LES 305 - Chapter 13

What is an express warranty?

A promise of performance (fact, this item is 100% wool)

What is an implied warranty of fitness for a particular purpose?

A warranty given in circumstances in which the buyer relies on the seller's expertise and acts to purchase according to that advice

What is the implied warranty of merchantability?

A warranty of average quality, purity, and adequate packaging given in every sale by a merchant

What is specific performance?

An equitable remedy that requires the party that breached the contract to fulfill its obligation under the contract. (not awarded for personal services)

Ariel McClellan was using an underarm-aerosol deodorant one morning while smoking a cigarette. The deodorant had this warning in large letters on the side of the can: "DO NOT USE AROUND HEAT, FLAME OR WHILE SMOKING." The deodorant ignited McClellan's cigarette in her hand and the flames quickly spread to her silk robe. McClellan was severely burned and will have permanent scarring. Who is liable for her injuries? a. The cigarette manufacturer. b. Ariel is responsible. c. The deodorant manufacturer. d. The manufacturer of her silk robe.

B. Ariel is responsible.

Emma and her friends bought fireworks for a big Fourth-of-July celebration. While setting off some of the fireworks, the wind blew the sparks into a tent setting it on fire. The fire then spread to their house doing $200,000 worth of damage before it could be put out by the fire department. Emma is now suing the maker of the fireworks. What would be the best defense for the fireworks manufacturer? a. Misuse of product. b. Assumption of risk. c. Contributory negligence. d. Comparative negligence.

B. Assumption of risk

Sierra decided to paint her house. She gave the sales clerk at DYI Warehouse a swatch labeled "sunshine yellow" and asked them to mix it using Hitone brand paint. When she arrived home and opened the can, they were a greenish-blue color that she did not like. She took the cans back to the store and asked for her money back. The clerk refused but said he could re-mix the paint and she could buy 5 more cans. Which of the following is true? a. Hitone brand paint is in violation of the implied warranty of merchantability. b. DYI Warehouse is in violation of the implied warranty of fitness for a particular use. c. There is no warranty violation in this case. d. Sierra is in violation of the warranty of disclaimers.

B. DIY Warehouse is in violation of the implied warranty of fitness for a particular use.

Justin saw an ad from Big Buys Electronics stating that they had brand new computers for only $250. When he went to Big Buys to purchase the computer, he was told that they only had one of those and it had already been sold. But the salesperson showed him some other computers and Justin ended up paying $550 for a computer. When Justin got home, he realized he had been conned into buying a more expensive computer. Which unlawful sales tactic was he a victim of? a. Puffery. b. Implied warranty of merchantability. c. Bait and switch. d. None, he should not have let the salesman convince him to purchase a different one.

C. Bait and switch

Hunter bought a new Turfmate brand lawn mower from Equipment Depot. While mowing the lawn, the blade stopped moving. Hunter tipped over the mower, and gave the blade a push with his hand despite the warning on the mower not to tip over the mower or touch the blades. The mower started back immediately and Hunter's hand was severely cut. Who will be liable for Hunter's injuries? a. Equipment Depot. b. Turfmate c. Hunter. d. Both Turfmate and Equipment Depot.

C. Hunter

Who is covered under section 402A?

Manufacturers, retailers, and those who sell products out of their homes

What is privity?

The direct contractual relationship between parties

Which of the following does not constitute an express warranty? a. "This car will give you a great deal of satisfaction." b. "This car is equipped with Michelin radial tires." c. "This car goes from 0 to 60 mph in 10 seconds." d. All of the above are express warranties.

a. "This car will give you a great deal of satisfaction."

Which of the following phrases is an express warranty? a. "boned chicken" b. "Maine's finest" c. "Best in the West" d. All of the above are express warranties.

a. "boned chicken"

Campbell's Soup created a low sodium line of soups that had the label on the can that read "25% less sodium than regular soup." Tests revealed that the low-sodium soups had the same amount of sodium as regular soups. Which of the following statements is true? a. Campbell's made an express warranty that it breached. b. There is no warranty claim that can be based on a product label. c. There can be recovery for the claim only if a purchaser is harmed by the claim. d. The FTC has no jurisdiction over claims made on product labels.

a. Campbell's made an express warranty that it breached.

Chobani, the Yogurt company, began running ads that compared its Chobani 100 with Dannon Light & Fit, stating in the ad that Dannon contained preservatives, i.e., potassium sorbate. Dannon filed a suit in court asking for an injunction to halt the ads because potassium sorbate is a salt used in yogurt to prevent the growth of mold and yeast and is not used as a preservative. Chobani responded to the suit claiming that the ads are accurate and that the information on potassium sorbate came from a government website listing Dannon ingredients. Which of the following is correct? a. Dannon will need to have the FTC step in if it wants an injunction against the ads. b. As a competitor, Dannon can challenge ad content without FTC involvement. c. The only remedies Dannon has would be a suit on the basis of breach of an express warranty. d. An injunction would require a class action suit by Dannon purchasers.

a. Dannon will need to have the FTC step in if it wants an injunction against the ads.

Lowe's advertised a barbeque grill for $99 in its newspaper ad. When the Smith's arrived at Lowe's to buy the barbecue, a Lowe's salesman said, "Oh, we don't have any in stock. But, what you need is this model for $149." Lowe's had no $99 barbecues in stock, even before the ad was placed. a. Lowe's has engaged in bait and switch. b. Lowe's has breached an express warranty. c. Lowe's has violated the implied warranty of merchantability. d. none of the above

a. Lowe's has engaged in bait and switch.

The turf materials used to provide surface cushioning on children's playgrounds have been found to contain lead at levels high enough to harm children. There are 11,000 so-called "rubber crumb" playgrounds in the United States and the lead levels were found in all manufacturers' products. The levels around the fields may not be dangerous, but the "crumbs" break off and if those crumbs are ingested by children, lead levels could be dangerous. Which of the following statements is true? a. The manufacturers of the rubber crumb playgrounds could be liable for lead injuries to children even if they were unaware of the lead presence or risk. b. The manufacturers of the rubber crumb playgrounds would not be liable to the children because there is no privity of contract. c. Unless the manufacturers of the rubber crumb playgrounds made "lead-free" claims, they would not be liable for any injuries to the children. d. both b and c

a. The manufacturers of the rubber crumb playgrounds could be liable for lead injuries to children even if they were unaware of the lead presence or risk.

The Listeria found in Blue Bell ice cream is an example of: a. a breach of the implied warranty of merchantability. b. a breach of the implied warranty of fitness for a particular purpose. c. not a breach of warranty because Listeria is naturally occurring. d. a case of negligence.

a. a breach of the implied warranty of merchantability.

Pestro is the manufacturer of a weed killer that is used in the parks in Metroville. After the parks were sprayed, a group of children became ill and required hospitalization. Two dogs that had been with the group died. The parents of the children and the dog owners could: a. bring suit against Pestro under 402A even though there is no privity. b. not bring suit against Pestro because of a lack of privity. c. not bring suit against the city. d. none of the above

a. bring suit against Pestro under 402A even though there is no privity.

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: a. can issue a cease and desist order for the Personal Alarm ads on direct police contact. b. cannot stop the ads so long as there is some police notification process. c. does not have authority to stop ads because of First Amendment commercial speech protections. d. none of the above

a. can issue a cease and desist order for the Personal Alarm ads on direct police contact.

The Wheeler-Lea Act: a. expanded the FTC's authority to regulate advertising. b. limited the FTC's authority to regulate only ads that affected competition. c. eliminated the FTC authority to require corrective ads. d. none of the above

a. expanded the FTC's authority to regulate advertising.

Susan Hewitt is eating a bowl of cream of broccoli soup in a bistro when she notices a portion of a caterpillar on her spoon. Susan's best basis for recovery is: a. implied warranty of merchantability. b. negligence. c. implied warranty of fitness for a particular purpose. d. none, there is no privity

a. implied warranty of merchantability.

Bait and switch: a. is a sales tactic of advertising a cheaper product in order to get a customer in to buy a more expensive product. b. is not based on ad content. c. is not regulated by the FTC. d. none of the above

a. is a sales tactic of advertising a cheaper product in order to get a customer in to buy a more expensive product.

Chipotle experienced E.coli outbreaks in several of its restaurants during 2016. A restaurant experiencing food contamination: a. is liable under the implied warranty of merchantability for any harm to customers. b. is liable under the implied warranty of fitness for a particular purpose to customers. c. is not liable to customers unless it was aware of the food problems and sold the food anyway. d. both a and b

a. is liable under the implied warranty of merchantability for any harm to customers.

A bike purchaser who alters the frame of a bike after the purchase and who is injured because the frame cracks: a. may not be able to recover from the manufacturer because the product was in a different condition at the time of the accident. b. can still recover from the manufacturer because the manufacturer should know that buyers would alter their bikes. c. can still recover, but not punitive damages. d. both b and c

a. may not be able to recover from the manufacturer because the product was in a different condition at the time of the accident.

Privity of contract: a. means a direct contractual relationship between the parties. b. is required for recovery on a UCC warranty theory. c. is required for recovery under section 402A. d. none of the above

a. means a direct contractual relationship between the parties.

Privity in negligence product liability cases is: a. not required. b. more stringent than in UCC cases. c. determined by the relationship of the injured party to the buyer. d. none of the above

a. not required.

The implied warranty of merchantability requires: a. proof that the seller is a merchant. b. proof that the buyer relied on a merchant. c. proof of a defective product. d. all of the above

a. proof that the seller is a merchant.

Product misuse is a defense in product liability: a. unless the misuse is the result of a failure to warn. b. unless it is a negligence action. c. unless it is a warranty action. d. unless the state follows Section 402A. e. none of the above

a. unless the misuse is the result of a failure to warn.

Which of the following is/are an express warranty(ies)? a. "This sofa is the most comfortable ever built." b. "This grill can give you 500° F of heat." c. "This car has more pep than any other, especially on hills." d. All of the above are express warranties.

b. "This grill can give you 500° F of heat."

Which of the following is not required of a celebrity who will be endorsing a product? a. verification of the claims to be presented b. actual use of the product c. disclosure of source of claims not known personally by the celebrity d. All of the above are required.

d. All of the above are required.

Hain Celestial Group, Inc. advertises its products as containing "no harsh chemicals." The labels also noted that its products contained no sodium lauryl sulfate (SLS), something that can result in skin irritation. The Wall Street Journal had Hain's Honest laundry detergent and Earth's Best baby shampoo tested and a lab found that the products contained more than "trace amounts of SLS". The Wall Street Journal contacted Hain, and Hain responded that it does "not add SLS" to its products. Which of the following statements is correct? a. The issue is not material and will not result in any warranty or product liability issues. b. Hain has breached an express warranty with its SLS claim on its products. c. Express warranty provisions do not apply to non-mechanical products. d. The products are not defective; they simply contain different elements.

b. Hain has breached an express warranty with its SLS claim on its products.

Dam Good Adventures operates a helicopter tour business near Lake Mead, Nevada. Lake Mead is the site of Hoover Dam. Dam Good has purchased 5 helicopters over the 214 years it has been in business and its mechanic has rebuilt the engines on all of the helicopters. In addition, Dam Good's mechanic has altered the timing mechanisms on the helicopters so that they are able to hover longer and with less noise, two features that are important for tourists. One of Dam Good's helicopters crashed over Lake Mead, killing the pilot and the four passengers on board. Which of the following statements is correct? a. The manufacturer is always liable for a products liability claim. b. The alteration of the helicopters is a potential bar to recovery from the manufacturer. c. Dam Good is jointly liable with the manufacturer for negligence for its alteration to the helicopter. d. Neither Dam Good Adventures nor the manufacturer is liable because of the assumption of the risk by the tourists.

b. The alteration of the helicopters is a potential bar to recovery from the manufacturer.

Woeste ate raw oysters at a restaurant and died a week later from the bacteria Vibrio vulnificus. The bacteria naturally occur in oysters from warm water. Vibrio has no effect on most people, but can be fatal to people with a weak immune system—as Woeste had due to Hepatitis C and cirrhosis of the liver. The restaurant menu warned of the danger of eating raw oysters, especially for persons with "chronic illness of the liver." Woeste ordered without reading the menu warning. His estate sued the restaurant and the Texas company that harvested the oysters for negligence and strict liability. What is the likely outcome? a. The restaurant is liable for failure to warn of every possible risk. b. The restaurant is not liable to the estate of Woeste. c. The restaurant breached its implied warranty of merchantability by serving a dangerous product. d. The restaurant is liable under strict liability for selling a dangerous product.

b. The restaurant is not liable to the estate of Woeste.

Stanislaus County, California awarded a contract for the construction of a water treatment plant to Black & Veatch. Black & Veatch purchased pipe for installation to and from the plant from a supplier who worked with representatives from Black & Veatch to determine a pipe that would work for the soil and weather conditions near the plant. Black & Veatch followed the suppliers recommendations. After the plant opened, there were significant problems with the pipes' failure rates. Which of the following statements is correct? a. The supplier has no liability to the county because it did not have a contract with the city. b. The supplier has liability for breach of implied warranty of fitness for a particular purpose. c. There is no warranty liability when there is no privity. d. Black & Veatch has no liability for the problems with the pipes.

b. The supplier has liability for breach of implied warranty of fitness for a particular purpose.

The following warning appears on a sticker attached to a hover board: Risk of Death and Serious Injury Whenever you ride on vehicle, you risk injured [sic] from loss of controls [sic] and fallings [sic]. To ride safely, you must read and follow all the instructions and warnings in this user manual. What is the effect of the warning? a. The warning serves to disclaim the liability of the manufacturer of the hover board for injuries resulting from use. b. The warning serves to disclaim the liability of the manufacturer of the hover board for injuries resulting from the failure to follow the manual. c. The warning serves to disclaim the liability of the manufacturer for all use and design defects. d. The warning serves to disclaim the liability of the manufacturer for all express and implied warranties.

b. The warning serves to disclaim the liability of the manufacturer of the hover board for injuries resulting from the failure to follow the manual.

Which is a requirement for an express warranty? a. use of the word "warrant" or "guarantee" b. a description or promise of performance c. written statement d. must be made by a merchant

b. a description or promise of performance

"These cartons will hold up to 100 pounds of books" is an example of: a. an implied warranty of merchantability. b. an express warranty. c. misrepresentation. d. privity.

b. an express warranty.

The sellers of "Acne-Statin," a skin cream, claim in their ads that their cream "cures acne." The American Association of Dermatologists has determined that there is no cure for acne, only creams that can curb breakouts. The ad claims: a. are simply puffery. b. breach an express warranty. c. do not violate any FTC rules. d. none of the above

b. breach an express warranty.

The UCC warranty of merchantability: a. does not cover sales of food in restaurants. b. can be disclaimed by using the term "as is." c. is made in every sale of goods. d. none of the above

b. can be disclaimed by using the term "as is."

For an injured party to recover for breach of a UCC warranty under the UCC: a. there must be privity of contract. b. even under the strictest alternative, the party can be a guest. c. he/she must be a natural person. d. none of the above

b. even under the strictest alternative, the party can be a guest.

Glenda purchased new light shades for her chandelier from Shades Plus. The Internet description of the shades she purchased was, "These shades fit almost all fixtures." When the shades arrived, they could not be placed on the chandelier because they were too narrow. Shades Plus has refused to take the shades back on a return from Glenda. a. Shades need not take back the shades because the shades did not have a quality problem. b. Shades need not take back the shades because it is not responsible for language on its Internet site. c. Shades must take back the shades for breach of an express warranty. d. both a and b

c. Shades must take back the shades for breach of an express warranty.

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: a. is within its rights to refuse to take the shoes back. b. has breached the implied warranty of fitness for a particular purpose and is required to refund Ralph's money or exchange the shoes. c. has not breached any warranty since Ralph had no contract with any promises written in it. d. none of the above

b. has breached the implied warranty of fitness for a particular purpose and is required to refund Ralph's money or exchange the shoes.

Corrective advertising: a. is unconstitutional. b. is one of the FTC's many remedies. c. has never been ordered by a court. d. none of the above

b. is one of the FTC's many remedies.

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. Suppose Ralph's sales receipt had stamped on it in red letters "AS IS." The shoe store: a. has breached the implied warranty of fitness for a particular purpose and is required to refund Ralph's money or exchange the shoes. b. is within its rights to refuse to take the shoes back. c. has not breached any warranty since Ralph had no contract with any promises written in it. d. none of the above

b. is within its rights to refuse to take the shoes back.

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

b. product modification

Which of the following actions cannot be taken on comparative advertising that is misleading? a. the FTC can seek an injunction b. the FTC can seek criminal penalties c. the manufacturer of the product that is compared can bring suit d. All of the above actions can be taken.

b. the FTC can seek criminal penalties

A candle has the following label: "NEVER LEAVE A BURNING CANDLE UNATTENDED." The warning: a. is not necessary to prevent liability on the part of the maker. b. would not cover a defect in the candle's manufacture. c. is an example of a warning needed to prevent liability for negligence only. d. all of the above

b. would not cover a defect in the candle's manufacture.

Which of the following is not an express warranty? a. "These shelves hold up to 300 lbs. each." b. "This fingerpaint will wash out of clothes with just soap and water." c. "This sweater is made of the finest materials." d. All of the above are express warranties.

c. "This sweater is made of the finest materials."

Which of the following is not an example of an express warranty? a. "This jacket is lined." b. "This water heater holds 50 gallons." c. "This toothpaste makes teeth the whitest around." d. "Preshrunk jeans."

c. "This toothpaste makes teeth the whitest around."

The Joneses are interested in purchasing new carpet for their family room and note an ad in the paper from Carpet World for carpet at $9.99 per square yard, with pad, fully installed. When the Joneses go to Carpet World, the salesman tells them there is a handling fee of $2.99 per square yard on the advertised special, but he can show them a better carpet for $14.99 per square yard. Which of the following statements is true? a. Since the Joneses are free to leave and buy elsewhere, there are no FTC violations by the ad. b. If the Joneses choose the $14.99 carpet, there is no violation of FTC regulations. c. Carpet World's ad and tactics constitute bait and switch. d. none of the above

c. Carpet World's ad and tactics constitute bait and switch.

Coca-Cola found a fungicide in its Simply Orange and Minute Maid orange juices. The fungicide was the result of a spray used by Brazilian orange growers who then sold their oranges to Coca-Cola. Which best describes Coca-Cola's liability to customers who purchase the juice? a. Coca-Cola is not liable because it did not know about the fungicide. b. The Brazilian growers are not liable because there is no privity with the juice purchasers. c. Coca-Cola is liable for a defect in its products. d. Coca-Cola is liable under tort theory but not contract.

c. Coca-Cola is liable for a defect in its products.

The 2008 act that includes some regulations on the resale of goods is the: a. Consumer Product Safety Act. b. Consumer Product Resale Safety Act. c. Consumer Product Safety Improvement Act. d. Consumer Product Resellers Inclusion Act.

c. Consumer Product Safety Improvement Act.

Which of the following terms is not an express warranty? a. "nonskid" b. "nonbreakable" c. "shelled" d. All of the above are express warranties.

d. All of the above are express warranties.

Which of the following issues in advertising is not regulated by the FTC? a. accuracy of ad content b. accuracy of performance claims c. celebrity endorsements d. All of the above are regulated by the FTC.

d. All of the above are regulated by the FTC.

Jill DesJardines experiences a broken leg when one of the wheels on her new in-line skates falls off as she is skating. Suppose that Jill had been using the skates for one year when the wheel fell off. Which of the following best summarizes the manufacturer's liability? a. There is no liability because of assumption of risk. b. There is no liability because the skates are one-year old. c. There could be liability if the wheel fell off due to defective design and there is no change in the design over the course of the last year. d. There is no liability because manufacturers are excused from liability when there is passage of this much time. e. none of the above

c. There could be liability if the wheel fell off due to defective design and there is no change in the design over the course of the last year.

Takata manufactures air bags that are sold to automakers for installation in their vehicles. A series of Takata air bags were prone to explosion, and resulted in the recall of 19 million vehicles in the United States, 8 deaths, and hundreds of injuries. When the air bags explode, they send shrapnel throughout the vehicles. Which of the following statements is correct about the air bag victims? a. They cannot recover for their injuries from the vehicle manufacturer unless the auto manufacturer knew about the Takata defects. b. They cannot recover from Takata because there is no privity of contract. c. They can recover from Takata or the auto manufacturer. d. They cannot recover from the vehicle manufacturer because the design defect is in the air bag, not the auto.

c. They can recover from Takata or the auto manufacturer.

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. a. Tops is not liable to its purchasers because it did not produce a defective product. b. Tops is not liable to its purchasers because it was not aware of the E-Coli when it sold its products. c. Tops is liable to its purchasers for any injuries and damages from the presence of E-Coli. d. both a and b

c. Tops is liable to its purchasers for any injuries and damages from the presence of E-Coli.

The term "AS THEY STAND" serves to disclaim: a. the implied warranty of merchantability. b. the implied warranty of fitness for a particular purpose. c. both a and b d. none of the above unless it is in writing

c. both a and b

Which of the following is not a remedy available to the FTC? a. injunctions b. corrective ads c. criminal penalties d. All of the above are remedies available to the FTC.

c. criminal penalties

When Toyota delayed in issuing a recall for certain vehicles with suspected sudden unintended acceleration problems, Toyota faced a(n): a. legal but not ethical problem. b. ethical but not legal problem. c. ethical and legal problem. d. public relations problem but no ethical or legal problems.

c. ethical and legal problem.

The FTC controls on product comparisons: a. are very stringent. b. are a high regulatory priority. c. have changed dramatically with private enforcement. d. no longer exist.

c. have changed dramatically with private enforcement.

Jill DesJardines experiences a broken leg when one of the wheels on her new in-line skates falls off as she is skating. The manufacturer: a. is not liable because Jill assumed the risk of in-line skating. b. can disclaim all such liability for products such as these skates. c. is liable for a defective product. d. both a and b e. none of the above

c. is liable for a defective product.

Mattel, Inc. had to recall 19 million toys because it learned that its manufacturer/supplier in China had used lead-based paint on the toys, a paint that is prohibited in the United States. Mattel: a. is not liable to purchasers of the toys for any injuries resulting from the lead because it did not manufacture the toys or authorize the use of lead paint. b. is not liable to purchasers because there is no privity of contract. c. is liable to purchasers as a manufacturer/seller of toys. d. can escape any liability because it was unaware of the lead paint use.

c. is liable to purchasers as a manufacturer/seller of toys.

The opposite of caveat emptor is: a. negligence. b. privity requirements. c. strict tort liability. d. none of the above

c. strict tort liability.

Which of the following would not be a breach of the warranty of merchantability? a. a piece of garden snake in a box of frozen green beans b. a caterpillar in broccoli soup purchased at a restaurant c. a milk carton that leaks d. All of the above are breaches of the implied warranty of merchantability.

d. All of the above are breaches of the implied warranty of merchantability.

Brianne Kriefall died after ingesting e-coli bacteria by eating at a Sizzler Restaurant. Sizzler's meat supplier discovered that several of its shipments of meat to Sizzler and other restaurants contained the e-coli bacteria. Which of the following is correct? a. Brianne's estate and family can recover for wrongful death under a breach of the implied warranty of merchantability. b. Brianne's estate and family can recover for wrongful death under a strict tort liability theory. c. Brianne's estate and family can recover for wrongful death from both Sizzler and its supplier. d. All of the above are correct.

d. All of the above are correct.

Which of the following does not constitute an express warranty? a. "This computer system is accessible by a PB2400 modem." b. "This computer system is IBM-compatible." c. "This computer system has a built-in battery back-up system that gives you two minutes to save files in the event of a power interruption." d. All of the above are express warranties.

d. All of the above are express warranties.

Which of the following is not an express warranty? a. "fireproof" b. "waterproof" c. "puncture-proof" d. All of the above are express warranties.

d. All of the above are express warranties.

Which of the following duties could not be a basis for a negligence suit? a. hotel to guest b. physician to patient c. accountant to client d. All of the above parties have duties.

d. All of the above parties have duties.

Which of the following would not be a basis for a negligence product liability suit? a. a highly explosive gas tank installed in a car with the manufacturer's prior knowledge of its dangers b. the continued sale of sunglasses to baseball teams knowing the sunglasses shatter c. the continued sale of gas pipelines to utilities in the Southwest after explosions caused by peculiar interactions of the pipe with the soil and heat d. All of the above would be negligence product liability suits.

d. All of the above would be negligence product liability suits.

Two experienced welders were working inside a barge. Both had received training in their respective trade, and safety training required by the government and the company. The company regularly stressed the importance of safety procedures to prevent accidents. A gas hose leading to the welding torch developed a leak that the workers apparently could not smell because of "nasal fatigue" from having inhaled so much gas. One worker lit a cigarette, igniting the gas, killing both workers. The workers' heirs sued the gas and gas hose producers in strict liability. Was either company liable? a. No, because only one company can generally be liable in this type of accident. b. Yes, because there was likely a defect in the hose that could have been prevented. c. Yes, because this type of accident does not happen to experienced workers. d. No, because of the negligence of the employees.

d. No, because of the negligence of the employees.

Which of the following items can be sold now by a reseller? a. A recalled item not purchased originally by the reseller b. A product intended for children containing lead paint c. A product intended for children containing phthalates d. None of these

d. None of these

Susan Sandren purchased a toaster from Standard Electric. While using the toaster the day after it was purchased, Susan discovered that the toaster slots were too small for a thick piece of bread. The bread was stuck in the slot. With the toaster still plugged in, Susan used a knife to pry loose the toast and was electrocuted. In a suit by her family against Standard Electric: a. Standard will lose because the slots should have been made wider. b. Standard will win because of misuse of the product. c. Susan's family will win because of a design defect. d. Susan's family would win if there were no warnings about knives and electrocution.

d. Susan's family would win if there were no warnings about knives and electrocution.

Section 402A covers: a. manufacturers. b. retailers. c. those who sell products out of their home. d. all of the above

d. all of the above

The FDA tested a vitamin supplement and found that it contained 21% anabolic steroids. The label does not include a disclosure about the presence of steroids. What are the remedies available against the company? a. injunction to halt sales b. correction of the labels c. recall of the product d. all of the above

d. all of the above

Which of the following would be a "defect" for purposes of 402A? a. failure to warn not to put a hair dryer in water b. food package that permits tampering c. a missing bolt on a car steering column d. all of the above

d. all of the above

"As is" written in a contract: a. serves to disclaim the implied warranty of merchantability. b. serves to disclaim the implied warranty of fitness for a particular purpose. c. has no effect on warranty protection. d. both a and b e. none of the above

d. both a and b

Some employees at Takata have come forward to reveal that they were aware that there were problems with the air bags and that the testing data may have been altered to minimize the likelihood of an explosion of the air bags. This information: a. is not needed to establish a Section 402A product liability case. b. could be the type of information that could result in punitive damages. c. will exonerate the car manufacturers from liability to victims. d. both a and b e. none of the above

d. both a and b

Which of the following is not regulated by the FTC? a. content accuracy b. celebrity endorsements c. performance claims d. express warranties e. All of the above are regulated by the FTC.

d. express warranties

"With all faults" serves to disclaim: a. an express warranty. b. liability under 402A. c. liability for negligence. d. none of the above

d. none of the above

A company is liable for a design defect in its product only if: a. it was aware of the design defect. b. the design defect has caused a previous injury. c. there was negligence in the product testing. d. none of the above

d. none of the above

Arrion McClellan was using an underarm-aerosol deodorant one morning while smoking a cigarette. The deodorant had this warning in large letters on the side of the can: "DO NOT USE AROUND HEAT, FLAME OR WHILE SMOKING." The deodorant ignited McClellan's cigarette in her hand and the flames quickly spread to her silk robe. McClellan was severely burned and will have permanent scarring. Who is liable for her injuries? a. the deodorant manufacturer b. the cigarette manufacturer c. the manufacturer of her silk robe d. none of the above

d. none of the above

Contributory negligence: a. can be a partial defense in product liability cases for negligence. b. is the same as comparative negligence. c. is no longer permitted as evidence in suits. d. none of the above

d. none of the above

Negligence product liability cases: a. are the same as 402A cases. b. have no defenses. c. require proof of privity. d. none of the above

d. none of the above

The implied warranty of fitness for a particular purpose requires: a. proof that the seller made the first contact with the buyer. b. proof that the seller used the term "warrant." c. proof that the seller is a merchant. d. none of the above

d. none of the above

What is the maximum civil penalty the Consumer Product Safety Commission can assess against a company for violations of the Consumer Product Safety Act? a. $2,000 b. $50,000 c. $500,000 d. none of the above

d. none of the above

Which of the following is an example of an express warranty? a. "Guaranteed to bring the most happiness to any home." b. "Simply the best donut you'll ever eat." c. "Brings friends running to you." d. none of the above

d. none of the above

H.G. Ilk owned a 1965 Ford Mustang. He had replaced the front seats, the engine and the transmission. In an accident in which he was rear-ended, the front driver's seat collapsed, leaving Ilk with permanent injuries. It was discovered that the seat, manufactured by the Fisher Company, was defective in that the frame was partially missing due to a production error. Who is liable for Ilk's injuries? a. Ford Motor Company b. Fisher Company c. the other driver d. both a and b e. both b and c

e. both b and c