Ch. 22: Product Liability: Warranties and Strict Liability

Question 1

Warranty

Answer 1

Obligation of the seller concerning title, quality, characteristics, or condition of goods.

Question 2

Warranty of title

Answer 2

Obligation to convey the right of ownership without any lien.

Question 3

Express warranty

Answer 3

Affirmation of fact or promise about the goods, which may consist of a description or a sample, which becomes part of the basis of the bargain.

Question 4

Basis of the bargain

Answer 4

Part of the buyer’s assumption underlying the sale.

Question 5

Implied warranty

Answer 5

Contractual obligation arising out of certain circumstances of the sale.

Question 6

Merchantability

Answer 6

Warranty by Merchant seller that the goods are fit for the ordinary purpose.

Question 7

Fitness for a particular purpose

Answer 7

Warranty that goods are fit for a stated purpose, provided the seller selects the product knowing the buyer’s intended use and the buyer is relying on the seller’s judgment.

Question 8

Disclaimer

Answer 8

Negation of a warranty

Question 9

Express warranty

Answer 9

Not usually possible to disclaim

Question 10

Warranty of title

Answer 10

May be excluded or modified by specific language or by certain circumstances, including judicial sale or a sale by the sheriff, executor, or for closing lineor.

Question 11

Implied warranty of merchantability

Answer 11

The disclaimer must mention “merchantability” and, in the case of a writing, must be conspicuous (in a lease the disclaimer must be in writing and conspicuous).

Question 12

Implied warranty of fitness for a particular purpose

Answer 12

The disclaimer must be in writing and conspicuous

Question 13

Other disclaimers of implied warranties

Answer 13

The implied warranty of merchantability and fitness for a particular purpose may also be disclaimed (1) by expressions like “as is,” “with all faults,” or other similar language; (2) by course of dealing, course of performance, or usage of trade; or (3) as to defects as examination ought to have revealed in cases in which the buyer has examined the goods or in which the buyer has refused to examine the goods.

Question 14

Federal legislation related to warranties of consumer goods

Answer 14

the Magnuson-Moss Warranty Act protects purchasers of consumer goods by providing that warranty information be clear and useful and that a seller who makes a written warranty cannot disclaim any implied warranty.

Question 15

Consumer goods

Answer 15

Goods normally used for personal, family, or household purposes

Question 16

Limitation or modification of warranties

Answer 16

Permitted as long as it is not unconscionable

Question 17

Privity

Answer 17

Contractual relationship

Question 18

Horizontal privity

Answer 18

Determines who benefits from a warranty and therefore may bring a cause of action.

Question 19

Vertical Previty

Answer 19

Determines who is liable for breach of warranty.

Question 20

Notice of breach of warranty

Answer 20

If the buyer fails to notify the seller of any breach within a reasonable time, she is barred from any remedy against the seller.

Question 21

Contributory negligence

Answer 21

Is not a defense in the majority of states.

Question 22

Voluntary assumption of the risk

Answer 22

Is a defense

Question 23

Section 402A

Answer 23

Imposes strict liability and tort

Question 24

Strict liability in tort

Answer 24

Merchant seller is liable for selling a product in a defective condition, unreasonably dangerous to the user.

Question 25

Manufacturing defect

Answer 25

Not produced according to specifications.

Question 26

Designed defect

Answer 26

Plans or specifications inadequate to ensure the product’s safety.

Question 27

State of the art

Answer 27

The state of technology current at the time the product is made.

Question 28

Failure to warn

Answer 28

Failure to provide adequate warning of possible danger or to provide appropriate directions for use of a product.

Question 29

Unreasonably dangerous

Answer 29

Contains a danger beyond that which would be contemplated by the ordinary consumer.

Question 30

Contributory negligence

Answer 30

Is conduct on the part of the plaintiff that falls below the standard to which he should conform for his own protection and that is the legal cause of the plaintiffs harm. It is not a defense in the majority of states.

Question 31

Comparative negligence

Answer 31

Most states have applied the rule of comparative negligence to strict liability in tort.

Question 32

Voluntary assumption of the risk

Answer 32

Express assumption of risk is a defense to an action based upon strict liability; some states apply implied assumption of risk to strict liability cases.

Question 33

Misuse or abuse of the product

Answer 33

Is a defense

Question 34

Subsequent alteration

Answer 34

Liability exists only if the product reaches the user or consumer without substantial change in the condition in which it is sold.

Question 35

Statute of repose

Answer 35

Limits the time period for which a manufacturer is liable for injury caused by its product.