Question 1

GR8 Skates Company makes and sells a pair of skates to Homer.GR8 fails to exercise "due care" to make the skates safe,and Homer is injured as a result.GR8 is most likely liable for

Accepted Answer

GR8 Skates Company can be held liable for negligence as they failed to exercise due care while making the skates safe, which resulted in injury to the customer.

Question 2

Welding Systems,Inc.(WSI),makes welding torches,masks,and related products.A WSI product may be unreasonably danger?ous due to

Accepted Answer

A defect in the design of the product can make it unreasonably dangerous for users. It may have a flaw or lack of safety features that can cause harm. The other options (B, C, and D) do not relate to the safety of the product itself.

Question 3

Longlast Tools,Inc.,sells power tools,power tool parts,and related supplies under "full" warranties.Under the Magnuson-Moss Warranty Act,this means that Longlast must provide

Accepted Answer

Under the Magnuson-Moss Warranty Act, a "full" warranty means that the seller must provide free repair or replacement of any defective part.

Question 4

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 was designed to prevent deception in warranties by

Accepted Answer

The Magnuson-Moss Warranty Act aims to make warranties easier to understand for consumers, ensuring transparency and preventing deception.

Question 5

Concrete Products,Inc.,assures Deepwater Construction Company (DCC)that Concrete's cement will not crack within a certain range of pressure.DCC uses the product.When cracks develop within the stated range,DCC files a suit against Concrete.The court is most likely to rule in favor of

Accepted Answer

Concrete Products, Inc. made an express warranty by assuring DCC that their cement would not crack within a certain range of pressure. When cracks developed within this stated range, Concrete breached this express warranty, making them liable to DCC for damages. Therefore, the court is most likely to rule in favor of DCC. Choice A is incorrect because Concrete's statement was not just an opinion, but an express warranty. Choice B is incorrect because DCC choosing Concrete's product does not absolve Concrete of their responsibility to provide a product that meets the express warranty made. Choice D is incorrect because puffery is typically defined as exaggerated advertising claims that a reasonable person would understand as non-factual, and Concrete's statement was a factual assurance that their cement would not crack within a certain range of pressure.

Question 6

City Cab Company and Dave's Autos enter into a contract for a sale of motor vehicles.City assures Dave's that it has valid title to the vehicles.Under the UCC,warranties of title arise

Accepted Answer

Under the Uniform Commercial Code (UCC), warranties of title automatically arise in most sales contracts. This means that City Cab Company would have automatically warranted that it had valid title to the vehicles it was selling to Dave's Autos, regardless of whether Dave's Autos specifically asked for such a warranty or not.

Question 7

Neil goes to Oil Shop to change the oil in his car.Pat,the service tech?ni?cian,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

Pat, the service technician, advised Neil on the specific type of oil to use for his trip. This creates an implied warranty of fitness for a particular purpose. Since the oil broke down and damaged Neil's car during the trip, Neil may recover from Oil Shop for breach of this implied warranty.

Question 8

Sari buys a new sport utility vehicle (SUV)from 'Tastic Cars & Trucks,Inc.The most important factor in determining whether an ex?press war?ranty is created is whether

Accepted Answer

The most important factor in determining whether an express warranty is created is whether 'Tastic's promise becomes part of the basis of the bargain. This means that the promise made by 'Tastic must have influenced Sari's decision to buy the SUV. If the promise was an important factor in Sari's decision, then a warranty can be created. Therefore, Choice D is the correct answer. Choices A, B, and C are not relevant factors in determining the creation of an express warranty.

Question 9

Safe-T-Made Company makes electrical cords and other connectors for elec?tronic devices.Rowena files a product liability suit against Safe-Rite,alleg?ing a warning defect.Under the Restate?ment (Third)of Torts: Products Liability,in deciding whether to hold Safe-T-Made liable,the court may consider

Accepted Answer

The court may consider the characteristics of expected users in determining whether to hold Safe-T-Made liable for the warning defect alleged by Rowena. This means that the court will look at the intended or foreseeable users of the product and determine whether the warning provided was sufficient for those users. The expectations of the seller, identities of the company's owner, and intentions of the manufacturer may also be considered, but they are not directly relevant to the issue of warning defect.

Question 10

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

According to the UCC, when there is inconsistency among the general description, technical specifications, and sample, the sample takes precedence over the general description or technical specifications. Therefore, in this scenario, Jill can rely on the sample of the Oriental rug provided by Imported Carpets for the qualities and characteristics of the rug.

Question 11

Fun Toyz Corporation makes skateboards,which it sells to con?sumers,including Gitana.Gitana is injured due to a defect in the board that causes an accident in which Haley,a bystander,is also injured.In a product liability suit based on strict product liabil?ity,Fun Toyz may be liable to

Accepted Answer

Under strict product liability, Fun Toyz Corporation can be held liable for any injuries caused by its defective skateboards. Therefore, both Gitana and Haley can sue Fun Toyz Corporation for their injuries caused by the defective skateboard.

Question 12

Woodgrain Products Company and Sylvia enter into a contract for a sale of lumber.Woodgrain knows the purpose for which Sylvia will use the goods.Under the UCC,an implied warranty of fitness of a particular purpose arises

Accepted Answer

An implied warranty of fitness for a particular purpose arises when the seller knows the particular purpose for which the buyer needs the goods and the buyer relies on the seller's expertise to select suitable goods.

Question 13

Rent-all Trucks & Trailers,Inc.(RT&T),and United Delivery Service enter into a contract for a lease of trucks.RT&T is a merchant who deals in goods of the kind leased.Under the UCC,an implied warranty of merchantability arises

Accepted Answer

An implied warranty of merchantability automatically arises in lease contracts under the UCC when the lessor is a merchant dealing in goods of the kind leased.

Question 14

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

According to the UCC, the implied warranty of merchantability means that the goods being sold by a merchant are fit for the ordinary purpose for which such goods are used. This means that the goods are of a quality that can be reasonably expected from such goods in terms of their performance, safety, and durability. It does not mean that the goods are fit for the buyer's particular purpose, the best quality that money can buy, or suitable for resale at an acceptable price.

Question 15

Grady,an obese individual,files a suit against Fry Fast Food Corporation (FFFC),alleging that FFFC's food is unhealthy because,as Grady knows,it contains high levels of cholesterol and saturated fat.Grady is most likely to

Accepted Answer

The answer of Grady,an obese individual,files a suit against Fry...

Question 16

Pharma Company,Quitox Corporation,and Renal,Inc.,are drug makers.Med Sales Company and National OTC,Inc.,are drug dis?tribu?tors.In a suit against all of these parties in which market-share li?ability is imposed,most likely to be liable are

Accepted Answer

In a market-share liability case, all parties in the distribution chain can be held liable. This includes both the drug makers (Pharma Company, Quitox Corporation, and Renal, Inc.) and the drug distributors (Med Sales Company and National OTC, Inc.). Therefore, the most likely answer is B, both the distributors and the makers.

Question 17

Olga,a salesperson for Pre-owned Cars & Trucks,Inc.,tells Quincy,"This is the best car I've ever seen." This statement is

Accepted Answer

Olga's statement is considered puffery, which is a general exaggeration or subjective opinion that cannot be considered a factual statement or a legally binding warranty.

Question 18

Green Glass Corporation makes glass bottles for food and beverage makers to package their products for wholesale distribution and retail sale.Liability may be imposed on Green Glass based on

Accepted Answer

Liability may be imposed on Green Glass Corporation if their glass bottles contain a manufacturing defect, which means that there was an error or flaw in the production process that makes the product unreasonably dangerous to users. The other options are not relevant to determining liability for a manufacturing defect in the product.

Question 19

Farm Equip,Inc.,makes farm?ing 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

To win the product liability case based on negligence, Gail must show that she suffered an injury caused by the defective tractor. The other options are not relevant to the case. A is assumed because Gail is suing Farm Equip. B is not necessary for a negligence claim. D is not applicable as a commonly known danger defense would not apply in a negligence claim.

Question 20

Air Navigation,Inc.,makes aviation guidance systems.Ollie is in?jured in a crash caused by a defective Air Navigation product.A statute re?stricts the time within which Ollie may file a product liability suit against Air Navigation regardless of when he was injured.This is a statute of

Accepted Answer

A statute of repose limits the time within which a lawsuit can be filed, regardless of when the injury occurred, unlike a statute of limitations which starts from the time of injury.

Quiz 22: Warranties and Product Liability

GR8 Skates Company makes and sells a pair of skates to Homer.GR8 fails to exercise "due care" to make the skates safe,and Homer is injured as a result.GR8 is most likely liable for

Welding Systems,Inc.(WSI) ,makes welding torches,masks,and related products.A WSI product may be unreasonably danger?ous due to

Longlast Tools,Inc.,sells power tools,power tool parts,and related supplies under "full" warranties.Under the Magnuson-Moss Warranty Act,this means that Longlast must provide

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 was designed to prevent deception in warranties by

Concrete Products,Inc.,assures Deepwater Construction Company (DCC) that Concrete's cement will not crack within a certain range of pressure.DCC uses the product.When cracks develop within the stated range,DCC files a suit against Concrete.The court is most likely to rule in favor of