large amounts of genuine butter. 
B) 150-proof Virgin Island rum. 
C) A chainsaw sold with the safety shielding removed. 
D) A Ferrari capable of speeds in excess of 150 mph. 
A) Popcorn containing large amounts of genuine butter. 
B) 150-proof Virgin Island rum. 
C) A chainsaw sold with the safety shielding removed. 
D) A Ferrari capable of speeds in excess of 150 mph.

Question 2

Which of the following is not an express warranty?

Accepted Answer

A) Restating facts or market figures about a product. 
B) The opinion of an expert in a certain field regarding a product in that field. 
C) A statement of the product specifications. 
D) The seller's opinion of the value of goods. 
A) Restating facts or market figures about a product. 
B) The opinion of an expert in a certain field regarding a product in that field. 
C) A statement of the product specifications. 
D) The seller's opinion of the value of goods.

Question 3

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 4

Article 2A carries over the warranty provisions of Article 2 with relatively minor revisions that reflect differences in:

Accepted Answer

A) style. 
B) leasing terminology. 
C) leasing practices. 
D) All of the above. 
E) (a) and (c) but not (b) 
A) style. 
B) leasing terminology. 
C) leasing practices. 
D) All of the above. 
E) (a) and (c) but not (b)

Question 5

Alice is browsing in a commercial art gallery when she sees a painting that she likes.Arthur,who is the manager of the gallery,tells her that in his opinion the painting is a genuine Leroy Neiman work.Based upon that representation,Alice buys the work for $5,000.She later discovers that the painting is only a cheap copy of the original that is worth no more than $50.Arthur has:

Accepted Answer

A) breached an express warranty to Alice that the painting is a Neiman work. 
B) breached the warranty of merchantability. 
C) not breached a warranty because he was merely expressing his opinion. 
D) breached an express warranty, the warranty of merchantability, and the warranty of fitness for a particular purpose. 
A) breached an express warranty to Alice that the painting is a Neiman work. 
B) breached the warranty of merchantability. 
C) not breached a warranty because he was merely expressing his opinion. 
D) breached an express warranty, the warranty of merchantability, and the warranty of fitness for a particular purpose.

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

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 8

Under the CISG,if at the time of entering into the sales contract,the buyer knew or could not have been unaware of the lack of conformity,the seller is not liable for the warranty of particular purpose,ordinary purpose,or sale by sample or model.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Bob rented a lawn mower from Scott Rentals.The lawn mower wheel was loose when Bob picked up the mower.When he began to use it,the wheel fell off,causing the mower to tip over onto his foot.Under what theory can Bob hold Scott liable for his injuries?

Accepted Answer

A) Breach of warranty of merchantability. 
B) Strict liability in tort for a defective condition. 
C) Both of the above. 
D) Neither theory is applicable to leases. 
A) Breach of warranty of merchantability. 
B) Strict liability in tort for a defective condition. 
C) Both of the above. 
D) Neither theory is applicable to leases.

Question 11

Eric bought a new snowmobile from the North Pole Manufacturing Company.After buying the machine,Eric then modified it in order to soup it up.In February,just after a snowfall,Eric was driving the snowmobile,when it tipped over,trapping him beneath it.His leg was severely burned.Eric now wants to sue North Pole for strict liability.Eric:

Accepted Answer

A) will likely win the suit, because of the faulty design of the snowmobile. 
B) will likely lose the suit, because the machine has been altered since its manufacture. 
C) has assumed the risk of using the snowmobile. 
D) cannot sue the manufacturer, because horizontal privity is lacking. 
A) will likely win the suit, because of the faulty design of the snowmobile. 
B) will likely lose the suit, because the machine has been altered since its manufacture. 
C) has assumed the risk of using the snowmobile. 
D) cannot sue the manufacturer, because horizontal privity is lacking.

Exam 22: Product Liability: Warranties and Strict Liability

Which of the following products would impose strict liability in tort according to Section 402A?

Which of the following is not an express warranty?

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

Article 2A carries over the warranty provisions of Article 2 with relatively minor revisions that reflect differences in:

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

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

Under the CISG,if at the time of entering into the sales contract,the buyer knew or could not have been unaware of the lack of conformity,the seller is not liable for the warranty of particular purpose,ordinary purpose,or sale by sample or model.

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

Bob rented a lawn mower from Scott Rentals.The lawn mower wheel was loose when Bob picked up the mower.When he began to use it,the wheel fell off,causing the mower to tip over onto his foot.Under what theory can Bob hold Scott liable for his injuries?

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

Trusts and Wills

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