Question 1

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. C

Question 2

Stable Tool Company makes hedge trimmers.Troy is injured while using a Stable trimmer and sues the company for product liability based on neg?ligence.To win,Troy must show that

Accepted Answer

A)  Stable did not use due care with respect to the trimmer.
B)  Stable misrepresented a material fact regarding the trimmer.
C)  Troy was experienced in the use of trimmers.
D)  Troy was in privity of contract with Stable. A

Question 3

Statutes of repose places outer times limit on product liability actions.

Accepted Answer

A) True 
 B)False  True

Question 4

A public policy underlying the imposition of strict product liability is that a manufacturer who makes an unsafe product should be put out of business.

Accepted Answer

A) True 
 B)False

Question 5

Regional Lumber Company and Superior Builders Corporation enter into a contract for a sale of wood products.Regional,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.Under the UCC,if these are inconsistent

Accepted Answer

A)  all implied warranties displace all express warranties.
B)  all express warranties displace all implied warranties.
C)  the implied warranty of fitness for a particular purpose takes precedence.
D)  the implied warranty of merchantability takes precedence.

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)  puffery.

Question 7

Country Style,Inc. ,makes landscaping tools.Under the Restatement (Third)of Torts: Products Liability,Country could be liable for a warning defect if there is a foreseeable risk of harm posed by a product and

Accepted Answer

A)  the omission of a warning renders the product not reasonably safe.
B)  there is a reasonable alternative design.
C)  there is a lack of care in making of the product.
D)  there is insufficient insurance coverage.

Question 8

Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers.Merchant assures National that it has valid title to the goods.Under the UCC,this type of title warranty arises

Accepted Answer

A)  automatically in most lease contracts.
B)  only if the lessee asks for such a warranty.
C)  only if the lessor expresses such a warranty.
D)  only in conjunction with sales contracts,not lease contracts.

Question 9

Dwayne,an electrician,files a suit against Electro Mechanix,Inc. ,alleging that its circuit breakers are unreasonably dangerous due to the possibility of electrical shock.Dwayne's suit is most likely to

Accepted Answer

A)  fail,because Dwayne assumes the risk if he uses an Electro product.
B)  fail,because Dwayne is a knowledgeable user.
C)  succeed,because the danger is open and obvious.
D)  succeed,because Electro's products are not safe for all uses.

Question 10

To constitute an express warranty,a representation must be in writing.

Accepted Answer

A) True 
 B)False

Question 11

Sea Locate,Inc. ,makes and sells marine navigation equipment,through inde?pendent salespersons,to retailers for resale to consumers.The Magnuson-Moss Warranty Act covers

Accepted Answer

A)  implied warranties,oral statements,and written promises.
B)  only implied warranties that consumers are aware of.
C)  only a salesperson's oral statements.
D)  only a seller's written promises.

Question 12

Merchants are required to warrant that the goods they sell or lease are fit for the particular purpose for which a buyer or lessee will use the goods.

Accepted Answer

A) True 
 B)False

Question 13

Due care must be exercised in designing a product.

Accepted Answer

A) True 
 B)False

Question 14

Dorothy eats a candy bar made and sold by Eastwich Candy Corporation and becomes ill.Dorothy files a suit against Eastwich,alleging that the candy bar was not merchantable.Merchantable food is food that is fit to eat on the basis of

Accepted Answer

A)  consumer expectations.
B)  what constitutes a perfect condition.
C)  its maker's intentions.
D)  its producer's experience.

Question 15

To avoid strict product liability,a manufac?turer must make a product entirely safe for all uses.

Accepted Answer

A) True 
 B)False

Question 16

General descriptions take precedence over inconsistent samples.

Accepted Answer

A) True 
 B)False

Question 17

A seller who makes a statement that relates to the value or worth of the goods creates an express warranty.

Accepted Answer

A) True 
 B)False

Question 18

Misrepresentation on a label is not enough to show an intent to induce the reliance of anyone who may use the product.

Accepted Answer

A) True 
 B)False

Question 19

Only the manufacturer of a defective product can be strictly liable for an injury or damage caused by the product.

Accepted Answer

A) True 
 B)False

Question 20

A seller must warn those who purchase its product of the harm that can result from the foreseeable misuse of the product.

Accepted Answer

A) True 
 B)False

Exam 22: A: Warranties and Product Liability

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

Stable Tool Company makes hedge trimmers.Troy is injured while using a Stable trimmer and sues the company for product liability based on neg?ligence.To win,Troy must show that

Statutes of repose places outer times limit on product liability actions.

A public policy underlying the imposition of strict product liability is that a manufacturer who makes an unsafe product should be put out of business.

Regional Lumber Company and Superior Builders Corporation enter into a contract for a sale of wood products.Regional,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.Under the UCC,if these are inconsistent

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

Country Style,Inc. ,makes landscaping tools.Under the Restatement (Third) of Torts: Products Liability,Country could be liable for a warning defect if there is a foreseeable risk of harm posed by a product and

Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers.Merchant assures National that it has valid title to the goods.Under the UCC,this type of title warranty arises

Dwayne,an electrician,files a suit against Electro Mechanix,Inc. ,alleging that its circuit breakers are unreasonably dangerous due to the possibility of electrical shock.Dwayne's suit is most likely to

To constitute an express warranty,a representation must be in writing.

Sea Locate,Inc. ,makes and sells marine navigation equipment,through inde?pendent salespersons,to retailers for resale to consumers.The Magnuson-Moss Warranty Act covers

Merchants are required to warrant that the goods they sell or lease are fit for the particular purpose for which a buyer or lessee will use the goods.

Due care must be exercised in designing a product.

Dorothy eats a candy bar made and sold by Eastwich Candy Corporation and becomes ill.Dorothy files a suit against Eastwich,alleging that the candy bar was not merchantable.Merchantable food is food that is fit to eat on the basis of

To avoid strict product liability,a manufac?turer must make a product entirely safe for all uses.

General descriptions take precedence over inconsistent samples.

A seller who makes a statement that relates to the value or worth of the goods creates an express warranty.

Misrepresentation on a label is not enough to show an intent to induce the reliance of anyone who may use the product.

Only the manufacturer of a defective product can be strictly liable for an injury or damage caused by the product.

A seller must warn those who purchase its product of the harm that can result from the foreseeable misuse of the product.