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104. 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
105. 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
106. 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
107. 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
108. Terry Locklear obtained a prescription for extended-wear contact lenses from his ophthalmologist. He purchased a
year's supply of the lenses over the internet. After wearing a pair of lenses for 2 weeks, Terry developed an eye
infection that has resulted in permanent impairment of the vision in his right eye. He has brought suit against the
lens manufacturer. The manufacturer indicates that it has no liability and that the liability rests with Terry's
ophthalmologist because the physician is to provide the training for the maximum wearing time of one week. There
is no information in the lens materials or on the boxes about the maximum length for wearing time.
a. The manufacturer is correct; only the doctor is liable.
b. The manufacturer is incorrect because its product is defective for its failure to warn.
c. Neither the physician nor the manufacturer is liable because Terry did not inquire about proper wear and
usage.
d. Both the manufacturer and physician are liable but have a complete defense because of Terry's negligence.
e. Both the manufacturer and the physician are liable under different theories.
109. 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
110. 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
111. With regard to #110, 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
112. 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.
113. 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
114. 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.
115. 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.
116. 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
117. 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
118. 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
119. 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
120. Koellmer purchased a Chrysler auto. After taking delivery of his new vehicle, he discovered there were warranty
disclaimers in his owner's manual. Is Koellmer bound by the warranty disclaimers?
121. Ford manufactured its Pinto auto (a subcompact car) from 1968 to 1980. The gas tank was rigidly mounted and the
top of the tank was the floor of the trunk compartment. There was no shield to prevent the spread of fire into the
auto. Fox sustained severe burns when his Pinto was hit from behind and exploded into flames. Discuss possible
theories of recovery for Fox.
122. Gillham purchased an Admiral TV and shortly thereafter read of the propensity of the TVs to overheat and burst
into flames. While watching TV, his set exploded and burned. He experienced rippling burns. Can Gillham recover?
Discuss various issues and defenses in the case.
123. Chevy (General Motors) manufactured a truck called the LUV. Expert evidence has shown that the absence of a
head restraint in the LUV exposes the occupants in a low-speed rear-end collision to cranial impact 16 times that
which would result if head restraints were provided. Discuss the risk General Motors runs with the product as it is
and possible theories owners injured in such crashes could use for recovery. Must a car be crash-proof?
124. Bucky Warren, Inc. manufactured a hockey helmet. The helmet had gaps in it to give it flex and movement.
Everett was injured when a puck struck his head in one of the gaps. Is Bucky Warren liable?
125. James Kaufman purchased 11 heifers from Peter Van Santen. Van Santen provided in their agreement that the
cows had "no mastitis." Mastitis is an inflammation of the milk-producing tissue in the udder that can result in
infection and reduction of milk production. Shortly after taking delivery, Kaufman discovered mastitis in the cows.
One had to be killed and the remainder of Kaufman's herd became infected. He lost $30,000 because of decreased
milk production and spent nearly $600 in vet bills. Can Kaufman recover from Van Santen? If so, on what theories?
126. Many school buildings constructed from 1930 to 1970 had asbestos insulation in them. Presently the schools are
undertaking a massive program to replace the insulation and at substantial cost. Could the schools turn to asbestos
manufacturers for recovery of the costs? What if students who were exposed to the asbestos during the time they
attended the schools develop asbestosis or lung cancer? Where can the students turn?
127. Discuss the ethics of Toyota delaying its recall on vehicles with sudden unintended acceleration problems.
128. Discuss why the Consumer Product Safety Improvement Act included rules for resellers of certain types of
products.
129. A children's Halloween make-up kit states that it is "non-toxic." Several children developed severe rashes and eye
infections following use of the product on Halloween. Does the manufacturer have any liability?
130. Cheryl Lileth purchased Big Eyes Mascara, a product described on its label as "Hypoallergenic." Cheryl developed
a rash and swelling after one use. Can she recover? What possible theories could she use?
131. Anne Twain purchased two hamsters for her children. She told the salesperson, "I want two hamsters of the same
gender, now." The pet store salesperson said, "No problem. These are two males." Six weeks later, Anne's children
reported the birth of thirteen tiny hamsters. What rights does Anne have?
132. Describe three defenses to product liability.
133. In the Nestle case, what ethical issues existed?
134. 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 27 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. Discuss liability and theories of liability.
135. 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.
136. 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.
137. 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.
138. 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.
