Question 1

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 2

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 Company may be liable to both Zach and Aron as they were injured in the accident caused by the backhoe with a defect attributable to the company's negligence.

Question 3

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 4

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 5

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

Choosing "as is" explicitly waives any implied warranties, including warranties of merchantability and fitness for a particular purpose. This would protect Musical, Inc. from liability for any defects or issues with the MP3 players. The other options do not provide the same level of protection against implied warranties.

Question 6

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

The most important factor in determining whether an express warranty is created is whether Terrific's promise becomes part of the basis of the bargain. This means that if Terrific makes a specific promise about the SUV and that promise is a significant factor in Sari's decision to purchase the vehicle, then an express warranty is created. Therefore, choice D is the best option. Choices A, B, and C may be relevant to the overall transaction, but they do not necessarily determine the creation of an express warranty.

Question 7

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

In order for Gail to win the product liability suit based on negligence, she must prove that she suffered an injury caused by the defect in the Farm Equip tractor. The other choices are not necessary for her to prove in order to win the case.

Question 8

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, express warranties can be disclaimed or modified by clear, conspicuous language called to the buyer's attention. It is important for the language to be prominent so that the buyer is aware of any modifications or disclaimers before entering into the contract.

Question 9

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 and the sample, the sample takes precedence over the general description.

Question 10

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

The duty of care in a product liability suit based on negligence extends to both the design and the manufacture of the product. Therefore, Ceramic Tile Company could be liable for violating its duty of care with respect to both the design and the making of the tiles.

Question 11

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 if the seller is a merchant who deals in goods of the kind sold. This warranty ensures that the goods sold are fit for their ordinary purpose and comply with the standards of the trade. The buyer does not need to ask for it, and the seller cannot disclaim it.

Question 12

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 under the UCC is breached regardless of whether Oceanic knew or could have discovered the defect. As a merchant dealing in goods of the kind sold, Oceanic has a duty to sell goods that are fit for their ordinary purpose.

Question 13

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 upcoming trip. This advice implies that the oil is suitable for that particular purpose. Therefore, there is an implied warranty of fitness for a particular purpose. As the oil broke down during the trip and caused damage to the car, Neil can recover from Oil Shop for breach of this implied warranty of fitness for a particular purpose.

Question 14

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

Under the Magnuson-Moss Warranty Act, ValuRich must provide a choice between a refund or replacement if a product cannot be fixed and repair or replacement of defective parts. This means that the customer has options for resolving issues with their purchase and is not limited to just one solution.

Question 15

Electric 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

To avoid liability for oral express warranties, the sales agreement should specify that warranties are only those included in the written contract, thereby excluding any oral statements.

Question 16

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

The implied warranty of merchantability under the UCC means that the goods are fit for the ordinary purpose for which such goods are used. Option A pertains to the implied warranty of fitness for a particular purpose, which is different from the implied warranty of merchantability. Option C pertains to the concept of marketability and not to the implied warranty of merchantability. Option D is not accurate as the implied warranty of merchantability does not guarantee the best quality that money can buy, only that the goods are of a reasonable quality for their ordinary purpose.

Question 17

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 had a duty to exercise "due care" to make the skates safe for their intended use. By failing to do so and causing Hugh's injury, they are likely liable for negligence. Assumption of risk would only apply if Hugh knew of the potential danger and still used the skates, knowledgeable use would only apply if Hugh used the skates properly but they still had a defect, and product misuse would only apply if Hugh used the skates in a way that was not intended or recommended by GR8.

Question 18

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 order to prove product liability based on negligence, Troy would need to show that Garden Tool did not use due care in the manufacture, design, or warning of the hedge trimmer. This would mean proving that the company knew, or should have known, that the product was defective in some way, and failed to take reasonable steps to prevent harm to users like Troy.

Question 19

Fact Pattern 15-1 
Bret, a representative of Concrete Products, Inc. assures Dependable 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 15-1.Suppose that the court rules against Concrete.The manufacturer might have avoided that result by

Accepted Answer

By not permitting Bret to make an express warranty, Concrete could have avoided liability for the assurance that the cement would not crack within a certain temperature range. An express warranty creates a binding promise that the product will meet certain standards, and if it fails, the company can be held liable.

Question 20

Fact Pattern 15-1 
Bret, a representative of Concrete Products, Inc. assures Dependable 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 15-1.The court is most likely to rule in favor of

Accepted Answer

Bret's assurance that the cement will not crack within a certain temperature range constitutes an express warranty, which Concrete Products, Inc. breached when the cement cracked.

Quiz 15: Warranties and Product Liability

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