Chapter 10 - CHAPTER 10PRODUCT ADVERTISING AND LIABILITY...

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CHAPTER 10—PRODUCT ADVERTISING AND LIABILITY TRUE/FALSE 1. Caveat emptor is a Latin term meaning "let the buyer beware." ANS: T NAT: AACSB: Analytic TOP: caveat emptor 2. Today, courts follow a policy of caveat emptor in handling product liability cases. ANS: F NAT: AACSB: Analytic TOP: caveat emptor 3. Privity of contract is a direct contractual relationship between the parties. ANS: T NAT: AACSB: Analytic TOP: privity 4. Today, courts require privity of contract for recovery in product liability cases. ANS: F NAT: AACSB: Analytic TOP: privity 5. To establish an express warranty under the UCC, the buyer must produce evidence that the seller used the term "warrant" or "guarantee." ANS: T NAT: AACSB: Analytic TOP: express warranty 6. The implied warranty of fitness for a particular purpose (unless disclaimed) is given in every sale of goods by a merchant. ANS: F NAT: AACSB: Analytic TOP: implied warranty 7. The implied warranty of merchantability (unless disclaimed) is given in every sale of goods by a mer- chant. ANS: T NAT: AACSB: Analytic TOP: merchantability 8. The language "as is" disclaims both the warranty of merchantability and the warranty of fitness for a particular purpose. ANS: T NAT: AACSB: Analytic TOP: disclaimers 9. "These dresses are 100% cotton" is an example of an express warranty. ANS: T NAT: AACSB: Analytic TOP: express warranty 10. "This car has the finest workmanship money can buy" is an example of an express warranty. ANS: F NAT: AACSB: Analytic TOP: express warranty 11. A product can be defective for purposes of liability for injury if proper warnings about its use are not given. ANS: T NAT: AACSB: Analytic TOP: warnings
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12. Improper packaging that results in an injury can be a basis for product liability. ANS: T NAT: AACSB: Analytic TOP: packaging 13. Privity is required for recovery on the basis of warranty. ANS: F NAT: AACSB: Analytic TOP: warranty 14. Privity is not a requirement for recovery in a product liability case. ANS: T NAT: AACSB: Analytic TOP: privity 15. There can be no recovery on the basis of a breach of a UCC warranty by anyone other than the actual buyer. ANS: F NAT: AACSB: Analytic TOP: privity 16. A lack of adequate warnings can be a defective product. ANS: T NAT: AACSB: Analytic TOP: product liability 17. Misuse of a product is a defense in a product liability suit. ANS: T NAT: AACSB: Analytic TOP: misuse 18. Strict tort liability under Section 402A is the same as negligence. ANS: F NAT: AACSB: Analytic TOP: 402A 19. A sale of a toaster at a garage sale is covered by the warranty of merchantability. ANS: F NAT: AACSB: Analytic TOP: warranty 20. Section 402A permits suits only by those in privity of contract. ANS: F
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Chapter 10 - CHAPTER 10PRODUCT ADVERTISING AND LIABILITY...

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