Exam 22: Warranties and Product Liability

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Delta Company makes and sells table saws, which are designed to be safe if used properly. Erin buys a Delta saw and lends it to her neighbor Frank. To reach a toolbox on a high shelf in his garage, Frank props the saw at an angle against a cabinet and climbs onto the saw. Frank loses his footing, slips off the saw, falls on the blade, and is injured. He files a product liability suit against Delta, on the ground of negligence. On what basis could Delta prevail

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Question 1

Correct Answer:

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A manufacturer or seller can prevail in a product liability suit based on negligence if the manufacturer designed its product to be safe for proper uses, even if the product was not designed to be safe for un foreseeable, improper uses, such as the use in this question. A manu fac turer is negligent if it breaches the duty to exercise reasonable care in the design or manufacture of its product, or warnings about the prod uct, and this breach causes injuries. In other words, liability may be found if a product is unsafe because of negligence in its manufacture, as sembly, testing, or inspection. Even if all reasonable care is taken, the manufac turer may be liable if the design of the product makes it unrea sonably dangerous for the uses for which the product is made. A manu facturer must also include a warning if the manufacturer knows the product is dangerous when used as intended or as could reasonably be foreseen, and users are not likely to be aware of the danger. A manufac turer has no li ability, however, when its product is reasonably safe for proper uses and foreseeable, improper uses, but is used in an unforesee able, improper way.

Express warranties can be found in a seller's brochure

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Question 2

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True

A product liability action may be based on warranty theories.

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Question 3

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True

A warranty is an assurance by the buyer to the seller that he or she will pay valid consideration for a product.

(True/False)

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Question 4

Imported Carpets Store and Jill enter into a contract for a sale of an Oriental rug. Imported Carpets, a merchant who deals in goods of the kind sold, generally describes the goods, details technical specifications, and shows a sample. Under the UCC, if these are inconsistent

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Question 5

The majority of states limit the application of strict product liability theory to situations involving personal injuries.

(True/False)

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Question 6

A statute of limitation may restrict the time within which an action in product liability may be brought.

(True/False)

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Question 7

The types of product defects that have traditionally been recognized in product liability law include inadequate warnings.

(True/False)

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Question 8

Generally, the implied warranties of merchantability and fitness for a particular purpose cannot be disclaimed.

(True/False)

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Question 9

Goods that are merchantable are fit for any purpose.

(True/False)

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Question 10

Longlast Tools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that Longlast must provide

(Multiple Choice)

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Question 11

Green Glass Corporation makes glass bottles for food and beverage makers to package their products for wholesale distribution and retail sale. Liability may be imposed on Green Glass based on

(Multiple Choice)

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Question 12

Rent-all Trucks & Trailers, Inc. (RT&T), and United Delivery Service enter into a contract for a lease of trucks. RT&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

(Multiple Choice)

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Question 13

Neil goes to Oil Shop to change the oil in his car. Pat, the service technician, learns that Neil plans to take a trip and advises the use of a certain type of oil. The oil breaks down during the trip, damaging the car. Neil may recover from Oil Shop for breach of

(Multiple Choice)

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Question 14

Sellers or lessors are liable only for products that are reasonably dangerous.

(True/False)

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Question 15

In most sales, sellers warrant that they have good and valid title to the goods sold.

(True/False)

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Question 16

Grady, an obese individual, files a suit against Fry Fast Food Corporation (FFFC), alleging that FFFC's food is unhealthy because, as Grady knows, it contains high levels of cholesterol and saturated fat. Grady is most likely to

(Multiple Choice)

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Question 17

Courts in many jurisdictions will consider the negligent actions of both the plaintiff and the defendant when apportioning liability in a product liability action.

(True/False)

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Question 18

Concrete Products, Inc., assures Deepwater Construction Company (DCC) that Concrete's cement will not crack within a certain range of pressure. DCC uses the product. When cracks develop within the stated range, DCC files a suit against Concrete. The court is most likely to rule in favor of

(Multiple Choice)

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Question 19

Pharma Company, Quitox Corporation, and Renal, Inc., are drug makers. Med Sales Company and National OTC, Inc., are drug distributors. In a suit against all of these parties in which market-share liability is imposed, most likely to be liable are

(Multiple Choice)

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Question 20

Showing 1 - 20 of 42

Exam 22: Warranties and Product Liability

Express warranties can be found in a seller's brochure

A product liability action may be based on warranty theories.

A warranty is an assurance by the buyer to the seller that he or she will pay valid consideration for a product.

Imported Carpets Store and Jill enter into a contract for a sale of an Oriental rug. Imported Carpets, a merchant who deals in goods of the kind sold, generally describes the goods, details technical specifications, and shows a sample. Under the UCC, if these are inconsistent

The majority of states limit the application of strict product liability theory to situations involving personal injuries.

A statute of limitation may restrict the time within which an action in product liability may be brought.

The types of product defects that have traditionally been recognized in product liability law include inadequate warnings.

Generally, the implied warranties of merchantability and fitness for a particular purpose cannot be disclaimed.

Goods that are merchantable are fit for any purpose.

Longlast Tools, Inc., sells power tools, power tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that Longlast must provide

Green Glass Corporation makes glass bottles for food and beverage makers to package their products for wholesale distribution and retail sale. Liability may be imposed on Green Glass based on

Rent-all Trucks & Trailers, Inc. (RT&T), and United Delivery Service enter into a contract for a lease of trucks. RT&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises

Neil goes to Oil Shop to change the oil in his car. Pat, the service technician, learns that Neil plans to take a trip and advises the use of a certain type of oil. The oil breaks down during the trip, damaging the car. Neil may recover from Oil Shop for breach of

Sellers or lessors are liable only for products that are reasonably dangerous.

In most sales, sellers warrant that they have good and valid title to the goods sold.

Grady, an obese individual, files a suit against Fry Fast Food Corporation (FFFC), alleging that FFFC's food is unhealthy because, as Grady knows, it contains high levels of cholesterol and saturated fat. Grady is most likely to

Courts in many jurisdictions will consider the negligent actions of both the plaintiff and the defendant when apportioning liability in a product liability action.

Concrete Products, Inc., assures Deepwater Construction Company (DCC) that Concrete's cement will not crack within a certain range of pressure. DCC uses the product. When cracks develop within the stated range, DCC files a suit against Concrete. The court is most likely to rule in favor of

Pharma Company, Quitox Corporation, and Renal, Inc., are drug makers. Med Sales Company and National OTC, Inc., are drug distributors. In a suit against all of these parties in which market-share liability is imposed, most likely to be liable are

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