Deck 20: Products Liability

Question 1

Strict liability is liability without proof of negligence and without privity.

Answer 1

True

Question 2

The Restatement says recovery under strict liability is limited to "physical harm thereby caused to the ultimate user or consumer, or to his property," but not other losses and not economic losses.

Answer 2

True

Question 3

An express warranty is one created by law, acting from an impulse of common sense.

Answer 3

False

Question 4

To disclaim the implied warranty of merchantability, the word "merchantability".

Question 5

The failure to warn a potential user of possible hazards can make a product defective under Restatement, Section 402A, whether unreasonably dangerous or even unavoidably unsafe.

Question 6

Warranty "sounds" (relates to) contract theory, governed by the Uniform Commercial Code.

Question 7

The concern over reasonableness and standards of care are elements of negligence theory.

Question 8

The Uniform Commercial Code lays down the fundamental rule that goods carry an express warranty of merchantability if sold by a merchant-seller.

Question 9

The Uniform Commercial Code permits sellers to exclude warranties in whole or in part.

Question 10

Common-law governs express warranties and various implied warranties.

Question 11

Tom found an old print in his great grandfather's attic. He was right in warranting, that it was free of any valid infringement claims when he sold it to his neighbor.

Question 12

Both the warranty of merchantability and of fitness for a particular purpose apply only to sales made by merchants.

Question 13

Phantom warranties are addressed by the Magnuson-Moss Act.

Question 14

Sales of services but not sales of goods are covered under the Restatement of Torts, Section 402A.

Question 15

A limited warranty may cover only parts, not labor.

Question 16

The theory of caveat emptor governed the consumer law from the early eighteenth century until the early twentieth century.

Question 17

An express warranty does not have to be set out in words, orally or in writing.

Question 18

An implied warranty is created whenever the seller affirms that the product will perform in a certain manner.

Question 19

The natural-foreign test adopts the seller's perspective.

Question 20

Local reputation has no influence on behavior.

Question 21

According to Section 402A of the Restatement of Torts, Second, one who sells any product in a defective condition unreasonably dangerous to the users cannot be subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property, if _____ .

A) the seller is engaged in the business of selling such a product
B) it is expected to and does reach the user without substantial change in the condition in which it is sold
C) the seller has exercised all possible care in the preparation and sale of his product
D) the user or consumer has not brought the product from or entered into any contractual relation with the seller
E) a product that is safe when delivered is subsequently mishandled or changed

Question 22

Statutes of repose give consumers longer to bring actions for breach of warranty-the statute of limitations is lengthened.

Question 23

In a typical products-liability case, _____.

A) three legal theories are asserted- two contract theories and one tort theory
B) the contract theory is negligence, governed by the common law
C) the contract theory of negligence is governed by the Uniform Commercial Code
D) the strict products policy is considered a contract theory
E) the tort theories are governed by the common law

Question 24

_____ imposes a liability on a merchant-seller of defective goods without fault.

A) Statute of repose
B) Strict products liability
C) Limited warranty
D) Negligence
E) Preemption

Question 25

Which of the following is true when the true cost of a money-making enterprise like cigarettes become inescapably apparent?

A) Congress creates an administrative agency to regulate the industry.
B) Congress crafts regulations dictating as many industry-wide reform measures as are politically possible.
C) The manufacturers withdraw their products.
D) If the defendant wins enough lawsuits, the administrative agency raises rates, forcing reform.
E) If the industry has enough clout to blunt a pro-consumer legislative response, recourse is had through unions.

Question 26

According to Article 2 of the Uniform Commercial Code, _____.

A) selling and serving food or drink for consumption off the premises only is not subject to the implied warranty of merchantability
B) the "natural-foreign" test, unless otherwise agreed, means that the goods are fit for the purposes for which the goods of the same description would ordinarily be used
C) the natural-foreign test adopts the buyer's perspective
D) selling and serving food or drink for consumption on the premises is a sale subject to the implied warranty of merchantability
E) the test relying on reasonable expectations, if the substance used to make a food-item is natural to the substance, then the food is fit for consumption

Question 27

The _____ establishes a time period, generally ranging from six to twelve years, after which the manufacturer is not liable for injuries caused by the product

A) implied warranty of fitness for particular use
B) implied warranty of merchantability
C) strict products liability
D) statute of repose
E) Magnuson-Moss Act

Question 28

Which product would be defective under strict products liability?

A) 150 proof vodka that causes intoxication and liver damage after years of use.
B) Cigarettes that causes cancer and heart disease after some years of use.
C) Coffee that is served hot enough to cause burns.
D) An electric stove that, when the oven door is opened, gives a serious electrical shock.
E) A dog that bites very readily.

Question 29

Only merchant sellers are accountable under strict liability.

Question 30

The Magnuson-Moss Warrant Act is a Congressional intrusion into the UCC.

Question 31

Assumption of the risk is not a defense in strict liability cases.

Question 32

The Code says that _____.

A) even if a certain way of doing business is understood, it is necessary for the seller to state explicitly that he will abide by the custom
B) unless modified or excluded implied warranties may arise from a course of dealing or usage of trade.
C) other implied warranties may arise from a course of dealing, even if modified
D) other implied warranties may arise from a course of dealing, even if it is excluded
E) it only applies to a seller who occasionally deals in goods of the kind in question

Question 33

Raul bought a laptop computer from a computer store, marked "as is." Two days later while Raul was using it, it began to smoke and then burst into flames, injuring Raul. Most likely he has no recourse for his injuries.

Question 34

The doctrine of privity of contract is much diminished in modern law, compared to its status in the 19^th century.

Question 35

Statements made in advertisements are not express warranties.

Question 36

The relationship between two contracting parties, occupying adjoining levels in a product distribution system is known as _____.

A) preemption
B) warranty
C) vertical privity
D) implied warranty
E) express warranty

Question 37

The formulation of strict liability stated by Section 402A of the Restatement of Torts, Second lays down that:

A) the failure to warn a potential user of possible hazards cannot make a product defective, whether dangerous or even unavoidably safe.
B) when the product contains an ingredient that could cause toxic effects in a substantial number of people and its danger is not widely known, the lack of warning cannot make the product unreasonably dangerous within the meaning of the Restatement.
C) strict liability under the rule doesn't apply to a private individual who sells his own automobile.
D) faulty packaging or sterilization may not be used as the ground for liability if the product deteriorates before being used.
E) strict liability does not apply if the user has not purchased the product from the seller nor has the user entered into any contractual relation with the seller.

Question 38

Adam goes to a hardware store and tells the salesclerk that he needs a paint that will dry overnight because he was painting his front door and a rainstorm is predicted for the next day. The clerk gives him, a slow-drying oil-based paint that takes two days to dry. The store has breached a (n) _____.

A) implied warranty of fitness for particular purpose
B) warranty of infringement
C) warranty of the course of dealing
D) warranty of usage of trade
E) implied warranty of merchantability

Question 39

Raul bought a laptop computer from his neighbor. Two days later while Raul was using it, it began to smoke and then burst into flames, injuring Raul. Most likely Raul has no remedy from his neighbor.

Question 40

A "phantom" warranty

A) is a short-term promise made by the seller.
B) called a "full warranty" under the Magnuson-Moss Act.
C) looks good on paper, but is nearly useless in fact.
D) is valid only for the first purchaser of the good
E) covers only parts, not labor.

Question 41

What are the general problems with the warranty theory?

Question 42

What is merchantability?