Deck 19: Warranties and Product Liability

Question 1

Implied warranties are created when a seller or lessor affirms that the goods he or she is selling or leasing meet certain standards of quality,description,performance,or condition.

Answer 1

False

Question 2

In a breach of express warranty action,the amount of recoverable compensatory damages is generally equal to the difference between (1)the value of the goods as warranted and (2)the actual value of the goods accepted at the time and place of acceptance.

Answer 2

True

Question 3

It is possible to create an express warranty by accident and with no intent.

Answer 3

True

Question 4

Article 2A of the Uniform Commercial Code (UCC)establishes warranties that apply to lease transactions.

Question 5

A used car salesperson's saying "This is the best car available in town" creates an express warranty.

Question 6

The implied warranty of merchantability includes a warranty that goods delivered in groups are of a consistent quality.

Question 7

Express warranties are often found in published materials such as advertisements,brochures,and catalogs.

Question 8

Under the doctrine of conditional liability,a plaintiff may recover punitive damages if the defendant's conduct has been reckless or intentional.

Question 9

The doctrine of caveat emptor means "to the victor go the spoils."

Question 10

An express warranty is created when a seller or lessor indicates that goods will conform to a model or sample of them.

Question 11

It is not necessary to use the words "warrant" or "guarantee" in order to make an express warranty.

Question 12

There is no requirement that a buyer establish that an incorrect statement was part of the basis of the bargain in order to recover for breach of express warranty.

Question 13

If a seller or lessor of a good is a merchant with respect to goods of that kind,the sales contract or lease contract contains an implied warranty of merchantability of the good,unless this implied warranty is properly disclaimed.

Question 14

Sellers and lessors are not required to make express warranties.

Question 15

Express warranties must be in writing.

Question 16

The most common forms of implied warranties are the implied warranty of merchantability,the implied warranty of fitness for human consumption,and the implied warranty of fitness for a particular purpose.

Question 17

Article 3 of the Uniform Commercial Code (UCC)establishes certain warranties that apply to the sale of goods.

Question 18

Warranties may be either expressly stated or implied by law.

Question 19

A seller's statement of opinion,or "puffing",establishes an express warranty.

Question 20

The doctrine of caveat emptor provides that consumers should receive extensive protections when purchasing goods.

Question 21

The implied warranty of merchantability is implied at the time of contracting if: (1)the seller or lessor has reason to know the particular purpose for which the buyer is purchasing the goods or the lessee is leasing the goods; (2)the seller or lessor makes a statement that the goods will serve this purpose; and (3)the buyer or lessee relies on the seller's or lessor's skill and judgment and purchases or leases the goods.

Question 22

Software licenses do not typically contain warranty disclaimers and limitation on liability clauses.

Question 23

The majority of states have adopted the foreign substance test to determine the merchantability of food products.

Question 24

In a product liability action,the plaintiff typically relies on the traditional tort theory of negligence or the modern tort doctrine of strict liability.

Question 25

The implied warranty of fitness for a particular purpose can apply to merchants and nonmerchants.

Question 26

The Magnuson-Moss Warranty Act requires that sellers or lessors make certain express written warranties.

Question 27

In terms of the conspicuous display of a warranty disclaimer,a heading printed in uppercase letters or a typeface that is larger or in a different style than the rest of the body of a sales or lease contract is considered to be "conspicuous."

Question 28

Chuck goes to a restaurant and orders a tuna salad sandwich.He takes a bite and breaks a tooth on a bone.Chuck cannot successfully sue the restaurant,because everyone knows that fish have bones and he should have been more careful.

Question 29

Written disclaimers must be conspicuously displayed to be valid.

Question 30

Under an implied warranty of merchantability,the goods must be fit for the ordinary purposes for which they are used.

Question 31

For a warranty to qualify as a full warranty,the warrantor must guarantee free repair or replacement of the defective product.

Question 32

The implied warranty of merchantability can be disclaimed by using the word "merchantability" or by saying that the item is sold "as is" or "with all faults."

Question 33

The Magnuson-Moss Warranty Act is administered by the Interstate Commerce Commission (ICC).

Question 34

Under the consumer expectation test,a food product is unmerchantable if a foreign object in that product causes injury to a person.

Question 35

The Magnuson-Moss Warranty Act stipulates that sellers or lessors who make express written warranties related to consumer products are forbidden from disclaiming or modifying the implied warranties of merchantability and fitness for a particular purpose.

Question 36

In terms of the conspicuous display of a warranty disclaimer,the courts construe "conspicuous" as noticeable to the plaintiff.

Question 37

The Magnuson-Moss Warranty Act covers written warranties relating to commercial and consumer products.

Question 38

The implied warranty of merchantability applies to the box as well as the breakfast cereal inside the box.

Question 39

Under the implied warranty of merchantability,fungible goods must be of a high level of quality.

Question 40

The implied warranty of merchantability does not apply to food products to be consumed off the premises of a restaurant.

Question 41

To be successful,the plaintiff in a negligence case must prove that the defendant breached a duty of due care owed to any person and that the plaintiff was injured.

Question 42

Strict liability applies to products or services.

Question 43

In a product liability case based on negligence,all parties in the product's chain of distribution are liable for the injury,even if only one party was negligent.

Question 44

If only one item is defective out of thousands of similar items that were manufactured without defects,this one defective product could not be the basis for a product liability lawsuit.

Question 45

In order to recover in a negligence case,the plaintiff must be in privity of contract with the defendant.

Question 46

Strict liability refers to the concept that courts must follow rigid guidelines in negligence cases in order to hold defendants liable.

Question 47

Strict liability has made negligence far less important as a theory under which to recover for injuries caused by products.

Question 48

In a product liability action,if a violation of strict liability has been found,the plaintiff may recover compensatory damages and also may be able to recover punitive damages if the defendant's conduct has been reckless or intentional.

Question 49

A defect in manufacture occurs when the manufacturer fails to properly assemble a product,properly test a product,or adequately check the quality of a product.

Question 50

Under strict liability for products liability,all parties in the chain of distribution are potentially liable for injuries caused by a product.

Question 51

Compensatory damages in a strict liability action are meant to punish the defendant and to send a message to the defendant (and other companies)that such behavior will not be tolerated.

Question 52

In the landmark case Greenman v.Yuba Power Products,Inc.,the California Supreme Court adopted the doctrine of negligence as a basis for product liability actions.

Question 53

In a product liability action based on strict liability,the plaintiff must prove the existence of a defect,but does not need to prove who caused the defect.

Question 54

Strict liability can be effectively disclaimed with a clear and conspicuous disclaimer.

Question 55

The damages recoverable in a strict liability action are governed by federal law.

Question 56

The failure to provide adequate instructions never constitutes a legal basis for a strict liability claim.

Question 57

Because strict liability is a tort doctrine,privity does not apply so in most jurisdictions even bystanders can recover under strict liability.

Question 58

Punitive damages are not allowed in strict liability actions.

Question 59

A defect in design can support a strict liability action.

Question 60

Any defect present in a manufactured product is considered a defect in manufacture.

Question 61

________ warranties are created when a seller or lessor affirms that the goods he or she is selling or leasing meet certain standards of quality,description,performance,or condition.

A) Express
B) Implied-in-fact
C) Equitable
D) Implied-in-law
E) Limited

Question 62

In evaluating the adequacy of a product's design,some courts apply a "risk-utility" analysis,which requires proof that the product is more dangerous than the ordinary consumer would expect.

Question 63

Which of the following statements would most likely create an express warranty?

A) "This is the best used car available in town."
B) "This painting is worth a fortune."
C) "Others would gladly pay $20,000 for this car."
D) "You look like a million bucks in that dress."
E) "This car has been driven only 20,000 miles."

Question 64

Under the defense of comparative negligence,a party who is partially at fault for causing his or her own injuries is barred from recovering damages from the defendant in a product liability action.

Question 65

A statute of repose sets a limited time after a product is first sold that a product liability suit can be brought.

Question 66

In evaluating the adequacy of a product's design,a court may apply a "risk-utility" analysis.

Question 67

The doctrine of caveat emptor means:

A) let the seller beware.
B) let the seller be liable for all damages.
C) let the buyer beware.
D) that the legal remedy must be just and fair.
E) let the seller and buyer beware.

Question 68

For the contributory negligence defense to apply in a product liability action,the defendant must prove that (1)the plaintiff knew and appreciated the risk and (2)the plaintiff voluntarily assumed the risk.

Question 69

Article ________ of the Uniform Commercial Code (UCC)establishes warranties that apply to lease transactions.

A) 1A
B) 1B
C) 2A
D) 2B
E) 3A

Question 70

Most states have statutes of limitations that require an injured person to bring an action within a certain number of years from the time he or she was injured by a defective product.

Question 71

Defense and other contractors that manufacture products to government specifications are not usually liable if the product causes injury.

Question 72

Under the doctrine of contributory negligence,where a plaintiff has been partially responsible for causing his or her own injuries,liability is assessed proportionally to the degree of fault of each party.

Question 73

A defect in packaging would exist where a package easily allows a child to access a dangerous medicine or poison.

Question 74

Manufacturers and sellers are not strictly liable for failing to warn of generally known dangers.

Question 75

The correction of a defect defense generally applies when a product is redesigned.

Question 76

The crashworthiness doctrine requires vehicles to be designed so that they are not prone to be involved in accidents.

Question 77

Article ________ of the Uniform Commercial Code (UCC)establishes certain warranties that apply to the sale of goods.

A) 1
B) 2
C) 3
D) 4
E) 5

Question 78

In applying the crashworthiness doctrine,courts have held that automobile manufacturers are under a duty to design automobiles to take into account the possibility of a "second collision."

Question 79

A seller's statement of opinion,also known as ________,________ an express warranty.

A) puffing; creates
B) puffing; does not create
C) embellishing; creates
D) embellishing; does not create
E) embellishing; ratifies

Question 80

Supervening events cannot be an effective defense in a strict liability product liability case.