Question 1

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

Accepted Answer

Strict liability is a legal doctrine that holds a person or organization responsible for their actions or products without the need to prove negligence or the existence of a contractual relationship (privity).

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.

Accepted Answer

The statement accurately reflects the limitation of recovery under strict liability according to the Restatement. Strict liability only applies to physical harm to the user or consumer, or their property, and does not cover economic losses or other types of losses.

Question 3

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

Accepted Answer

An express warranty is one that is created through the seller's words or actions, not by law. It is a specific promise made to the buyer about the quality or performance of the product being sold.

Question 4

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

Accepted Answer

The answer of To disclaim the implied warranty of 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.

Accepted Answer

This statement is true. Under Restatement, Section 402A, a product can be considered defective if it fails to provide adequate warnings or instructions for use, even if the product is not unreasonably dangerous or is unavoidably unsafe. This is because consumers have the right to be informed of any potential risks associated with a product so that they can make an informed choice about whether to use it.

Question 6

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

Accepted Answer

Warranty is a legal concept related to contract theory and is governed by the Uniform Commercial Code, which sets out rules and regulations for commercial transactions in the United States.

Question 7

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

Accepted Answer

This statement is true. Reasonableness and standards of care are important factors in determining whether someone acted negligently.

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.

Accepted Answer

The Uniform Commercial Code (UCC) provides that goods carry an implied warranty of merchantability, not an express warranty, when sold by a merchant-seller. An express warranty is created by the seller's specific promises or affirmations about the goods.

Question 9

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

Accepted Answer

The Uniform Commercial Code allows sellers to exclude or limit warranties through disclaimers or language in the sales contract. However, there are certain limitations and requirements for these exclusions to be enforceable.

Question 10

Common-law governs express warranties and various implied warranties.

Accepted Answer

The answer of Common-law governs express warranties and various implied...

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.

Accepted Answer

Without knowing the specific details of the print, such as its origin, creator, and copyright status, it's impossible to definitively state that it was free of infringement claims.

Question 12

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

Accepted Answer

The answer of Both the warranty of merchantability and of...

Question 13

Phantom warranties are addressed by the Magnuson-Moss Act.

Accepted Answer

The Magnuson-Moss Act includes provisions that address phantom warranties, which are warranties that suggest additional coverage beyond what is provided by law, but do not actually offer any extra protection to the consumer.

Question 14

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

Accepted Answer

Section 402A of the Restatement of Torts covers both sales of goods and sales of services that are defective and cause harm to the consumer.

Question 15

A limited warranty may cover only parts, not labor.

Accepted Answer

This is true, as many limited warranties only cover the replacement or repair of defective parts, but not the cost of labor or installation.

Question 16

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

Accepted Answer

The theory of caveat emptor, which means "let the buyer beware", was the prevailing principle in consumer law for several centuries until the early twentieth century. It placed the responsibility on the buyer to be well-informed about the goods or services they were purchasing and to assess their quality and suitability for their needs, with little legal recourse or protection if they turned out to be faulty or unsatisfactory. However, consumer protection laws have since evolved to shift more of the burden onto the seller or service provider to ensure that their products meet certain standards and to provide remedies for consumers who are harmed or deceived in their transactions.

Question 17

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

Accepted Answer

An express warranty can also be created through conduct or actions, such as a demonstration or advertisement of a product.

Question 18

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

Accepted Answer

An implied warranty is not based on the seller's affirmations but arises by operation of law, ensuring that a product is fit for its intended purpose and of merchantable quality.

Question 19

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

Accepted Answer

The natural-foreign test is used by the seller to determine if a term or provision in a contract is customary in their industry or if it is significant or unusual. Therefore, it adopts the seller's perspective.

Question 20

Local reputation has no influence on behavior.

Accepted Answer

Local reputation can have a significant influence on behavior. People may shape their behavior based on how they believe others in their community perceive them, in order to maintain a good reputation and avoid social consequences such as disapproval or exclusion. This is known as social conformity or normative influence. Additionally, a positive local reputation can provide incentives for individuals to continue behaving in a certain way, such as engaging in charitable activities or contributing to the community, in order to maintain their positive image.

Quiz 20: Products Liability