Question 1

Geoff's fiancée, Susan, comes to meet his parents for the weekend.On Saturday morning, while using Geoff's mother's hair dryer, the blower short-circuits sending sparks across the guest room.Susan's angora sweater and her hands are covered with tiny burns.Susan's mother is a lawyer and wants her to sue the seller of the dryer.Can she?

Accepted Answer

A)  No, because horizontal privity would extend only to members of the family.
B)  No, because privity would require that Geoff's mother sue.
C)  Yes, since she is a guest in the home of the buyer, the warranties would extend to her in most states.
D)  Yes, since under the Code all reasonable users are protected from injury.E) B) and C)
F) C) and D)

Question 2

All warranties are construed as consistent with each other and cumulative, unless such construction is unreasonable.

Accepted Answer

A) True 
 B)False

Question 3

Article 2A carries over the warranty provisions of Article 2 with relatively minor revisions that reflect differences in:

Accepted Answer

A)  style.
B)  leasing terminology.
C)  leasing practices.
D)  All of the above.
E)  (a)  and (c)  but not (b) F) All of the above
G) A) and E)

Question 4

The word "merchantability" must be mentioned in a disclaimer of an implied warranty of merchantability.

Accepted Answer

A) True 
 B)False

Question 5

Bradley buys a television set that turns out to be stolen.He can sue the seller for breach of warranty.

Accepted Answer

A) True 
 B)False

Question 6

The liability of manufacturers and sellers of goods for a defective product or for its failure to perform adequately may be based on one or more of the following: negligence, misrepresentation, violation of a statutory duty, warranty, and strict liability in tort.

Accepted Answer

A) True 
 B)False

Question 7

The Restatement (Third) of Torts: Products Liability has experienced rapid adoption by the states.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true with regard to implied warranties under the Code?

Accepted Answer

A)  They depend on the type of contract or sale entered into.
B)  They are a result of specific language in the sales contract.
C)  They continue the common law rule of caveat emptor.
D)  They are intended to protect the seller rather than the buyer.E) A) and B)
F) A) and C)

Question 9

Section 402A provides that liability exists only if the product reaches "the user or consumer without substantial change in the condition in which it is sold."

Accepted Answer

A) True 
 B)False

Question 10

Strict liability in tort imposes liability on:

Accepted Answer

A)  a manufacturer of a component used within a larger product, the manufacturer of which modifies the component for use in its finished product.
B)  a manufacturer of a defective component used in a larger product if the manufacturer of the finished product made no essential change in the component.
C)  a merchant or nonmerchant seller of a defective product which is unreasonably dangerous to the user or consumer.
D)  All of the above.E) C) and D)
F) A) and B)

Question 11

Strict liability can be avoided where:

Accepted Answer

A)  the seller uses due care and diligence in preparing the goods.
B)  the seller manufactures products of this type on a regular basis.
C)  the seller gives a disclaimer of the defect to the buyer in the sales contract.
D)  the product was not in the same condition when the consumer bought it as it was when the manufacturer sold it.E) None of the above
F) A) and B)

Question 12

Barry buys a car from a dealer, which is sold to him "as is" and "with all faults." The next day, the engine blows up.Barry can sue the dealer for breach of the implied warranty of fitness.

Accepted Answer

A) True 
 B)False

Question 13

An express warranty requires that the warranty be expressed in words.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

Accepted Answer

A)  A chair produced without inserting the appropriate screws.
B)  A product with a defective design that is nevertheless the "state of the art."
C)  Vodka that is 100 proof and makes people drunk and causes liver damage after years of heavy use.
D)  All of the above are defects under 402A.E) None of the above
F) A) and C)

Question 15

Alice is browsing in a commercial art gallery when she sees a painting that she likes.Arthur, who is the manager of the gallery, tells her that in his opinion the painting is a genuine Leroy Neiman work.Based upon that representation, Alice buys the work for $5,000.She later discovers that the painting is only a cheap copy of the original that is worth no more than $50.Arthur has:

Accepted Answer

A)  breached an express warranty to Alice that the painting is a Neiman work.
B)  breached the warranty of merchantability.
C)  not breached a warranty because he was merely expressing his opinion.
D)  breached an express warranty, the warranty of merchantability, and the warranty of fitness for a particular purpose.E) All of the above
F) A) and C)

Question 16

Under the CISG, the seller must deliver goods, unless otherwise agreed, that are fit for the purposes for which goods of the same description would ordinarily be used.

Accepted Answer

A) True 
 B)False

Question 17

Leslie purchased 100 flower pots from a local merchant.Warranties which are not included in her sales contract, but exist by "operation of law," are the:

Accepted Answer

A)  express warranties.
B)  exclusive warranties.
C)  quasi warranties.
D)  implied warranties.E) A) and B)
F) A) and C)

Question 18

The Magnuson-Moss Warranty Act applies only to the sale of consumer goods.

Accepted Answer

A) True 
 B)False

Question 19

Greg has been in the business of selling encyclopedias for twenty years.Margaret agreed to buy a set if Greg would also bring her a bookcase for them.Greg bought one and sold it to Margaret along with the books.While shelving the books, she ran her hand over the back edge of the shelves and cut herself severely.The wood was not finished on that side and nails were protruding through the shelf.Can Margaret sue Greg under strict liability?

Accepted Answer

A)  Yes, because the bookcase was in an unreasonably dangerous condition.
B)  Yes, because the bookcase was defective.
C)  No, because she was not a true consumer under Sec.402A.
D)  No, because Greg is not a seller under Sec.402A.E) B) and C)
F) A) and D)

Question 20

Terrell asks a salesperson what size of water heater he should buy for their twenty-unit motel.If Terrell purchases a tank based on the salesperson's suggestion, the salesperson's recommendation is:

Accepted Answer

A)  an express warranty of merchantability regarding the water heater.
B)  an implied warranty of merchantability regarding the water heater.
C)  an implied warranty of fitness for a particular purpose.
D)  no warranty, but only a statement of opinion.E) A) and B)
F) A) and D)

Exam 22: Product Liability: Warranties and Strict Liability

The Restatement (Third) of Torts: Products Liability has experienced rapid adoption by the states.

Correct Answer
verified

Section 402A provides that liability exists only if the product reaches "the user or consumer without substantial change in the condition in which it is sold."

Correct Answer
verified

Bradley buys a television set that turns out to be stolen.He can sue the seller for breach of warranty.

Correct Answer
verified

The word "merchantability" must be mentioned in a disclaimer of an implied warranty of merchantability.

Correct Answer
verified

Which of the following is true with regard to implied warranties under the Code?

Correct Answer
verified

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

Correct Answer
verified

Under the CISG, the seller must deliver goods, unless otherwise agreed, that are fit for the purposes for which goods of the same description would ordinarily be used.

Correct Answer
verified

Strict liability in tort imposes liability on:

Correct Answer
verified

All warranties are construed as consistent with each other and cumulative, unless such construction is unreasonable.

Correct Answer
verified

The Magnuson-Moss Warranty Act applies only to the sale of consumer goods.

Correct Answer
verified

Terrell asks a salesperson what size of water heater he should buy for their twenty-unit motel.If Terrell purchases a tank based on the salesperson's suggestion, the salesperson's recommendation is:

Correct Answer
verified

Correct Answer
verified

Barry buys a car from a dealer, which is sold to him "as is" and "with all faults." The next day, the engine blows up.Barry can sue the dealer for breach of the implied warranty of fitness.

Correct Answer
verified

The liability of manufacturers and sellers of goods for a defective product or for its failure to perform adequately may be based on one or more of the following: negligence, misrepresentation, violation of a statutory duty, warranty, and strict liability in tort.

Correct Answer
verified

Leslie purchased 100 flower pots from a local merchant.Warranties which are not included in her sales contract, but exist by "operation of law," are the:

Correct Answer
verified

Article 2A carries over the warranty provisions of Article 2 with relatively minor revisions that reflect differences in:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

An express warranty requires that the warranty be expressed in words.

Correct Answer
verified

Strict liability can be avoided where:

Correct Answer
verified

Exam 22: Product Liability: Warranties and Strict Liability

The Restatement (Third) of Torts: Products Liability has experienced rapid adoption by the states.

Correct AnswerverifiedShow Answer

Section 402A provides that liability exists only if the product reaches "the user or consumer without substantial change in the condition in which it is sold."

Correct AnswerverifiedShow Answer

Bradley buys a television set that turns out to be stolen.He can sue the seller for breach of warranty.

Correct AnswerverifiedShow Answer

The word "merchantability" must be mentioned in a disclaimer of an implied warranty of merchantability.

Correct AnswerverifiedShow Answer

Which of the following is true with regard to implied warranties under the Code?

Correct AnswerverifiedShow Answer

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

Correct AnswerverifiedShow Answer

Under the CISG, the seller must deliver goods, unless otherwise agreed, that are fit for the purposes for which goods of the same description would ordinarily be used.

Correct AnswerverifiedShow Answer

Strict liability in tort imposes liability on:

Correct AnswerverifiedShow Answer

All warranties are construed as consistent with each other and cumulative, unless such construction is unreasonable.

Correct AnswerverifiedShow Answer

The Magnuson-Moss Warranty Act applies only to the sale of consumer goods.

Correct AnswerverifiedShow Answer

Terrell asks a salesperson what size of water heater he should buy for their twenty-unit motel.If Terrell purchases a tank based on the salesperson's suggestion, the salesperson's recommendation is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Barry buys a car from a dealer, which is sold to him "as is" and "with all faults." The next day, the engine blows up.Barry can sue the dealer for breach of the implied warranty of fitness.

Correct AnswerverifiedShow Answer

The liability of manufacturers and sellers of goods for a defective product or for its failure to perform adequately may be based on one or more of the following: negligence, misrepresentation, violation of a statutory duty, warranty, and strict liability in tort.

Correct AnswerverifiedShow Answer

Leslie purchased 100 flower pots from a local merchant.Warranties which are not included in her sales contract, but exist by "operation of law," are the:

Correct AnswerverifiedShow Answer

Article 2A carries over the warranty provisions of Article 2 with relatively minor revisions that reflect differences in:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An express warranty requires that the warranty be expressed in words.

Correct AnswerverifiedShow Answer

Strict liability can be avoided where:

Correct AnswerverifiedShow Answer

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