Chapter 24. Products Liability: Warranties and Strict Liability in Tort
1. The U.S. Consumer Product Safety Commission’s estimate that the cost of deaths, injury, and property damage
from consumer product incidents is about $800 million each year led Congress to pass three major federal product
liability statutes between 2006 and 2010.
a. True
b. False
2. An express warranty does not require that the warranty be expressed in written words.
a. True
b. False
3. Fitness for a particular purpose and merchantability are implied warranties that apply only to sales by merchants.
a. True
b. False
4. The Code does not label the warranty of title as an implied warranty, despite the fact that it arises out of the sale and
not from the words or conduct of the parties.
a. True
b. False
5. Bradley buys a television set that turns out to be stolen. He can sue the seller for breach of warranty.
a. True
b. False
6. Cailee has a garage sale at which she sells a defective food processor to Dylan. Cailee will be liable to Dylan in
strict tort liability under Section 402A of the Restatement of Torts if he is injured using the product.
a. True
b. False
7. The word “merchantability” must be mentioned in a disclaimer of an implied warranty of merchantability.
a. True
b. False
8. Jennifer purchased a used refrigerator from her next-door neighbor, a mail carrier. When she took it home and
plugged it in, the refrigerator burst into flames. The seller in this case is in breach of the implied warranty of
merchantability.
a. True
b. False
9. The warranty of merchantability is found in Section 402A of the Restatement of the Law of Torts.
a. True
b. False
10. In a warranty action, the seller has the burden of proving defenses based on the buyer’s conduct.
a. True
b. False
11. Section 402A of the Restatement applies only if the defective product is unreasonably dangerous.
a. True
b. False
12. Barry buys a car from a dealer, which is sold to him “as is.” If the next day, the engine blows up, Barry can sue the
dealer for breach of the implied warranty for fitness.
a. True
b. False
13. Reliance is a necessary element in any breach of warranty case.
a. True
b. False
14. Bart buys a car from a friend “as is.” The friend tells him, “In my opinion, this car is in excellent mechanical
condition.” The friend has made an express warranty.
a. True
b. False
15. The Federal Trade Commission administers the Magnuson-Moss Warranty Act.
a. True
b. False
16. Despite Section 402A’s bar of contributory negligence in strict liability cases, some courts apply comparative
negligence to strict liability cases.
a. True
b. False
17. The use of a sample or model is a means of creating an implied warranty.
a. True
b. False
18. The early common law required privity of contract before a plaintiff could sue a defendant for breach of warranty.
a. True
b. False
19. Hurst’s Used Tires could not be held liable on a theory of strict liability in tort.
a. True
b. False
20. Article 2A, in a provision analogous to Article 2′s warranty of title provision, protects the lessee’s right to possession
and use of the goods from claims of other parties arising from an act or omission of the lessor.
a. True
b. False
21. Under the Magnuson-Moss Warranty Act, a seller who makes a written warranty cannot disclaim any implied
warranty.
a. True
b. False
22. Horizontal privity pertains to remote sellers within the chain of distribution.
a. True
b. False
23. Statements in advertisements and catalogs do not constitute express warranties.
a. True
b. False
24. If the seller of goods is an expert and gives an opinion with regard to the goods, the seller may be liable for breach of
warranty.
a. True
b. False
25. Statutes of repose were enacted to give consumers more rights against large manufacturers.
a. True
b. False
26. Misuse or abuse of the product is a defense to an action brought under 402A of the Restatement.
a. True
b. False
27. The Magnuson-Moss Warranty Act was enacted to protect purchasers of consumer goods.
a. True
b. False
28. Lucille bought a new lawn mower on sale at a local discount store. The mower did not come with an instruction
book, nor did it have warning labels placed near dangerous parts of the mower. If Lucille injures herself while using
this mower, she can claim that she purchased a defective product.
a. True
b. False
29. Both design and manufacturing defects can subject a manufacturer or seller to products liability.
a. True
b. False
30. Under Alternative A of the Code’s horizontal privity provision, a corporation may bring a case against the
manufacturer of a defective product for breach of the warranty of merchantability.
a. True
b. False
31. Implied warranties may arise from course of dealing or usage of trade in leases of personal property under Article
2A of the Code, but not in sales of goods under Article 2.
a. True
b. False
32. Which of the following would NOT be considered a breach of the warranty of merchantability in some jurisdictions?
a. A piece of glass in a bottle of cola
b. A stone in a can of vegetable soup
c. A cherry pit in a can of cherry pie filling
d. A leaking plastic bottle containing bleach
33. Which of the following is NOT included within the Code definition of merchantability?
a. Reasonably fit for the ordinary purposes for which the goods are used
b. Pass without objection in the trade under the contract description
c. In the case of secondhand goods that they be of a quality that matches that of new goods of the same type.
d. Are of fair, average quality.
34. Leslie purchased 100 flower pots from a local merchant. Warranties which are not included in her sales contract, but
exist by “operation of the law,“ are the:
a. express warranties.
b. exclusive warranties.
c. quasi warranties.
d. implied warranties.
35. The warranty of title for the sale of goods found in Article 2 of the Code:
a. may be excluded with the phrase “as is.”
b. is labeled as an implied warranty.
c. may not be excluded or modified by the seller.
d. will apply regardless of whether it is provided for in the contract unless the parties have specifically excluded
it or it is excluded by certain circumstances.