Question 1

The implied warranty of merchantability is implied at the time of contracting if: (1)the seller or lessor has reason to know the particular purpose for which the buyer is purchasing the goods or the lessee is leasing the goods; (2)the seller or lessor makes a statement that the goods will serve this purpose; and (3)the buyer or lessee relies on the seller's or lessor's skill and judgment and purchases or leases the goods.

Accepted Answer

The implied warranty of merchantability does not depend on the seller knowing the buyer's particular purpose or making statements about the goods serving that purpose. It is automatically implied in sales by merchants that the goods are fit for ordinary purposes.

Question 2

Software licenses do not typically contain warranty disclaimers and limitation on liability clauses.

Accepted Answer

Software licenses typically contain warranty disclaimers and limitation on liability clauses, which aim to limit the legal responsibility of the software developer or vendor for any damages or issues that may arise from the use of the software.

Question 3

The majority of states have adopted the foreign substance test to determine the merchantability of food products.

Accepted Answer

The majority of states use the "reasonable expectation" test rather than the "foreign substance" test to determine the merchantability of food products.

Question 4

In a product liability action,the plaintiff typically relies on the traditional tort theory of negligence or the modern tort doctrine of strict liability.

Accepted Answer

This is true. In a product liability action, the plaintiff may bring a case under the traditional tort theory of negligence, which requires proving that the defendant owed a duty to the plaintiff, that the defendant breached that duty, and that the breach caused the plaintiff's injury. Alternatively, the plaintiff may bring a case under the modern tort doctrine of strict liability, which holds manufacturers and sellers responsible for injuries caused by their defective products, regardless of whether they were negligent.

Question 5

The implied warranty of fitness for a particular purpose can apply to merchants and nonmerchants.

Accepted Answer

The implied warranty of fitness for a particular purpose can apply to both merchants and nonmerchants under the UCC (Uniform Commercial Code). This warranty states that if a buyer relies on the seller's expertise or advice in selecting a product for a specific purpose, then the seller warrants that the product is fit for that particular purpose.

Question 6

The Magnuson-Moss Warranty Act requires that sellers or lessors make certain express written warranties.

Accepted Answer

The Magnuson-Moss Warranty Act does not require sellers or lessors to provide express written warranties; it regulates warranties when they are offered.

Question 7

In terms of the conspicuous display of a warranty disclaimer,a heading printed in uppercase letters or a typeface that is larger or in a different style than the rest of the body of a sales or lease contract is considered to be "conspicuous."

Accepted Answer

This statement is true. The use of uppercase letters or a different typeface in a heading makes the warranty disclaimer more noticeable and conspicuous to the consumer.

Question 8

Chuck goes to a restaurant and orders a tuna salad sandwich.He takes a bite and breaks a tooth on a bone.Chuck cannot successfully sue the restaurant,because everyone knows that fish have bones and he should have been more careful.

Accepted Answer

This statement is false. The restaurant has a duty to ensure that their food is safe to eat and free from foreign objects, such as bones. Chuck may have a case to sue the restaurant for the injury he suffered.

Question 9

Written disclaimers must be conspicuously displayed to be valid.

Accepted Answer

This is because the purpose of a disclaimer is to inform individuals of potential risks or liabilities associated with a product or service. If the disclaimer is not easily visible, it does not effectively serve its purpose of informing individuals of the risks or liabilities. Therefore, written disclaimers must be clearly and conspicuously displayed to be valid.

Question 10

Under an implied warranty of merchantability,the goods must be fit for the ordinary purposes for which they are used.

Accepted Answer

Under an implied warranty of merchantability, goods must be fit for the ordinary purposes for which they are used. This means that if a consumer purchases a product with the expectation that it can be used for its intended purpose, the product must meet that expectation. If the product fails to meet the ordinary standards for that type of product, the consumer may be able to seek recourse under the warranty.

Question 11

For a warranty to qualify as a full warranty,the warrantor must guarantee free repair or replacement of the defective product.

Accepted Answer

A full warranty guarantees that the warrantor will repair or replace a defective product for free.

Question 12

The implied warranty of merchantability can be disclaimed by using the word "merchantability" or by saying that the item is sold "as is" or "with all faults."

Accepted Answer

The use of the word "merchantability" or phrases such as "as is" or "with all faults" clearly indicates that the seller is disclaiming the implied warranty of merchantability.

Question 13

The Magnuson-Moss Warranty Act is administered by the Interstate Commerce Commission (ICC).

Accepted Answer

The Magnuson-Moss Warranty Act is actually administered by the Federal Trade Commission (FTC), not the Interstate Commerce Commission (ICC). The ICC itself was abolished in 1995 and its functions were transferred to other federal agencies.

Question 14

Under the consumer expectation test,a food product is unmerchantable if a foreign object in that product causes injury to a person.

Accepted Answer

The answer of Under the consumer expectation test,a food product...

Question 15

The Magnuson-Moss Warranty Act stipulates that sellers or lessors who make express written warranties related to consumer products are forbidden from disclaiming or modifying the implied warranties of merchantability and fitness for a particular purpose.

Accepted Answer

The Magnuson-Moss Warranty Act does indeed stipulate that sellers or lessors who make express written warranties related to consumer products are forbidden from disclaiming or modifying the implied warranties of merchantability and fitness for a particular purpose.

Question 16

In terms of the conspicuous display of a warranty disclaimer,the courts construe "conspicuous" as noticeable to the plaintiff.

Accepted Answer

The courts generally construe "conspicuous" as noticeable to a reasonable person, not specifically to the plaintiff.

Question 17

The Magnuson-Moss Warranty Act covers written warranties relating to commercial and consumer products.

Accepted Answer

The Magnuson-Moss Warranty Act specifically covers written warranties for consumer products, not commercial products.

Question 18

The implied warranty of merchantability applies to the box as well as the breakfast cereal inside the box.

Accepted Answer

The implied warranty of merchantability applies to both the product inside the packaging as well as the packaging material itself. Therefore, the answer is true.

Question 19

Under the implied warranty of merchantability,fungible goods must be of a high level of quality.

Accepted Answer

The implied warranty of merchantability requires that fungible goods be of average or fair quality, fit for the ordinary purposes for which such goods are used, not necessarily a high level of quality.

Question 20

The implied warranty of merchantability does not apply to food products to be consumed off the premises of a restaurant.

Accepted Answer

The implied warranty of merchantability applies to all goods sold, including food products, ensuring they are fit for consumption regardless of where they are consumed.

Quiz 19: Warranties and Product Liability