ACCT 324 Chapter 10

When all products of a particular design are defective and dangerous, those products have which of the following type of defects? A. Design. B. Warning. C. Primary. D. Exclusionary. E. Manufacturing.

Design.

Which of the following is true regarding defenses to negligence-based product liability actions? A. A defendant may only rely upon contributory negligence. B. A defendant may only rely upon comparative negligence. C. A defendant may only rely upon modified comparative negligence. D. A defendant may rely upon the defense of contributory, comparative, or modified comparative negligence, depending upon which defense is accepted by the state where the case arose. E. A defendant may not rely upon contributory, comparative, or modified comparative negligence because no defenses are available in such a lawsuit. The only issue will be the amount of damage.

A defendant may rely upon the defense of contributory, comparative, or modified comparative negligence, depending upon which defense is accepted by the state where the case arose.

Under the Restatement (Third) of Torts, which of the following results in strict liability? A. A manufacturing defect but not a design defect or a failure to warn. B. A design defect and a failure to warn but not a manufacturing defect. C. A design defect but not a manufacturing defect or a failure to warn. D. Both a manufacturing defect and a design defect but not a failure to warn. E. A manufacturing defect, a design defect, and a failure to warn.

A manufacturing defect but not a design defect or a failure to warn.

Which of the following arises when a consumer knows that a defect exists but still proceeds unreasonably to make use of the product, creating a situation where the consumer has voluntarily assumed the risk of injury from the defect and thus cannot recover? A. Assumption of the risk. B. Pure comparative fault. C. Contributory negligence. D. Last-clear-chance. E. Strict behavior.

Assumption of the risk.

Which of the following is a reference to being a party to a contract? A. Being in privity of contract. B. Being in association with contract. C. Being in connect to contract. D. Being in affiliation with contract. E. Being connected by contract.

Being in privity of contract.

Which of the following causes of action stem from contract theory? A. Breach of warranty. B. Negligence. C. Strict liability in tort. D. Failure to warn. E. Failure to warn and breach of warranty.

Breach of warranty.

Which of the following is true regarding damages that may be recovered in negligence-based product liability cases if proven? A. Compensatory damages may be recovered, but punitive damages may not be recovered. B. Punitive damages may be recovered, but compensatory damages may not be recovered. C. Compensatory damages and punitive damages may be recovered. D. Compensatory damages, punitive damages, and administrative damages may be recovered. E. Compensatory damages, punitive damages, administrative damages, and manufacturing damages may be recovered.

Compensatory damages and punitive damages may be recovered.

Paul was very excited about his first new vehicle purchase. He borrowed funds from his bank with which to purchase the car. Unfortunately, just a few days after he purchased the vehicle, the pistons in the engine overheated causing the engine to seize rendering the vehicle unusable. No one was injured, but Paul is very upset about his vehicle and plans to sue based on strict liability under the theory set forth by Section 402A of the Restatement (Second) of Torts. Which of the following is the most likely resolution of his claim? A. He will be allowed to proceed because the vehicle was in a defective condition. B. He will be allowed to proceed only if he can establish that he did appropriate research prior to purchasing the vehicle and had no reason to know that it was likely to be defective. C. He will be allowed to proceed so long as he is up-to-date on his loan payments. D. He will not be allowed to proceed because there is no recovery under a strict liability theory for solely economic damages. E. He will not be allowed to proceed because the only avenue for this type of claim is through a negligence action.

He will not be allowed to proceed because there is no recovery under a strict liability theory for solely economic damages.

A bystander may not invoke the doctrine of strict-liability in a lawsuit.

FALSE

In order to proceed in a products liability action, a plaintiff must establish to a certainty that the product was not damaged after its purchase.

FALSE

Japanese law fails to recognize fault of the part of the consumer in product liability cases, and manufacturers must bear the full burden when a product is found to be defective.

FALSE

The lack of a feasible way to make a safer product as a matter of law prevents liability based upon an alleged defective product.

FALSE

The statute of limitations is the same thing as the statute of repose.

FALSE

Under a strict product liability theory, who may be held liable to an injured party? A. Manufacturers only. B. Distributors only. C. Retailers only. D. Manufacturers and distributors but not retailers. E. Manufacturers, distributors, and retailers.

Manufacturers, distributors, and retailers.

Which of the following is the type of defect most likely involved when an individual glass bottle of soda shatters in someone's hand causing a cut, although most bottles do not shatter in that manner? A. Design B. Warning C. Punitive D. Manufacturing E. Negligent

Manufacturing

When an individual product has a defect making it more dangerous than identical products, that individual product is said to have which of the following defects? A. Design. B. Warning. C. Primary. D. Exclusionary. E. Manufacturing.

Manufacturing.

Which of the following was true prior to the landmark 1916 case of MacPherson v. Buick Motor Company? A. Negligence was rarely used as a theory of recovery for an injury caused by a defective product because of the difficulty of establishing the element of duty. B. Negligence was rarely used as a theory of recovery for an injury caused by a defective product because of the difficulty of establishing causation. C. Negligence was often used as a theory of recovery because of the ease in establishing privity of contract. D. Causes of actions against manufacturers of products were barred federal law. E. Causes of actions against manufacturers of products were barred by an amendment to the U.S. Constitution that has since been repealed.

Negligence was rarely used as a theory of recovery for an injury caused by a defective product because of the difficulty of establishing the element of duty.

Which of the following are commonly used theories of recovery in product liability cases? A. Negligence, negligence per se, and breach of warranty. B. Strict product liability, negligence per se, and breach of warranty. C. Breach of warranty, negligence, and negligence per se. D. Negligence, strict product liability, and breach of warranty. E. Civil, criminal, and administrative.

Negligence, strict product liability, and breach of warranty.

Compliance with federal laws may lead to the defense that use of state tort law is ______________ by a federal statute designed to ensure the safety of a particular class of products. A. Preempted B. Complimented C. Refuted D. Extinguished E. Upheld

Preempted

Which of the following defenses is an argument that harm was caused not by the defendant's negligence but by the plaintiff's failure to properly use the product? A. Assumption of the risk. B. Product misuse. C. Pure comparative fault. D. Last-clear-chance. E. Misapplication.

Product misuse.

Which of the following was the result in Radford v. Wells Fargo Bank, the case in the text in which the plaintiff sued claiming that a mortgage loan was a defective product? A. The court allowed the case to proceed on the basis that a loan is a product. B. The court ruled that while a loan is a product, the plaintiff was barred from proceeding because he had not alleged that he was in mortgage foreclosure, a necessary predicate for a lawsuit alleging defect based on a mortgage loan. C. The court ruled that while a loan is a product, the plaintiff was barred from proceeding because he had not alleged usury, a necessary predicate for a lawsuit alleging defect based on a mortgage loan. D. The court ruled that while a loan is a product, the plaintiff was barred from proceeding because he had not alleged that he was in bankruptcy, a necessary predicate for a lawsuit alleging defect based on a mortgage loan. E. Recognizing that product liability focuses on tangible items, the court ruled that a loan is not a product for purposes of product liability law.

Recognizing that product liability focuses on tangible items, the court ruled that a loan is not a product for purposes of product liability law.

Which of the following may be sued in product liability actions? A. Retailers, wholesalers, and manufacturers. B. Retailers and wholesalers but not manufacturers. C. Wholesalers and manufacturers but not retailers. D. Retailers and manufacturers but not wholesalers. E. Manufacturers but not retailers or wholesalers.

Retailers, wholesalers, and manufacturers.

Bob is a trained exterminator who received yearly instruction regarding precautions that should be taken in relation to use of pesticides. After being told that he suffered allergies and other ailments based on exposure to the pesticides, Bob sued the manufacturers of the pesticides at issue based on a failure to warn theory. The defendants' best argument based on Bob's prior training is the ______ defense. A. Trained technician B. Sophisticated-user C. Knowledgeable user D. Unharmed user E. Workers' compensation

Sophisticated-user

Which of the following is a defense used by a defendant to demonstrate that his alleged negligent behavior was reasonable, given the available scientific knowledge existing at the time the product was sold or produced? A. Assumption of the risk. B. Scientific knowledge doctrine. C. State-of-the-art defense. D. Reasonable behavior defense. E. Reasonable manufacturer defense.

State-of-the-art defense.

Which of the following is true regarding proof of design defect? A. States are not in agreement as to how to establish a design defect. B. State law across the country is generally uniform regarding how to establish a design defect. C. State law is irrelevant because federal law dictates how to establish a design defect. D. Each local county in each state determines how a design defect will be established. E. Because of the amount of international trade, there are international treaties establishing for each U.S. state how design defects will be established.

States are not in agreement as to how to establish a design defect.

Section 402A of the Restatement (Second) of Torts applies to which of the following? A. Negligence. B. Breach of warranty. C. Strict product liability. D. Assumption of the risk. E. Preemption.

Strict product liability.

A product may be found defective if a manufacturer fails to provide adequate warnings about potential dangers associated with the product.

TRUE

In German product liability cases, consumers do not have a right to recover damages for pain and suffering or for emotional distress.

TRUE

No duty to warn exists for dangers arising from either unforeseeable misuses of the product or from obvious dangers.

TRUE

The state-of-the-art defense is not available in all states in strict liability cases.

TRUE

Under the market share theory, a plaintiff may be able to recover in a products liability action even if the plaintiff cannot trace the harmful product to a particular manufacturer.

TRUE

As recognized by the court in Sperry-New Holland v. John Paul Prestage and Pam Prestage, which of the following is true under the risk-utility analysis of product liability? A. That if the plaintiff, applying the knowledge of an ordinary consumer, sees a danger and can appreciate that danger, then he cannot recover for any injury resulting from that appreciated danger. B. That a plaintiff must show that a retailer failed to do a proper risk-utility analysis before the plaintiff can recover against the retailer. C. That a plaintiff must show that a manufacturer failed to do a proper risk-utility analysis before the plaintiff can recover against the manufacturer. D. That a product is unreasonably dangerous if a reasonable person would conclude that the danger-in-fact, whether foreseeable or not, outweighs the utility of product. E. That a reasonable person must conclude that the use-in-fact of a product outweighs the risk-utility of the product.

That a product is unreasonably dangerous if a reasonable person would conclude that the danger-in-fact, whether foreseeable or not, outweighs the utility of product.

As recognized by the court in Sperry-New Holland v. John Paul Prestage and Pam Prestage, which of the following is true regarding the consumer expectations test for product defect? A. That if the plaintiff, applying the knowledge of an ordinary consumer, sees the danger and can appreciate that danger, then he cannot recover for any injury resulting from that appreciated danger. B. That a plaintiff cannot recover if a reasonable person would conclude that the danger in fact of the product, whether foreseeable or not, outweighs the utility of the product. C. That a plaintiff may only recover if the plaintiff was the purchaser of the product causing injury. D. That a plaintiff may only recover if consumer oriented household goods are involved. E. That a plaintiff may only recover if the plaintiff reasonably expected the manufacturer to have insurance, that the manufacturer did have insurance of the type to cover the injury at issue, and that the plaintiff had no part in causing the injury.

That if the plaintiff, applying the knowledge of an ordinary consumer, sees the danger and can appreciate that danger, then he cannot recover for any injury resulting from that appreciated danger.

What was the result at the Supreme Court level in Wyeth v. Levine, the case in the text in which the defending drug company took the position that the plaintiff's jury verdict on her state law claim alleging that the defendant improperly labeled a drug was preempted by federal law and should be overturned? A. That the case should be dismissed because the defendant could not be subjected to both federal and state law. B. That the case should be dismissed because it was impossible for the defendant to comply with both state and federal law. C. That the case should be dismissed because complying with state law would obstruct the purposes and objectives of federal drug labeling regulation. D. That the jury verdict would be upheld because the defendant could have complied with its state and federal law obligations. E. That the jury verdict would be upheld because Wyeth failed to submit evidence that the plaintiff was guilty of comparative negligence.

That the jury verdict would be upheld because the defendant could have complied with its state and federal law obligations.

What was the ruling of the court in the case of Welge v. Planters Lifesavers Co., the case in which the plaintiff injured his hand when a jar containing peanuts broke? A. That the case would be dismissed because the plaintiff could not establish that the jar was maintained in a pristine condition after its purchase. B. That the plaintiff was unable to recover because negligence in manufacture of the jar could not be established. C. That the plaintiff was unable to recover because he was not the actual purchaser of the jar of peanuts. D. That the plaintiff would be allowed to proceed because negligence was established. E. That the plaintiff would be allowed to proceed with the lawsuit because of a lack of evidence that the jar had been damaged after its purchase.

That the plaintiff would be allowed to proceed with the lawsuit because of a lack of evidence that the jar had been damaged after its purchase.

Which of the following must a plaintiff generally show in order to recover in a product liability lawsuit? A. Only that the product is defective. B. That the defect should have been discovered and fixed prior to sale. C. That the defendant was negligent. D. That the product is defective and also that the defect existed when the product left the defendant's control. E. That the product is defective, that the defect existed when the product left the defendant's control, and also that the defendant was negligent.

That the product is defective and also that the defect existed when the product left the defendant's control.

Under which of the following is the breach of warranty theory of liability established? A. The Uniform Commercial Code. B. The Federal Contract Guide. C. The Federal Commercial Code. D. The Restatement (Second) of Torts. E. The Restatement (Third) of Torts.

The Uniform Commercial Code.

Which of the following is true regarding punitive damages in product liability cases? A. They are not available in product liability actions. B. The amount of the punitive-damage award is determined by the wealth of the defendant only. C. The amount of the punitive-damage award is determined by the maliciousness of the action only. D. The amount of the punitive-damage award is determined by the wealth of the defendant and also by the maliciousness of the action. E. Punitive damages are meant to compensate the plaintiff for injury and to make the plaintiff whole.

The amount of the punitive-damage award is determined by the wealth of the defendant and also by the maliciousness of the action.

Under a strict product liability theory, who is considered a reasonably foreseeable party who may recover if injury is sustained? A. The buyer only. B. Only the buyer and the buyer's family. C. Only the buyer, the buyer's family, and the buyer's guests. D. Only the buyer and any one present in the buyer's home when injury is sustained. E. The buyer, the buyer's family, the buyer's guests, and foreseeable bystanders.

The buyer, the buyer's family, the buyer's guests, and foreseeable bystanders.

Which of the following is set out in the Restatement (Second) of Torts as a method by which to prove a design defect? A. The risk-utility test. B. The consumer expectations test. C. The feasible alternatives test. D. The design defect test. E. The consumer propensity test.

The consumer expectations test.

Which of the following is true regarding the application of negligence per se in product liability cases based on negligence? A. The doctrine of negligence per se is also applicable to product liability cases based on negligence. B. The doctrine of negligence per se is applicable to product liability cases only if they are based on failure to warn. C. The doctrine of negligence per se is applicable to product liability cases only if the cases are based on design defect. D. The doctrine of negligence per se is applicable to product liability cases only if the cases are based on manufacturing defect. E. The doctrine of negligence per se is never available in product liability cases.

The doctrine of negligence per se is also applicable to product liability cases based on negligence.

Which test for determining design defect is also referred to as the risk-utility test? A. The consumer expectations test. B. The retailer expectations test. C. The feasible alternatives test. D. The design defects test. E. None of these.

The feasible alternatives test.

As of the date of text publication, what was the status of the lawsuit Pelman v. McDonald's, the case in which the plaintiffs asserted that McDonald's engaged in a scheme of deceptive advertising that in effect created the impression that McDonald's food products were nutritionally beneficial and part of a healthy lifestyle? A. The case was dismissed and plaintiffs are appealing. B. The case settled. C. The judge had refused to dismiss the plaintiffs' claims, and the case is moving forward as a class action. D. The judge ruled that only minor plaintiffs could sue, and their case is moving forward on a class action basis. E. The judge ruled that only plaintiffs who could prove that they had eaten a sufficient amount of food at McDonald's could sue and also that the plaintiffs could not proceed on a class action basis.

The judge had refused to dismiss the plaintiffs' claims, and the case is moving forward as a class action.

What was the result in the case opener involving the lawsuit against the sperm bank for providing sperm with a genetic defect? A. The lawsuit was dismissed because of the court's decision that sperm is not a product. B. The lawsuit was dismissed because of the court's decision that the plaintiffs had suffered no damages. C. The lawsuit was dismissed because of the court's decision that the sperm was not defective. D. The lawsuit was not dismissed, and the court ruled that a sperm bank could be sued under product liability laws. E. The lawsuit was not dismissed although the court ruled that the plaintiff could proceed only under a negligence theory.

The lawsuit was not dismissed, and the court ruled that a sperm bank could be sued under product liability laws.

Which of the following do courts often consider in determining whether a manufacturer was negligent in failing to warn? A. The likelihood of the injury only. B. The seriousness of the injury only. C. The ease of warning only. D. The likelihood of the injury and the seriousness of the injury but not the ease of warning. E. The likelihood of the injury, the seriousness of the injury, and the ease of warning.

The likelihood of the injury, the seriousness of the injury, and the ease of warning.

Under which of the following theories may a plaintiff be able to proceed even if the plaintiff cannot trace an injury caused by a product to any particular manufacturer? A. The shared liability theory. B. The market share theory. C. The trade theory. D. The shared market liability theory. E. The shared production theory.

The market share theory.

Upon which type of law is product liability law primarily based? A. Contract law. B. Tort law. C. Administrative law. D. Legislative law. E. Executive law.

Tort law.

Which of the following are considered foreseeable plaintiffs in product liability cases? A. Users and consumers but not bystanders. B. Users, consumers and bystanders. C. Users but not consumers or bystanders. D. The purchaser only. E. The purchaser and the purchaser's immediate family only.

Users, consumers and bystanders.

Which of the following do courts focus on when a strict product liability action is involved? A. Whether the product was in a defective condition and unreasonably dangerous when sold. B. Whether the manufacturer was negligent. C. Whether the seller exercised all possible care in the preparation and sale of the product. D. Whether the consumer had a contractual relationship with the seller. E. Whether the manufacturer knew of a problem with the product.

Whether the product was in a defective condition and unreasonably dangerous when sold.

Following the case of MacPherson v. Buick Motor Company, any ______ plaintiff can sue a manufacturer for its breach of duty of care. A. contracting B. adult C. unforeseeable D. foreseeable E. believable

foreseeable