Business Law: Breaking The Deal - Product Liability

The video tutorial covers product liability, focusing on the seller's responsibility for defective goods. It explains recovery, which involves compensating for losses due to defective products. The tutorial delves into contract theories of recovery, including express and implied warranties, and tort law theories, such as negligence and strict liability. These concepts help understand how buyers can seek compensation for defective products.

What is the primary focus of product liability?

• Holding the seller responsible for damages caused by defective goods

• Guaranteeing the seller profits from sales

• Providing discounts on defective products

• Ensuring the buyer receives a defective product

Which of the following is an example of an express warranty?

• A product is sold without any description

• A seller knows the buyer needs a product for a specific purpose

• A product is assumed to be safe for general use

• A seller promises a product will last for a year

What does the implied warranty of merchantability ensure?

• The product is of average quality and safe for use

• The product is the most expensive option

• The product is unique and custom-made

• The product is the cheapest available

In tort law negligence theory, what must a buyer prove?

• The seller intended to harm the buyer

• The product was sold at a high price

• The seller breached a duty of care, causing harm

• The product was popular among consumers

What is the key difference between negligence and strict liability in tort law?

• Negligence requires proof of breach of duty, strict liability does not

• Negligence is a criminal offense, strict liability is not

• Negligence requires proof of intent, strict liability does not

• Negligence applies only to physical products, strict liability to services