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65. 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
66. 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
67. 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.
68. 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
69. Section 402A covers:
a. manufacturers only.
b. retailers only.
c. those who sell products out of their home.
d. only merchants.
70. "With all faults" serves to disclaim:
a. an express warranty.
b. liability under 402A.
c. liability for negligence.
d. none of the above
71. 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
72. The opposite of caveat emptor is:
a. negligence.
b. privity requirements.
c. strict tort liability.
d. none of the above
73. 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.
74. 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.
75. 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
76. 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
77. 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.
78. 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
79. 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.
80. 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
81. 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
82. 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.
83. 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
84. 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
85. 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
86. 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.
87. 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.
88. 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
89. 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
90. 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
91. 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.
92. 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.
93. 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
94. The FTC Improvements Act of 1980:
a. expanded the FTC's authority to regulate advertising.
b. limited the FTC's authority on regulation of advertising.
c. eliminated the FTC's authority to require corrective ads.
d. none of the above
95. 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.
96. 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.
97. 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
98. 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.
99. 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
100. Which of the following is not an express warranty?
a. "fireproof"
b. "waterproof"
c. "puncture-proof"
d. All of the above are express warranties.
101. Which of the following terms is not an express warranty?
a. "nonskid"
b. "nonbreakable"
c. "shelled"
d. All of the above are express warranties.
102. 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.
103. 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
