Question 1

Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed,Inc.Each sack is stamped with the phrase "Twenty percent protein." This is

Accepted Answer

The phrase "Twenty percent protein" stamped on each sack of cattle feed is a specific statement about the product's quality and composition, and therefore constitutes an express warranty.

Question 2

Key of G Products,Inc.,offers to sell to Harmony Company one hundred MP3 players at $50 a piece,subject to certain specific delivery dates.Harmony replies with a signed purchase order that reads,"Accept your offer for 100 I-appliances at $50 each. Must be delivered to our ware-house." Key of G does not respond or deliver the goods.Harmony files a suit for breach of contract,to which Key of G answers that there is no contract because Harmony's purchase order contained additional terms and is not signed by Key of G.Can Harmony recover? Explain.

Accepted Answer

The answer of Key of G Products,Inc.,offers to sell to...

Question 3

VuPlay Company contracts to deliver one hundred 60-inch UHD television sets to a new retail customer,Watchbox Store,on May 1,with payment to be made on delivery.VuPlay tenders delivery in its own truck.Watchbox's manager notices that some of the cartons have scrape marks.Watchbox's owner phones VuPlay's office and asks whether the sets might have been damaged as they were being loaded.VuPlay assures Watchbox that the sets are in perfect condition.Watchbox tenders VuPlay a check,which VuPlay refuses,claiming that the first delivery to new customers is always for cash.Watchbox promises to pay the cash within two days.VuPlay leaves the sets with  Watchbox,which stores them in its warehouse pending its "Grand Opening Sale" on May 15.Two days later,Watchbox's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair.VuPlay claims Watchbox has accepted the sets and is in breach by not paying on delivery.Will VuPlay succeed on these claims? Explain.

Accepted Answer

The answer of VuPlay Company contracts to deliver one hundred...

Question 4

Horizon Corporation makes cell phones.Gina files a product liabil-ity suit against Horizon,alleging a design defect.In deciding whether to hold Horizon liable,the court may consider the "reasonableness" of

Accepted Answer

One factor that the court may consider in determining whether a design defect exists is the availability of an alternative design that would have reduced or eliminated the risk of harm. Therefore, option D is the best choice. The reasonableness of the manufacturer's intentions, the seller's method of accounting, and the manufacturer's quality control efforts may also be relevant but are not the primary consideration in determining the existence of a design defect.

Question 5

Furious Toyz Corporation makes skateboards,which it sells to consumers,including Gitana.Gitana is injured due to a defect in the board that causes an accident in which Haley,a bystander,is also injured.In a product liability suit based on strict product liabil-ity,Furious Toyz may be liable to

Accepted Answer

Furious Toyz Corporation may be liable to both Gitana and Haley in a product liability suit based on strict product liability. This is because the defect in the skateboard caused the accident, leading to injuries for both Gitana and Haley. As the manufacturer of the defective product, Furious Toyz Corporation is responsible for the injuries caused by their product.

Question 6

Trucks & Trailers,Inc.(T&T),and United Delivery Service enter into a contract for a lease of trucks.T&T is a merchant who deals in goods of the kind leased.Under the UCC,an implied warranty of merchantability arises

Accepted Answer

Under UCC Section 2A-213, a lessor who is a merchant dealing in goods of the kind leases must deliver goods that are merchantable. This implied warranty of merchantability arises automatically in a lease contract.

Question 7

Chord Guitars Inc.sells guitars and other stringed instruments to consumers.A Chord salesperson says to a potential customer,"This Chord is the best guitar you'll find anywhere,even online." This statement is

Accepted Answer

The answer of Chord Guitars Inc.sells guitars and other stringed...

Question 8

Country Style,Inc.,makes landscaping tools.Country could be liable for a warning defect if there is a foreseeable risk of harm posed by a product and

Accepted Answer

Country Style could be liable for a warning defect if there is a foreseeable risk of harm posed by their product and the omission of a warning renders the product not reasonably safe. This means that if the absence of a warning on their landscaping tools poses a potential danger to users and is deemed necessary for safe use, Country Style may be held liable for any resulting injuries.

Question 9

Green Glass Corporation makes glass bottles for food and beverage makers to package their products for wholesale distribution and retail sale.Liability may be imposed on Green Glass based on

Accepted Answer

Liability may be imposed on Green Glass Corporation based on a manufacturing defect, meaning a flaw in the design or production of the glass bottles that makes them unsafe for their intended use. Quality control efforts and insurance coverage may be relevant factors in assessing liability, but they are not determinative. Likewise, the opinion and testimony of non-experts may be considered as evidence, but they cannot establish liability on their own.

Question 10

Toyoda Company buys gas pedals and other parts from subcontractors and puts them in its vehicles without changing their composition.If the pedals or other parts are defective,strictly liable for any damage caused by the defects are

Accepted Answer

The answer of Toyoda Company buys gas pedals and other...

Question 11

Pharma Company,Quitox Corporation,and Renal,Inc.,are drug makers.Med Sales Company and National OTC,Inc.,are drug distributors.In a suit against all of these parties in which market-share liability is imposed,most likely to be liable are

Accepted Answer

In a market-share liability case, all parties in the chain of distribution (manufacturers, distributors, and sellers) may be held liable for injuries caused by the product. Therefore, both the drug makers (Quitox Corporation and Renal, Inc.) and the drug distributors (Med Sales Company and National OTC, Inc.) are likely to be held liable in this case.

Question 12

Welding Systems,Inc.(WSI),makes welding torches,masks,and related products.A WSI product may be unreasonably dangerous due to

Accepted Answer

A defect in design can cause a product to be unreasonably dangerous, regardless of the intentions of the distributor or the method of accounting used by the manufacturer. The expectations of the seller may also play a role, but ultimately, it is the design of the product that could cause it to be unreasonably dangerous.

Quiz 14: Sales, leases, and Product Liability