REG mod 27 Flashcards
What must be proven by a plaintiff in order to have a successful lawsuit under strict liability?
The product was defective when sold. The defect was unreasonably dangerous. The defective and dangerous product reached the user without significant changes. The defect caused an injury.
An automobile dealership who sells a car ‘As is’, has effectively disclaimed the warranty of title. True / False
False. The warranty of title cannot be disclaimed by use of the words ‘as is’.
The risk of loss transfers to the buyer of goods being shipped FOB Shipping Point when________.
The seller has loaded the items onto the truck (of the common carrier).
The risk of loss transfers to the buyer of goods being shipped FOB Destination when________.
The truck arrives at the buyer’s location and is delivered to the buyer.
Does a buyer generally have the right to inspect the goods delivered prior to acceptance of the goods?
Yes, unless the goods are shipped Collection On Delivery (COD).
Describe the warranty of title.
The warranty of title means that the person selling the goods actually has the title to the goods. This warranty may be disclaimed.
Describe the Perfect Tender Rule.
The seller of goods must provide the goods exactly as described by the contract. If the goods do not conform exactly, the buyer may reject all or some of the goods, or the buyer may accept the goods.
Who may be held liable under strict product liability?
Manufacturers, sellers, and lessors of the goods, if their business is to manufacture, sell, or lease the goods.
Which warranties may be disclaimed by stating the goods are ‘as is’ / ‘with all faults’?
The warranty of merchantability and the warranty of fitness.
Describe the warranty of merchantability.
The warranty of merchantability means that the goods are fit for ordinary purpose. This only applies if the seller of the goods is a merchant of the goods.
The warranty of merchantability and the warranty of fitness are both examples of what type of warranty?
Implied Warranty
