Chapter 20 - Product Liability

Implied warranties are created by seller’s conduct rather than express statements.

• True
• False

Merchantability, essentially, is that goods must be fit for the ordinary purposes for which such goods are used.

• True
• False

A disclaimer is a clause in the sales contract in which seller attempts to eliminate liability seller might have.

• True
• False

Under foreign–natural test, defendant is liable if object or substance is “foreign” to product.

• True
• False

Under the Restatement, three kinds of product defects exist: manufacturing defects, inadequate warning, design defects.

• True
• False

The Magnuson-Moss Warranty Act requires every written warranty to be a full warranty.

• True
• False

Express warranty may be created by ________ that becomes part of the basis of the bargain for the agreement:

• A description of the goods indicating goods will conform.
• A sample or model of goods to be sold indicating goods will conform.
• A statement of fact or promise about goods.
• All of the above.

Drew was injured when his car rolled over after the tires delaminated and caused him to lose control. Drew could sue 4:

• Negligence (design or manufacture).
• Strict liability.
• Breach of warranty.
• All.