AU 62 - Ch 3 Exam 2025
Questions and Answers
Products liability - ✔✔A manufacturer's or seller's liability for harm suffered by a
buyer, user, or bystander as a result of a product that has a dangerous manufacturing
defect or design defect or that is not accompanied by a warning of an inherent hidden
danger.
Express warranty - ✔✔An explicit statement about a product by the seller that the
buyer or other user may rely on and that provides a remedy in the event the product
does not perform as claimed.
Implied warranty of merchantability - ✔✔An implied warranty that a product is fit for
the ordinary purpose for which it is used.
Implied warranty - ✔✔An obligation that the courts impose on a seller to warrant
certain facts about a product even though not expressly stated by the seller.
Uniform Commercial Code (UCC) - ✔✔Legislation for commercial transactions that
provides the trade creditor certain rights and legal remedies in a situation in which a
buyer defaults.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, A model code that has been adopted in whole or in part by each state and whose
purpose is to provide a consistent legal basis for business transactions throughout the
United States and its territories. The implied warranty of merchantability warrants that
the goods meet trade standards, are fit for the ordinary purposes for which they are
used, and conform to any representation made on the container or label.
Consideration - ✔✔Something of value or bargained for and exchanged by the parties
to a contract.
Strict liability (absolute liability) - ✔✔Liability imposed by a court or by a statute in the
absence of fault when harm results from activities or conditions that are extremely
dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or inappropriate. Strict
liability constitutes the absolute duty of safety, and it applies most often to products or
ultraharzardous activities (such as transportation, storage and use of explosives or
radioactive substances, and keeping wild animals or dangerous dogs). Proof of either
negligence or an intent to harm is not required. The manufacturers conduct is
irrelevant, and the focus is on the product itself.
Proximate cause - ✔✔A cause that, in a natural and continuous sequence unbroken by
any new and independent cause, produces an event and without which the event
would not have happened.
Products liability exposure - ✔✔A manufacturer's or seller's exposure to liability for
harm suffered by a buyer, user, or bystander as a result of a defective product.
State of the art defense - ✔✔A defense used when a product conformed to industry
standards at the time it was designed or built.
Strict liability applications - ✔✔A manufacturer is strictly liable only if the defect made
the product unreasonably dangerous in normal use.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
Questions and Answers
Products liability - ✔✔A manufacturer's or seller's liability for harm suffered by a
buyer, user, or bystander as a result of a product that has a dangerous manufacturing
defect or design defect or that is not accompanied by a warning of an inherent hidden
danger.
Express warranty - ✔✔An explicit statement about a product by the seller that the
buyer or other user may rely on and that provides a remedy in the event the product
does not perform as claimed.
Implied warranty of merchantability - ✔✔An implied warranty that a product is fit for
the ordinary purpose for which it is used.
Implied warranty - ✔✔An obligation that the courts impose on a seller to warrant
certain facts about a product even though not expressly stated by the seller.
Uniform Commercial Code (UCC) - ✔✔Legislation for commercial transactions that
provides the trade creditor certain rights and legal remedies in a situation in which a
buyer defaults.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
, A model code that has been adopted in whole or in part by each state and whose
purpose is to provide a consistent legal basis for business transactions throughout the
United States and its territories. The implied warranty of merchantability warrants that
the goods meet trade standards, are fit for the ordinary purposes for which they are
used, and conform to any representation made on the container or label.
Consideration - ✔✔Something of value or bargained for and exchanged by the parties
to a contract.
Strict liability (absolute liability) - ✔✔Liability imposed by a court or by a statute in the
absence of fault when harm results from activities or conditions that are extremely
dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or inappropriate. Strict
liability constitutes the absolute duty of safety, and it applies most often to products or
ultraharzardous activities (such as transportation, storage and use of explosives or
radioactive substances, and keeping wild animals or dangerous dogs). Proof of either
negligence or an intent to harm is not required. The manufacturers conduct is
irrelevant, and the focus is on the product itself.
Proximate cause - ✔✔A cause that, in a natural and continuous sequence unbroken by
any new and independent cause, produces an event and without which the event
would not have happened.
Products liability exposure - ✔✔A manufacturer's or seller's exposure to liability for
harm suffered by a buyer, user, or bystander as a result of a defective product.
State of the art defense - ✔✔A defense used when a product conformed to industry
standards at the time it was designed or built.
Strict liability applications - ✔✔A manufacturer is strictly liable only if the defect made
the product unreasonably dangerous in normal use.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
