Exam 22: A: Warranties and Product Liability

Express warranties displace inconsistent implied warranties with no exception.

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

Universal Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim.Universal is most likely liable for

Summer Breeze,Inc. ,contracts for the sale of fifty ceiling fans to Island Décor store.Tyrone buys one of fans from the store.The applicable statute of limitations prescribes a period of four years.To bring a product liability claim against Summer Breeze,Tyrone must file a suit within four years of

In sales law,a warranty is an assurance by one party of the existence of a fact on which the other party can rely.

A warranty of title cannot be disclaimed.

Musical Tones,Inc. ,sells fifty MP3 players to Noise Stores,Inc.To avoid liability for most implied warranties,Musical should state in writing that the players are sold

Toyoda Company buys gas pedals and other parts from subcontractors and puts them in its vehicles without changing their composition.If the pedals or other parts are defective,strictly liable for any damage caused by the defects are

A manufacturer's liability to an injured party on a strict product liability theory can be almost unlimited.

Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store,telling the clerk that she wants the shoes to climb Mount Sharptop.The spikes come out of the shoes when Sigrud is on the side of the mountain,caus?ing her to be injured in a fall.Rockridge most likely breached

An action in strict product liability requires that the goods be substantially changed from the time the product is sold to the time the injury is sustained.

Bob is shopping in Carl's Hardware Store when a nail gun in use by Dan,one of Carl's employees,fires without warning and hits Bob in the leg.Carl checks the gun and discovers that it was assembled improperly.Bob files a suit against Eagle Tools,Inc. ,the manufacturer of the gun,for product liability,on the ground of strict liability.What are the elements for an action based on strict liability? In whose favor is the court likely to rule?

General Construction Company (GCC)tells Industrial Supplies,Inc. ,that it needs an adhesive to do a particular job.Industrial provides a five-gallon bucket of a certain brand.When it does not perform to GCC's speci?fications,GCC sues Industrial,which claims,"We didn't expressly promise anything." What should GCC argue?

An implied warranty or merchantability,an implied warranty of fitness for a particular purpose,and an express warranty can exist in a single transaction.

The brakes on a train owned by Western & Eastern Railroad Company malfunction.The train rolls towards main?te?nance workers on the tracks.Everyone gets out of the way except Vincent,who wants to show off.The train hits Vincent,who sues United Hydraulics,Inc. ,the brakes' manufacturer.United Hydraulics can raise the defense of

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires.Good Tire is a merchant who deals in goods of the kind sold.Under the UCC,an implied warranty of merchantability arises

Sweet Candy,Inc. ,and Tasty Treats Stores enter into a contract for a sale of candy.Sweet,a merchant who deals in goods of the kind sold,makes express warranties in connection with the sale.Under the UCC,at the time a contract is formed,an express warranty can be disclaimed or modified

Merchants are absolute insurers against all accidents arising in connection with the goods.

Cold Stuf,Inc. ,makes snowboards,which it sells to Deep Freeze Sports Store (DFS).DFS sells Cold Stuf boards to consumers,in?cluding Ed.Ed is in?jured while using the board.In a product liabil?ity suit based on strict li?ability,Ed may recover from

A full warranty requires free repair or replacement of any defective part.