Deck 17: Warranties and Product Liability

Question 1

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

Answer 1

False

Question 2

A warranty against infringement is a promise by the seller that the prod?uct was con?structed in a workmanlike manner.

Answer 2

False

Question 3

A seller must use a word such as "guarantee" to make an express warranty.

Answer 3

False

Question 4

Advertisements can include express warranties.

Question 5

A product is unmerchantable if any accident could arise in connection with the goods.

Question 6

A manufacturer may be liable for a failure to exercise due care to any person who sustains an injury caused by a defective product.

Question 7

A descriptive label can create an ex?press warranty.

Question 8

A product liability action may be based on warranty theory.

Question 9

Express warranties displace inconsistent implied warranties except im?plied war?ranties of fitness for a particular purpose.

Question 10

Title warranties arise in a sales contract only if the seller ex?pressly de?clares that he or she possesses title to the goods.

Question 11

An implied warranty of merchantability arises in every sale or lease by a merchant who deals in goods of the kind sold or leased.

Question 12

Only a statement made after a contract is entered into can be an express warranty.

Question 13

A warranty of title cannot be disclaimed.

Question 14

Only a seller's expression of opinion creates a warranty.

Question 15

Merchants are required to warrant that the goods they sell are fit for their ordinary purpose.

Question 16

A merchant can disclaim an implied warranty of merchantability.

Question 17

A contract can contain both an implied warranty and an express warranty.

Question 18

A contract cannot contain both a warranty of merchantability and a war?ranty of fit?ness for a particular purpose.

Question 19

In sales law,a warranty is an assurance by one party of the existence of a fact on which the other party can rely.

Question 20

An express warranty cannot be limited.

Question 21

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

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

Question 22

GR8 View Corporation sells high-definition televisions.Under most cir?cum?stances,GR8 View will be presumed to have warranted that its title to the TVs is

A)bad.
B)fair.
C)good.
D)the best that money can buy at the advertised price.

Question 23

To succeed in a strict product liability suit alleging a design defect,a plaintiff must show that there is a reasonable alternative design.

Question 24

Reggie buys a new sport utility vehicle (SUV)from Terrific Cars & Trucks,Inc.The most important factor in determining whether an ex?press war?ranty is created is whether

A)Reggie expresses to Terrific what he wants warranted.
B)Reggie's desire for the SUV becomes part of his motivation to deal.
C)Terrific expresses to Reggie what it expects of its customers.
D)Terrific's promise becomes part of the basis of the bargain.

Question 25

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

Question 26

No danger associated with any product is so commonly known that a manufacturer does not need to warn users of it.

Question 27

Perky,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

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

Question 28

To succeed in a product liability suit based on strict liability,a plaintiff does not need to prove why or in what manner a product became defective.

Question 29

A plaintiff could succeed in a product liability suit based on strict liabil?ity by showing that a product was unreasonably dangerous due to a de?sign defect.

Question 30

Assumption of risk is a defense that may be raised in a product liability suit.

Question 31

The use of a product for a purpose that was not intended is a defense to a suit for product liability if the use was not reasonably foreseeable.

Question 32

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

Question 33

To succeed in a product liability suit based on strict liability,a plaintiff must be more than a bystander.

Question 34

Salespersons of Home & Hearth Appliance tell potential customers that Home & Hearth prod?ucts are "excellent." This is

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

Question 35

Strict product liability is liability without fault.

Question 36

In many states,the plaintiff's negligence is a defense that may be raised in a product liability suit based on strict liability.

Question 37

One requirement for a product liability suit based on strict liability is a failure to exercise reasonable care.

Question 38

One requirement for a product liability suit based on strict liability is an injury or damage.

Question 39

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

Question 40

To succeed in a product liability suit based on strict liability,a plaintiff must prove that a product was de?fective.

Question 41

Fact Pattern 17-2
Elsie buys a car under warranty from Ferb's Auto Sales,Inc. ,in a state that has a lemon law.General Vehicles Corporation (GVC)made the car.Its transmis?sion does not function properly,a defect that significantly affects its use and value.
Refer to Fact Pattern 17-2.Under the lemon laws in most states,to re?solve the problem,Elsie must first

A)complain to the arbitration program specified in GVC's warranty.
B)file a lawsuit.
C)notify Ferb's or GVC of the problem.
D)none of the choices.

Question 42

Cool Electronix makes DVD players.Edie is injured while using a Cool player,which also damages her house.She sues Cool for product liability based on strict liability.In most states,to recover damages,she must show

A)in what manner and why the player became defective.
B)in what manner but not why the player became defective.
C)neither in what manner nor why the player became defective.
D)why but not in what manner the player became defective.

Question 43

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

A)Lawn & Garden did not use due care with respect to the trimmer.
B)Lawn & Garden misrepresented a material fact on which Mal relied.
C)Mal was experienced in the use of Lawn & Garden trimmers.
D)Mal was in privity of contract with Lawn & Garden.

Question 44

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 liabil?ity,Fun Toyz may be liable to

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

Question 45

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

A)no one.
B)Vic and Warren.
C)Vic only.
D)Warren only.

Question 46

Fact Pattern 17-1
Bret,a representative of Concrete Products,Inc. ,assures Durable Construction Company (DCC)that Concrete's cement will not crack within a certain range of temperatures.DCC uses the product.When cracks develop within the stated temperature range,DCC files a suit against Concrete.
Refer to Fact Pattern 17-1.The court is most likely to rule in favor of

A)Concrete,because Bret's statement was an expression of opinion.
B)Concrete,because DCC chose Concrete's product voluntarily.
C)DCC,because Bret's statement was an express warranty.
D)DCC,because Concrete's product is not fit for its purpose.

Question 47

Farm Equipment,Inc. ,makes farm?ing machinery.Gail discovers that her Farm Equipment tractor is defective and sues the maker for product liability based on negligence.To win,Gail must show that

A)Farm Equipment sold the tractor to Gail.
B)Gail knew and appreciated the risk caused by the defect.
C)Gail suffered an injury caused by the defect.
D)the "defect" was a commonly known danger.

Question 48

TalkTalk,Inc. ,makes and sells cell phones.In deciding whether the phones are merchantable,a court would focus on whether the phones are

A)fit for the ordinary purpose for which such goods are used.
B)made according to the best manufacturing methods.
C)quality products.
D)sold by merchants.

Question 49

Fact Pattern 17-2
Elsie buys a car under warranty from Ferb's Auto Sales,Inc. ,in a state that has a lemon law.General Vehicles Corporation (GVC)made the car.Its transmis?sion does not function properly,a defect that significantly affects its use and value.
Refer to Fact Pattern 17-2.If Elsie submits a complaint to an arbitra?tion program,any decision by the arbitrator is binding on

A)Elsie only.
B)GVC only.
C)Elsie and GVC.
D)none of the parties.

Question 50

In-House Products Company makes convection ovens.Joy discovers that her In-House oven is defective and sues the maker for product liabil?ity based on strict liability.To win,Joy must show that

A)In-House sold the oven to Joy.
B)Joy knew and appreciated the risk caused by the defect.
C)Joy suffered an injury caused by the defect.
D)the "defect" was a commonly known danger.

Question 51

Neil goes to Oil Shop to change the oil in his car.Pyle,the service tech?ni?cian,learns that Neil plans to take a trip and advises the use of a certain type of oil.The oil breaks down during the trip,damaging the car.Neil may recover from Oil Shop for breach of

A)an express warranty.
B)an implied warranty of fitness for a particular purpose.
C)an implied warranty of merchantability.
D)a warranty of title.

Question 52

Rite-Bilt Appliance Company markets its products through its own Rite-Bilt Appliance Stores.For Rite-Bilt's written disclaimer to nullify any express war?ranties,it must be

A)clear and conspicuous and called to a buyer's attention.
B)in smaller print than the rest of the sales contract.
C)in the same print as the rest of the sales contract.
D)presented to a buyer after a sales contract has been entered into.

Question 53

Sierra Bikes,Inc. ,and Tess enter into a contract for the sale of a mountain bike.Sierra,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.The Magnuson-Moss Warranty Act,which applies to the warranty,attempts to prevent deception in warranties by

A)displacing the UCC as the primary source of warranty rules.
B)making warranties easier to understand.
C)prohibiting disclaimers of warranties.
D)requiring sellers to give written warranties for consumer goods.

Question 54

Fact Pattern 17-1
Bret,a representative of Concrete Products,Inc. ,assures Durable Construction Company (DCC)that Concrete's cement will not crack within a certain range of temperatures.DCC uses the product.When cracks develop within the stated temperature range,DCC files a suit against Concrete.
Refer to Fact Pattern 17-1.Suppose that the court rules against Concrete.The manufacturer might have avoided that result by

A)making its cement fit for its particular purpose.
B)making its cement merchantable for its intended use.
C)not allowing Bret to express an opinion.
D)not permitting Bret to make an express warranty.

Question 55

Lena visits Marvel-R-Us Cars,an auto dealer,and says she wants a hybrid car that can go thirty miles before using gas.Nip,a salesperson,recom?mends an Obie,which he says goes "at least forty gas-less miles." This is

A)an express warranty.
B)an implied warranty of merchantability.
C)an implied warranty of fitness for a particular purpose.
D)a warranty of title.

Question 56

Power Products,Inc.(PPI),manufactures construction equipment.Quid is injured while using a PPI nail driver and sues the company for product liability based on misrepresentation.To win,Quid must show that

A)he was in privity of contract with PPI.
B)PPI did not use due care with respect to the nail driver.
C)PPI misrepresented a material fact on which Quid relied.
D)Quid was experienced in the use of PPI nail drivers.

Question 57

Import Carpet Store and Jeri enter into a contract for a sale of an Oriental rug.Import Carpet,a merchant who deals in goods of the kind sold,provides a general description of the rug,details its technical specifications,and shows a sample.Under the UCC,if these are inconsistent

A)the general description displaces the sample.
B)the general description displaces the technical specifications.
C)the sample takes precedence over the general description.
D)the sample takes precedence over the technical specifications.

Question 58

Omega Custom Tile Company designs and makes floor tiles.In a product liability suit based on negligence,Omega could be liable for vio?lating its duty of care with respect to

A)neither the design nor the making of the tiles.
B)the design and the making of the tiles.
C)the design of the tiles only.
D)the making of the tiles only.

Question 59

Rapid Autos,Inc. ,sells cars to consumers.To avoid liability for oral ex?press warranties,each sales agreement should note that a car is sold

A)as is.
B)in perfect condition.
C)subject to warranties included in the written contract only.
D)with no known defects.

Question 60

Dripless Paint,Inc. ,sells paint and painting tools and supplies under "full" warranties.Under the Magnuson-Moss Warranty Act,this means that Dripless must provide

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 61

Flo buys a Go! battery that,if used in a Hi-Digital music player,which can be powered only by an IntraChemico battery,may cause the player to explode.Flo is not aware of the danger,Go!'s instructions do not warn of it,and Go! batteries are the same shape as IntraChemico batteries.Flo puts the Go! battery in a Hi-Digital player,which explodes,injuring Flo.Go!'s seller is most likely

A)liable,because Flo's misuse was not the use for which the Go! bat?tery was designed.
B)liable,because Flo's misuse was reasonably foreseeable.
C)not liable,because Flo's misuse was not the use for which the Go! battery was designed.
D)not liable,because Flo's misuse was reasonably foreseeable.

Question 62

General Construction Company (GCC)tells Industrial Supplies,Inc. ,that it needs an adhesive to do a particular job.Industrial provides a five-gallon bucket of a certain brand.When it does not perform to GCC's speci?fications,GCC sues Industrial,which claims,"We didn't expressly promise anything." What should GCC argue?

Question 63

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

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)none of the choices.

Question 64

Portia is driving a Quest motorcycle fifteen miles over the speed limit when,due to a defect,the rear tire spins off.Portia is injured in the ensuing accident.In her suit to recover from Quest for the injury,Quest's best defense is that

A)Portia assumed the risk of an accident when she bought the cycle.
B)Portia was clearly a knowledgeable user of the cycle.
C)Portia was comparatively negligent in exceeding the speed limit.
D)motorcycle defects are commonly known dangers.

Question 65

Infinite Variety Corporation makes products that Jostle Sales Company sells to consumers online,through catalogs,and in retail outlets.Holding makers and sellers strictly liable for the cost of injuries to con?sumers from harmful or defective products is based in part on the policy that

A)consumers are generally careful with the products that they buy.
B)courts are the best forums to determine product liability.
C)makers and sellers would not otherwise be interested in safety.
D)prices can be increased to cover the cost.

Question 66

Safe-Rite Company makes electrical cords and other connectors for elec?tronic devices.Tina files a product liability suit against Safe-Rite,alleg?ing a warning defect.Under the Restate?ment (Third)of Torts: Products Liability,in deciding whether to hold Safe-Rite liable,the court may consider

A)neither the characteristics of expected users nor the content of any warning.
B)only the characteristics of expected users.
C)only the content of any warning.
D)the characteristics of expected users and the content of any warning.

Question 67

High Bikes,Inc. ,makes bicycles.A defective High bike injures Ilsa when she rides it.Ilsa files a product liability suit against High.The maker can

A)avoid li?ability be?cause Ilsa apparently misused the bike in some way.
B)avoid li?ability be?cause Ilsa assumed the risk when she rode the bike.
C)avoid li?ability be?cause Ilsa was obviously negligent in some way.
D)not avoid liability.

Question 68

Cellular Products Corporation (CPC)makes cell phones.Dina files a product liabil?ity suit against CPC,alleging a design defect.Under the Restate?ment (Third)of Torts: Products Liability,in deciding whether to hold CPC liable,the court may consider

A)neither the advantages of an alternative design nor the magnitude of the foreseeable risks.
B)only the advantages of an alternative design.
C)only the magnitude of the foreseeable risks.
D)the relative advantages and disadvantages of the product as designed and as it could have been designed,as well as the magnitude of foreseeable risks.

Question 69

Gina,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.Gina's suit is most likely to

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 Gina's obesity.

Question 70

Adam steals from Business Resources,Inc. ,ten computer hard drives,which Adam sells to Computer Products Corporation (CPC).Unaware that the drives are stolen,CPC reconditions them and sells them to Direct Marketers,Inc.With the reconditioned drives,CPC gives Direct Marketers a written statement that disclaims "any and all warranties." Business Resources learns that Direct Marketers has the drives and de?mands their return.Direct Marketers gives the equipment to Business Resources and files a suit against CPC.Will Direct Marketers succeed in its suit? Why or why not?

Question 71

Quantum Tools Corporation (QTC)makes hammers and other tools.Rita is injured while using a QTC hammer.She sues the company for product liability based on negligence.To defend successfully against the suit,QTC may show that

A)QTC did not sell the hammer to Rita.
B)Rita misused the hammer in a foreseeable way.
C)Rita's injury resulted from a commonly known danger.
D)the hammer was not altered after QTC sold it.

Question 72

Digital Systems,Inc.(DSI),makes storage media and other periph?eral computer products.A DSI product may be unreasonably danger?ous due to

A)a defect in its design only.
B)a defect in its design or an inadequate warning.
C)an inadequate warning only.
D)neither a defect in its design nor an inadequate warning.