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Warranties and Product Liability

Page history last edited by abogado 7 years, 1 month ago

Quizzes-Fall2013

 

1. City Car 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, a warranty of title arises

a. automatically in most sales contracts.

b. only if the buyer asks for such a warranty.

c. only if the seller expresses such a warranty.

d. only in conjunction with lease contracts, not sales contracts.

 

2. Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks,

Inc. The most important factor in determining whether an express war-

ranty is created is whether

a. Sari expresses to Terrific what she wants warranted.

b. Sari’s desire for the SUV becomes part of her motivation to deal.

c. Terrific expresses to Sari what it expects of its customers.

d. Terrific promise becomes part of the basis of the bargain.

 

3. Olga, a salesperson for Pre-owned Cars & Trucks, Inc., tells Quincy,

“This is the best car I’ve ever seen.” This statement is

a. an express warranty.

b. an implied warranty.

c. a warranty of title.

d. puffing.

 

4. Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a

contract for a lease of trucks. T&T is a merchant who deals in goods of

the kind leased. Under the UCC, an implied warranty of merchantability

arises

a. automatically in lease contracts.

b. only if the lessee asks for it.

c. only if the lessor does not expressly disclaim it.

d. only in conjunction with sales contracts, not lease contracts.

 

5. 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

a. fit for the buyer’s particular purpose.

b. fit for the ordinary purpose for which such goods are used.

c. suitable for resale at an acceptable price.

d. the best quality that money can buy.

 

6. Neil goes to Oil Shop to change the oil in his car. Pat, the service techni-

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

a. an express warranty.

b. an implied warranty of fitness for a particular purpose.

c. an implied warranty of merchantability.

d. a warranty of title.

 

7. 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

a. displacing the UCC as the primary source of warranty rules.

b. making warranties easier to understand.

c. prohibiting disclaimers of warranties.

d. requiring sellers to give written warranties for consumer goods.

 

8. Value Tools, Inc., sells tools, tool parts, and related supplies under “full”

warranties. Under the Magnuson-Moss Warranty Act, this means that

Value Tools must provide

a. a choice between a refund or replacement if a product cannot be

fixed and repair or replacement of defective parts.

b. neither a choice of a refund or replacement, or repair of defective

parts.

c. only a choice of a refund or replacement if a product cannot be

fixed.

d. only repair or replacement of defective parts.

 

9. 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

a. the general description displaces the sample.

b. the general description displaces the technical specifications.

c. the sample takes precedence over the general description.

d. the sample takes precedence over the technical specifications.

 

Fact Pattern 23-A1 (Questions A10–A11 apply)

Bret, a representative of Concrete Products, Inc. assures Dependable

Construction Company (DCC) that Concrete’s cement will not crack within a

certain range of temperatures. DCC uses the product. When cracks develop

within the stated temperature range, DCC files a suit against Concrete.
 

10. Refer to Fact Pattern 23-A1. The court is most likely to rule in favor of

a. Concrete, because Bret’s statement was an expression of opinion.

b. Concrete, because DCC chose Concrete’s product voluntarily.

c. DCC, because Bret’s statement was an express warranty.

d. DCC, because Concrete’s product is not fit for its purpose.

 

11. Refer to Fact Pattern 23-A1. Suppose that the court rules against

Concrete. The manufacturer might have avoided that result by

a. making its cement fit for its particular purpose.

b. making its cement merchantable for its intended use.

c. not allowing Bret to express an opinion.

d. not permitting Bret to make an express warranty.

 

12. GR8 Skates Company makes and sells a pair of skates to Hugh. GR8 fails

to exercise “due care” to make the skates safe, and Hugh is injured as a

result. GR8 is most likely liable for

a. assumption of risk.

b. knowledgeable use.

c. negligence.

d. product misuse.

 

13. Ceramic Tile Company designs and makes floor tiles. In a product

liability suit based on negligence, Ceramic could be liable for violating its

duty of care with respect to

a. neither the design nor the making of the tiles.

b. the design and the making of the tiles.

c. the design of the tiles only.

d. the making of the tiles only.

 

14. Farm Equip, Inc., makes farming 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

a. Farm Equip sold the tractor to Gail.

b. Gail knew and appreciated the risk caused by the defect.

c. Gail suffered an injury caused by the defect.

d. the “defect” was a commonly known danger.

 

15. Yard Tool Company makes and leases a backhoe to Zack. Due to a defect

attributable to Yard Tool’s negligence, Zack is injured in an accident in

which his neighbor Aron is also hurt. In a product liability suit based on

negligence, Yard Tool may be liable to

a. Aron only.

b. no one.

c. Zack and Aron.

d. Zack only.

 

16. Fun Toyz Corporation makes skateboards, which it sells to consumers,

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 liability, Fun Toyz may be

liable to

a. Holly and Ira.

b. Holly only.

c. Ira only.

d. no one.

 

17. Safe-Rite Company makes electrical cords and other connectors for elec-

tronic devices. Tina files a product liability suit against Safe-Rite, alleg-

ing a warning defect. Under the Restatement (Third) of Torts: Products

Liability, in deciding whether to hold Safe-Rite liable, the court may

consider

a. neither the characteristics of expected users nor the content of

any warning.

b. only the characteristics of expected users.

c. only the content of any warning.

d. the characteristics of expected users and the content of any

warning.

 

18. Digital Systems, Inc. (DSI), makes storage media and other peripheral

computer products. A DSI product may be unreasonably dangerous due

to

a. a defect in its design only.

b. a defect in its design or an inadequate warning.

c. an inadequate warning only.

d. neither a defect in its design nor an inadequate warning.

 

19. Alpha Company, Beta Corporation, and Gamma, Inc., are drug makers.

Kappa Company and Omega, Inc., are drug distributors. In a suit

against all of these parties in which market-share liability is imposed,

most likely to be liable are

a. neither the distributors nor the manufacturers.

b. the distributors and the manufacturers.

c. the distributors only.

d. the manufacturers only.

 

20. Ed, an obese individual, files a suit against Fast Food Corporation (FFC),

alleging that FFC’s food is unhealthy because, as is well known, it

contains high levels of cholesterol and saturated fat. Ed is most likely to

a. lose, because Ed assumed the risk when he bought FFC’s food.

b. lose, because the food’s unhealthiness is a commonly known

danger.

c. win, because FFC’s food poses an unreasonable risk to diners.

d. win, because the food’s unhealthiness is a commonly known

danger.

 

 

 

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