Question 1

If the theory of privity of contract still applied, it would be difficult for purchasers injured by defective goods to sue manufacturers.

Accepted Answer

The theory of privity of contract limited the right to sue only to those who were parties to the contract. Purchasers injured by defective goods would not be able to sue the manufacturers directly as they were not parties to the contract between the manufacturer and the seller. However, the doctrine of privity of contract has been largely abolished in most jurisdictions, allowing purchasers to sue manufacturers directly for defective goods.

Question 2

An express warranty is basically any statement of fact or promise made about the goods that becomes part of the basis of the bargain.

Accepted Answer

An express warranty is a statement of fact or promise made about the goods that becomes part of the basis of the bargain between the buyer and the seller. It can be made orally or in writing. Therefore, the statement in the given question is true.

Question 3

Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach.

Accepted Answer

A warranty in breach is one that fails to provide the complete protection of a full warranty, but it is not the same as a limited warranty which provides some but not all of the protection of a full warranty.

Question 4

No law requires a seller to make an express warranty.

Accepted Answer

While some products may come with an express warranty, there is no requirement for sellers to provide one.

Question 5

An express warranty can be made orally or in writing.

Accepted Answer

This is true. An express warranty can be made in either form, orally or in writing.

Question 6

An express warranty arises when goods are purchased based on a catalog illustration.

Accepted Answer

The answer of An express warranty arises when goods are...

Question 7

A statement by a seller relating to goods that is part of the basis of the bargain is an express warranty.

Accepted Answer

An express warranty is a statement made by a seller that becomes a part of the basis of the bargain, and the buyer relies on it while making the purchase. It is usually in the form of an affirmation of fact or a promise about the goods that the buyer is purchasing. So, the statement is true.

Question 8

An express guarantee is governed by the UCC, and warranties are governed primarily by the common law of contracts.

Accepted Answer

The Uniform Commercial Code (UCC) governs both express guarantees and warranties for the sale of goods, not the common law of contracts.

Question 9

When a buyer makes a purchase without relying on the seller's skill and judgment, no warranty of fitness for a particular purpose exists.

Accepted Answer

When a buyer makes a purchase without relying on the seller's skill and judgment, the seller does not make any warranties concerning the fitness of the product for a particular purpose. This is known as the "buyer's own judgment" exception to the warranty of fitness for a particular purpose.

Question 10

The scope of warranties remains the same regardless of whether the seller is a merchant or a casual seller.

Accepted Answer

The scope of warranties may differ depending on whether the seller is a merchant or a casual seller. Merchants are held to higher warranty standards because they are in the business of selling goods, while casual sellers are not.

Question 11

If a lawn mower will not cut any type of grass, there is a breach of the warranty of merchantability, even if the warranty was conspicuously disclaimed.

Accepted Answer

The answer of If a lawn mower will not cut...

Question 12

If a seller sells an automobile to a buyer and then delivers the car with an outstanding lien on it that was unknown to the buyer at the time of the sale, there is a breach of the implied warranty of merchantability.

Accepted Answer

The breach would be of the implied warranty of title, not merchantability, as the seller did not have the right to sell the car free of liens.

Question 13

The requirement of privity of contract to allow recovery in a sales contract has been widely rejected.

Accepted Answer

Many jurisdictions have eliminated the requirement of privity of contract, allowing third-party beneficiaries or assignees to recover in a sales contract.

Question 14

Express warranties may be made before, during, but not after the sale of goods.

Accepted Answer

Express warranties can be made after the sale of goods as well, as long as they are supported by new consideration.

Question 15

A seller's opinion cannot ordinarily be treated as a warranty.

Accepted Answer

A seller's opinion is not a guarantee or a promise about the quality or condition of a product, and cannot be relied upon as such. It is the buyer's responsibility to make their own assessments and inspections before purchasing.

Question 16

Plaintiffs suing for damages caused by a defective product are limited to taking action only against the manufacturer(s) of such goods.

Accepted Answer

Plaintiffs have the option to take action against not just the manufacturer of a defective product, but also against any party within the chain of distribution, including wholesalers, distributors, and sellers. This is known as product liability law.

Question 17

A seller cannot be held liable for the breach of an express warranty if the seller honestly believed that the warranted statement was true.

Accepted Answer

A seller can be held liable for the breach of an express warranty regardless of their belief in the truth of the statement, as express warranties are affirmations of fact or promises made by the seller to the buyer about the goods being sold, forming part of the basis of the bargain.

Question 18

The right to sue for damages sustained from a defective product is reserved exclusively to the buyer of such goods.

Accepted Answer

The right to sue for damages sustained from a defective product is not reserved exclusively to the buyer of such goods. Other parties who may have been injured or suffered damages, such as bystanders or family members of the buyer, may also have a right to sue.

Question 19

It is necessary to the creation of an express warranty that the seller use formal words such as "warrant" or "guarantee."

Accepted Answer

Formal words such as "warrant" or "guarantee" are not necessary for the creation of an express warranty. Any statement made by the seller that gives an assurance or promise regarding the product can create an express warranty.

Question 20

Whenever a sale of goods is made, certain warranties are implied unless they are expressly excluded.

Accepted Answer

This is a general rule in many legal systems, including the United States and the United Kingdom. The exact warranties that are implied may vary depending on the jurisdiction and the type of sale, but they usually include warranties of merchantability (i.e. that the goods are fit for their intended purpose) and warranties of title (i.e. that the seller has the legal right to sell the goods). These warranties can be excluded or limited by contract, but the seller must do so explicitly and clearly.

Quiz 25: Product Liability: Warranties and Torts