QUESTION 1

Disclaimers of warranty may be unconscionable in each of these situations,except if: ___.

Two of these situation are unconscionable;select the situation that a court likely will support.

1. The court believes the disclaimer was forced on the buyer, with no opportunity to bargain over its form.
2. There is a great disparity of bargaining power between the buyer and the seller.
3. The disclaimer is conspicuous.

QUESTION 4

___ describes an action where liability of a seller is based on the theory that the manufacturer failed to use reasonable care to avoidforeseeable injuryto the ultimate user or consumer.

1. TheMagnuson-Moss Act
2. Strict liability
3. Negligence

QUESTION 5

In an action for liability based onnegligence: ___ .

1. theobvious danger rulecan be used for complete defense.
2. Disclaimers are effective to shield manufacturers against liability.
3. The manufacturer's duty of care extends to all persons who foreseeably might be injured if the manufacturer doesnotexercise its duty of care.

QUESTION 6

If a consumer brings suit against the manufacturer, the retailer is relieved of its responsibility for thefitness and merchantabilityof the goods.

1. True
2. False

QUESTION 7

Under the warranty regulations of the FTC, when a warranty is giventhe seller must disclose the required information in one single document.

1. True
2. False

QUESTION 8

Goods soldwith faultsare sold withoutthe implied warranties ofmerchantabilityandfitness for a particular purpose.

1. True
2. False

QUESTION 9

1. Under the Magnuson-Moss Warrant Act and FTC regulations, the seller isnotrequired to give a written warranty.
2. True
3. False

QUESTION 12

In determining whether a product isinherently dangerousor has beendefectively designed, courts look at: ___ .

1. whether the seller can pass on the costs of injuries as higher prices in the marketorif they should be borne by the injured person
2. whether anything else could have been done to make the product safergiven the practical and technological limitations of the time
3. what other companies in the industry are doing

QUESTION 13

Afull warrantyincludes each of these,except: ___ .

Select the one that is not included in a full warranty.

1. It excludes and limits payments for consequential damages.
2. The warranty isnotlimited in time.
3. The warrantor will fix or replace any defective product free of charge.

QUESTION 14

To constitute afull warranty, the warranty must cover the whole product.

1. True
2. False

QUESTION 15

In order to exclude theimplied warranty of merchantability, the seller must put the exclusion in writing.

1. True
2. False

QUESTION 17

If a seller wishes to be relieved of the responsibility forimplied warranties, the sales contract clearly must provide that the parties didnotintend the implied warranties to become part of the contract.

1. True
2. False

QUESTION 18

Theimplied warranty of titlediffers from other warranties in that it protects buyers in their ownership of the goods bought.

1. True
2. False

QUESTION 19

Under the UCC, theimplied warranty of merchantabilityapplies to the sale of food and drink.

1. True
2. False

QUESTION 21

Under the UCC, some of the benefits of warranties extend to persons who didnotthemselves purchase the particular defective goods.

1. True
2. False