Deck 13: Product Advertising and Liability

Question 1

"These dresses are 100% cotton" is an example of an express warranty.

Answer 1

True

Question 2

A lack of adequate warnings can be a defective product.

Answer 2

True

Question 3

A sale of a toaster at a garage sale is covered by the warranty of merchantability.

Answer 3

False

Question 4

"This car has the finest workmanship money can buy" is an example of an express warranty.

Question 5

To establish an express warranty under the UCC,the buyer must produce evidence that the seller used the term "warrant" or "guarantee."

Question 6

Today,courts require privity of contract for recovery in product liability cases.

Question 7

Misuse of a product is a defense in a product liability suit.

Question 8

Privity is required for recovery on the basis of warranty.

Question 9

Today,courts follow a policy of caveat emptor in handling product liability cases.

Question 10

Section 402A permits suits only by those in privity of contract.

Question 11

The implied warranty of fitness for a particular purpose (unless disclaimed)is given in every sale of goods by a merchant.

Question 12

When a customer tells a pet store employee that she wants two female gerbils,but receives one male and one female gerbil who later have baby gerbils,the pet store has breached the implied warranty of fitness for a particular purpose.

Question 13

A product can be defective for purposes of liability for injury if proper warnings about its use are not given.

Question 14

Caveat emptor is a Latin term meaning "let the buyer beware."

Question 15

There can be no recovery on the basis of a breach of a UCC warranty by anyone other than the actual buyer.

Question 16

Strict tort liability under Section 402A is the same as negligence.

Question 17

The language "as is" disclaims both the warranty of merchantability and the warranty of fitness for a particular purpose.

Question 18

Improper packaging that results in an injury can be a basis for product liability.

Question 19

Privity of contract is a direct contractual relationship between the parties.

Question 20

The implied warranty of merchantability (unless disclaimed)is given in every sale of goods by a merchant.

Question 21

Express warranties cannot be disclaimed.

Question 22

Ads by members of professional groups can be regulated by the state.

Question 23

In comparative advertising,a company cannot be held liable for misrepresentations regarding products other than its own.

Question 24

Federal trademark law provisions provide remedies for companies whose products are misrepresented in comparative advertising.

Question 25

Proof of negligence in product design or manufacture allows recovery of punitive damages.

Question 26

Celebrity endorsements of products are deceptive unless the celebrity has used the product.

Question 27

The foreign/natural test for food items is different from the liability issues under the reasonable expectation test.

Question 28

Ads can be a basis for an express warranty.

Question 29

A disclaimer of liability for personal injuries caused by a breach of warranty would be unconscionable.

Question 30

Proof for a breach of the warranty of merchantability suit requires establishment of the fact that the product was in a defective and unreasonably dangerous condition.

Question 31

Toyota had no ethical obligation to issue a recall on its vehicles with sudden unintended acceleration problems because Toyota did not manufacture the parts that caused the problems.

Question 32

Private parties can enforce the FTC regulations on comparative ads.

Question 33

Corrective ads can be required only when competition is affected.

Question 34

"Stops assailants dead in their tracks," written on the package for a mace product,is an express warranty.

Question 35

Stating a lamp is a "Tiffany lamp" and stating it is "in the Tiffany style" are both making the same kind of warranty.

Question 36

Bait and switch is not a deceptive advertising technique.

Question 37

The Federal Trade Commission does not have the authority to halt deceptive ads.

Question 38

The Consumer Product Safety Improvement Act of 2008 includes rules covering the resale of goods such as in a garage sale.

Question 39

The Federal Trade Commission is responsible for the regulation of deceptive advertising.

Question 40

A consent decree is similar to a no-contest plea in a criminal proceeding.

Question 41

For an injured party to recover for breach of a UCC warranty under the UCC:

A)there must be privity of contract.
B)even under the strictest alternative, the party can be a guest.
C)he/she must be a natural person.
D)none of the above

Question 42

Under the foreign-natural test,restaurants have no liability for injury caused by natural items,such as bones in chicken dishes,and pits in cherry pie dishes.

Question 43

"As is" written in a contract:

A)serves to disclaim the implied warranty of merchantability.
B)serves to disclaim the implied warranty of fitness for a particular purpose.
C)has no effect on warranty protection.
D)both a and b
E)none of the above

Question 44

The implied warranty of fitness for a particular purpose requires:

A)proof that the seller made the first contact with the buyer.
B)proof that the seller used the term "warrant."
C)proof that the seller is a merchant.
D)none of the above

Question 45

"These cartons will hold up to 100 pounds of books" is an example of:

A)an implied warranty of merchantability.
B)an express warranty.
C)misrepresentation.
D)privity.

Question 46

If there is a breach of the warranty of merchantability,there is no tort liability.

Question 47

A purchase of a deep fryer at a sale of a bankrupt restaurant's equipment by the bankruptcy trustee is covered by the warranty of merchantability.

Question 48

The implied warranty of merchantability requires:

A)proof that the seller is a merchant.
B)proof that the buyer relied on a merchant.
C)proof of a defective product.
D)all of the above

Question 49

Which of the following is not an example of an express warranty?

A)"This jacket is lined."
B)"This water heater holds 50 gallons."
C)"This toothpaste makes teeth the whitest around."
D)"Preshrunk jeans."

Question 50

An internal memo in a company that acknowledges the risk of a product prior to the product's release without any kind of change establishes proof for punitive damages under a negligence theory of product liability.

Question 51

Proof that a manufacturer was aware of a defect in its product but did not correct it is proof of negligence.

Question 52

The implied warranty of fitness for a particular purpose requires reliance by the buyer on the seller's expertise.

Question 53

The implied warranty of merchantability requires proof that the buyer was relying on some language when he or she made the purchase of the good.

Question 54

Under the Consumer Product Safety Improvement Act a reseller of goods cannot be liable for selling toys or other products with lead paint because the reseller did not manufacture the goods.

Question 55

Comparative ads are now illegal.

Question 56

A salesperson who recommends a fertilizer to a customer for the customer's described purposes is not making a warranty.

Question 57

Passengers injured in a plane crash caused by the plane's defective design have no rights of recovery against the airplane manufacturer.

Question 58

Which is a requirement for an express warranty?

A)use of the word "warrant" or "guarantee"
B)a description or promise of performance
C)written statement
D)must be made by a merchant

Question 59

The FTC can issue an order to halt a comparative ad if information used in the ad is inaccurate.

Question 60

Product packaging stating that the line is "ideal for use on boat or dock" is mere puffery and not an express warranty.

Question 61

Negligence product liability cases:

A)are the same as 402A cases.
B)have no defenses.
C)require proof of privity.
D)none of the above

Question 62

Which of the following would not be a basis for a negligence product liability suit?

A)a highly explosive gas tank installed in a car with the manufacturer's prior knowledge of its dangers
B)the continued sale of sunglasses to baseball teams knowing the sunglasses shatter
C)the continued sale of gas pipelines to utilities in the Southwest after explosions caused by peculiar interactions of the pipe with the soil and heat
D)All of the above would be negligence product liability suits.

Question 63

Which of the following duties could not be a basis for a negligence suit?

A)hotel to guest
B)physician to patient
C)accountant to client
D)All of the above parties have duties.

Question 64

"With all faults" serves to disclaim:

A)an express warranty.
B)liability under 402A.
C)liability for negligence.
D)none of the above

Question 65

A company is liable for a design defect in its product only if:

A)it was aware of the design defect.
B)the design defect has caused a previous injury.
C)there was negligence in the product testing.
D)none of the above

Question 66

Privity in negligence product liability cases is:

A)not required.
B)more stringent than in UCC cases.
C)determined by the relationship of the injured party to the buyer.
D)none of the above

Question 67

The UCC warranty of merchantability:

A)does not cover sales of food in restaurants.
B)can be disclaimed by using the term "as is."
C)is made in every sale of goods.
D)none of the above

Question 68

Contributory negligence:

A)can be a partial defense in product liability cases for negligence.
B)is the same as comparative negligence.
C)is no longer permitted as evidence in suits.
D)none of the above

Question 69

Susan Hewitt is eating a bowl of cream of broccoli soup in a bistro when she notices a portion of a caterpillar on her spoon.Susan's best basis for recovery is:

A)implied warranty of merchantability.
B)negligence.
C)implied warranty of fitness for a particular purpose.
D)none, there is no privity

Question 70

Which of the following does not constitute an express warranty?

A)"This computer system is accessible by a PB2400 modem."
B)"This computer system is IBM-compatible."
C)"This computer system has a built-in battery back-up system that gives you two minutes to save files in the event of a power interruption."
D)All of the above are express warranties.

Question 71

Which of the following does not constitute an express warranty?

A)"This car will give you a great deal of satisfaction."
B)"This car is equipped with Michelin radial tires."
C)"This car goes from 0 to 60 mph in 10 seconds."
D)All of the above are express warranties.

Question 72

Which of the following would be a "defect" for purposes of 402A?

A)failure to warn not to put a hair dryer in water
B)food package that permits tampering
C)a missing bolt on a car steering column
D)all of the above

Question 73

The opposite of caveat emptor is:

A)negligence.
B)privity requirements.
C)strict tort liability.
D)none of the above

Question 74

Section 402A covers:

A)manufacturers.
B)retailers.
C)those who sell products out of their home.
D)all of the above

Question 75

Which of the following would not be a breach of the warranty of merchantability?

A)a piece of garden snake in a box of frozen green beans
B)a caterpillar in broccoli soup purchased at a restaurant
C)a milk carton that leaks
D)All of the above are breaches of the implied warranty of merchantability.

Question 76

Susan Sandren purchased a toaster from Standard Electric.While using the toaster the day after it was purchased,Susan discovered that the toaster slots were too small for a thick piece of bread.The bread was stuck in the slot.With the toaster still plugged in,Susan used a knife to pry loose the toast and was electrocuted.In a suit by her family against Standard Electric:

A)Standard will lose because the slots should have been made wider.
B)Standard will win because of misuse of the product.
C)Susan's family will win because of a design defect.
D)Susan's family would win if there were no warnings about knives and electrocution.

Question 77

The 2008 act that includes some regulations on the resale of goods is the:

A)Consumer Product Safety Act.
B)Consumer Product Resale Safety Act.
C)Consumer Product Safety Improvement Act.
D)Consumer Product Resellers Inclusion Act.

Question 78

Ralph Walters wanted to begin an exercise program and decided to enroll in a local aerobics class.He was told that he would need proper aerobic work-out shoes.Ralph went to an athletic shoe store and explained his needs to the sales clerk and also added that since he had never done aerobics,he was unsure what type of shoe he would need.The sales clerk recommended a shoe that Ralph purchased.When Ralph arrived at aerobics class,his instructor said his shoes were not appropriate for aerobics and that Ralph might injure himself if he used them for the workout.When Ralph returned to the store with the shoes,the store refused to exchange them,citing the three-day limitation on returns.The shoe store:

A)is within its rights to refuse to take the shoes back.
B)has breached the implied warranty of fitness for a particular purpose and is required to refund Ralph's money or exchange the shoes.
C)has not breached any warranty since Ralph had no contract with any promises written in it.
D)none of the above

Question 79

The term "AS THEY STAND" serves to disclaim:

A)the implied warranty of merchantability.
B)the implied warranty of fitness for a particular purpose.
C)both a and b
D)none of the above unless it is in writing

Question 80

Ralph Walters wanted to begin an exercise program and decided to enroll in a local aerobics class.He was told that he would need proper aerobic work-out shoes.Ralph went to an athletic shoe store and explained his needs to the sales clerk and also added that since he had never done aerobics,he was unsure what type of shoe he would need.The sales clerk recommended a shoe that Ralph purchased.When Ralph arrived at aerobics class,his instructor said his shoes were not appropriate for aerobics and that Ralph might injure himself if he used them for the workout.When Ralph returned to the store with the shoes,the store refused to exchange them,citing the three-day limitation on returns.Suppose Ralph's sales receipt had stamped on it in red letters "AS IS." The shoe store:

A)has breached the implied warranty of fitness for a particular purpose and is required to refund Ralph's money or exchange the shoes.
B)is within its rights to refuse to take the shoes back.
C)has not breached any warranty since Ralph had no contract with any promises written in it.
D)none of the above