Question 1

What form of negligence involves the duty of a manufacturer to develop a safe product?
A)Negligent design
B)Negligent hiring
C)Negligent battery
D)Incorporation

Accepted Answer

Negligent design is a term for the duty of a manufacturer to design a safe product that will be used by the consumer.

Question 2

What is the usual UCC time limitation for claiming breach of express and implied warranty after the seller offers the defective goods to the buyer?
A)12 months
B)2 years
C)4 years
D)5 years

Accepted Answer

The usual UCC statute of limitations for express and implied warranty claims is four years after the seller offers the defective goods to the buyer.

Question 3

Which of the following distinguishes the Restatement (Third)from section 402A?
A)It covers design defects.
B)It covers manufacturing defects.
C)It does not require that the product be unreasonably dangerous.
D)It covers sellers engaged in selling the product that harmed the plaintiff.

Accepted Answer

Unlike section 402A,the Restatement (Third)does not require that in cases of strict liability,the product be unreasonably dangerous.

Question 4

Under the product liability theory of recovery known as strict liability,which parties may be held liable? (Answer using the majority rule used in most states. )
A)The manufacturer only,engaged in the business of making that product
B)Any seller who is a nonmerchant
C)The wholesaler only,engaged in the business of selling that product
D)The buyer of the product

Accepted Answer

According to the clause of strict liability,the seller must be engaged in the business of selling the product that has harmed the plaintiff.

Question 5

Which of the following statements about the Restatement (Third)of Torts is false?
A)It calls for different analyses for different types of defects.
B)It borrows concepts from negligence and strict liability.
C)It does not require that a product be unreasonably dangerous.
D)It has been adopted by enough states to make it a majority rule.

Accepted Answer

The Restatement (Third)of Torts has not yet been adopted by enough states to make it a majority rule.

Question 6

Sellers of goods sometimes attempt to disclaim (avoid)their liability under warranties.Which type of warranty disclaimers must be written in order to be effective?
A)Disclaimers of industrywide liabilities.
B)Disclaimers of the warranty of fitness for a particular purpose.
C)Disclaimers of the warranty of the Magnuson-Moss Act.
D)Disclaimers of the warranty of strict liability.

Accepted Answer

To exclude or modify the implied warranty of fitness for a particular purpose,a seller must (1)use a writing,and (2)make the disclaimer conspicuous.

Question 7

Which of the following characterizes cases filed under section 402A?
A)The seller must be engaged in selling the product that allegedly caused harm.
B)The product may not be in a defective condition but must have caused injury.
C)The seller must prove that suitable modifications were made to the product in order to avoid liability.
D)All cases except design-defect ones may be covered under this section.

Accepted Answer

In order for strict liability to be imposed under section 402A,one of the conditions that must be proved is that the seller must be engaged in the business of selling the product that harmed the plaintiff.

Question 8

Which of the following is an example of noneconomic damages from a tort case?
A)Money loss from non-performance of one party
B)Money loss from loss of professional time spent associated with contract
C)Pain and suffering
D)Loss of future commerce that was budgeted for one party

Accepted Answer

Noneconomic damages include pain and suffering,physical impairment,mental distress,loss of enjoyment of life,loss of companionship or consortium,inconvenience,and disfigurement.

Question 9

Which of the following would be most suitable to be tried under Comment k to section 402A of the Restatements (Second)of Torts?
A)Cases related to development of medicines
B)Cases of manufacturing defect
C)Cases of design defect
D)Cases of failure-to-warn

Accepted Answer

Imposing strict liability on "unavoidably unsafe" products,like certain medicines,might deter manufacturers from developing and marketing them.When products of this kind cause harm and a lawsuit follows,many courts follow Comment k to section 402A,which says that unavoidably unsafe products are neither defective nor unreasonably dangerous if they are properly prepared and accompanied by proper directions and a proper warning.

Question 10

Which of the following theories of recovery is likely to be most effective against a disclaimer of liability?
A)Express warranty
B)Implied warranty of merchantability
C)Implied warranty of fitness
D)Section 402A

Accepted Answer

UCC section 2-316(1)says that an express warranty and a disclaimer should be read consistently if possible,but that the disclaimer must yield if such a reading is unreasonable. Because it normally is unreasonable for a seller to exclude with one hand what he has freely and openly promised with the other,it is quite difficult to disclaim an express warranty.

Question 11

Which damages are awarded to punish the defendant?
A)Punitive
B)Compensatory
C)Monetary
D)Liquidated

Accepted Answer

Punitive damages are intended to punish defendants who have acted in an especially outrageous fashion,and to deter them and others from so acting in the future.

Question 12

Under the product liability theory of strict liability as expressed in the Restatement (Second)of Torts,what is an essential fact that must be present if strict liability may be used in a lawsuit as the basis for recovery?
A)The product must be unreasonably dangerous.
B)The product must be un-merchantable.
C)The product must be unfit for the purpose intended by the buyer.
D)The product must be unfit for any purpose.

Accepted Answer

In order for strict liability to succeed,the product must be in a defective condition when sold and must also be unreasonably dangerous because of that condition.

Question 13

Which of the following is most important for imposing strict liability?
A)Unavoidable circumstances
B)Unreasonably unsafe
C)Unreasonably expensive
D)Unavoidably protected

Accepted Answer

In order to impose strict liability,the product must be in a defective condition when sold and must also be unreasonably dangerous because of that condition.

Question 14

A seller's ability to disclaim implied warranties is sometimes restricted by the doctrine of:
A)unconscionability.
B)remedy limitation.
C)no-privity.
D)commercial impracticability.

Accepted Answer

A seller's ability to disclaim implied warranties sometimes is restricted,however,by the doctrine of unconscionability.In appropriate instances,courts may apply section 2-302's unconscionability standards to implied warranty disclaimers even though those disclaimers satisfy UCC section 2-316(2).

Question 15

A(n)________ is a clause attempting to block recovery of certain damages.
A)promissory estoppel
B)condition subsequent
C)implied warranty
D)remedy limitation

Accepted Answer

A remedy limitation is a clause attempting to block recovery of certain damages.

Question 16

In order to establish a cause of action based upon strict liability in tort for personal injuries resulting from the use of a defective product,the plaintiff must start the case by proving that the defendant:
A)was engaged in the business of selling the product.
B)failed to exercise due care.
C)defectively designed the product.
D)was in privity of contract with the plaintiff.

Accepted Answer

According to section 402A,in order to try a case of strict liability,it must be proved that the seller is engaged in the business of selling the product that harmed the plaintiff.

Question 17

Several firms within an industry are involved in manufacturing a harmful product.It is impossible to prove which firm produced the product and caused injury.Identify the type of liability that would arise in these circumstances.
A)Industrywide Liability
B)Strict Liability
C)No-privity determination
D)Breach of expresses warranty

Accepted Answer

The legal theory called industrywide liability is a way for plaintiffs to bypass problems of causation that exist where several firms within an industry have manufactured a harmful standardized product,making it impossible for the plaintiff to prove which firm produced the product that injured her.

Question 18

Which of the following is used by sellers to eliminate any kind of liability that may be claimed by an injured buyer?
A)Warranty
B)Disclaimer
C)Warning
D)Advertisement

Accepted Answer

A product liability disclaimer is a clause in the sales contract whereby the seller attempts to eliminate liability it might otherwise have.If a disclaimer is effective,no damages of any sort are recoverable under the legal theory attacked by the disclaimer.

Question 19

In cases where a product's risks are open and obvious,many courts hold that:
A)buyers must register a complaint with the seller.
B)strict liability must be applied.
C)the case will be covered under section 402A.
D)there is no duty to warn.

Accepted Answer

Sellers and manufacturers often have a duty to give an appropriate warning when their products pose a reasonably foreseeable risk of harm.However,in cases where the risks are open and obvious,many courts hold that the seller has no duty to warn.

Question 20

Bob,an attorney,purchased licensed software from Bill Able Inc.to prepare his clients' invoices online.The shrinkwrap packaging for the program disks and the software manuals contained a limitation of remedies clause,which limited the buyer's remedies to the $50 purchase price of the software.Bob later discovered that his invoices for the past year were too low due to a malfunction in the software,costing him over $10,000 in lost revenue.Bob sues Bill Able Inc.for breach of warranty.What is the likely result?
A)Bob wins because he has equal bargaining power with Bill Able,Inc.
B)Bob wins because a shrinkwrap's limitation of remedies clause is generally unenforceable.
C)Bob wins because the court will likely view the limitation of remedies clause as unconscionable and unenforceable.
D)Bob loses because the disclaimer is effective.

Accepted Answer

It is extremely common for shrinkwrap contracts to contain warranty disclaimers and limitation of remedy clauses.The courts have considered the enforceability of these disclaimers and clauses in shrinkwrap contracts and have upheld them.Therefore,Bob will likely lose because the disclaimer is effective.

Quiz 20: Product Liability

What form of negligence involves the duty of a manufacturer to develop a safe product?

What is the usual UCC time limitation for claiming breach of express and implied warranty after the seller offers the defective goods to the buyer?

Which of the following distinguishes the Restatement (Third) from section 402A?

Under the product liability theory of recovery known as strict liability,which parties may be held liable? (Answer using the majority rule used in most states. )

Which of the following statements about the Restatement (Third) of Torts is false?

Sellers of goods sometimes attempt to disclaim (avoid) their liability under warranties.Which type of warranty disclaimers must be written in order to be effective?

Which of the following characterizes cases filed under section 402A?

Which of the following is an example of noneconomic damages from a tort case?

Which of the following would be most suitable to be tried under Comment k to section 402A of the Restatements (Second) of Torts?

Which of the following theories of recovery is likely to be most effective against a disclaimer of liability?

Which damages are awarded to punish the defendant?

Under the product liability theory of strict liability as expressed in the Restatement (Second) of Torts,what is an essential fact that must be present if strict liability may be used in a lawsuit as the basis for recovery?

Which of the following is most important for imposing strict liability?

A seller's ability to disclaim implied warranties is sometimes restricted by the doctrine of:

A(n) ________ is a clause attempting to block recovery of certain damages.

In order to establish a cause of action based upon strict liability in tort for personal injuries resulting from the use of a defective product,the plaintiff must start the case by proving that the defendant:

Several firms within an industry are involved in manufacturing a harmful product.It is impossible to prove which firm produced the product and caused injury.Identify the type of liability that would arise in these circumstances.

Which of the following is used by sellers to eliminate any kind of liability that may be claimed by an injured buyer?

In cases where a product's risks are open and obvious,many courts hold that: