1. Jake bought a motorcycle from his neighbor Randy. Randy had owned the motorcycle for his personal use for about two years. The day after the purchase, Jake is seriously injured after the motorcycle suddenly veers off of the highway due to a manufacturing defect. Jake brings a strict liability action against Randy. Jake will most likely lose because the
A) defendant must normally be engaged in the business of selling or otherwise distributing motorcycles.
B) plaintiff must incur physical harm by use of the motorcycle.
C) motorcycle cant have been substantially changed from the time the product was sold to the time of the injury.
D) product must be in a defective condition when the defendant sells it.

2. Carl receives a box of teddy bears in the mail. He didn't order them and has had no prior dealings with the company. The shipment contains a writing that states that if Carl doesn't reject the teddy bears and send them back, Carl must pay $129 for the teddy bears. Which of the following statements is true?
A) Carl may keep the bears and do with them he likes.
B) Carl must ship the bears back only if the sender of the bears prepaid the postage for doing so.
C) Carl either must ship the bears back or pay $129
D) Carl must pay $129 if he keeps the bears.

3. Sal, who owns and operates an appliance store, comes to Diana's house and convinces her to purchase a vacuum cleaner for $50. Two days later, Diana changes her mind. Diana can avoid the contractual obligation under the _____ rule.
A) negative option
B) telemarketing
C) anti slamming
D) cooling-off

4. Jake orders a sound system from a catalogue. The catalogue description says that the sound system has a remote control. When the computer arrives, Jake discovers there's no remote control for this sound system. Jake may sue for breach of
A) express warranty.
B) warranty of fitness for a particular purpose.
C) warranty of merchantability.
D) implied warranty.

5. Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due on November 15. On November 6, Peter delivers 20 pairs of sky blue pants. Lulu phones Peter and tells him he is in breach because the pants are the wrong color. Which of the following statements is true?
A) Peter is in breach, and Lulu may cancel the contract
B) Peter has the right to be paid for the pants that were delivered under the doctrine of substantial compliance.
C) Peter has the right to cure the breach by delivering 20 pairs of navy blue pants on or before November 15.
D) Peter is in breach, and the contract is automatically cancelled.

6. Company manufactures bicycles. X Company shipped a group of bicycles to Y Sporting Goods in a small town. Johnny purchased one of the bicycles manufactured by the X Company from the Sporting Goods store. While he was riding the bicycle the day after purchasing it, the front wheel fell off, and Johnny fell and broke his arm. The cause of the accident was a defect that existed when the X Company shipped it to Y Sporting Goods. Will Johnny be successful if he files a lawsuit alleging strict liability?
A) Yes, each of the requirements for an action is strictly liability is met.
B) No, the product must be unreasonably dangerous to the user or consumer because of its defective condition.
C) No, the goods must not have been substantially changed from the time the product was sold to the time the injury was sustained.
D) No, the defendant must normally be engaged in the business of selling or distributing the product.

7. Clementine, a debt collector, phones the home of Herschel for the purpose of collecting debt owed by Herschel. Herschel isn't at home and Herschel's wife Edith answers. Clementine tells Edith that Herschel owes $500 on the debt Clementine is trying to collect. Which of the following statements is true?
A) Clementine hasn't violated the Fair Debt Collection Practices Act.
B) Clementine has violated the Fair Debt Collection Practices Act by communicating by phone rather than in writing.
C) Clementine has violated the Fair Debt Collection Practices Act by telling Edith how much Herschel owes on the debt.
D) Clementine has violated the Fair Debt Collection Practices Act by phoning Herschel's home.

8. Lulu orders 20 pairs of navy blue pants from Peter for $4,000, with delivery due no later than November 15. On November 6, Peter delivers the goods to a common carrier for shipment. Two minutes later, Lulu phones to say that she wont be able to pay for the goods because she has gone out of business. Peter may
A) recover damages from the goods.
B) sue for the price of the goods.
C) resell the goods.
D) stop delivery of the goods.