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Exam 20: Warranties and Product Liability

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Question 31

Multiple Choice

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Blake, a salesperson for Custom Equipment Inc. shows Dylan, a buyer for Furniture Inc., display items in Custom's showroom, stating that any purchased equipment will match the display. This statement is

A) an express warranty.
B) an implied warranty.
C) none of the choices.
D) puffery.

E) B) and C)
F) B) and D)

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Question 32

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A product cannot have a design defect if it is made in conformity with the manufacturer's design specifications.

A) True
B) False

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Question 33

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The Magnuson-Moss Warranty Act attempts to prevent deception in warranties by

Listening Devices, Inc., makes and markets phones. When problems develop with Listening products or sales, the company may be liable in product liability for any of the following except

If a creditor repossesses goods from a buyer who has actual knowledge of a security interest, the buyer can recover from a seller for breach of warranty.

Eric is looking for a new car and finds a sports utility vehicle (SUV) that he likes, but he wants a particular color. The salesperson states that she can order an SUV that will be exactly like the floor model but in the preferred color. The salesperson gives Eric a brochure about the SUV and says that she can order an SUV just as that model is described in the brochure. Relying on this information, Eric orders the SUV.   Explain what express and implied warranties are part of this contract.

An express warranty arises when a seller or lessor indicates that the goods conform to any sample or model.

In making and marketing tools, Do-It-Rite Corporation, like other sellers, is required to take actions to protect against

A manufacturer must exercise "due care" to make a product safe.

Defendants in product liability cases can raise assumption of risk as a defense.

AgriGro, Inc., sells hybrid seed to farms and other agricultural enterprises. Brandon buys and plants AgriGro seed on his Country Farm, but no crop grows because the seed is defective. Brandon sues AgriGro for product liability based on negligence. To win, Brandon must show that

Pet Houses, Inc. sells shelters for animals under "limited" warranties. Under the Magnuson-Moss Warranty Act, this means that the warranties on the shelters

W arranties of title arise automatically in most sales contracts.

An express warranty arises when a seller or lessor indicates that the goods are the "best" of the kind of goods sold.

Product liability law requires that a manufacturer must exercise due care in all of the following except

Wheels Inc. sells new and used bicycles. Under most circumstances, Wheels will be presumed to have warranted that its title to the bikes is

Street Bikes, Inc., makes and sells a bike to Ted. Street Bikes fails to exercise "due care" to make the bike safe, however, and Ted is injured as a result. Street Bikes is most likely liable for

Safe-Rite Company makes chargers for electronic devices. Tina buys a charger, suffers an injury during its use, and later files a product liability suit against Safe-Rite, alleging a warning defect. In deciding whether to hold Safe-Rite liable, the court would consider

Strict liability will not result in a remedy to an injured user unless there is privity of contract.

Ceramic Corporation makes ceramic products for commercial uses, including heat-resistant tiles for industrial ovens. When damage occurs in an oven at Duramold, Inc., liability may be imposed on the manufacturer if the tiles sold to Duramold were