Warranties, Negligence, and Liability: Chapter 21

Question 1

product liability

Answer 1

the potential responsibility that a manufacturer or seller has for injuries caused by defective goods

Question 2

warranty

Answer 2

a contractual assurance that goods will meet certain standards

Question 3

negligence

Answer 3

refers to unreasonable conduct by the defendant

Question 4

strict liability

Answer 4

prohibits defective products whether the defendant acted reasonably or not

Question 5

express warranty

Answer 5

one that the seller creates with his words or actions

Question 6

What can creat an express warranty?

Answer 6

any affirmation of fact or any promise, any description of the goods, any sample or model

Question 7

merchantable

Answer 7

means that the goods are fit for the ordinary purposes for which they are used

Question 8

disclaimer

Answer 8

a statement that a particular warranty does not apply

Question 9

limitation of remedy

Answer 9

by which the parties may limit or exclude the normal remedies permitted under the Code

Question 10

consequential damages

Answer 10

losses stemming from the particular requirements of the buyer

Question 11

unconscionable

Answer 11

means that a remedy restriction is shockingly one-sided and fundamentally unfair

Question 12

privity

Answer 12

when two parties contract, they are in privity

Question 13

4 year statute of limitations

Answer 13

a buyer must bring any lawsuit for breach of a warranty no later than four years after the goods were delivered

Question 14

strict liability

Answer 14

the injured person need not prove that the defendant’s conduct was unreasonable

Question 15

economic loss doctrine

Answer 15

when an injury is purely economic and arises from a contract made by two businesses, the injured party may only sue under the UCC

Question 16

statute of repose

Answer 16

places an absolute limit on when a lawsuit may be filed, regardless of when the defect is discovered