©EVERLY 2025 ALL RIGHTS RESERVED
LES 305 Exam 3 Study Guide 100%
Verified.
Implied warranty of merchantability - ANS A warranty that the goods are of average
quality/fit for ordinary purposes; given in every sale of goods by a merchant
Corrective advertising - ANS FTC remedy that requires a company to run ads explaining
previous deceptive ads or run new statement in future ads
Consent decree - ANS For administrative agencies, a type of plea bargain; a settlement
document for an administrative agency's charges
contributory negligence - ANS Negligence defense that bars an injured party from recovering
any damages if the injured party acted in a negligent way and contributed to her own injuries
Caveat Emptor - ANS Latin term for "let the buyer beware"
(what the court initially followed-- no liability for seller)
Bait and switch - ANS term given to advertising technique in which a low-price product is
advertised and then the customer is told that the product is unavailable or is talked into a high-
priced product; prohibited by the FTC
Express warranty - ANS Expressed promise by seller as to the quality, abilities, or
performance of a product (ex/preshrunk fabric-- will not shrink)
, ©EVERLY 2025 ALL RIGHTS RESERVED
Unconscionable - ANS A defense to an otherwise valid contract is grossly unfair to one side in
the contract
Assumption of risk - ANS Defense in negligence cases that prevents an injured party from
recovering if it can be established that the injured party realized the risk and engaged in the
conduct anyway
Implied Warranty of fitness for a particular purpose - ANS Warranty given by seller to buyer
that promises goods will meet the buyer's specified needs
Strict liability - ANS Liability without fault
design vs. manufacturing defect - ANS design: exposes user to unnecessary risks
manufacturing: deviated from specifications
strict tort liability - ANS defendant had duty to manufacture a reasonably safe product/was
in the business of selling or manufacturing product. the duty was breached-- breach cause
plaintiff's injury, foreseeable that defect will cause injury--> plaintiff had property or physical
damages
-- privity not needed
defenses to product liability - ANS misuse of abnormal use
contributory negligence; complete defense, some states have comparative
assumption of risk--> aware of danger/does anyway-- defense to L
negligence - ANS same elements as strict tort liability plus prior knowledge of defective
condition; punitive damages if plaintiff can show manufacturer/seller knew of defect
LES 305 Exam 3 Study Guide 100%
Verified.
Implied warranty of merchantability - ANS A warranty that the goods are of average
quality/fit for ordinary purposes; given in every sale of goods by a merchant
Corrective advertising - ANS FTC remedy that requires a company to run ads explaining
previous deceptive ads or run new statement in future ads
Consent decree - ANS For administrative agencies, a type of plea bargain; a settlement
document for an administrative agency's charges
contributory negligence - ANS Negligence defense that bars an injured party from recovering
any damages if the injured party acted in a negligent way and contributed to her own injuries
Caveat Emptor - ANS Latin term for "let the buyer beware"
(what the court initially followed-- no liability for seller)
Bait and switch - ANS term given to advertising technique in which a low-price product is
advertised and then the customer is told that the product is unavailable or is talked into a high-
priced product; prohibited by the FTC
Express warranty - ANS Expressed promise by seller as to the quality, abilities, or
performance of a product (ex/preshrunk fabric-- will not shrink)
, ©EVERLY 2025 ALL RIGHTS RESERVED
Unconscionable - ANS A defense to an otherwise valid contract is grossly unfair to one side in
the contract
Assumption of risk - ANS Defense in negligence cases that prevents an injured party from
recovering if it can be established that the injured party realized the risk and engaged in the
conduct anyway
Implied Warranty of fitness for a particular purpose - ANS Warranty given by seller to buyer
that promises goods will meet the buyer's specified needs
Strict liability - ANS Liability without fault
design vs. manufacturing defect - ANS design: exposes user to unnecessary risks
manufacturing: deviated from specifications
strict tort liability - ANS defendant had duty to manufacture a reasonably safe product/was
in the business of selling or manufacturing product. the duty was breached-- breach cause
plaintiff's injury, foreseeable that defect will cause injury--> plaintiff had property or physical
damages
-- privity not needed
defenses to product liability - ANS misuse of abnormal use
contributory negligence; complete defense, some states have comparative
assumption of risk--> aware of danger/does anyway-- defense to L
negligence - ANS same elements as strict tort liability plus prior knowledge of defective
condition; punitive damages if plaintiff can show manufacturer/seller knew of defect
