36. Which of the following would most likely be a defect under 402A of the Restatement of Torts?
a. A chair produced without inserting the appropriate screws
b. A product with a defective design that is “state of the art” and the manufacturer, even if it knew of the design
hazard, could not have designed a safer product given existing technology
c. Vodka that is 100–proof and contains a warning that it can make people drunk and cause liver damage after
years of heavy use
d. All of these are defects under 402A.
37. The liability of manufacturers and other sellers of goods for a defective product may be based on all but which of the
following?
a. Negligence and misrepresentation
b. Violation of a statutory duty
c. Warranty and criminal liability
d. Strict liability in tort
38. The warranty of fitness for a particular purpose:
a. is an implied warranty that applies only to merchant sellers.
b. requires that the seller know that the buyer is relying on the seller’s expertise in selecting a product for the
buyer’s specific purpose.
c. requires no proof of reliance in a case for breach of warranty.
d. All of these.
39. Which of the following products would impose strict liability in tort according to Section 402A?
a. Popcorn containing large amounts of genuine butter
b. 150–proof Virgin Island rum
c. A chain saw sold with the safety shielding removed
d. A sports car capable of speeds in excess of 150 MPH
40. Which of the following is generally NOT a defense to a claim against a manufacturer under 402A?
a. Contributory negligence on the part of the plaintiff
b. Express assumption of the risk
c. Misuse or abuse of the product
d. Subsequent alteration of the product by the plaintiff
41. Implied warranties under the Code:
a. may arise from course of dealing or usage of trade.
b. are a result of specific language in the sales contract.
c. continue the common law rule of caveat emptor.
d. are intended to protect the seller rather than the buyer.
42. Kera rented a lawn mower from Scott Rentals. The mower wheel was loose when she picked it up. When she
began to use the mower, the wheel fell off, causing the mower to tip over onto her foot. Under what theory can
Kera hold Scott liable for her injuries?
a. Breach of warranty of merchantability
b. Breach of warranty of title
c. Strict liability in tort for a defective design
d. All of these.
43. Which of the following is not an express warranty?
a. Restating facts or market figures about a product
b. The opinion of an expert in a certain field regarding a product in that field
c. A statement of the product specifications
d. The seller’s opinion of the value of goods
44. An obligation of the merchant-seller that the goods are reasonably fit for general purposes for which they are
manufactured and sold, and the goods are of fair, average quality is known as:
a. a warranty of merchantability.
b. strict liability.
c. an express warranty.
d. the warranty of fitness for a particular purpose.
45. A, a wholesale distributor, sells to B, a retail dealer, a set of defective tires manufactured by X, a reputable
manufacturer. Both A and B believed the tires to be in perfect condition, although neither party has inspected the
tires. C purchases the tires from B and is injured because the defective tires blew out. Who, if anyone, is liable to C
in strict liability?
a. A, B, and X share liability to C under strict liability.
b. Only X, who manufactured the tires, has strict liability.
c. Only B, who sold the defective tires to C, has strict liability.
d. No one has strict liability in this case.
46. Product liability exists if the:
a. consumer misuses the product.
b. consumer alters the product before he or she uses it.
c. product reaches the consumer without substantial change in the condition in which it is sold.
d. consumer takes the product gratuitously.
47. Mark tells Leslie that his stereo has quadraphonic speakers because he was told that when he bought it. Leslie buys
the stereo, but it does not have quadraphonic speakers. Is Mark liable for breach of warranty?
a. No, because he did not know his statement was false.
b. No, because he did not promise her that the speakers were quadraphonic.
c. Yes, because the statement was false.
d. Yes, because Mark was not acting in good faith.
48. Matt tells Ron that the snow boots he is selling offer protection for temperatures of 20° below zero. Ron orders a
pair for his trip to Greenland. Upon delivery, Ron sees that the box states “will protect your feet in temperatures
down to 30° below zero.” The first night’s temperature goes down to 27 below. Ron suffers frostbite on all of his
toes. Ron then sues for breach of warranty. What is the result?
a. Breach, because the later express warranty is valid.
b. No breach, because Matt’s statement was merely opinion.
c. No breach, because Matt said 20° below zero.
d. No breach, because Matt is allowed to be wrong.
49. Eric bought a new snowmobile from the North Pole Manufacturing Company. After buying the machine, Eric then
modified the spark plugs and a few other things in order to soup it up. In February, just after a snowfall, Eric was
driving the snowmobile when it tipped over, trapping him beneath it. His leg was severely burned when it lodged
against one of the spark plugs. Eric now wants to sue North Pole for strict liability in tort. Eric:
a. will likely win the suit, because of the faulty design of the snowmobile.
b. will likely lose the suit, because the machine has been altered since its manufacture.
c. has assumed the risk of using the snowmobile.
d. cannot sue the manufacturer, because horizontal privity is lacking.
50. Karen decided to sell her stair step exercise machine, because she wasn’t using it as much as she thought she would.
Her friend Lydia bought it from Karen for $100. If the first day that Lydia used the stair stepper it fell apart, injuring
Lydia‘s ankle:
a. Lydia can sue Karen for breach of the warranty of merchantability, because the stair stepper is not fit for its
ordinary purpose.
b. Karen can sue the manufacturer for breach of the warranty of merchantability, because she was the original
buyer.
c. Lydia cannot sue Karen for warranting that the stair stepper is reasonably fit for its ordinary purpose, because
Karen is not a merchant.
d. Lydia cannot sue Karen, because they are not in privity of contract.
51. Article 2A carries over the warranty provisions of Article 2 with relatively minor revision to reflect differences in:
a. style.
b. leasing terminology.
c. leasing practices.
d. All of these.
52. Geoff’s fiancée, Susan, comes to meet his parents for the weekend. On Saturday morning, while using Geoff’s
mother’s hair dryer, the blower short-circuits sending sparks across the guest room. Susan’s angora sweater and her
hands are covered with tiny burns. Susan’s mother is a lawyer and wants her to sue the seller of the dryer for breach
of warranty. Can she?
a. No, because horizontal privity would extend only to members of the family.
b. No, because privity would require that Geoff’s mother sue.
c. Yes, since she is a guest in the home of the buyer, the warranties would extend to her in most states.
d. Yes, since under the Code all reasonable users are protected from injury.
53. Alice is browsing in a commercial art gallery when she sees a painting that she likes. Roger, who is the manager of
the gallery, tells her that the painting is a genuine Leroy Neiman work. Based upon that representation, Alice buys
the work for $5,000. She later discovers that the painting is only a cheap copy of the original that is worth no more
than $50. Roger has breached:
a. an express warranty to Alice that the painting is a Neiman work.
b. the warranty of merchantability.
c. no express warranties, because his statement was merely an opinion.
d. an express warranty, the warranty of merchantability, and the warranty of fitness for a particular purpose.
54. Greg has been in the business of selling encyclopedias for twenty years. Margaret agreed to buy a set if Greg would
also bring her a bookcase for them. Greg bought one and sold it to Margaret along with the books. While shelving the
books, she ran her hand over the back edge of the shelves and cut herself severely. The wood was not finished on
that side and nails were protruding through the shelf. Can Margaret sue Greg under strict liability?
a. Yes, because the bookcase was in an unreasonably dangerous condition.
b. Yes, because the bookcase was defective.
c. No, because she was not a true consumer under Section 402A.
d. No, because Greg is not a seller under Section 402A.
55. No implied warranty exists:
a. if it is disclaimed in any manner.
b. if it applies to hidden defects that are not apparent upon examination.
c. as to defects that an examination ought to have revealed, where the buyer examined the goods as fully as he
desired or where the buyer refused to examine the goods.
d. All of these.
56. Which Code section contains the warranty of merchantability?
a. 2–205
b. 2–207
c. 2–312
d. 2–314
57. In bringing a warranty action, the buyer must prove:
a. whether the warranty was express or implied.
b. that breach of the warranty proximately caused the loss suffered.
c. reliance on the affirmations, promises, descriptions, samples, or models the seller made or used.
d. All of these.
58. Hubert bought heavy-duty, sharp hedge clippers to trim the hedges in his yard. In the process of using the clippers,
he severely cut his hand. He is now suing the manufacturer on the basis that the clippers are unreasonably
dangerous. Can he recover? Explain.
59. Answer the following:
a. Under the Code, what constitutes an “express” warranty? Does an express warranty have to
arise through words?
Which of the following would be an express warranty? Explain. (1) This is the best computer
available in town. (2) This car has new brakes. (3) This sample is just like the one in the box.
b. (4) In my opinion, this is a better video recorder than the one made by this competitor. (5) As a
mechanic, I think this car is in good running order and should give you no problems for at least
three months.
60. Answer the following:
a. What is the Magnuson-Moss Warranty Act?
b. What is a statute of repose?
61. What are the general Code requirements for a disclaimer of warranties? What specific requirements exist for a
disclaimer of the warranty of merchantability and the warranty of fitness?
62. What are the essential requirements for strict product liability?