BL 15-1.2: Consumer Rights and Product Liability Quiz

What does product liability mean?

• The responsibility to compensate for injuries caused by a defective product

• The responsibility to provide a refund for any product

• The responsibility to provide a warranty for all products

• The responsibility to ensure all products are sold at a fair price

Which of the following is NOT a basis for a product liability suit?

• Fraud

• Negligence

• Puffing

• Strict liability

What is privity of contract?

• A relationship between a buyer and a seller due to a legally binding agreement

• A legal term for a warranty agreement

• A type of liability for defective products

• A method of settling disputes informally

Under the UCC, who can now sue for injuries caused by a defective product?

• Only the manufacturer

• The buyer's family, household, or guests

• Only the immediate buyer

• Only the retailer

What is an express warranty?

• A warranty that covers all possible defects

• A warranty that is explicitly stated by the seller

• A warranty that is only valid for a limited time

• A warranty that is implied by law

Which of the following is an example of puffing?

• A jeweler stating a diamond is flawless

• A retailer offering a refund policy

• A seller claiming a product is of superb quality

• A manufacturer providing a written warranty

What is the consequence if a product is used for a purpose it was not intended for?

• The warranty is automatically extended

• The retailer is liable

• There is no liability

• The manufacturer is still liable

What must be included in a written warranty under the Magnuson-Moss Warranty Act?

• The price of the product

• The seller's opinion on the product

• A description of the product and any excluded parts

• The history of the product's development

Why has the area of strict liability been modified in recent years?

• To allow qualified consumers to recover for their injuries

• To reduce the number of lawsuits against manufacturers

• To eliminate the need for warranties

• To make it harder for consumers to win lawsuits

What is the role of the Federal Trade Commission under the Magnuson-Moss Warranty Act?

• To regulate the prices of consumer products

• To provide legal representation for consumers

• To establish minimum standards for written warranties

• To enforce all product sales