1. Caveat emptor is a Latin term meaning “let the buyer beware.”
a. True
b. False
2. Today, courts follow a policy of caveat emptor in handling product liability cases.
a. True
b. False
3. Privity of contract is a direct contractual relationship between the parties.
a. True
b. False
4. Today, courts require privity of contract for recovery in product liability cases.
a. True
b. False
5. To establish an express warranty under the UCC, the buyer must produce evidence that the seller used the term
“warrant” or “guarantee.”
a. True
b. False
6. The implied warranty of fitness for a particular purpose (unless disclaimed) is given in every sale of goods by a
merchant.
a. True
b. False
7. The implied warranty of merchantability (unless disclaimed) is given in every sale of goods by a merchant.
a. True
b. False
8. The language “as is” disclaims both the warranty of merchantability and the warranty of fitness for a particular
purpose.
a. True
b. False
9. “These dresses are 100% cotton” is an example of an express warranty.
a. True
b. False
10. “This car has the finest workmanship money can buy” is an example of an express warranty.
a. True
b. False
11. A product can be defective for purposes of liability for injury if proper warnings about its use are not given.
a. True
b. False
12. Improper packaging that results in an injury can be a basis for product liability.
a. True
b. False
13. Privity is required for recovery on the basis of warranty.
a. True
b. False
14. When a customer tells a pet store employee that she wants two female gerbils, but receives one male and one
female gerbil who later have baby gerbils, the pet store has breached the implied warranty of fitness for a particular
purpose.
a. True
b. False
15. There can be no recovery on the basis of a breach of a UCC warranty by anyone other than the actual buyer.
a. True
b. False
16. A lack of adequate warnings can be a defective product.
a. True
b. False
17. Misuse of a product is a defense in a product liability suit.
a. True
b. False
18. Strict tort liability under Section 402A is the same as negligence.
a. True
b. False
19. A sale of a toaster at a garage sale is covered by the warranty of merchantability.
a. True
b. False
20. Section 402A permits suits only by those in privity of contract.
a. True
b. False
21. Proof of negligence in product design or manufacture allows recovery of punitive damages.
a. True
b. False
22. Proof for a breach of the warranty of merchantability suit requires establishment of the fact that the product was in
a defective and unreasonably dangerous condition.
a. True
b. False
23. Express warranties cannot be disclaimed.
a. True
b. False
24. A disclaimer of liability for personal injuries caused by a breach of warranty would be unconscionable.
a. True
b. False
25. “Stops assailants dead in their tracks,” written on the package for a mace product, is an express warranty.
a. True
b. False
26. The Federal Trade Commission is responsible for the regulation of deceptive advertising.
a. True
b. False
27. Private parties can enforce the FTC regulations on comparative ads.
a. True
b. False
28. Stating a lamp is a “Tiffany lamp” and stating it is “in the Tiffany style” are both making the same kind of warranty.
a. True
b. False
29. Bait and switch is not a deceptive advertising technique.
a. True
b. False
30. A consent decree is similar to a no–contest plea in a criminal proceeding.
a. True
b. False
31. Celebrity endorsements of products are deceptive unless the celebrity has used the product.
a. True
b. False
32. The Federal Trade Commission does not have the authority to halt deceptive ads.
a. True
b. False
33. In comparative advertising, a company cannot be held liable for misrepresentations regarding products other than its
own.
a. True
b. False
34. Ads can be a basis for an express warranty.
a. True
b. False
35. Toyota had no ethical obligation to issue a recall on its vehicles with sudden unintended acceleration problems
because Toyota did not manufacture the parts that caused the problems.
a. True
b. False
36. Corrective ads can be required only when competition is affected.
a. True
b. False
37. Ads by members of professional groups can be regulated by the state.
a. True
b. False
38. The Consumer Product Safety Improvement Act of 2008 includes rules covering the resale of goods such as in a
garage sale.
a. True
b. False
39. Federal trademark law provisions provide remedies for companies whose products are misrepresented in
comparative advertising.
a. True
b. False
40. The implied warranty of fitness for a particular purpose is given in every sale by a merchant.
a. True
b. False
41. The foreign/natural test for food items is different from the liability issues under the reasonable expectation test.
a. True
b. False
42. The implied warranty of merchantability requires proof that the buyer was relying on some language when he or
she made the purchase of the good.
a. True
b. False
43. The implied warranty of fitness for a particular purpose requires reliance by the buyer on the seller’s expertise.
a. True
b. False
44. 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.
a. True
b. False
45. If there is a breach of the warranty of merchantability, there is no tort liability.
a. True
b. False
46. A salesperson who recommends a fertilizer to a customer for the customer’s described purposes is not making a
warranty.
a. True
b. False
47. The FTC Improvements Act of 1980 curbed FTC regulation of children’s advertising.
a. True
b. False
48. Comparative ads are now illegal.
a. True
b. False
49. Under the Consumer Product Safety Improvement Act a reseller of goods cannot be liable for selling toys or other
products with lead paint because the reseller did not manufacture the goods.
a. True
b. False
50. Restaurants have no liability for natural items such as bones in chicken that injure customers.
a. True
b. False
51. A purchase of a deep fryer at a sale of a bankrupt restaurant’s equipment by the bankruptcy trustee is covered by
the warranty of merchantability.
a. True
b. False
52. The FTC can issue an order to halt a comparative ad if information used in the ad is inaccurate.
a. True
b. False
53. Proof that a manufacturer was aware of a defect in its product but did not correct it is proof of negligence.
a. True
b. False
54. 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
55. Passengers injured in a plane crash caused by the plane’s defective design have no rights of recovery against the
airplane manufacturer.
a. True
b. False
56. 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
57. 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.”
58. 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
59. 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
60. “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
61. 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
62. “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.
63. 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
64. 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.