Multiple Choice Questions
1. CPA QUESTION Vick bought a used boat from Ocean Marina that disclaimed “any and all
warranties.” Ocean was unaware the boat had been stolen from Kidd. Vick surrendered it to Kidd
when confronted with proof of the theft. Vick sued Ocean. Who prevails?
(a) Vick, because the implied warranty of title has been breached
(b) Vick, because a merchant cannot disclaim implied warranties
(c) Ocean, because of the disclaimer of warranties
(d) Ocean, because Vick surrendered the boat to Kidd
Answer: A. CPA Examination, May 1994, #43.
2. CPA QUESTION To establish a cause of action based on strict liability in tort for personal injuries
resulting from using a defective product, one of the elements the plaintiff must prove is that the seller
(defendant):
(a) Failed to exercise due care
(b) Was in privity of contract with the plaintiff
(c) Defectively designed the product
(d) Was engaged in the business of selling the product
Answer: D. CPA Examination, November 1993, #54.
3. CPA QUESTION Which of the following conditions must be met for an implied warranty of fitness
for a particular purpose to arise? : I. The warranty must be in writing. II. The seller must know that
the buyer was relying on the seller in selecting the goods.
(a) I only
(b) II only
(c) Both I and II
(d) Neither I nor II
Answer: B. CPA Examination, May 1992, #55.
4. CPA QUESTION Under the UCC sales article, an action for breach of the implied warranty of
merchantability by a party who sustains personal injuries may be successful against the seller of the
product only when:
(a) The seller is a merchant of the product involved
(b) An action based on negligence can also be successfully maintained
(c) The injured party is in privity of contract with the seller
(d) An action based on strict liability in tort can also be successfully maintained
Answer: A. CPA Examination, May 1992, #57.
5. CPA QUESTION Which of the following factors is least important in determining whether a
manufacturer is strictly liable in tort for a defective product?
(a) The negligence of the manufacturer
(b) The contributory negligence of the plaintiff
(c) Modifications to the product by the wholesaler
(d) Whether the product caused injuries
Answer: A. CPA Examination, November 1989, #45.