Question 1

Promises of fact made during the bargaining process are not express warranties.

Accepted Answer

A) True 
 B)False  False

Question 2

A seller must use words such as "warrant" or "guarantee" to make an express warranty.

Accepted Answer

A) True 
 B)False  False

Question 3

Fun Toyz Corporation makes skateboards, which it sells to con?sumers, including Holly and Ira. Due to a defect, Holly is injured while using her new board. Ira's board has the same defect, but he is not injured. In a product liability suit based on strict product liabil?ity, Fun Toyz may be liable to

Accepted Answer

A)   Holly and Ira.
B)   Holly only.
C)   Ira only.
D)   no one. B

Question 4

Olga, a salesperson for Pre-owned Cars & Trucks, Inc., tells Quincy, "This is the best car I've ever seen." This statement is

Accepted Answer

A)   an express warranty.
B)   an implied warranty.
C)   a warranty of title.
D)   puffing.

Question 5

Oven Products Company makes microwave ovens. Pico discovers that his Oven Products oven is defective and sues the maker for product liabil?ity based on strict liability. To win, Pico must show that

Accepted Answer

A)   Oven Products sold the oven to Pico.
B)   Pico knew and appreciated the risk caused by the defect.
C)   Pico suffered an injury caused by the defect.
D)   the "defect" was a commonly known danger.

Question 6

Parker, a salesperson for Quality Textiles, Inc., shows Rosa, a fabric buyer for Style Clothing Company, samples of cloth, stating that any ship?ment will match the samples. This statement is

Accepted Answer

A)   an express warranty.
B)   an implied warranty.
C)   a warranty of title.
D)   puffing.

Question 7

Garden Work, Inc., sells consumer lawn care equipment. Garden Work's sales contracts include express warranties. According to the Magnuson-Moss Warranty Act, Garden Work can also disclaim

Accepted Answer

A)   all implied warranties.
B)   no implied warranties.
C)   the implied warranty of fitness only.
D)   the implied warranty of merchantability only.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

To succeed in a strict product liability suit, an injured plaintiff must show that a product's defect was the proximate cause of the injury.

Accepted Answer

A) True 
 B)False

Question 10

A statute of repose may limit the time within which a plaintiff can file a product liability suit.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   lose, because Ed assumed the risk when he bought FFC's food.
B)   lose, because the food's unhealthiness is a commonly known danger.
C)   win, because FFC's food poses an unreasonable risk to diners.
D)   win, because the food's unhealthiness is a commonly known danger.

Question 12

Fact Pattern 23-B1 
HiDef, Inc., a television set maker, provides a limited warranty on its com?puters in a contract that includes an "informal dispute settlement proce?dure" clause. Ike buys an HiDef computer, which soon malfunctions. After several unsuc?cessful repair attempts, Ike files a suit against HiDef, seeking damages under the Magnuson-Moss Warranty Act.
-Refer to Fact Pattern 23-B1. The court is most likely to order

Accepted Answer

A)   HiDef to give Ike a new computer.
B)   Ike to accept the situation because of the limited warranty.
C)   the case to proceed immediately to trial.
D)   the parties to attempt to informally resolve the dispute.

Question 13

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

Accepted Answer

A)   a choice between a refund or replacement if a product cannot be fixed and repair or replacement of defective parts.
B)   neither a choice of a refund or replacement, or repair of defective parts.
C)   only a choice of a refund or replacement if a product cannot be fixed.
D)   only repair or replacement of defective parts.

Question 14

Gert, an obese individual, files a suit against Hot n' Tasty, Inc., alleging that its food is unhealthy because, as is well known, it contains high lev?els of salt and sugar. Gert's suit is most likely to

Accepted Answer

A)   fail, because salt and sugar are not unhealthy ingredients in food.
B)   fail, because the danger is open and obvious to a reasonable consumer.
C)   succeed, because the danger is open and obvious to any consumer.
D)   succeed, because the food's contents obviously caused Gert's obesity.

Question 15

Yard Tool Company makes and leases a backhoe to Zack. Due to a defect attributable to Yard Tool's negligence, Zack is injured in an accident in which his neighbor Aron is also hurt. In a product liability suit based on negligence, Yard Tool may be liable to

Accepted Answer

A)   Aron only.
B)   no one.
C)   Zack and Aron.
D)   Zack only.

Question 16

A product liability action may be based on warranty theory.

Accepted Answer

A) True 
 B)False

Question 17

Privity of contract between the plaintiff and the defendant is required to bring a product liability suit based on negligence.

Accepted Answer

A) True 
 B)False

Question 18

A manufacturer's duty of care does not extend to the inspection and test?ing of products bought to incorporate in the final product.

Accepted Answer

A) True 
 B)False

Question 19

Dependable Appliances, Inc., and Elain enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably

Accepted Answer

A)   fit for the buyer's particular purpose.
B)   fit for the ordinary purpose for which such goods are used.
C)   suitable for resale at an acceptable price.
D)   the best quality that money can buy.

Question 20

An expression of opinion by a seller will not usually create a warranty.

Accepted Answer

A) True 
 B)False

Exam 23: Warranties and Product Liability

Promises of fact made during the bargaining process are not express warranties.

A seller must use words such as "warrant" or "guarantee" to make an express warranty.

Olga, a salesperson for Pre-owned Cars & Trucks, Inc., tells Quincy, "This is the best car I've ever seen." This statement is

Oven Products Company makes microwave ovens. Pico discovers that his Oven Products oven is defective and sues the maker for product liabil?ity based on strict liability. To win, Pico must show that

Parker, a salesperson for Quality Textiles, Inc., shows Rosa, a fabric buyer for Style Clothing Company, samples of cloth, stating that any ship?ment will match the samples. This statement is

Garden Work, Inc., sells consumer lawn care equipment. Garden Work's sales contracts include express warranties. According to the Magnuson-Moss Warranty Act, Garden Work can also disclaim

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

To succeed in a strict product liability suit, an injured plaintiff must show that a product's defect was the proximate cause of the injury.

A statute of repose may limit the time within which a plaintiff can file a product liability suit.

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

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

Gert, an obese individual, files a suit against Hot n' Tasty, Inc., alleging that its food is unhealthy because, as is well known, it contains high lev?els of salt and sugar. Gert's suit is most likely to

Yard Tool Company makes and leases a backhoe to Zack. Due to a defect attributable to Yard Tool's negligence, Zack is injured in an accident in which his neighbor Aron is also hurt. In a product liability suit based on negligence, Yard Tool may be liable to

A product liability action may be based on warranty theory.

Privity of contract between the plaintiff and the defendant is required to bring a product liability suit based on negligence.

A manufacturer's duty of care does not extend to the inspection and test?ing of products bought to incorporate in the final product.

Dependable Appliances, Inc., and Elain enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably

An expression of opinion by a seller will not usually create a warranty.