Question 1

Va-Va-Voom Products, Inc., engages in de?ceptive advertising when it markets its product Weight-No-More as able to help consumers lose weight in their sleep. Va-Va-Voom is ordered to include in all future adver?tising of Weight-No-More the statement, "This product will not cause anyone to lose weight while sleeping." This is

Accepted Answer

This is a counteradvertising order, as it requires the company to include a corrective statement in all future advertising to correct the previous deceptive advertising.

Question 2

Goldtone Corporation makes cell phones. Haji files a product liabil?ity suit against Goldtone, alleging a design defect. In deciding whether to hold Goldtone liable, the court may consider an alternative design's

Accepted Answer

The court may consider an alternative design's effect on the product because the key factor in a design defect claim is whether an alternative feasible design would have prevented the harm suffered by the plaintiff.

Question 3

Corner Market sells groceries. Delite Food & Drug Store sells groceries and fills prescriptions. The chief responsibility to prevent unsafe food and drugs from being sold rests with

Accepted Answer

The Food and Drug Administration (FDA) is responsible for ensuring the safety of food and drugs sold in the United States. While other agencies may have oversight in specific areas, such as the Consumer Product Safety Commission for certain products, the FDA has the primary responsibility for preventing unsafe food and drugs from being sold.

Question 4

Regal Autos, Inc., sells cars to consumers. To avoid liability for oral ex?press warranties, each sales agreement should note that a car is sold

Accepted Answer

The answer of Regal Autos, Inc., sells cars to consumers....

Question 5

Dwayne, an electrician, files a suit against Electro Mechanix, Inc., alleging that its circuit breakers are unreasonably dangerous due to the possibility of electrical shock. Dwayne's suit is most likely to

Accepted Answer

The answer of Dwayne, an electrician, files a suit against...

Question 6

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber. Regional 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

According to the UCC, an implied warranty of fitness of a particular purpose arises only if the seller is a merchant who deals in goods of the kind sold, and the buyer is relying on the seller's expertise to select suitable goods for a particular purpose. Therefore, option C is the correct answer. Options A and B do not accurately reflect the requirements for an implied warranty of fitness of a particular purpose, and option D is incorrect because the warranty can arise in both lease and sales contracts.

Question 7

Robert is selling his used lawnmower. He wants to disclaim any implied warranties. Robert

Accepted Answer

By including a written disclaimer that the lawnmower is being sold "as is," Robert can effectively disclaim any implied warranties. Oral disclosure of known faults is also a good practice, but it may not be enough to fully disclaim implied warranties. A warranty of title is not relevant in this scenario as it pertains to whether Robert has the legal right to sell the lawnmower.

Question 8

Fun Toyz Corporation makes skateboards, which it sells to con?sumers, including Holly and Ira. Due to a defect, Holly is injured while using her new board. Ira's board has the same defect, but he is not injured. In a product liability suit based on strict product liabil?ity, Fun Toyz may be liable to

Accepted Answer

Under the doctrine of strict product liability, the manufacturer is strictly liable for any harm caused by its product if it is proven that the product was defective and unreasonably dangerous. In this case, Holly was injured due to a defect in the skateboard, making Fun Toyz liable to her for damages. However, Ira did not suffer any harm, so he does not have a claim against Fun Toyz.

Question 9

TruCalling, Inc., sells ringtones for cellphones. The company's ad states, "Our tones aren't phony-they ring true!" The Federal Trade Commission would consider this ad

Accepted Answer

The statement "Our tones aren't phony-they ring true!" is likely considered puffery, which is a subjective claim that is not meant to be taken literally or factually. Puffery is generally permissible in advertising.

Question 10

Bright Brew Coffee, Inc., processes and sells a variety of coffee products. Bright Brew's product packages must include

Accepted Answer

The net quantity of the contents is required by law to be included on product packages. The identity of the company owner, the restaurants and stores in which the product is sold, and the type of consumer most likely interested in the product are not mandatory and can be at the discretion of the company.

Question 11

Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a dog that will be good with small children. Carla sells Fred a dog. When Fred takes the dog home, it bites both his small children and causes them serious injuries. Fred can sue Carla for breach of

Accepted Answer

Fred told Carla that he wanted a dog that would be good with small children, indicating a particular purpose for the dog. Carla, as a knowledgeable dog breeder, has an implied warranty of fitness for a particular purpose - that is, the dog she sold should be suitable for the purpose stated by the buyer. Since the dog bit Fred's small children, it is clear that Carla breached this warranty.

Question 12

SurgeStop Company makes electrical cords and other connectors for elec?tronic devices. Rollo files a product liability suit against SurgeStop, alleg?ing a warning defect. In deciding whether to hold SurgeStop liable, the court may consider

Accepted Answer

The court would consider the obvious risks associated with SurgeStop's product in determining whether there was a warning defect. This would involve evaluating the likelihood and seriousness of potential harm, as well as whether the warnings provided were adequate to alert customers to these risks. The court would not consider consumer or plaintiff preferences regarding reading warnings, nor would it compare the risks of SurgeStop's product to those of other products.

Question 13

Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. The spikes come out of the shoes when Sigrud is on the side of a mountain, caus?ing her to be injured in a fall. Rockridge breached

Accepted Answer

An implied warranty of fitness for a particular purpose is breached when a seller knows or has reason to know of a buyer's particular purpose for the goods purchased, and the buyer relies on the seller's skill or judgment in selecting suitable goods, but the goods are not fit for that purpose. Here, Sigrud purchased spiked mountain-climbing shoes, implying that she would use them for climbing mountains. This implies that Sigrud had a particular purpose for the shoes, and she relied on the seller's skill in selecting suitable goods. However, the shoes failed to perform their intended function and caused her injury, signaling a breach of the implied warranty of fitness for a particular purpose.

Question 14

Precise GPS Company's ad states that its product is "the finest that money can buy." Because of this ad, the Federal Trade Com?mission is most likely to issue

Accepted Answer

The statement "the finest that money can buy" is considered puffery, which is a subjective claim and not likely to be actionable by the FTC.

Question 15

Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached

Accepted Answer

Under the UCC, the implied warranty of merchantability is breached regardless of what the merchant knew or could have discovered about the defect. This is because the warranty of merchantability is a guarantee that the goods are fit for their ordinary purpose and are of a quality that would be expected from a merchant that deals in goods of that kind.

Question 16

Paltry Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim. Paltry is most likely liable for

Accepted Answer

Paltry Assembly Company made a misrepresentation on the label, which resulted in an injury to Vim. This constitutes fraud, and therefore Paltry is most likely liable for this action. A commonly known danger would not apply in this situation as the danger was not commonly known. Privity would also not apply as Vim was not in a contractual relationship with Paltry. Puffery would not apply as it is an exaggerated claim that would not lead to injury.

Question 17

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 attempts to prevent deception in warranties by

Accepted Answer

The answer of Mountain Bikes, Inc. (MBI), and Nero enter...

Question 18

Sweet Treats, Inc., wants to market a new snack food. On the prod?uct's la?bel, standard nutrition facts are

Accepted Answer

Standard nutrition facts are required by law to be included on food labels in order to provide consumers with information about the nutritional content of the product.

Question 19

Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is

Accepted Answer

Under federal law, the calorie content of food on a menu must be posted by restaurants and similar retail food establishments that are part of a chain with 20 or more locations, doing business under the same name and offering for sale substantially the same menu items. Organic Mix, LLC would be subject to this requirement if it is a restaurant chain with 20 or more locations.

Question 20

Forest & Field Company makes and leases a backhoe to Zac. Due to a defect attributable to Forest & Field's negligence, Zac is injured in an accident in which his neighbor Aaron is also hurt. In a product liability suit based on negligence, Forest & Field may be liable to

Accepted Answer

Forest & Field may be liable to both Zac, as the user of the backhoe who was injured due to the defective product, and Aaron, who was also injured as a result of the same defect. The product liability suit would be based on the negligence of Forest & Field in producing and leasing a defective backhoe.

Quiz 12: Warranties, Product Liability, and Consumer Law