Question 1

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

Accepted Answer

In a product liability suit based on negligence, Ceramic Tile Company could be liable for violating its duty of care with respect to both the design and the making of the tiles. The duty of care requires the company to design and make the tiles in a way that ensures they are safe for their intended use. If there is a defect in either the design or the manufacturing process, it could lead to injuries or harm to the consumers, who could then file a lawsuit against the company. Therefore, Ceramic Tile Company must take special care in both the design and the making of their floor tiles to fulfill their duty of care.

Question 2

Regional Lumber Company and Superior Builders Corporation enter into a contract for a sale of wood products.Regional,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.Under the UCC,if these are inconsistent

Accepted Answer

The answer of Regional Lumber Company and Superior Builders Corporation...

Question 3

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

Accepted Answer

The answer of Regal Autos,Inc.,sells cars to consumers.To avoid liability...

Question 4

Musical,Inc.,sells fifty MP3 players to Noise Stores,Inc.To avoid liability for most implied warranties,in some states Musical could simply state in writing that the players are sold

Accepted Answer

To avoid liability for most implied warranties, Musical, Inc. should state in writing that the players are sold "as is." This means that the buyer is assuming all risks associated with the product and that the seller is not making any promises about the quality or condition of the product.

Question 5

GR8 Skates Company makes and sells a pair of skates to Hugh.GR8 fails to exercise "due care" to make the skates safe,and Hugh is injured as a result.GR8 is most likely liable for

Accepted Answer

GR8 Skates Company failed to exercise "due care" to make the skates safe, which can be considered as negligence. As a result, Hugh got injured, and GR8 can be held liable for their negligence. Assumption of risk and knowledgeable use can't be applied here as the skates were not safe, and it's not a case of product misuse by the user.

Question 6

Mountain Bikes,Inc.(MBI),and Nero enter into a contract for a sale of a mountain bike.MBI,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 attempts to prevent deception in warranties by

Accepted Answer

The answer of Mountain Bikes,Inc.(MBI),and Nero enter into a contract...

Question 7

Sweet Candy,Inc.,and Tasty Treats Stores enter into a contract for a sale of candy.Sweet,a merchant who deals in goods of the kind sold,makes express warranties in connection with the sale.Under the UCC,at the time a contract is formed,an express warranty can be disclaimed or modified

Accepted Answer

Under the UCC, an express warranty can be disclaimed or modified by clear, conspicuous language called to the buyer's attention. This means that the seller must use a clear and noticeable statement to let the buyer know that they are disclaiming or modifying an express warranty. Implied affirmations of fact relating to the goods do not apply to express warranties, and sellers cannot disclaim or modify warranties in any way they see fit for ordinary purposes.

Question 8

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

Accepted Answer

To win a product liability claim based on negligence, the plaintiff must prove that they suffered an injury caused by the defect. Therefore, option C is the correct choice. Option A is not relevant as it is assumed that Farm Equip sold the tractor to Gail. Option B is not applicable as it pertains to assumption of risk, which is different from negligence. Option D is not relevant as it suggests that the defect was commonly known, which would make it difficult for Gail to prove that Farm Equip was negligent in allowing the defect to exist.

Question 9

Fun Toyz Corporation makes skateboards,which it sells to consumers,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 product liability,Fun Toyz may be liable to

Accepted Answer

In a strict product liability suit, the manufacturer is held strictly liable for any injuries or damages caused by a defect in their product, regardless of whether they were negligent or not. Since Holly was injured due to a defect in her skateboard, Fun Toyz can be held liable to her under strict product liability. However, Ira did not suffer any injuries, so he would not have a claim against Fun Toyz.

Question 10

ValuRich Tools,Inc.,sells tools,tool parts,and related supplies under "full" warranties.Under the Magnuson-Moss Warranty Act,this means that ValuRich must provide

Accepted Answer

According to the Magnuson-Moss Warranty Act, ValuRich must provide customers with a choice between a refund or replacement if a product cannot be fixed and repair or replacement of defective parts. This means that customers have the option to choose what solution works best for them if there is an issue with their purchase covered under the "full" warranty offered by ValuRich.

Question 11

Imported Carpets Store and Jill enter into a contract for a sale of an Oriental rug.Imported Carpets,a merchant who deals in goods of the kind sold,generally describes the goods,details technical specifications,and shows a sample.Under the UCC,if these are inconsistent

Accepted Answer

Under the UCC, if there is an inconsistency between the general description, technical specifications, and sample, the sample takes precedence over the general description. This means that if the buyer receives a rug that does not match the sample, they have the right to reject it.

Question 12

Sari buys a new sport utility vehicle (SUV)from Terrific Cars & Trucks,Inc.The most important factor in determining whether an express warranty is created is whether

Accepted Answer

According to the Uniform Commercial Code (UCC), an express warranty is created when the seller's promise or affirmation of fact becomes part of the basis of the bargain. In this case, if Terrific Cars & Trucks, Inc. makes a promise to Sari about the SUV that influences her decision to purchase it, then an express warranty is created. The other options do not necessarily create an express warranty under the UCC.

Question 13

Forest & Field Company makes and leases a backhoe to Zach.Due to a defect attributable to Forest & Field's negligence,Zach is injured in an accident in which his neighbor Aron is also hurt.In a product liability suit based on negligence,Forest & Field may be liable to

Accepted Answer

Forest & Field can be liable to both Zach and Aron because their negligence in making and leasing a defective backhoe caused the accident and resulting injuries to both parties.

Question 14

Neil goes to Oil Shop to change the oil in his car.Perry,the service technician,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

Accepted Answer

Perry, the service technician, advised Neil to use a certain type of oil for his trip, which implies that he had knowledge of the purpose for which Neil needed the oil. Hence, there was an implied warranty of fitness for a particular purpose. Since the oil ultimately failed to perform its intended function and damaged the car, Neil can recover damages from Oil Shop for breach of warranty.

Question 15

Oceanic Vessels,Inc.,and Pacific Harbor Company enter into a contract for a sale of a boat.Oceanic is a merchant who deals in goods of the kind sold.The goods are defective.Under the UCC,the implied warranty of merchantability is breached

Accepted Answer

The implied warranty of merchantability is a guarantee that goods sold by a merchant are fit for their ordinary purpose and are of fair and average quality. It applies regardless of whether the seller knew about the defect or not, so the correct answer is D.

Question 16

Universal Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim.Universal is most likely liable for

Accepted Answer

Universal Assembly Company made a misrepresentation on the label of the espresso machine which Vim relied on and which resulted in injury to Vim. This constitutes fraud and Universal is therefore liable.

Question 17

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

The answer of Trucks & Trailers,Inc.(T&T),and United Delivery Service enter...

Question 18

Dependable Appliances,Inc.,and Elain enter into a contract for a sale of kitchen appliances.Dependable,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability.Under the UCC,this means that the goods are reasonably

Accepted Answer

Under the UCC, an implied warranty of merchantability means that the goods are fit for the ordinary purpose for which such goods are used. This means that the goods are of a quality that is reasonable and adequate for their intended purpose. Option A is incorrect because it refers to a warranty of fitness for a particular purpose, which is a separate and distinct warranty. Option C is also not correct. The implied warranty of merchantability is not concerned with whether the goods are suitable for resale at an acceptable price, but rather with whether they are of a quality that is reasonable and adequate for their intended use. Option D is incorrect because there is no requirement that the goods be the best quality that money can buy - only that they are fit for their ordinary purpose.

Question 19

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires.Good Tire is a merchant who deals in goods of the kind sold.Under the UCC,an implied warranty of merchantability arises

Accepted Answer

Under the UCC, an implied warranty of merchantability arises automatically in sales contracts when the seller is a merchant who deals in goods of the kind sold. The warranty ensures that the goods sold are fit for their ordinary purpose and are of a quality commonly acceptable in the trade. Therefore, the buyer does not have to ask for it, and the seller cannot disclaim it in a sales contract.

Question 20

Garden Tool Company makes hedge trimmers.Troy is injured while using a Garden Tool trimmer and sues the company for product liability based on negligence.To win,Troy must show that

Accepted Answer

In product liability based on negligence, the plaintiff must prove that the manufacturer did not use due care with respect to the product. In this case, Troy must show that Garden Tool did not use due care in designing or manufacturing the trimmer, or in warning users of potential dangers associated with it.

Quiz 21: Warranties and Product Liability