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Several firms within an industry are involved in manufacturing a harmful product.It is impossible to prove which firm produced the product and caused injury.Identify the type of liability that would arise in these circumstances.


A) Industrywide Liability
B) Strict Liability
C) No-privity determination
D) Breach of expresses warranty

E) B) and C)
F) A) and B)

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An implied warranty is created rather than stated by the parties or written in a contract.

A) True
B) False

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Adam decides to eat food despite knowing that it is adulterated and brags about it to Dee.Later Adam falls sick from infection.Adam sues the supplier of the said food for injury suffered by him.The defense which can be taken by the food supplier is:


A) contributory negligence.
B) assumption of risk.
C) product misuse.
D) comparative responsibility.

E) A) and C)
F) A) and B)

Correct Answer

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What is the usual UCC time limitation for claiming express and implied warranty after the sale of a product?


A) 12 months
B) 2 years
C) 4 years
D) 5 years

E) B) and C)
F) C) and D)

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In order to be liable under the implied warranty of merchantability,a seller must be a merchant.

A) True
B) False

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Jason sold Sally a car manufactured by ABC Corp.After driving the car for a couple hours,Sally found that the brakes did not function properly making it extremely difficult for her to control the car.When she finally reached home,she rang up Jason demanding her money back.Jason claimed that she should ideally talk with ABC Corp. ,who was the manufacturers.According to Jason,he was simply selling the car.Which of the following defenses is Jason using to save himself?


A) No-privity
B) Assumption of risk
C) Contributory negligence
D) Disclaimer

E) B) and C)
F) A) and C)

Correct Answer

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Which of the following factors will be most important in determining whether an express warranty has been created concerning goods sold?


A) The seller's description of the goods formed the basis of the bargain.
B) The buyer or seller is a merchant with respect to the goods being sold.
C) The seller intended to create the express warranty.
D) The buyer relied on the seller's statements.

E) A) and B)
F) A) and C)

Correct Answer

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Which of the following factors will be most important in determining if an express warranty has been created?


A) Whether the statements made by the seller were in writing.
B) Whether the seller intended to create a warranty.
C) Whether the promises became part of the basis of the bargain.
D) Whether the sale was made by a merchant in the regular course of business.

E) A) and B)
F) A) and C)

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Which of the following theories of recovery is likely to be most effective against a disclaimer of liability?


A) Express warranty
B) Implied warranty of merchantability
C) Implied warranty of fitness
D) Section 402A

E) A) and C)
F) B) and C)

Correct Answer

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Sellers of goods sometimes attempt to disclaim (avoid) their liability under warranties.Which type of warranty disclaimers must be written in order to be effective?


A) Disclaimers of industrywide liabilities.
B) Disclaimers of the warranty of fitness for a particular purpose.
C) Disclaimers of the warranty of the Magnuson-Moss Act.
D) Disclaimers of the warranty of strict liability.

E) A) and B)
F) None of the above

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In order to establish a cause of action based upon strict liability in tort for personal injuries resulting from the use of a defective product,the plaintiff must start the case by proving that the seller (defendant) :


A) was engaged in the business of selling the product.
B) failed to exercise due care.
C) defectively designed the product.
D) was in privity of contract with the plaintiff.

E) All of the above
F) C) and D)

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Palmer goes to a truck dealership and asks for a truck capable of handling a 5000-pound load.He makes it clear that it is up to the salesman to select an appropriate truck.Without saying anything about the truck's load-carrying capacity,the salesman selects a certain truck for Palmer.Relying on the salesman's choice,Palmer buys the truck in question.However,the truck can only handle a 2500-pound load.Palmer wants to sue the dealership because he didn't get the truck he desired.Which of the following product liability theories gives Palmer his best chance of recovery?


A) Express warranty
B) Implied warranty of fitness
C) Implied warranty of merchantability
D) Section 402A

E) B) and D)
F) B) and C)

Correct Answer

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The implied warranty of fitness for a particular purpose is violated when the goods are:


A) unfit for any use.
B) unfit for the ordinary use for which such goods are used.
C) unfit for the particular use that the buyer intends.
D) unfit for the particular use that the buyer intends,and the buyer is a merchant.

E) B) and D)
F) A) and D)

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If a seller gives a written warranty for a product to a consumer,the warranty must be designated in the nature of full or limited warranty.

A) True
B) False

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In the case of a product where the risks are open and obvious,many courts hold that:


A) buyers must register a complaint with the seller.
B) strict liability must be applied.
C) the case will be covered under section 402A.
D) there is no duty to warn.

E) A) and B)
F) A) and C)

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According to UCC § 2-315's _____ for a particular purpose arises when the seller has reason to know a particular purpose for which the buyer requires the goods.


A) express warranty
B) warranty of merchantability
C) implied warranty of fitness
D) multiple express warranties

E) All of the above
F) A) and B)

Correct Answer

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What section of the UCC grants a warranty for fitness for particular purpose?


A) 2-315
B) 2-102
C) 3-115
D) 7-104

E) B) and D)
F) None of the above

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The owner of Café Coffee Day declaring that his restaurant makes the world's best cup of coffee is an example of an express warranty.

A) True
B) False

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The increasing use of comparative principles in product liability cases is due to the popularity of the three traditional defenses used in product liability cases.

A) True
B) False

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Which of the following doctrines often proves helpful to plaintiffs who bring a product liability lawsuit alleging negligence?


A) Res judicata
B) Res ipsa loquitur
C) Caveat venditor
D) Caveat emptor

E) A) and D)
F) All of the above

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