Business Law, 8e: Chapter 19

Chapter 19
Warranties and Product Liability :

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1. An person who is injured by a product she did not purchase may sue the manufacturer for damages.: a. True
b. False

3. A seller is not required to make any express warranty about the product.: a. True
b. False

4. A written product manual or label that attempts to disclaim the implied warranty of merchantability must be conspicuous.: a. True
b. False

5. The issue in the ,i>Webster v. Blue Ship Tea Room case was the merchantability of the fish chowder.: a. True
b. False

6. Timo manufactures a computer and sells it to Carina, a distributor. Carina sells it to Alia, a retailer. Alia sells it to Diran, a consumer. Diran later sells it to Hovanoush, his sister who lives in the same household. The computer contains a defect that makes the computer unmerchantability. The defect causes substantial losses to Hovanoush. Under the Uniform Commercial Code, Hovanoush may sue Timo for breach of warranty, even though there is no privity of contract between them.: a. True
b. False

7. A description of goods creates an express warranty that the goods sold to the buyer will match the description provided by the seller.: a. True
b. False

8. A full warranty given to a consumer under the Magnuson-Moss Act places a time limit on any implied warranties covering the goods sold.: a. True
b. False

9. Sales talk or puffing by the seller will generally create an express warranty.: a. True
b. False

10. A merchant seller cannot disclaim the implied warranty of merchantability.: a. True
b. False

11. Tiffany sold her truck to Olaf. Tiffany is not in the business of selling trucks and she did not make any comments or promises concerning the truck to Olaf. Olaf did not tell Tiffany why he wanted the truck. The truck is subject to a security interest by First Bank. While valid, the security interest is not one that Olaf could have discovered on his own. What warranty has Tiffany breached?: a. Express warranty.
b. Implied warranty of title.
c. Implied warranty of fitness for a particular purpose.
d. Implied warranty against infringement.

12. Lillian walked into Neil's shoe store. Lillian told Neil, the owner of the store, that she planned to climb Mount Denali next month, and that she'd like some shoes for the purpose. Neil selects a pair of shoes made by Woodpond, a company well-known for its boots. Neil made no comments about the boots. He simply told Lillian to try on the boots. Lillian bought the boots. Unknown to both Lillian and Neil, these particular boots are generally not used for mountain climbing, but only for hiking on relatively flat ground. In fact, the manufacturer's catalogue specifically points out that these boots are not particularly suitable for mountain climbing. Lillian used the boots to climb Mount Denali. They did not provide the necessary support for her ankles and Lillian was injured. The injury would not have occurred had Lillian been hiking on flat ground. Has Neil breached any express warranty?: a. Yes.
b. No, because mountain climbing is not the ordinary purpose for which these boots are normally used.
c. No, because Neil did not actually say anything about the boots.
d. No, because Neil did not know about the manufacturer's recommendation concerning the boots.

13. Lillian walked into Neil's shoe store. Lillian told Neil, the owner of the store, that she planned to climb Mount Denali next month, and that she'd like some shoes for the purpose. Neil selects a pair of shoes made by Woodpond, a company well-known for its boots. Neil made no comments about the boots. He simply told Lillian to try on the boots. Lillian bought the boots. Unknown to both Lillian and Neil, these particular boots are generally not used for mountain climbing, but only for hiking on relatively flat ground. In fact, the manufacturer's catalogue specifically points out that these boots are not particularly suitable for mountain climbing. Lillian used the boots to climb Mount Denali. They did not provide the necessary support for her ankles and Lillian was injured. The injury would not have occurred had Lillian been hiking on flat ground. Has Neil breached the implied warranty of merchantability?: a. Yes.
b. No, because mountain climbing is not the ordinary purpose for which these boots are normally used.
c. No, because Neil did not actually say anything about the boots.
d. No, because Neil did not know about the manufacturer's recommendation concerning the boots.

14. Fresh Chips developed a new chip made from soy beans. Fresh Chips advertised the chip as "unique and adventurous." Fresh Chip's claim of unique and adventurous is:: a. an express warranty because the product is new.
b. an express warranty because the product is unique.
c. not an express warranty because the claim is made in an advertisement.
d. not an express warranty because the claim is a matter of opinion.

15. Generally, a(n) _________ warranty arises automatically in every sale.: a. express
b. limited.
c. full warranty.
d. implied warranty.