TJ_Comp 20_TB_Ch25

TJ_Comp 20_TB_Ch25 - Chapter 25PRODUCT LIABILITY:...

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Unformatted text preview: Chapter 25PRODUCT LIABILITY: WARRANTIES AND TORTS TRUE/FALSE 1. If the theory of privity of contract still applied, it would be difficult for purchasers injured by defective goods to sue manufacturers. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 2. The right to sue for damages sustained from a defective product is reserved exclusively to the buyer of such goods. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 3. The requirement of privity of contract to allow recovery in a sales contract has been widely rejected. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 4. Plaintiffs suing for damages caused by a defective product are limited to taking action only against the manufacturer(s) of such goods. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 5. An express guarantee is governed by the UCC, and warranties are governed primarily by the common law of contracts. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 6. An express warranty is basically any statement of fact or promise made about the goods that becomes part of the basis of the bargain. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 7. A statement by a seller relating to goods that is part of the basis of the bargain is an express warranty. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 8. For an express warranty to exist, the buyer must rely on the words of the seller. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 9. Express warranties may be made before, during, but not after the sale of goods. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 10. The most careful seller in the world can be liable for a breach of warranty. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 11. An express warranty arises when goods are purchased based on a catalog illustration. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 12. A seller's opinion cannot ordinarily be treated as a warranty. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 13. No law requires a seller to make an express warranty. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 14. Any warranty that does not provide the complete protection of a full warranty is called a warranty in breach. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 15. A seller cannot be held liable for the breach of an express warranty if the seller honestly believed that the warranted statement was true. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 16. Whenever a sale of goods is made, certain warranties are implied unless they are expressly excluded. ANS: T TOP: AICPA BB-Legal MSC: AACSB Analytic 17. The scope of warranties remains the same regardless of whether the seller is a merchant or a casual seller. ANS: F TOP: AICPA BB-Legal MSC: AACSB Analytic 18. If a lawn mower will not cut any type of grass, there is a breach of warranty of merchantability despite the fact that the warranty was conspicuously disclaimed....
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This note was uploaded on 02/22/2012 for the course BUS BUS212 taught by Professor Manney during the Spring '12 term at FSU.

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TJ_Comp 20_TB_Ch25 - Chapter 25PRODUCT LIABILITY:...

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