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Which of the following is not an example of consequential damages?


A) Nominal damages
B) Personal injury
C) Property damage
D) Indirect economic loss

E) A) and B)
F) A) and C)

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What is the usual UCC time limitation for claiming breach of express and implied warranty after the seller offers the defective goods to the buyer?


A) 12 months
B) 2 years
C) 4 years
D) 5 years

E) B) and D)
F) B) and C)

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A disclaimer of the implied warranty of merchantability can be oral.

A) True
B) False

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The implied warranty of fitness for a particular purpose is violated when the goods are:


A) unfit for any use.
B) unfit for the ordinary use for which such goods are used.
C) unfit for the particular use that the buyer intends.
D) unfit for the particular use that the buyer intends,and the buyer is a merchant.

E) B) and D)
F) B) and C)

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A(n) ________ is created by operation of law rather than the seller's express statements.


A) endorsement
B) advertisement
C) express warranty
D) implied warranty

E) All of the above
F) A) and C)

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Steve is visibly overweight.Steve goes to a store and says that he would like to buy a hammock suitable for someone like himself to sleep in.He makes it clear that it is up to the salesman to select a suitable hammock.The salesman selects a hammock that is perfectly suitable for a normally sized person but that cannot support someone of Steve's weight.Relying on the salesman's recommendation,Steve buys the hammock.After he is injured when the hammock collapses because it cannot bear his weight,Steve sues the store.Can Steve recover under the implied warranty of merchantability? What about an action under the implied warranty of fitness for a particular purpose? Assume that the store is a merchant with respect to hammocks.

Correct Answer

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Steve can't recover under the implied wa...

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In order to recover for breach of an express warranty,a plaintiff must show that:


A) the warranty was part of the basis of the bargain.
B) the seller gave a sample or model of the goods.
C) the warranty was in writing.
D) the warranty used the words "warrant" or "guarantee."

E) A) and D)
F) C) and D)

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Which of the following requires that certain classes of lawsuits be brought within defined limits of time after the right to begin them accrued or the right to bring the lawsuit is lost?


A) Mootness doctrine
B) Statute of repose
C) Statute of limitations
D) Ripeness doctrine

E) C) and D)
F) A) and C)

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Sellers of goods sometimes attempt to disclaim (avoid) their liability under warranties.Which type of warranty disclaimers must be written in order to be effective?


A) Disclaimers of industrywide liabilities.
B) Disclaimers of the warranty of fitness for a particular purpose.
C) Disclaimers of the warranty of the Magnuson-Moss Act.
D) Disclaimers of the warranty of strict liability.

E) B) and C)
F) None of the above

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Which of the following statements characterizes an implied warranty of fitness?


A) It is covered under UCC section 402A.
B) The seller relies on the buyer's skill or judgment in making a purchase.
C) Any seller,merchant or nonmerchant,may make this implied warranty.
D) It has the same tests as those for implied warranty of merchantability.

E) B) and C)
F) A) and B)

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According toΒ UCC section 2-315,________ for a particular purpose arises when the seller has reason to know a particular purpose for which the buyer requires the goods.


A) express warranty
B) warranty of merchantability
C) implied warranty of fitness
D) multiple express warranties

E) A) and D)
F) A) and B)

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Which of the following occurs when the plaintiff uses the product in some unusual,unforeseeable way,and this causes the loss for which he sues?


A) Frustration of purpose
B) Assumption of risk
C) Contributory negligence
D) Product misuse

E) A) and B)
F) None of the above

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Palmer goes to a truck dealership and asks for a truck capable of handling a 5000-pound load.He makes it clear that it is up to the salesman to select an appropriate truck.Without saying anything about the truck's load-carrying capacity,the salesman selects a certain truck for Palmer.Relying on the salesman's choice,Palmer buys the truck in question.However,the truck can only handle a 2500-pound load.Palmer wants to sue the dealership because he did not get the truck he desired.Which of the following product liability theories gives Palmer his best chance of recovery?


A) Express warranty
B) Implied warranty of fitness
C) Implied warranty of merchantability
D) Section 402A

E) None of the above
F) A) and B)

Correct Answer

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Which of the following theories of recovery is likely to be most effective against a disclaimer of liability?


A) Express warranty
B) Implied warranty of merchantability
C) Implied warranty of fitness
D) Section 402A

E) All of the above
F) None of the above

Correct Answer

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Which of the following factors will be most important in determining if an express warranty has been created?


A) Whether the statements made by the seller were in writing.
B) Whether the seller intended to create a warranty.
C) Whether the promises became part of the basis of the bargain.
D) Whether the sale was made by a merchant in the regular course of business.

E) B) and D)
F) B) and C)

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Ahmed,a lawyer,sold his car to Carlos.Has an implied warranty of merchantability been created by this transaction?


A) Yes,because a car is a "good" and the Uniform Commercial Code applies to contracts for the sale of goods.
B) Yes,because if the car is defective,Carlos will have a right to return it to Ahmed.
C) No,because Ahmed is not a merchant.
D) No,Ahmed has not implied so either orally or in writing.

E) C) and D)
F) None of the above

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Which of the following is most important for imposing strict liability?


A) Unavoidable circumstances
B) Unreasonably unsafe
C) Unreasonably expensive
D) Unavoidably protected

E) A) and B)
F) B) and D)

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________ is the plaintiff's voluntary consent to a known danger.


A) Contributory negligence
B) Product misuse
C) No privity
D) Assumption of risk

E) All of the above
F) B) and C)

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Which of the following is an express or implied promise about the nature of the product sold?


A) Warranty
B) Caveat
C) Advertisement
D) License

E) A) and C)
F) B) and C)

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Bob,an attorney,purchased licensed software from Bill Able Inc.to prepare his clients' invoices online.The shrinkwrap packaging for the program disks and the software manuals contained a limitation of remedies clause,which limited the buyer's remedies to the $50 purchase price of the software.Bob later discovered that his invoices for the past year were too low due to a malfunction in the software,costing him over $10,000 in lost revenue.Bob sues Bill Able Inc.for breach of warranty.What is the likely result?


A) Bob wins because he has equal bargaining power with Bill Able,Inc.
B) Bob wins because a shrinkwrap's limitation of remedies clause is generally unenforceable.
C) Bob wins because the court will likely view the limitation of remedies clause as unconscionable and unenforceable.
D) Bob loses because the disclaimer is effective.

E) A) and B)
F) B) and C)

Correct Answer

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