Warranties, Product Liability & Consumer Law Flashcards
Jean buys a bike from Mike’s Bike Shop. She wants to make sure that there is a warranty of title. Jean
a. does not need to do anything because warranties of title arise automatically in most sales contracts.
b. must request a written warranty of title.
c. must request an oral warranty of title.
d. must request both a written and an oral warranty of title.
a. does not need to do anything because warranties of title arise automatically in most sales contracts.
Krissa, a horse breeder, shows Maggie, a customer looking for a new stallion for her breeding program, a stallion and tells her that the stallion is very fertile and can easily breed twenty mares per year. Krissa’s statement is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
a. an express warranty.
3.Fancy’s Feedlot orders one hundred sacks of cattle feed from Bovine Feeders, Inc. Each bag has the words “Twenty percent protein” printed on the front. This is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
a. an express warranty.
4.Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks, Inc. The most important factor in determining whether an express warranty 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’s promise becomes part of the basis of the bargain.
d.Terrific’s promise becomes part of the basis of the bargain.
5.John is an art dealer with special expertise in modern art. Rachel comes to John’s gallery to purchase a modern art painting as an investment. John shows her several paintings that he says are high quality and will increase in value in the next ten years. John’s statement is
a. an express warranty.
b. an implied warranty.
c. an opinion.
d. puffery.
a.an express warranty.
6. Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached
a. only if Ocean did not know about and could not have discovered the defect.
b. only if Ocean did not know about the defect.
c. only if Ocean knew about or could have discovered the defect.
d. regardless of what Ocean knew or could have discovered.
d.regardless of what Ocean knew or could have discovered.
Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. The spikes come out of the shoes when Sigrud is on the side of a mountain, caus¬ing her to be injured in a fall. Rockridge breached
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.
b. an implied warranty of fitness for a particular purpose.
Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a dog that will be good with small children. Carla sells Fred a dog. When Fred takes the dog home, it bites both his small children and causes them serious injuries. Fred can sue Carla 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.
b. an implied warranty of fitness for a particular purpose.
Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber. Regional knows the purpose for which Sylvia will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises
a. if the buyer is relying on the seller to select suitable goods.
b. if the buyer asks for it.
c. if the seller is a merchant who deals in goods of the kind sold.
d. in conjunction with lease contracts, not sales contracts.
c. if the seller is a merchant who deals in goods of the kind sold.
Regal Autos, Inc., sells cars to consumers. To avoid liability for oral ex-press warranties, each sales agreement should note that a car is sold
a. as is.
b. in perfect condition.
c. subject to warranties included in the written contract only.
d. with no known defects.
c. subject to warranties included in the written contract only.
Robert is selling his used lawnmower. He wants to disclaim any implied warranties. Robert
a. cannot disclaim implied warranties. b. should include a written disclaimer that the lawnmower is being sold “as is.” c. should orally disclose all known faults of the lawnmower. d. should include a written warranty of title.
b. should include a written disclaimer that the lawnmower is being sold
“as is.”
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.
b. making warranties easier to understand.
Forest & Field Company makes and leases a backhoe to Zac. Due to a defect attributable to Forest & Field’s negligence, Zac is injured in an accident in which his neighbor Aaron is also hurt. In a product liability suit based on negligence, Forest & Field may be liable to
a. Aaron only. b. no one. c. Zac and Aaron. d. Zac only.
c. Zac and Aaron.
Paltry Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim. Paltry is most likely liable for
a. a commonly known danger.
b. fraud.
c. privity.
d. puffery.
b. fraud.
Fun Toyz Corporation makes skateboards, which it sells to con¬sumers, 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 liabil¬ity, Fun Toyz may be liable to
a. Holly and Ira. b. Holly only. c. Ira only. d. no one.
b. Holly only.
