Deck 9: Products Liability

Question 1

The contract theory is warranty which is governed by the Uniform Commercial Code.

Answer 1

True

Question 2

The Restatement says recovery under strict liability is limited to "physical harm thereby caused to the ultimate user or consumer,or to his property," but not other losses and not economic losses.

Answer 2

True

Question 3

The concern over reasonableness and standards of care are elements of negligence theory.

Answer 3

True

Question 4

Sales of services but not sales of goods are covered under the Restatement,Section 402A.

Question 5

Phantom warranties are addressed by the Magnuson-Moss Act.

Question 6

Common-law governs express warranties and various implied warranties.

Question 7

The Uniform Commercial Code permits sellers to exclude warranties in whole or in part.

Question 8

Products liability refers to a separate theory of liability.

Question 9

Section 2-314 of the Uniform Commercial Code lays down the fundamental rule that goods carry an express warranty of merchantability if sold by a merchant-seller.

Question 10

A limited warranty may cover only parts,not labor.

Question 11

The natural-foreign test adopts the seller's perspective.

Question 12

An express warranty is one created by law,acting from an impulse of common sense.

Question 13

The theory of caveat emptor governed the consumer law from the early eighteenth century until the early twentieth century.

Question 14

The failure to warn a potential user of possible hazards can make a product defective under Restatement,Section 402A,whether unreasonably dangerous or even unavoidably unsafe.

Question 15

Local reputation has no influence on behavior.

Question 16

In practice,a person asserting a claim for breach of warranty will have a good chance of success under an express warranty or implied warranty theory of merchantability or fitness for a particular purpose.

Question 17

Strict liability is liability without proof of negligence and without privity.

Question 18

An implied warranty is created whenever the seller affirms that the product will perform in a certain manner.

Question 19

Tom found an old print in his great grandfather's attic.He was right in warranting,that it was free of any valid infringement claims when he sold it to his neighbour.

Question 20

According to the Bloomberg Business Week report,2009,the cost of product safety for manufacturing firms is small and inconsequential.

Question 21

The _____ establishes a time period,generally ranging from six to twelve years,after which the manufacturer is not liable for injuries caused by the product

A)implied warranty of fitness for particular use
B)implied warranty of merchantability
C)strict products liability
D)statute of repose
E)Magnuson-Moss Act

Question 22

In a typical products-liability case,_____.

A)three legal theories are asserted- two contract theories and one tort theory
B)the contract theory is negligence,governed by the common law
C)the contract theory of negligence is governed by the Uniform Commercial Code
D)the strict products policy is considered a contract theory
E)the tort theories are governed by the common law

Question 23

_____ imposes a liability on a merchant-seller of defective goods without fault.

A)Statute of repose
B)Strict products liability
C)Limited warranty
D)Negligence
E)Preemption

Question 24

A full warranty means that,_____.

A)the defective product or part will be fixed or replaced for free,not the labor
B)the consumer has to pay a handling charge
C)the consumer has to bring the product to the store to get warranty service
D)the warranty is good only for the first purchaser of the good
E)the whole product might not be covered

Question 25

What is merchantability?

Question 26

Which of the following is true when the true cost of a money-making enterprise like cigarettes become inescapably apparent?

A)The congress creates an administrative agency.
B)The congress crafts regulations dictating as many industry-wide reform measures as are politically possible.
C)The manufacturers act forth and withdraw their products.
D)If the defendant wins enough lawsuits,the administrative agency raises rates forcing reform.
E)If the industry has enough clout to blunt a pro-consumer legislative response,recourse is had through the unions.

Question 27

According to Section 2-3142)c)of the Uniform Commercial Code,_____.

A)selling and serving food or drink for consumption off the premises only is not subject to the implied warranty of merchantability
B)the "natural-foreign" test,unless otherwise agreed,the goods are fit for the purposes for which the goods of the same description would ordinarily be used
C)the natural-foreign test adopts the buyer's perspective
D)selling and serving food or drink for consumption on the premises is a sale subject to the implied warranty of merchantability
E)the test relying on reasonable expectations,if the substance used to make a food-item is natural to the substance,then the food is fit for consumption

Question 28

The exclusion of implied warranties in general states that _____.

A)the buyer who has neither examined,nor refused to examine the goods before entering into the contract,may not assert an implied warranty concerning defects an inspection would have revealed
B)the Uniform Commercial Code does not permit the seller to disclaim,or modify the implied warranty of merchantability,as long as the statement actually mentions "merchantability"
C)for an implied warranty or merchantability,the disclaimer need not be in writing
D)for an implied warranty of fitness,the disclaimer need not be in writing
E)the Uniform Commercial Code does not permit the seller to disclaim,or modify as implied warranty of fitness

Question 29

The relationship between two contracting parties,occupying adjoining levels in a product distribution system is known as _____.

A)preemption
B)warranty
C)vertical privity
D)implied warranty
E)express warranty

Question 30

When the assumption is unreasonable,the parties intention governs the interpretation,according to the rule that,_____.

A)exact or technical specifications cannot displace an inconsistent general language of description
B)express warranties displace inconsistent implied warranties,other than an implied warranty of fitness for a particular purpose
C)a sample from an existing bulk cannot displace inconsistent general language of description
D)any inconsistency among warranties,need not always be resolved in favor of the implied warranty of merchantability
E)in cases of doubt,whether it or some other language applies,the implied warranty of fitness will have no claim

Question 31

According to the warranty theory,the general problem is _____.

A)The claimant must prove that there was a sale.
B)The sale was of real estate or services rather than other goods.
C)The action must be brought within the 10-year statute of limitations under Article 2-725.
D)The action must be brought within the four-year statute of limitations under Article 2-725,when the plaintiff discovers the defect.
E)Under UCC,Section 2-607 3)a)and Section 2A-5163)a),which covers leases,the claimant who fails to give notice of breach about a purchase of spoiled milk,within a reasonable time of having accepted the goods will see the suit dismissed.

Question 32

Which of the following is true in case of implied warranties?

A)An implied warranty is created whenever the seller affirms that the product will perform in a certain manner.
B)Implied warranty is one created by law,acting from an impulse of common sense
C)An implied warranty in contrast to express warranty is one in which specific language compel reading into the sale.
D)Implied warranties go to the essence of the bargain.
E)Implied warranties are those over which the parties dickered or could have.

Question 33

What are the general problems with the warranty theory?

Question 34

According to Section 402A of the Restatement of Torts,Second,one who sells any product in a defective condition unreasonably dangerous to the users cannot be subject to liability for physical harm thereby caused to the ultimate user or consumer,or to his property,if _____ .

A)the seller is engaged in the business of selling such a product
B)it is expected to and does reach the user without substantial change in the condition in which it is sold
C)the seller has exercised all possible care in the preparation and sale of his product
D)the user or consumer has not brought the product from or entered into any contractual relation with the seller
E)a product that is safe when delivered is subsequently mishandled or changed

Question 35

Adam goes to a hardware store and tells the salesclerk that he needs a paint that will dry overnight because he was painting his front door and a rainstorm is predicted for the next day.The clerk gives him,a slow-drying oil-based paint that takes two days to dry.The store has breached a n)_____.

A)implied warranty of fitness for particular purpose
B)warranty of infringement
C)warranty of the course of dealing
D)warranty of usage of trade
E)implied warranty of merchantability

Question 36

Which of the following is true in case of express warranties?

A)An express warranty is one created by law,acting from an impulse of common sense.
B)An affirmation of the value of the goods or a statement purporting to be merely the seller's opinion does not create a warranty.
C)A warranty imposed by law that comes along with a product automatically.
D)Claims of breach of express warranty are not claims of misrepresentation.
E)An express warranty is one that circumstances alone,not specific language,compel reading into the sale.

Question 37

Section 2-314 3)of the Uniform Commercial Code says that _____.

A)if a certain way of doing business is understood,it is necessary for the seller to state explicitly that he will abide by the custom
B)unless modified or excluded implied warranties may arise from a course of dealing or usage of trade.
C)other implied warranties may arise from a course of dealing,even if modified
D)other implied warranties may arise from a course of dealing,even if it is excluded
E)it only applies to a seller who occasionally deals in goods of the kind in question

Question 38

The formulation of strict liability stated by Section 402A of the Restatement of Torts,Second lays down that:

A)the failure to warn a potential user of possible hazards cannot make a product defective,whether dangerous or even unavoidably safe.
B)when the product contains an ingredient that could cause toxic effects in a substantial number of people and its danger is not widely known,the lack of warning cannot make the product unreasonably dangerous within the meaning of the Restatement.
C)strict liability under the rule doesn't apply to a private individual who sells his own automobile.
D)faulty packaging or sterilization may not be used as the ground for liability if the product deteriorates before being used.
E)strict liability does not apply if the user has not purchased the product from the seller nor has the user entered into any contractual relation with the seller.