Q&A Hero

Q: Forest & Field Company makes and leases a backhoe to Zac. Due to a defect attributable to Forest & Field's negligence, Zac is injured in an accident in which his neighbor Aaron is also hurt. In a product liability suit based on negligence, Forest & Field may be liable to a. Aaron only. b. no one. c. Zac and Aaron. d. Zac only.

Q: Ceramic Tile Company designs and makes floor tiles. In a product liability suit based on negligence, Ceramic could be liable for violating its duty of care with respect to a. neither the design nor the making of the tiles. b. the design and the making of the tiles. c. the design of the tiles only. d. the making of the tiles only.

Q: GR8 Skates Company makes and sells a pair of skates to Hugh. GR8 fails to exercise "due care" to make the skates safe, and Hugh is injured as a result. GR8 is most likely liable for a. assumption of risk. b. knowledgeable use. c. negligence. d. product misuse.

Q: Jack's Pet Houses, Inc. sells shelters for animals under "limited" warranties. Under the Magnuson-Moss Warranty Act, this means that the warranties on shelters from Jack's Pet Houses a. do not meet one of the requirements of a full warranty. b. are only good for one year. c. are illegal. d. are oral.

Q: ValuRich Tools, Inc., sells tools, tool parts, and related supplies under "full" warranties. Under the Magnuson-Moss Warranty Act, this means that ValuRich must provide a. a choice between a refund or replacement if a product cannot be fixed and repair or replacement of defective parts. b. neither a choice of a refund or replacement, or repair of defective parts. c. only a choice of a refund or replacement if a product cannot be fixed. d. only repair or replacement of defective parts.

Q: Mountain Bikes, Inc. (MBI), and Nero enter into a contract for a sale of a mountain bike. MBI, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by a. displacing the UCC as the primary source of warranty rules. b. making warranties easier to understand. c. prohibiting disclaimers of warranties. d. requiring sellers to give written warranties for consumer goods.

Q: Robert is selling his used lawnmower. He wants to disclaim any implied warranties. Roberta. cannot disclaim implied warranties.b. should include a written disclaimer that the lawnmower is being sold "as is."c. should orally disclose all known faults of the lawnmower.d. should include a written warranty of title.

Q: Sweet Candy, Inc., and Tasty Treats stores enter into a contract for a sale of confections. Sweet, a merchant who deals in goods of the kind sold, makes express warranties in connection with the sale. Under the UCC, at the time a contract is formed, an express warranty can be disclaimed or modified a. by clear, conspicuous language called to the buyer's attention. b. by implied affirmations of fact relating to the goods. c. in any way that the seller sees fit for the ordinary purpose. d. in no way.

Q: Regal Autos, Inc., sells cars to consumers. To avoid liability for oral express warranties, each sales agreement should note that a car is sold a. as is. b. in perfect condition. c. subject to warranties included in the written contract only. d. with no known defects.

Q: Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber. Regional knows the purpose for which Sylvia will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises a. if the buyer is relying on the seller to select suitable goods. b. if the buyer asks for it. c. if the seller is a merchant who deals in goods of the kind sold. d. in conjunction with lease contracts, not sales contracts.

Q: Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a dog that will be good with small children. Carla sells Fred a dog. When Fred takes the dog home, it bites both his small children and causes them serious injuries. Fred can sue Carla for breach of a. an express warranty. b. an implied warranty of fitness for a particular purpose. c. an implied warranty of merchantability. d. a warranty of title.

Q: Sigrud buys spiked mountain-climbing shoes from Rockridge Gear store. The spikes come out of the shoes when Sigrud is on the side of a mountain, causing her to be injured in a fall. Rockridge breached a. an express warranty. b. an implied warranty of fitness for a particular purpose. c. an implied warranty of merchantability. d. a warranty of title.

Q: Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Ocean is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached a. only if Ocean did not know about and could not have discovered the defect. b. only if Ocean did not know about the defect. c. only if Ocean knew about or could have discovered the defect. d. regardless of what Ocean knew or could have discovered.

Q: Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires. Good Tire is a merchant who deals in goods of the kind sold. Under the UCC, an implied warranty of merchantability arises a. automatically in sales contracts. b. only if the buyer asks for it. c. only if the seller does not expressly disclaim it. d. only in conjunction with lease contracts, not sales contracts.

Q: Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises a. automatically in lease contracts. b. only if the lessee asks for it. c. only if the lessor does not expressly disclaim it. d. only in conjunction with sales contracts, not lease contracts.

Q: Olga, a salesperson for Pre-owned Cars & Trucks, Inc., tells Quincy, "This is the best car I"ve ever seen." This statement is a. an express warranty. b. an implied warranty. c. a warranty of title. d. puffery.

Q: Dependable Appliances, Inc., and Elaine enter into a contract for a sale of kitchen appliances. Dependable, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably a. fit for the buyer's particular purpose. b. fit for the ordinary purpose for which such goods are used. c. suitable for resale at an acceptable price. d. the best quality that money can buy.

Q: John is an art dealer with special expertise in modern art. Rachel comes to John's gallery to purchase a modern art painting as an investment. John shows her several paintings that he says are high quality and will increase in value in the next ten years. John's statement is a. an express warranty. b. an implied warranty. c. an opinion. d. puffery.

Q: Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks, Inc. The most important factor in determining whether an express warranty is created is whether a. Sari expresses to Terrific what she wants warranted. b. Sari's desire for the SUV becomes part of her motivation to deal. c. Terrific expresses to Sari what it expects of its customers. d. Terrific's promise becomes part of the basis of the bargain.

Q: Fancy's Feedlot orders one hundred sacks of cattle feed from Bovine Feeders, Inc. Each bag has the words "Twenty percent protein" printed on the front. This is a. an express warranty. b. an implied warranty. c. a warranty of title. d. puffery.

Q: Krissa, a horse breeder, shows Maggie, a customer looking for a new stallion for her breeding program, a stallion and tells her that the stallion is very fertile and can easily breed twenty mares per year. Krissa's statement is a. an express warranty. b. an implied warranty. c. a warranty of title. d. puffery.

Q: Barry buys a bulldozer from Big Sandbox Equipment Company. Barry is unaware that there is a lien against the bulldozer when he buys it. Under the UCC, if the creditor reposes the bulldozer, Barry a. can recover from Big Sandbox Equipment for breach of warranty. b. can do nothing. c. can file criminal charges against Big Sandbox Equipment. d. can recover damages from the creditor.

Q: Big Screen Video Corporation sells high-definition television sets. Under most circumstances, Big Screen Video will be presumed to have warranted that its title to the TVs is a. the same as each brand's name. b. none of the choicesa warranty of title is not presumed. c. good and valid. d. the best that money can buy.

Q: Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers. Merchant assures National that it has valid title to the goods. Under the UCC, a warranty of title arises a. automatically in most lease contracts. b. only if the lessee asks for such a warranty. c. only if the lessor expresses such a warranty. d. only in conjunction with sales contracts, not lease contracts.

Q: Jean buys a bike from Mike's Bike Shop. She wants to make sure that there is a warranty of title. Jean a. does not need to do anything because warranties of title arise automatically in most sales contracts. b. must request a written warranty of title. c. must request an oral warranty of title. d. must request both a written and an oral warranty of title.

Q: William steals a valuable collection of baseball cards from Phillip. William then sells the cards to Darrel, who does not know that the cards are stolen. Phillip discovers that Darrel has the cards. Which of the following best describes the rights and liabilities of the parties involved? a. Darrel has the right to keep the cards if he compensates Phillip monetarily. b. Phillip has the right to reclaim the cards from Darrel, but is liable to Darrel for damages. c. Phillip has the right to reclaim the cards from Darrel and William is liable to Darrel for damages. d. Darrel has the right to keep the cards without compensating William.

Q: The dangers associated with using sharp knives are so commonly known that manufacturers need not warn users of those dangers

Q: Courts in many jurisdictions will consider the negligent actions of both the plaintiff and the defendant when apportioning liability in a product liability action.

Q: Suppliers are generally required to expect reasonably foreseeable misuses of their products.

Q: Recovery in a product liability case may be limited when it can be shown that the plaintiff misused the product.

Q: A design defect is not the sort of product defect that will support the imposition of liability on a strict product liability basis.

Q: Sellers or lessors are liable only for products that are reasonably dangerous.

Q: An action in strict product liability requires that the product not be in a defective condition when the defendant sells it.

Q: To support the imposition of strict product liability, a product must be substantially changed from the time it is sold to the time an injury occurs.

Q: To succeed in a strict product liability suit, an injured plaintiff must show that a product's defect was the proximate cause of the injury.

Q: Strict liability depends on privity of contract between an injured party and a seller.

Q: Under the doctrine of strict liability, people are liable for the results of their acts only if their intentions are malicious.

Q: A failure to exercise reasonable care is negligence.

Q: A manufacturer's duty of care extends to the inspection and testing of products bought to incorporate in the final product.

Q: In sales law, product liability is assurance by one party of the existence of a fact on which the other party can rely.

Q: A seller does not have to provide a written warranty for consumer goods.

Q: For consumer goods costing more than $25, a written warranty must be labeled "full" or "limited."

Q: General descriptions take precedence over inconsistent samples.

Q: Express warranties cannot be disclaimed in contracts.

Q: Implied warranties can arise from a "course of dealing."

Q: Merchants are not required to warrant that the goods they sell are fit for their ordinary purpose.

Q: A product is unmerchantable if an accident could arise in connection with the goods.

Q: Goods must be of the highest quality possible to be merchantable.

Q: Puffery creates an express warranty.

Q: If a seller is an expert and gives an opinion as an expert, then he or she usually creates an express warranty.

Q: An expression of opinion will usually create a warranty.

Q: An implied warranty of merchantability does not arise in every lease by a merchant who deals in goods of the kind leased.

Q: Only a statement made after a contract is entered into can be an express warranty.

Q: A seller does not have to use words such as "warrant" to make an express warranty.

Q: A warranty against infringement is a promise by the seller that the product is free from any patent, trademark, or copyright claims of a third person.

Q: Promises of fact made during the bargaining process are express warranties.

Q: Warranties of title do not arise in most sales contracts.

Q: In sales law, there is only one type of warranty of title.

Q: A warranty of good title means that a seller warrants that he or she has valid title to the goods and that transfer of the title is rightful.

Q: A lien is an encumbrance on a property to satisfy or protect a claim for payment of a debt.

Q: In sales law, a warranty is an assurance by one party of the existence of a fact on which the other party can rely.

Q: Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for $10,500. Colby agrees to deliver the truck on Friday, and Efrem promises to pay the $10,500 on the following Monday. On Thursday, Efrem tells Colby that he changed his mind and will not buy the truck. Over the weekend, Efrem changes his mind again and tenders $10,500 to Colby on Monday. Colby has not sold the truck to another party but refuses the tender and refuses to deliver. Efrem claims that Colby has breached their contract. Colby contends that Efrem's repudiation released him from his duty to perform under the contract. Who is correct, and why?

Q: Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer, Tuner TV Store, on May 1, with payment to be made on delivery. Signal tenders delivery in its own truck. Tuner's manager notices that some of the cartons have scrape marks. Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded. Signal assures Tuner that the sets are in perfect condition. Tuner tenders Signal a check, which Signal refuses, claiming that the first delivery to new customers is always for cash. Tuner promises to pay the cash within two days. Signal leaves the sets with Tuner, which stores them in its warehouse pending its "Grand Opening Sale" on May 15. Two days later, Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair. Signal claims Tuner has accepted the sets and is in breach by not paying on delivery. Will Signal succeed on these claims? Explain.

Q: Summer Breeze, Inc., contracts for the sale of fifty ceiling fans to Island Dcor store. If Summer Breeze fails to deliver the goods, Island Dcor must commence a suit for breach of contract within a. four years. b. not more than one year. c. not less than four years. d. thirty days.

Q: BBQ, Inc., makes and sells grills to Grill Mart, a retailer, which sells one of the grills to Hope, a consumer. BBQ and Grill Mart include in their contracts a limitation on consequential damages for personal injuries arising from a breach of warranty. This is prima facie unconscionable with respect to a. all of these parties. b. BBQ and Grill Mart, but not Hope. c. Hope only. d. none of these parties.

Q: Natural Foods, Inc., orders "Grade A" oil from Olive Grove Farms to process and sell to Pic "˜N Pay Grocers. Olive Grove ships "Grade B" oil, which Natural Foods accepts. To recover damages for the nonconformity, Natural Foods must give notice of the breach within a reasonable time to a. Olive Grove only. b. Olive Grove, Pic "˜N Pay, and the appropriate government agency. c. Pic "˜N Pay only. d. the appropriate government agency only.

Q: Leatherbound Stores, Inc., rejects a shipment of goods that does not conform to its contract with Cowhide Corporation, but is unable to obtain instructions from the seller. Leatherbound may a. resell or return the goods only. b. resell or store the goods only. c. return or store the goods only. d. resell, return, or store the goods.

Q: Bayou Boats, Inc., contracts for the sale of seven swamp boats to Eventide Fishing Tours. Bayou repudiates the contract. Eventide's recovery is measured at the time a. Bayou advertised the goods. b. Eventide ordered the goods. c. Eventide learned of the breach. d. Bayou knew that it would repudiate the contract.

Q: Noni and Myra enter into a contract for a sale of clarinets and other wind instruments. Noni does not deliver. Myra can normally recover as damages the difference between a. any loss avoided and any profit gained. b. the actual price and the hoped-for price. c. the contract price and the market price. d. the current prices in the parties' locations.

Q: Text Publishers, Inc., contracts for a sale of textbooks to University Bookstores, Inc. Viable Shipping Corporation, the carrier, transports the books to Warehouse Storage Company. Text's right to stop delivery is lost when University's rights to the goods are acknowledged by a. the appropriate government agency. b. the students who opt to buy the books. c. University Bookstores. d. Warehouse Storage.

Q: Hi-Tech Company contracts to sell fiber optic cable to Internet Services, Inc. Hi-Tech may bring an action to recover the purchase price and incidental damages if Internet a. accepts the cable and pays for it. b. accepts the cable but does not pay for it. c. rejects the cable. d. revokes acceptance of the cable.

Q: Garden Field Farms and Haute Gourmet Restaurant, Inc., enter into a contract for a sale of lettuce before Haute Gourmet declares bankruptcy. Garden Field can stop delivery of the goods in transit a. only if the quantity is at least a carload. b. only if the quantity is at least a planeload. c. only if the quantity is at least a truckload. d. regardless of the quantity.

Q: Ramblin" Country Stables contracts to buy 1,000 horseshoes from Blacksmith, Inc., for $1 per shoe. When the market price decreases to 50 cents per shoe, Ramblin" refuses to go through with the deal. Blacksmith can recover a. $1,500. b. $1,000. c. $500. d. $0.

Q: Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle. Esau cancels the contract ten days later. Double D is unable to sell the cattle to another buyer. Double D is entitled to a. force Esau to accept the cattle and recover the contract price. b. keep the cattle and recover the contract price from Esau. c. keep the cattle only. d. recover the contract price from Esau but must destroy the cattle.

Q: Loomis Weaving Company contracts to sell sweaters to Style Mart stores. Before the sweaters are delivered, Style Mart indicates that it will not be able to pay. Loomis can resell the goods a. either after finishing the job (and identifying the goods), or after stopping the job. b. only after finishing the job and identifying the goods. c. only if Loomis immediately stops the job. d. under no circumstances.

Q: Sof" Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay. Sof" tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy may a. await performance, sue Sof", or suspend its own performance. b. only await Sof's performance for a commercially reasonable time. c. only sue Sof" for breach of contract. d. only suspend its own performance.

Q: Craft Engineering, Inc., contracts for a sale of technical instruments to Detail Design Company. Before the date on which performance is due, Craft notifies Detail that it will not perform. This is a. anticipatory repudiation. b. perfect tender. c. rejection of performance. d. revocation of acceptance.

Q: Julia orders twelve violins for her music shop from Notable Notes Instrument Manufacturers. The sale is made on credit. Julia orders the violins on May 1, Notable Notes ships the violins on May 2, and Julia receives the violins on May 4. Julia sells all the violins by June 15. Julia's credit period most likely began on a. May 1. b. May 2. c. May 4. d. June 15.

Q: Shane's Auto Parts orders twenty tires from Tough Tires, Inc. The truck delivering the tires to Shane's is in an accident and ten of the tires are damaged. Shane's Auto Parts a. cannot reject the entire shipment. b. must still pay for all twenty tires at the original contract price. c. may inspect the tires and accept the shipment with a reduction in price. d. must reject the entire shipment.

Q: Silas Paving Co. contracts to buy some construction machinery from Massive Earthmovers, Inc. Before either party performs, Massive sells its assets to Phoenix Equipment Corp. On learning of the sale, Silas is concerned about its contract with Massive. Silas should a. demand assurances of performance from Massive. b. consider the contract repudiated and sue Massive for breach. c. buy the machinery from a different supplier and bill Massive for the price. d. buy the machinery from a different supplier and bill Phoenix for the price.