Question 1

Sellers of goods sometimes attempt to disclaim (avoid)their liability under warranties.Which type of warranty disclaimers must be written in order to be effective?

Accepted Answer

To exclude or modify the implied warranty of fitness,a seller must (1)use a writing,and (2)make the disclaimer conspicuous.

Question 2

Bob,an attorney,purchased licensed software from Bill Able Inc.to prepare his clients' invoices online.The shrinkwrap packaging for the program disks and the software manuals contained a limitations of remedies clause which limited the buyer's remedies to the $50.00 purchase price of the software.Bob later discovered that his invoices for the past year were too low due to a malfunction in the software,costing him over $10,000 in lost revenue.Bob sues Bill Able Inc.for breach of warranty.What is the likely result?

Accepted Answer

In this case the disclaimer is effective under the limitation of remedies clause.Hence,Bob cannot recover any damages.

Question 3

A(n)_____ is a clause attempting to block recovery of certain damages.

Accepted Answer

A remedy limitation is a clause attempting to block recovery of certain damages.If a disclaimer is effective,no damages of any sort are recoverable under the legal theory attacked by the disclaimer.

Question 4

Which of the following would be most suitable to be tried under comment k of section 402A of the Restatements (Second)of Torts?

Accepted Answer

Imposing strict liability on "unavoidably unsafe" products like certain medicines might deter manufacturers from developing and marketing them.When products of this kind cause harm and a lawsuit follows,many courts follow comment k to § 402A which says that unavoidably unsafe products are neither defective nor unreasonably dangerous if they are properly prepared and accompanied by proper directions and a proper warning.

Question 5

Which of the following is most important for imposing strict liability?

Accepted Answer

In order to impose strict liability,the product must be in a defective condition when sold and must also be unreasonably dangerous because of that condition.

Question 6

Which damages are especially awarded by the court to punish the defendant?

Accepted Answer

Punitive damages are awarded with the intent to punish the defendant and set up an example to others.They are concerned with monetary damages.

Question 7

Which of the following factors is most important in determining whether a manufacturer is strictly liable in tort for a defective product?

Accepted Answer

Courts generally apply a risk-utility test in such cases.The product must be proved to be capable of unreasonable harm.

Question 8

Which of the following is an example of noneconomic damages from a contract case?

Accepted Answer

Noneconomic damages include pain and suffering and emotional harm.

Question 9

Under the product liability theory of recovery known as strict liability,which parties may be held liable? (Answer using the majority rule used in most States. )

Accepted Answer

According to the clause of strict liability,the seller must be engaged in the business of selling the product that has harmed the plaintiff.

Question 10

A seller's ability to disclaim implied warranties is sometimes restricted by the doctrine of:

Accepted Answer

A seller's ability to disclaim implied warranties sometimes is restricted,however,by the doctrine of unconscionability.In appropriate instances,courts may apply § 2-302's unconscionability standards to implied warranty disclaimers even though those disclaimers satisfy UCC § 2-316(2).

Question 11

Which of the following theories of recovery is likely to be most effective against a disclaimer of liability?

Accepted Answer

UCC section 2-316(1)says that an express warranty and a disclaimer should be read consistently if possible,but that the disclaimer must yield if such a reading is unreasonable.Since it normally is unreasonable for a seller to exclude with one hand what he has freely and openly promised with the other,it is quite difficult to disclaim an express warranty.

Question 12

Under the product liability theory of strict liability as expressed in the Restatement (Second)of Torts,what is an essential fact that must be present if strict liability may be used in a lawsuit as the basis for recovery?

Accepted Answer

In order for strict liability to succeed,the product must be in a defective condition when sold and must also be unreasonably dangerous because of that condition.

Question 13

What form of negligence involves the duty of a manufacturer to build a safe product?

Accepted Answer

Negligent design is a term for the duty of a manufacturer to design a safe product that will be used by the consumer.

Question 14

What is the usual UCC time limitation for claiming express and implied warranty after the sale of a product?

Accepted Answer

The usual UCC statute of limitations for express and implied warranty claims is four years after the seller offers the defective goods to the buyer.

Question 15

In the case of a product where the risks are open and obvious,many courts hold that:

Accepted Answer

Sellers and manufacturers often have a duty to give an appropriate warning when their products pose a reasonably foreseeable risk of harm.However,in cases where the risks are open and obvious,many courts hold that the seller has no duty to warn buyers.

Question 16

In order to establish a cause of action based upon strict liability in tort for personal injuries resulting from the use of a defective product,the plaintiff must start the case by proving that the seller (defendant):

Accepted Answer

According to section 402A,in order to try a case of strict liability,it must be proved that the seller is engaged in the business of selling the product that harmed the plaintiff.

Question 17

Which of the following characterizes cases filed under section 402A?

Accepted Answer

In order for strict liability to be imposed under section 402A,one of the conditions which must be proved is that the seller must be engaged in the business of selling the product that harmed the plaintiff.

Question 18

Which of the following distinguishes the Restatement (Third)from section 402A?

Accepted Answer

Unlike section 402A,the Restatement (Third)does not require that in cases of strict liability,the product be unreasonably dangerous.

Question 19

Which of the following is used by sellers to eliminate any kind of liability that may be claimed by an injured buyer?

Accepted Answer

A product liability disclaimer is a clause in the sales contract whereby the seller attempts to eliminate liability it might otherwise have.If a disclaimer is effective,no damages of any sort are recoverable under the legal theory attacked by the disclaimer.

Question 20

Several firms within an industry are involved in manufacturing a harmful product.It is impossible to prove which firm produced the product and caused injury.Identify the type of liability that would arise in these circumstances.

Accepted Answer

The legal theory called industrywide liability is a way for plaintiffs to bypass problems of causation that exist where several firms within an industry have manufactured a harmful standardized product,making it impossible for the plaintiff to prove which firm produced the product that injured her.

Quiz 20: Product Liability

Sellers of goods sometimes attempt to disclaim (avoid) their liability under warranties.Which type of warranty disclaimers must be written in order to be effective?

A(n) _____ is a clause attempting to block recovery of certain damages.

Which of the following would be most suitable to be tried under comment k of section 402A of the Restatements (Second) of Torts?