Final answer:
The statement that product liability must be based on express warranties but not on implied warranties is false. Both express and implied warranties can form the basis of product liability.
Step-by-step explanation:
Product liability can be based on either express warranties or implied warranties, so the statement that product liability must be based on express warranties but not implied warranties is false. Express warranties are specific promises made by a seller, typically in writing, that a product will meet certain standards or perform in a certain way. Implied warranties, on the other hand, are not written or spoken but are legally assumed in a sale. They include the implied warranty of merchantability, which means the product will work as expected, and the implied warranty of fitness for a particular purpose, where the seller knows the buyer's intended use for the product.