Q&A Hero

Q: Define the different situations in which courts can hold manufacturers liable for negligence.

Q: Wilma locked herself in the trunk of a 1973 sedan in an attempt to learn a magic trick. After some time, she decided to get out of the trunk, but was unable to do so. She was released nine days later. She subsequently sued the manufacturer of the sedan for the psychological and physical injuries she sustained because the trunk did not have an internal release or opening mechanism that would have allowed her to escape. She alleged that the manufacturer was negligent in its design of the car because it lacked such a mechanism, and negligent because it failed to warn users that the trunk did not have such a mechanism. Was the manufacturer of the sedan negligent for failing to warn, or failing to include a release in its design of the car?

Q: When goods are shipped COD: A. the buyer must pay for them before inspecting them. B. the buyer must inspect them before paying for them. C. the buyer may inspect them before paying for them. D. the buyer may reject the goods immediately after inspection.

Q: When a buyer has a right to inspect the goods, the right usually must be exercised: A. before the goods are shipped. B. after paying for them. C. before accepting the goods. D. within 15 days after accepting the goods.

Q: Jen decides to trim the sides of her hedge with her electric lawn mower and is injured in the process, Jen: A. cannot recover in strict liability because she misused the electric lawn mower. B. can recover in strict liability even though her use of the lawn mower to trim the sides of her hedge was not foreseeable by the manufacturers. C. can recover in strict liability because the lawn mower was per se dangerous. D. cannot sue all market manufacturers of electric lawn mowers, but only the manufacturer she has a contract with for dangerous product design.

Q: Which of the following is true about statutes of repose? A. This is a significant change in the law for people who are injured by products that cause immediate injury. B. It bars the bringing of a tort-based product liability suit usually after five years from the date the product is first sold to a user. C. People covered by statutes of repose now can bring suit even if their injury is not discovered within the statutory period. D. The tort statute of limitations gives people one or two years from the time they discover their injury in which to bring their suit.

Q: There is an action against a manufacturer who is sued on the basis of industrywide liability for the manufacture and sale of a standardized product that caused injury after a number of years. Which of the following defenses can the manufacturer raise to avoid or minimize its liability? A. The manufacturer should be truthful about the fact that he manufactured the product that caused the injury to the plaintiff. B. It manufactures the product with a disclaimer. C. The risks from its product were lower than those from other products. D. Its market share was more than alleged by the plaintiff.

Q: A statute of repose bars the bringing of a tort-based product liability suit: A. usually after 10 years from the date the product is first sold to a user. B. usually after five years from the date the product is first sold to a user. C. usually after 20 years from the date the product is first sold to a user. D. usually after 50 years from the date the product is first sold to a user.

Q: Irma bought a pint-sized thermos bottle from "Kash N' Karry." After a couple of months of use, she poured coffee into it one morning and was adding some milk when it exploded, sending shards of glass into her face and injuring her eye. Irma testified that she had not dropped the thermos and had not abused it. She sued "Kash N' Karry," claiming, among other things, breach of warranty of merchantability. Under the UCC, was the warranty of merchantability breached?

Q: Jon, a high-school senior, bit into a turkey bone in a bite-sized cube of white turkey meat in his high-school cafeteria. He felt something in his throat and after some effort expelled a small inch bone. He sustained injury to his esophagus and was hospitalized for four days. Jon brought suit against the school, claiming breach of warranty of merchantability in the food served to him in the cafeteria. What test should be applied to determine whether there was a breach of warranty of merchantability because of the presence of a bone in the meal served to Jon?

Q: A consumer who misuses a product: A. may still recover under the theory of strict liability. B. may not recover under the theory of strict liability. C. may recover under the theory of strict liability even if the misuse was not foreseeable. D. cannot recover under the theory of strict liability even if the danger it created was foreseeable.

Q: Under the theory of industrywide liability, when it is impossible to successfully identify the particular manufacturer that caused the harm, courts will: A. apportion liability among manufacturers based on market share. B. make the consumer identify a likely manufacturer in order to expedite the resolution of the claim. C. drop the complaint and call for the legislature to issue new industry laws. D. prohibit further manufacturing of the product.

Q: Which of the following is true of strict liability? A. All courts will not hold the retailer liable if the manufacturer is available for suit. B. Most states hold that plaintiffs cannot recover for purely economic losses under strict liability. C. No state will allow economic loss recovery even if the defect caused the product to be unreasonably dangerous. D. It is applied only to situations involving the sale of used merchandise.

Q: In determining whether a product is "inherently dangerous" or has been "defectively designed," courts look at: A. whether anything else could have been done to make the product safer, given the practical and technological limitations of the time. B. what other companies in the industry are doing. C. whether the product was grossly overpriced. D. whether the seller can pass on the costs of injuries as higher prices in the market or if they should be borne by the injured person.

Q: Which of the following is an outgrowth of strict product liability? A. Industry wide liability B. Privity C. Negligence D. Product misuse

Q: Which of the following describes an action where liability of a seller is based on the theory that the manufacturer failed to use reasonable care to avoid foreseeable injury to the ultimate user or consumer? A. Negligence B. Strict liability C. Breach of warranty D. Magnuson-Moss Act

Q: Who among the following has a duty to inspect new, prepackaged goods even if they have no reason to know of a defect? A. Retailers B. Manufacturers C. Distributors D. Wholesalers

Q: In an action for liability based on negligence: A. a contractual relationship is involved and it does matter whether or not the buyer dealt directly with the manufacturer. B. the manufacturer's duty of care extends to all persons who might foreseeably be injured if the manufacturer does not exercise its duty of care. C. disclaimers in contracts are usually effective to shield a manufacturer or seller against liability for negligence to consumers. D. the obvious danger rule can be used for complete defense.

Q: An increasing number of courts hold that the obvious danger rule: A. is no longer a complete defense. B. is a complete defense. C. is a complete defense only if a warning is issued after a sale. D. is not a complete defense even if a warning is issued after a sale.

Q: It does not matter whether or not the buyer dealt directly with the manufacturer because: A. the obvious danger rule is not used anymore as defense. B. liability based on negligence does not involve a contractual relationship. C. liability based on negligence involves a contractual relationship. D. the obvious danger rule is used as a complete defense.

Q: If a product is inherently dangerous so that no amount of due care could make it safe: A. the manufacturer is required to give the consumer notice of the unreasonable danger. B. privity bars recovery. C. contributory negligence prevents recovery. D. the manufacturer is required to provide the consumer a disclaimer at the time of sale.

Q: Privity of contract: A. is the relationship between the parties in a contract. B. is the best defense in case of negligence in action. C. limits the duty of care owed to third-parties. D. states the rights enjoyed by any natural person who is in the household of the buyer.

Q: Which of the following is a purpose of the Magnuson-Moss Warranty Act? A. It provides maximum warranty protection for consumers. B. It increases consumer understanding of warranties. C. It protects all business to business transactions. D. It insists on the sellers compulsorily giving a written warranty to the consumers.

Q: Which of the following requirements must be satisfied by the sellers according to the Magnuson-Moss Warranty Act and the FTC guidelines, when they give a written warranty? A. It should be included in more than one document. B. It should include a clear description of what is covered, but never include what is excluded by the warranty. C. It should include the time the warranty begins and its duration. D. It should allow the seller to choose between a refund and a replacement after the product has been repaired a number of times.

Q: Which of the following statements concerning the Magnuson-Moss Warranty Act is true? A. The act applies to all sellers of a "consumer product" that costs more than $50. B. The act requires a seller of consumer goods to give a written warranty, either full or limited. C. The FTC enforces the disclosure provisions of the warranty act and regulations. D. The act requires a full warranty to have a time limit.

Q: A full warranty means: A. it excludes and limits payments for consequential damages. B. the warrantor will fix or replace any defective product free of charge. C. it has to cover the whole product and not cover only part of the product. D. it is limited in time (say, to one or two years).

Q: Which of the following statements is true of the enforcement of warranties? A. The FTC enforces the disclosure provisions of the warranty act and regulations. B. Consumers cannot sue the maker of the warranty for failure to fulfill its terms. C. The FTC enforces the seller's obligation to make the terms available before or after the sale. D. Consumers can sue the manufacturer if the manufacturer offers the warranty, but not the retailer even if retailer grants warranty.

Q: Kyle, a manufacturer of cribs and various kinds of furniture for children, sold 100 cribs to Tara, the owner and operator of a store that specialized in the sale of such items. The sale was accomplished pursuant to a typewritten contract entered into by both parties. You are to assume that the implied warranties of merchantability and fitness for a particular purpose would apply to the transaction, unless such warranties were effectively disclaimed. The parties' typewritten contract included, in a prominent position, a term that was in all capital letters, unlike the rest of contract, which was in standard type. The term read: "Seller hereby disclaims all implied warranties." On these facts, Kyle has probably made an effective disclaimer of: A. the implied warranty of merchantability and the implied warranty of fitness for a particular purpose. B. neither the implied warranty of merchantability nor the implied warranty of fitness for a particular purpose. C. the implied warranty of fitness for a particular purpose, but not the implied warranty of merchantability. D. the implied warranty of merchantability, but not the implied warranty of fitness for a particular purpose.

Q: The court is most likely to find a disclaimer of warranty unconscionable: A. if the goods sold "as is" or "with all faults" are sold without any warranties. B. if the the plaintiff is a merchant trying to recover for property damage or economic loss. C. if the disclaimer is conspicuous. D. in the case of a personally injured consumer.

Q: Implied warranties: A. imposed by law are absolute. B. protect the buyer in ownership of the goods bought. C. warrant that the goods are free of any liens or claims of other parties. D. establish responsibility on the seller for the quality of the goods sold.

Q: Which of the following is a test of merchantability for all sales contracts? A. The goods conform to any promises or statements of fact made on the container or label. B. The goods are of different kind, quality, and quantity within each unit. C. The goods need not necessarily be packaged or labeled adequately. D. The goods conforming to the general description of the goods available in the market.

Q: "Fungible goods" are: A. goods which are packaged and labeled separately (such as units which come in cartons or cases). B. mixed goods which are identical and cannot be separated (such as grain or coal). C. perishable goods which have been improperly packaged or which have damaged packaging and are open to contamination. D. goods which conform to any promises or statements of fact made on the container or label.

Q: Which of the following implied warranties addresses the status of the ownership of goods? A. Title B. Merchantability C. Fitness D. Description

Q: Most states hold that plaintiffs can recover for purely economic losses under strict liability.

Q: The same statement regarding a product might be interpreted as either an opinion or an express warranty depending on: A. whether the contract is oral or written. B. the relative knowledge of the parties involved. C. whether the contract contains a disclaimer. D. the type of goods or services dealt with.

Q: The creation of an express warranty depends on: A. the seller's intent. B. the seller's statement becoming part of the bargain. C. the mere recommendation of the goods by the seller. D. the seller's confining their statements to "sales talk."

Q: (p. 349; 350) An express warranty is created when: A. a seller makes an affirmation of fact or promise concerning the goods that becomes part of the basis of the bargain. B. a seller uses descriptive terms as a part of the bargaining process, but the buyer does not take it into consideration when making the purchase. C. a seller sells goods meant for use for ordinary purposes. D. a seller avoids using a sample or model as the basis for the contract.

Q: Goods sold "with all faults" are sold without the implied warranties of merchantability and fitness for a particular purpose.

Q: Under the UCC, some of the benefits of warranties extend to persons who did not themselves purchase the particular defective goods.

Q: If a consumer brings suit against the manufacturer, the retailer is relieved of its responsibility for the fitness and merchantability of the goods.

Q: Under the Magnuson-Moss Warrant Act and the FTC regulations, the seller is not required to give a written warranty.

Q: Disclaimers in contracts are usually effective to shield a manufacturer or seller against liability for negligence to consumers.

Q: The implied warranty of merchantability focuses on whether the goods are fit for a particular purpose.

Q: The implied warranty of title differs from other warranties in that it protects buyers in their ownership of the goods bought.

Q: In order to exclude the implied warranty of merchantability, the seller must put the exclusion in writing.

Q: Under the UCC, the implied warranty of merchantability applies to the sale of food or drink.

Q: The warranty of fitness for a particular purpose applies only to merchants.

Q: Myron bought a valuable painting from Williams and paid for it with a bad check. Myron then sold the painting to Olive, who paid a large sum of money for it and who did not know that Myron had bought it with a bad check. Can Williams recover the painting from Olive? Why or why not?

Q: In June, Ed entered into a contract to buy a motorcycle from Hot Rod Sports. He paid the purchase price of $1,200 and was given the papers necessary to register the motorcycle and get insurance on it. Ed registered the motorcycle but had not attached the license plates to it. He left on vacation and told the Hot Rod salesperson that he would pick up the motorcycle on his return. While Ed was on vacation, there was an electric power blackout in New York City and the motorcycle was stolen by looters. Ed sued Hot Rod to get back his money. Did Hot Rod bear the risk of loss of the motorcycle?

Q: A seller may create an express warranty by merely stating an opinion.

Q: When a seller uses descriptive terms and the buyer takes them into consideration when making the purchase, the seller has nonetheless made no warranty that the goods she delivers will meet the description.

Q: Implied warranties imposed by law are absolute.

Q: If a seller wishes to be relieved of the responsibility for implied warranties, the sales contract must clearly provide that the parties did not intend the implied warranties to become part of the contract.

Q: Which of the following statements is true for a sale on approval? A. Goods are delivered to the buyer primarily for exchange purposes. B. Goods are delivered to the buyer primarily for the buyer's use. C. The risk of loss and title automatically pass to the buyer. D. The trial of goods is regarded as an acceptance by the buyer.

Q: Sales on approval are primarily _____ transactions. A. seller B. merchant C. consumer D. nonmerchant

Q: Weddings R Us, an event management company, brought suit against Smith to recover the contracted price for the performance of a full wedding, including the providing of a three-layer wedding cake. Should the court apply Article 2 of the UCC to this contract?

Q: Why does the UCC distinguish between merchants and nonmerchants by holding merchants to a higher standard in some instances?

Q: What happens if a buyer rejects the tender of goods?

Q: If a buyer repudiates a contract for identified, conforming goods before risk of loss has passed to him/her: A. the buyer is liable for a commercially reasonable time for any damage to the goods that is not covered by the seller's insurance. B. the seller is liable for a commercially reasonable time for any loss or damage to the goods. C. the buyer and the seller must share the loss equally. D. the buyer is liable for a commercially reasonable time for any loss or damage to the goods that is not covered by the buyer's insurance.

Q: Which of the following applies to an insurable interest in goods? A. Buyers have an insurable interest in goods the moment they pay for the goods. B. Buyers have an insurable interest in goods the moment they get the title to the goods. C. Sellers have an insurable interest in goods till the risk of loss is with them. D. Sellers have an insurable interest in their goods as long as they have title to the goods or a security interest in them.

Q: In a return contract, goods are delivered to buyers: A. primarily for personal use. B. primarily for resale. C. primarily for trial. D. primarily to assign the risk of loss to the buyer.

Q: Patty buys a Persian rug from James, a plumber, in an online auction. James called Patty on Wednesday to inform her that she submitted the winning bid and that he would ship the rug to her on Friday. On Thursday, the rug was destroyed in a garage fire at James' house. Who bears the loss? A. James, as he has not delivered the goods. B. James, as he has tendered delivery of goods. C. Patty, as James is not a merchant. D. Patty, as James was only providing a service.

Q: When, at the time of contracting, the goods are in the hands of a third-party bailee and are covered by a document of title, the risk passes to the buyer when he/she: A. takes possession of the goods. B. receives the document of title. C. acknowledges the right to possession. D. indulges in a breach of contract.

Q: If Lily takes her diamond ring to Steve's Jewelers for routine cleaning, and Steve sells the ring to Evan who is unaware that the ring is Lily's: A. Lily can recover the ring from Evan. B. Lily can sue Steve for conversion, but cannot recover the ring from Evan because he was a buyer in the ordinary course of business. C. Lily can recover the ring under the UCC's ownership principles. D. Lily cannot get the ring as Evan has good title to it.

Q: In a shipment contract, "FOB" stands for ____. A. Free on Board B. Fee on Board C. Freight on Board D. Forbidden on board

Q: In an FAS contract, the seller: A. must deliver the goods alongside the vessel at his own risk and expense. B. must deliver the goods alongside the vessel at the buyer's risk and expense. C. must deliver the goods alongside the vessel at his own expense but at the buyer's risk. D. has title to goods till they are delivered alongside a vessel.

Q: Jelly Manufacturer, a food processor in Chicago, placed a phone order with Grape Grower, a grower in California, for a quantity of perishable product. The shipping term was "CIF" with payment to be made on delivery. Grower delivered the goods called for in the contract to a carrier and contracted for their shipment. However, it neglected to have the goods shipped under refrigeration. The goods were loaded on a non-refrigerated boxcar and as a result the product was spoiled when it reached Chicago. Under these circumstances: A. Grape Grower bears risk of loss as he did not insure the goods. B. Jelly bears the risk of loss because under CIF shipment the buyer has to bear all risks. C. Jelly bears the risk as the contract did not mention that Grape Grower guarantee their delivery. D. Grape Grower bears the risk of loss because under a CIF shipment, the seller bears the expense and the risk of loading the goods.

Q: A buyer owned a retail store in Baltimore, and the seller was a manufacturer in Los Angeles. If the buyer orders goods from the seller to be shipped "FOB Baltimore," which of the following statements is true? A. The seller bears the expense and risk of delivering the goods to Baltimore. B. Both equally share the risk of loss. C. The seller bears the expense and risk of delivering the goods only to the carrier in Los Angeles. D. The buyer bears the risk of loss as he has the power to take possession of the goods.

Q: Which of the following is a part of destination contracts? A. CIF B. FOB C. Ex-ship D. C&F

Q: A seller who has voidable title: A. can pass good title to a good faith purchaser for value. B. cannot pass good title to a good faith purchaser for value. C. cannot obtain voidable title by impersonating another person. D. can pass good title if the purchaser gives specific consideration to support the contract.

Q: _____ means "honesty in fact in the transaction concerned". A. Good value B. Good faith C. Fair title D. Good title

Q: Under the UCC, a buyer in the ordinary course of business: A. is one who buys goods from a merchant, knowing that the sale violates the ownership rights of a third party. B. does not know that a sale violates the ownership rights of the original party. C. takes goods free of any security interest in the goods that their seller may have given a third party. D. is a person who transacts only with nonmerchants.

Q: Which of the following is a basic purpose for making exceptions to the UCC's general rules on titles and third parties? A. To protect the rights of sellers. B. To place the burden of loss on the good faith purchasers. C. To promote commerce by giving buyers the knowledge that they will get good value for goods they will purchase. D. To protect those who innocently buy from merchants, thereby promoting confidence in such commercial transactions.

Q: Eloise took her prized poodle, Tiny, to Pam's Pet Store & Grooming to prepare Tiny for an upcoming dog show. Unknowingly, one of Pam's new employees sold the dog to Jas. Under these circumstances, which of the following statements is correct? A. Eloise cannot recover Tiny from Jas because under the UCC, Pam's could give good title to a buyer in the ordinary course of business. B. Eloise can recover Tiny from Jas because Pam's did not have ownership to Tiny when it sold Tiny to Jas. C. Eloise can recover the value of Tiny from Jas or from Pam's because neither Pam's nor Jas had title to Tiny. D. Eloise has no remedy against either Pam's or Jas.

Q: Under the UCC, which of the following statements is true for the identification of goods to the contract? A. It is applicable if delivery is to be made without moving the goods. B. It occurs when the seller makes it verbally clear that the goods are those to which the contract refers. C. It does not include actions of the seller, such as setting aside or marking the goods. D. It occurs when the seller gives samples of the goods to the buyer.

Q: Which of the following statements is true for a negotiable document of title? A. It serves as the contract between the seller and the shipper. B. It is given to the buyer even before he/she makes the payment for the goods. C. It shows that title cannot be surrendered to the buyer until the seller explicitly instructs. D. It shows that the buyer cannot reject the goods delivered.

Q: A buyer who rejects tender of goods: A. still retains title. B. can retain title if the contract is a predominantly service one. C. vests the title back in the seller. D. retains title only for a limited period of time.

Q: According to the UCC, title to goods may pass to the buyer: A. only when the seller hands the buyer a certificate of title. B. upon identification of the goods by the buyer. C. when the document of title is delivered by the seller. D. only after the seller delivers the goods at the buyer's residence.

Q: When a contract merely requires the seller to ship the goods, title passes to the buyer when: A. the contract is signed by both parties. B. the seller delivers the goods to the carrier. C. the buyer pays the seller. D. the goods are delivered by the carrier.

Q: Angela went to "Hairs R Us" to have her hair colored flame red and to get a permanent wave. Unfortunately, the hair color contained a chemical that reacted with the permanent wave solution resulting in Angela's hair turning a bright green and falling out. Under these circumstances, would a court be likely to apply the Code provisions in determining the rights and responsibilities of the parties? A. Code provisions would not apply because Angela entered into a contract which was predominantly a service contract. B. Code provisions would not apply because Angela is not a merchant. C. Code provisions would probably apply because any contract involving the sale of goods is governed by the Code. D. Code provisions would probably apply because Angela's hair is tangible personal property.