About product liability suits brought in strict liability

Question

Assignment:

QUESTION 1 Which of the following clauses limiting the liability of a seller will a court not enforce?

• A clause in a contract for consumer goods that says it will not be liable for personal injuries caused by a defective product.
• A clause in a contract that limits the seller's liability to replacing or repairing a defective product.
• A clause in a contract that limits the seller's liability to refunding the purchase price to the buyer.
• A clause saying that goods are sold "as is"

QUESTION 2 Which of the following statements is false about product liability suits brought in strict liability.

• Most courts will award damages in strict liability only for personal or property loss, not for economic loss.
• The statute of limitations is longer for suits in strict liability than for law suits based on breach of warranty.
• Under Restatement (Third) of Torts, plaintiffs in strict liability cases need only prove the existence of a manufacturing defect, not that the defect was unreasonably dangerous.
• Claims filed in strict liability do not have the same notice requirements that claims based on breach of warranty have.

QUESTION 3 Mary bought a riding mower from Local Dealer for 3,000. She put 500 down and dealer financed the rest of the purchase. Mary is to pay 100 a month and Local took a security interest in the mower until it is paid for. Local has the right to repossess the mower if Mary stops making payments on the loan. When Mary sold the mower to Neighbor, she told her about Local's security interest. Six months after the sale, the mower broke down because of a defect of which Mary was not aware. Has Mary violated any warranties by selling Neighbor a defective mower?

• Yes, the implied warranty of merchantability
• Yes, the implied warranty of fitness for a particular purpose
• Yes the implied warranty of title
• No, Mary breached no warranties when she sold the defective mower.

QUESTION 4 Mary bought a riding mower from Local Dealer for 3,000. She put 500 down and dealer financed the rest of the purchase. Mary is to pay 100 a month and Local took a security interest in the mower until it is paid for. Local has the right to repossess the mower if Mary stops making payments on the loan. When Mary sold the mower to Neighbor, she told her about Local's security interest. Would Mary have breached any warranties if she had told Neighbor at the time of the sale: "This mower rides like a dream?"

• Yes, an express warranty
• Yes, an implied warranty of fitness for a particular purpose
• Yes, an implied warranty of merchantability
• No, Mary's statement created no warranties.

QUESTION 5 Which of the following damages may be recovered when an implied warranty of merchantability is breached?

• Damages for personal injury
• Damages for property loss
• Damages for direct economic loss
• All of the above

QUESTION 6 Which of the following is a requirement for a valid notice from a buyer to a seller claiming a breach of warranty?

• The notice must be written
• The notice must make a claim for a specific dollar amount in damages
• The notice must be accompanied by a summons and complaint
• The notice must identify the defect in the product

QUESTION 7 Which of the following is not a remedy when a warranty of fitness for a particular purpose is breached?

• The buyer may disaffirm the contract.
• The buyer may collect damages for personal injury
• The buyer may collect damages for economic loss
• The buyer may collect punitive damages.