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Exam 14: Sales: Product Advertising and Liability

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Question 41

Multiple Choice

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The U.S. Army purchased a large number of Bell Jet Ranger helicopters in 1963. Many of the helicopters served tours of duty in Vietnam and after the war were returned to the United States. Because of damages sustained during the war, many of the helicopters' engines were rebuilt. In 1974, one of the helicopters with a rebuilt engine crashed because of engine failure. The families of the two servicemen killed in the accident wish to recover from Bell under 402A. What defense could Bell probably successfully allege?

A) misuse of the product
B) product modification
C) assumption of risk
D) none of the above

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

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Question 42

True/False

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Product packaging stating that the line is "ideal for use on boat or dock" is mere puffery and not an express warranty.

A) True
B) False

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Question 43

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Anne Twain purchased two hamsters for her children. She told the salesperson, "I want two hamsters of the same gender, now." The pet store salesperson said, "No problem. These are two males." Six weeks later, Anne's children reported the birth of thirteen tiny hamsters. What rights does Anne have?

Which of the following does not constitute an express warranty?

An internal memo in a company that acknowledges the risk of a product prior to the product's release without any kind of change establishes proof for punitive damages under a negligence theory of product liability.

Personal Alarms, Inc. advertises a product for senior citizens who live alone that is a type of warning device when the individual is experiencing health or safety issues. According to Personal Alarm ads, all the user needs to do is press the button on the small Personal Alarm bracelet and through a direct contact, the police are notified immediately and able to detect location of the Personal Alarm user and dispatch assistance. The FTC has learned that the Personal Alarm only alerts a monitoring system that must then call the police. The FTC:

The implied warranty of fitness for a particular purpose (unless disclaimed) is given in every sale of goods by a merchant.

Tops Meat had to recall all of its frozen hamburger patties because of the presence of E-Coli in the meat. About 20 consumers who ate the Tops patties became ill and two died. The E-Coli was present in the animals Tops purchased for slaughter from various ranchers.

Which of the following phrases is an express warranty?

Ads by members of professional groups can be regulated by the state.

"Stops assailants dead in their tracks," written on the package for a mace product, is an express warranty.

Many school buildings constructed from 1930 to 1970 had asbestos insulation in them. Presently the schools are undertaking a massive program to replace the insulation and at substantial cost. Could the schools turn to asbestos manufacturers for recovery of the costs? What if students who were exposed to the asbestos during the time they attended the schools develop asbestosis or lung cancer? Where can the students turn?

To establish an express warranty under the UCC, the buyer must produce evidence that the seller used the term "warrant" or "guarantee."

Which of the following is not an example of an express warranty?

The 2008 act that includes some regulations on the resale of goods is the:

Privity in negligence product liability cases is:

The term "AS THEY STAND" serves to disclaim:

In comparative advertising, a company cannot be held liable for misrepresentations regarding products other than its own.

Passengers injured in a plane crash caused by the plane's defective design have no rights of recovery against the airplane manufacturer.

Ralph Walters wanted to begin an exercise program and decided to enroll in a local aerobics class. He was told that he would need proper aerobic work-out shoes. Ralph went to an athletic shoe store and explained his needs to the sales clerk and also added that since he had never done aerobics, he was unsure what type of shoe he would need. The sales clerk recommended a shoe that Ralph purchased. When Ralph arrived at aerobics class, his instructor said his shoes were not appropriate for aerobics and that Ralph might injure himself if he used them for the workout. When Ralph returned to the store with the shoes, the store refused to exchange them, citing the three-day limitation on returns. The shoe store: