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Question 1
Joe owns a logging company that provides trees to lumber yards. Joe is looking to buy a new truck that will be able to haul four thousand pounds of cargo at one time. Joe goes to a dealership that is selling Yugo 4x4 pick-up-trucks. The owner of the dealership tells Joe that each truck can haul up to five thousand pounds of cargo at a time. Joe buys one of the trucks but finds out later that the truck he has bought can only haul twelve hundred pounds at a time. If Joe sues the dealership, he will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct An express warranty is anything that a seller represents to a buyer about the product. Express warranties become part of the sales contract so that if a seller breaches an express warranty, the buyer can bring a cause of action against the seller for breach of contract. Here, the Yugo dealer's claim that the truck could haul five thousand pounds at a time was an express warrantee that became part of the contract. Therefore, Joe can recover under a breach of contract theory and D is the correct answer.
Incorrect! An express warranty is anything that a seller represents to a buyer about the product. Express warranties become part of the sales contract so that if a seller breaches an express warranty, the buyer can bring a cause of action against the seller for breach of contract. Here, the Yugo dealer's claim that the truck could haul five thousand pounds at a time was an express warrantee that became part of the contract. Therefore, Joe can recover under a breach of contract theory and D is the correct answer.
Question 2
Emmeril, a professional chef, goes into a restaurant supply store to buy an industrial strength blender. The salesman knows that Emmeril is buying the blender for his new restaurant and that Emmeril is relying on the salesman's judgment to provide him with the blender most appropriate for a restaurant. The salesman gives Emmeril a blender but it is not industrial strength and is better suited for private use than for restaurant use. During the night of the restaurant's grand opening, the blender burns out and many of the dishes on the menu cannot be made. In a suit against the salesman, Emmeril will be able to recover under a breach of warrantee theory
Correct The warranty of fitness for a particular purpose basically says that, where a seller knows that the buyer is buying goods for a particular purpose, and the buyer is relying on the seller's judgment in supplying appropriate goods for that particular purpose, there is an implied warranty that the goods the seller sells to the buyer are fit for that purpose. Here, the salesman knew what Emmeril was buying the blender for and he knew that Emmeril was relying on him to supply the appropriate blender. That being the case, there was an implied warranty of fitness that the salesman breached. Thus, Emmeril will be able to recover from the salesman and the correct answer is TRUE.
Incorrect! The warranty of fitness for a particular purpose basically says that, where a seller knows that the buyer is buying goods for a particular purpose, and the buyer is relying on the seller's judgment in supplying appropriate goods for that particular purpose, there is an implied warranty that the goods the seller sells to the buyer are fit for that purpose. Here, the salesman knew what Emmeril was buying the blender for and he knew that Emmeril was relying on him to supply the appropriate blender. That being the case, there was an implied warranty of fitness that the salesman breached. Thus, Emmeril will be able to recover from the salesman and the correct answer is TRUE.
Correct
Incorrect!
Question 3
Bill loves camping and goes on several camping trips every year. In anticipation of his next trip, Bill buys a heating coil from a local sporting goods store so that he can make hot drinks. The coil was manufactured by Thermarod, Inc. who then sold the coil to the sporting goods store. The directions that come with the heating coil instruct the user to place the coil in the cold liquid and then turn it on. Bill's son Theo sees the coil and decides to try it out one day. He puts the coil in a cold cup of soup and then turns the coil on. Unfortunately, due to a manufacturing defect, the coil explodes, injuring Theo. In a suit against the manufacturer, Theo will probably:
Correct Under the old rules, warranties only ran to the immediate buyer so that a middleman could sue a manufacturer for a product defect, and a buyer could sue a middleman, but the buyer could not sue the manufacturer because the buyer did not purchase the product directly from the manufacturer. Today, the UCC extends privity to the family members or guests of the immediate buyer that are injured by the product. Thus, even though Theo did not buy the coil, he can sue the manufacturer for his injuries and A is the correct answer.
Incorrect! Under the old rules, warranties only ran to the immediate buyer so that a middleman could sue a manufacturer for a product defect, and a buyer could sue a middleman, but the buyer could not sue the manufacturer because the buyer did not purchase the product directly from the manufacturer. Today, the UCC extends privity to the family members or guests of the immediate buyer that are injured by the product. Thus, even though Theo did not buy the coil, he can sue the manufacturer for his injuries and A is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 4
Bill loves camping and goes on several camping trips every year. In anticipation of his next trip, Bill buys a heating coil from a local sporting goods store so that he can make hot drinks. The coil was manufactured by Thermarod, Inc. who then sold the coil to the sporting goods store. The directions that come with the hearing coil instruct the user to place the coil in the cold liquid and then turn it on. Bill takes it on his trip. During the trip, one of Bill's friends, Al, sees the coil and decides to try it out. He puts the coil in a cold cup of soup and then turns the coil on. Unfortunately, due to a manufacturing defect, the coil explodes, injuring Al. In a suit against the manufacturer, Al will probably:
Correct Under the old rules, warranties only ran to the immediate buyer so that a middleman could sue a manufacturer for a product defect, and a buyer could sue a middleman, but the buyer could not sue the manufacturer because the buyer did not purchase the product directly from the manufacturer. Today, the UCC extends privity to any person who can reasonably be expected to use the product. Thus, even though Al did not buy the coil, he can sue the manufacturer for his injuries and A is the correct answer.
Incorrect! Under the old rules, warranties only ran to the immediate buyer so that a middleman could sue a manufacturer for a product defect, and a buyer could sue a middleman, but the buyer could not sue the manufacturer because the buyer did not purchase the product directly from the manufacturer. Today, the UCC extends privity to any person who can reasonably be expected to use the product. Thus, even though Al did not buy the coil, he can sue the manufacturer for his injuries and A is the correct answer.