Deck 18: Product Liability Law

Question 1

A statement of fact made by the seller to induce the buyer to purchase goods is

A) puffing.
B) an express warranty.
C) an implied warranty.
D) an advertisement.

Answer 1

B

Question 2

An express warranty is created when the seller does or says something that induces the customer to buy the product.

Answer 2

True

Question 3

A buyer injured by a defective product may sue under one of three theories of liability as the basis for a lawsuit.

Answer 3

True

Question 4

The implied warranty of merchantability applies only to merchants who sell to other merchants.

Question 5

Under the theory of strict liability the injured party suing simply needs to show that the product was unreasonably dangerous at the time it left the manufacturer's or other seller's control and that an injury resulted.

Question 6

Under Article 2 of the UCC goods sold by merchants may be covered by a warranty. An example of an express warranty would be a warranty of

A) fitness for a purpose.
B) merchantability.
C) conformity to the description of the purchased goods.
D) conformity to those goods purchased according to usage in the trade.

Question 7

Generally, the trend in modern court cases is that anyone who is injured by a defective product may sue.

Question 8

A warranty can be given only at the time a product is purchased.

Question 9

Suing under the negligence theory of product liability is often an unsatisfactory remedy for the injured plaintiff to pursue because proving specific acts of negligence on the part of the defendant is difficult.

Question 10

An oral warranty made by the seller before or at the time of a sale that is contrary to the terms stated in the written warranty is not binding.

Question 11

The Magnuson-Moss Warranty Act requires manufacturers to provide written warranties.

Question 12

Product liability suits may be based on

A) breach of warranty.
B) negligence.
C) strict liability.
D) all of these.

Question 13

A warranty must be written.

Question 14

Most product liability lawsuits are based on the theory of negligence.

Question 15

Product liability refers to the liability manufacturers or other sellers have only to immediate purchasers for physical injury caused by defective products they place on the market.

Question 16

To avoid implied warranties in the sale of goods to a consumer, the seller should make it absolutely clear (as for example a written statement) that the goods are sold

A) with no known defects.
B) in A-1 condition.
C) "as is."
D) as merchantable only.

Question 17

If a breach of warranty occurs,

A) the sales contract is discharged.
B) the buyer may sue for damages.
C) the seller must return the purchase price.
D) none of these.

Question 18

To qualify as an express warranty, the seller must use the word "warranty" or "guarantee."

Question 19

Statements by salespersons expressing their opinions about the products they sell constitute express warranties.

Question 20

Part of the purchase price you pay for goods includes the cost of the warranty.

Question 21

Grill Lovers, a Manufacturing Co. that makes gas grills for outdoor cooking, sold several of its grills to Premier Home Company located in a large city. Ferris, who purchased a gas grill from Premier, was seriously injured while grilling steaks outside for a family outing. The injury resulted from a manufacturing defect in the gas line which caused an explosion as he was cooking over the grill. In order to be successful in his lawsuit, which is based on strict liability, Ferris must present proof that

A) he was in privity of contract with Premier Home Company.
B) Grill Lovers had a duty to sell a safe product and that the product purchased was not safe.
C) a warranty existed on the product and that there was a breach of warranty by Grill Lovers.
D) the product was unreasonably dangerous when it left the manufacturer's or other seller's control and that he suffered an injury.

Question 22

A warranty given by the seller after the sale

A) is valid.
B) is unenforceable.
C) must be accompanied by consideration.
D) must be written.

Question 23

An express warranty to be valid must be based on ____________________ not just someone's opinion.

Question 24

The implied warranty of merchantability does not apply in which of these situations?

A) In a sale of goods by a non-merchant
B) When food or drink is considered in a restaurant
C) When a merchant is selling to another merchant
D) When goods are of average quality

Question 25

Quinby ordered a snowplow, specifying that it must be suitable for heavy-duty use on country roads. Quinby found the snowplow not at all suitable for this use. The seller of the plow may be held liable for breach of warranty of

A) description.
B) quality.
C) trade name.
D) fitness for a particular purpose.

Question 26

The test of merchantability in the case of foods is generally what a reasonable person can expect to find in the food. Which of the following would most likely show a breach of this warranty?

A) A cherry pit in a piece of cherry pie
B) A chicken bone in a chicken sandwich
C) A fish bone in a bowl of vegetable soup
D) A grapefruit seed in a glass of grapefruit juice

Question 27

Wilson went to the Costal Camera Co. to purchase a digital camera. Not knowing much about digital, she worked with a salesperson she thought could help her. After looking and testing several cameras, she narrowed her choice down to a particular camera and asked the salesperson: "Is this camera complicated to use?" The salesperson replied: "Anyone can work this camera, even my three year old daughter." Relying on this statement, Wilson purchased the camera she had selected. The salesperson's statement is a(n)

A) express warranty.
B) implied warranty.
C) absolute warranty.
D) seller's puff.

Question 28

Martin Taylor purchased an electric shaver for cash from the Arco Department Store for $125.95. The following manufacturer's statement was printed on a tag attached to the razor: "Warranted for ninety days from date of purchase against original factory imperfections in materials and workmanship." Taylor took the razor for a slight adjustment two weeks after he bought it. He expressed some concern about the short warranty period of ninety days offered by the manufacturer. The store manager replied, "Don't worry, I will give you an additional store warranty of one year against all defects and, if necessary, will replace the razor with a new one." This statement by the store manager would be

A) binding, because an oral warranty given after a sales contract is valid without consideration if Taylor can prove that it was given.
B) binding, because it is based on common usage in the trade, and most razors carry such a guarantee.
C) not binding, because it is based upon past consideration.
D) not binding, because the store manager's statement is mere sales talk or "puffing.

Question 29

For a statement made by a seller to a buyer to become a(n) ____________________ warranty, the statement must be part of the basis of the sale.

Question 30

According to the Magnuson-Moss Warranty Act, which of the following statements is true?

A) The law requires manufacturers and sellers to give written warranties.
B) The law replaced UCC warranty law.
C) If a written warranty is given by a manufacturer, the implied warranties of merchantability and fitness for a purpose cannot be eliminated.
D) Does not differentiate between a full warranty and a limited warranty.

Question 31

Below are four statements made by salespeople to customers. In each case, a customer made a purchase relying on the statement, the statement proved to be false, and the customer suffered a loss. Which statement would most likely serve as the basis for a successful suit for breach of warranty?

A) "This watch will last a lifetime."
B) "You won't find anything like this for the same amount of money anywhere."
C) "These spark plugs should give you better gasoline mileage."
D) "This material is fireproof and approved by Underwriters' Laboratories."

Question 32

Under the UCC the seller may add a statement in the contract selling her goods that excludes certain ____________________.

Question 33

Which of the following warranties can be disclaimed by a seller?

A) Express warranty
B) Implied warranty of merchantability
C) Implied warranty of fitness for a particular purpose
D) All of these.

Question 34

A(n) ____________________ is a guarantee by a seller that a product is not defective and is suitable for its intended use.

Question 35

Monchessa went to a fabric store to purchase fabric to make herself a suit. The sales person showed her several bolts of fabric. She picked out the fabric she wished to buy but was told there wasn't enough to make a suit but that she would order a bolt from the manufacturer. The salesperson assured Monchessa that the fabric she ordered "would match exactly the fabric she had selected." The salesperson's statement is

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

Question 36

Goods that are fit for the purpose for which they would ordinarily be used are called ____________________.

Question 37

In a sale of goods, the use of the term "as is" indicates

A) to the buyer that there are no implied warranties upon which the buyer may depend.
B) that in a sale the seller warrants that the goods are merchantable.
C) to the buyer that a sales contract needs no consideration.
D) that the sale includes most implied warranties.

Question 38

Grill Lovers, a Manufacturing Co. that makes gas grills for outdoor cooking, sold several of its grills to Premier Home Company located in a large city. Ferris, who purchased a gas grill from Premier, was seriously injured while grilling steaks outside for a family outing. The injury resulted from a manufacturing defect in the gas line which caused an explosion as he was cooking over the grill. In a product liability suit based on strict liability, Ferris may bring a law suit against:

A) Grill Lovers only.
B) Premier only.
C) Grill Lovers or Premier.
D) none since Ferris does not have a case.

Question 39

Marla went to Office Works to purchase a thumb drive to use in gathering research material for an article that her college advisor asked her to write for the school newspaper. She asked for suggestions as to a good brand of thumb drive to purchase. The store manager who waited on her said that the USRDV brand was the "best buy out of all the brands the store carried." This statement was

A) sales puffing.
B) an express warranty.
C) a warranty of purpose.
D) a warranty of description.

Question 40

The following statement was printed on a tag attached to an electric clock: "Warranted for one year from date of purchase against original factory imperfections in materials and workmanship." This warranty statement on the tag represents an

A) express warranty as to quality.
B) express warranty of title.
C) implied warranty as to freedom from defects.
D) implied warranty of fitness for purpose.

Question 41

Colt saw a commercial by a car manufacturer on TV that claimed one of its new models, the Vogue, averaged 45 miles to a gallon on the highway. He went to the Kan Car Dealership and purchased a Vogue but never asked about the manufacturer's statement regarding the mileage claim. A short time after his purchase, he discovered the car would only get 30 miles to the gallon on the highway. Colt returned to the dealer and claimed breach of an express warranty on the part of the manufacturer and the car dealership based on the TV commercial. Is Colt correct?

Question 42

Only ____________________ may make the warranty of merchantability.

Question 43

____________________ refers to the contract relationship that exists between a seller and a buyer.

Question 44

A(n) ____________________ warranty given under the Magnuson-Moss Warranty Act requires that a defective product be repaired within a reasonable time at no cost to the owner.

Question 45

What is the difference between an express warranty and an implied warranty?

Question 46

The Long Bow Manufacturing Co. makes various sporting goods products including skateboards and sells directly to retailers. After purchasing and using a skateboard from Long Bow, Lester, age 18, was injured and wished to sue for her injuries. She decided to sue Long Bow on the basis of negligence. Would this theory provide her the best chance of winning her case?

Question 47

Is it possible to hold a seller liable for injuries caused by a defective product in spite of showing due care?

Question 48

A warranty obligation imposed by law upon the seller is a(n) ____________________ warranty.

Question 49

List and briefly describe the three types of defects that are the cornerstone of a person's case in a lawsuit for product liability based on a defective product.

Question 50

The Magnuson-Moss Warranty Act covers only ____________________ warranties.