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Puffery creates an express warranty.

A) True
B) False

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Recovery in a product liability case may be limited when it can be shown that the plaintiff misused the product.

A) True
B) False

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Forest & Field Company makes and leases a backhoe to Zac. Due to a defect attributable to Forest & Field's negligence, Zac is injured in an accident in which his neighbor Aaron is also hurt. In a product liability suit based on negligence, Forest & Field may be liable to


A) Aaron only.
B) no one.
C) Zac and Aaron.
D) Zac only.

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

Correct Answer

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Va-Va-Voom Products, Inc., engages in de?ceptive advertising when it markets its product Weight-No-More as able to help consumers lose weight in their sleep. Va-Va-Voom is ordered to include in all future adver?tising of Weight-No-More the statement, "This product will not cause anyone to lose weight while sleeping." This is


A) a counteradvertising order.
B) restitution.
C) a "cooling-off" law.
D) a validation notice.

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

Correct Answer

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Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks, Inc. The most important factor in determining whether an ex?press war?ranty is created is whether


A) Sari expresses to Terrific what she wants warranted.
B) Sari's desire for the SUV becomes part of her motivation to deal.
C) Terrific expresses to Sari what it expects of its customers.
D) Terrific's promise becomes part of the basis of the bargain.

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

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Fancy's Feedlot orders one hundred sacks of cattle feed from Bovine Feeders, Inc. Each bag has the words "Twenty percent protein" printed on the front. This is


A) an express warranty.
B) an implied warranty.
C) a warranty of title.
D) puffery.

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

Correct Answer

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An implied warranty of merchantability does not arise in every lease by a merchant who deals in goods of the kind leased.

A) True
B) False

Correct Answer

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Steel Tool Company makes and sells tools. One of the tools is believed to be haz?ardous. The appropriate government agency may require Steel to


A) export the tool and sell it only abroad.
B) increase the price to cover the cost of any injuries or damage.
C) reduce the price to indicate the hazard to consumers.
D) remove the tool from the market.

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

Correct Answer

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Goldtone Corporation makes cell phones. Haji files a product liabil?ity suit against Goldtone, alleging a design defect. In deciding whether to hold Goldtone liable, the court may consider an alternative design's


A) popularity among industrial designers.
B) attractiveness to consumers.
C) aesthetics.
D) effect on the product.

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

Correct Answer

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Food labels are not required to provide standard nutrition facts.

A) True
B) False

Correct Answer

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Merchants must ship orders within the time promised in their ads.

A) True
B) False

Correct Answer

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Precise GPS Company's ad states that its product is "the finest that money can buy." Because of this ad, the Federal Trade Com?mission is most likely to issue


A) a cease-and-desist order.
B) a counteradvertising order.
C) restitution.
D) none of the choices.

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

Correct Answer

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Labels must use words that are easily understood by the ordinary marketing executive.

A) True
B) False

Correct Answer

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Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber. Regional knows the purpose for which Sylvia will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises


A) if the buyer is relying on the seller to select suitable goods.
B) if the buyer asks for it.
C) if the seller is a merchant who deals in goods of the kind sold.
D) in conjunction with lease contracts, not sales contracts.

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

Correct Answer

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Bodie's application to City Bank for a credit card is denied. Bodie can obtain information on her credit history in a credit agency's files under


A) no federal law.
B) the Equal Credit Opportunity Act.
C) the Fair Credit Reporting Act.
D) the Fair Debt Collection Practices Act.

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

Correct Answer

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Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit dis?crimination based on


A) intelligence.
B) education.
C) income.
D) race.

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

Correct Answer

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Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a dog that will be good with small children. Carla sells Fred a dog. When Fred takes the dog home, it bites both his small children and causes them serious injuries. Fred can sue Carla for breach of


A) an express warranty.
B) an implied warranty of fitness for a particular purpose.
C) an implied warranty of merchantability.
D) a warranty of title.

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

Correct Answer

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All ads-both online and offline-must be truthful.

A) True
B) False

Correct Answer

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Under the doctrine of strict liability, people are liable for the results of their acts only if their intentions are malicious.

A) True
B) False

Correct Answer

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Warranties of title do not arise in most sales contracts.

A) True
B) False

Correct Answer

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