Chapter 7 BLAW

The manufacturer of goods is liable in tort to users for foreseeable harms caused by defects in the goods. This is: a. negligence in tort b. caveat emptor c. proximate cause d. strict liability e. none of the other choices

A

The rule that "The manufacturer of a product is liable in the production and sale of a product for negligence, if the product may reasonably be expected to inflict harm on the user if the product is defective" originated from: a. MacPherson v. Buick Motor b. Paterson v. Buick Motor c. Morriss v. Chevrolet d. MDM Group Associates v. CX Reinsurance Company e. none of the other choices are correct

A

The legal standard articulated in MacPherson v. Buick Motor, regarding negligence in of producers of products dominated product liability law until: a. 1890 b. 1914, when World War I broke out c. 1929, when the Great Depression began d. 1945, when the Restatement of Torts was adopted e. the 1960s, when strict liability was added

E

d

Which of the following is not needed to establish the tort of intentional misrepresentation: a. scienter or intent to defraud. b. intent to induce reliance. c. justifiable reliance by the plaintiff on the misrepresentation. d. use of force by defendant. e. all of the other choices are necessary elements to show the tort existed.

. If a third party observes a fraud: a. they cannot sue b. they can sue c. they can sue, but not recover any damages d. they can sue on the behalf of the injured party if they split the damage award with the injured party e. they can sue in some states, but not others

a

A manufacturer of a commercial french-frying machine was sued after someone using the machine reached in to retrieve an item that had fallen out of his shirt pocket. The plaintiff was seriously burned as a result. The appellate court upheld the trial court's decision that imposed liability on the manufacturer based on: a. design defect b. negligence c. failure to warn d. contractual breach e. unknown hazard

a

A manufacturing defect is one which: a. occurred during the manufacturing stage and for which the consumer will be compensated b. occurred during the manufacturing stage and for which the consumer will not be compensated c. occurred after the manufacturing stage and for which the consumer will be compensated d. occurred after the manufacturing stage and for which the consumer will not be compensated e. none of the other choices are correct

a

A(n) warranty is one the law may insert regardless of actual contract terms. a. implied b. valid c. explicit d. rapid e. none of the other choices are correct

a

Although Japan has few lawyers per person than the United States: a. Japan has more legal specialists who do much of the legal work that U.S. lawyers do b. Japan has more doctors per person c. Japan has more judges per person d. Japan does not report accurate employment statistics, so it is unknown how many Japanese lawyers there really are e. lawyers do not represent people in court in Japan

a

An affirmation of fact or promise made by a seller to a buyer that relates to the goods and becomes part of the basis of the bargain creates a(n): a. express warranty b. implied warranty c. product warranty d. caveat emptor e. none of the other choices

a

Dangers that were not known or not fully appreciated at the time the product was manufactured are known as and account for the largest dollar volume and greatest number of product liability cases. a. unknown hazards or latent defects b. known hazards or latent defects c. unknown hazards or quiet defects d. unknown hazards or delayed defects e. potential hazards or delayed defects

a

Design defect cases focus on: a. whether an injury to users could have been prevented by designing the product differently b. whether the manufacturer made a mistake during the manufacturing process c. whether the manufacturer's employees had proper training d. the extent of the injury caused by the product e. none of the other choices are correct

a

During the 20th century, when consumers were injured as a result of using defective products, courts adopted a new legal standard that could apply to such cases, so that negligence was no longer the only standard: a. a strict liability standard b. a comparative negligence standard c. a caveat emptor standard d. an assumption of risk standard e. a business exemption standard

a

For a contractual relationship, it is essential that: a. privity exists between the parties b. the parties are well acquainted c. the parties both have attorneys d. the parties are both from the same state e. the parties have both suffered some kind of injury

a

Fraud, misrepresentation, fraudulent misrepresentation and deceit are all examples of torts caused by: a. deliberate deception b. accidental deception c. intentional battery d. premeditated harm e. tax evasion

a

If Andy discovers a defect in the product his company manufactures after the product has already been sold and does not disclose it and Kathleen is injured while using the product she can sue him for: a. negligence b. battery c. misrepresentation d. failure of revelation e. none of the other choices are correct

a

In a case of intentional interference with contractual relations the claim is: a. the injured business's contractual relations were wrongfully interfered with by another party b. the injured business's contractual relations were rightfully interfered with by another party c. the injured business's contractual relations were illegal d. the injured business's contractual relations were hindered by international regulations e. none of the other choices are correct

a

In a intentional misrepresentation suit, the facts alleged to have been presented falsely: a. must be material b. need not be material c. must not be material d. must be unrelated e. need not be related to the injury

a

Intentional torts occur when: a. the tortfeasor is found to have intended to invade a protected interest and the tortfeasor knew, or should have known, of the consequences of the act that resulted in an injury b. the tortfeasor is found to have intended to invade a protected interest and the tortfeasor could not have known of the consequences of the act that resulted in an injury c. the tortfeasor is found to have unintentionally invaded a protected interest and the tortfeasor knew, or should have known, of the consequences of the act that resulted in an injury d. the tortfeasor is found to have unintentionally invaded a protected interest and could not have known of the consequences of the act that resulted in an injury e. none of the other choices are correct

a

Most tort suits are filed in: a. state courts b. federal courts c. appellate courts d. small claims courts e. municipal courts

a

Privity is: a. a legal relationship b. a written relationship c. an unwritten contract d. an understanding between partners e. none of the other choices are correct

a

Risk-utility balancing refers to the fact that: a. some products cannot be made completely safe b. all products can be made safe if manufacturers are willing to spend enough money c. some products are inherently dangerous and should be banned from the market d. consumers will always manage to hurt themselves by improperly using products e. manufacturers must disclose all risks to using their product before putting it on the market

a

Scienter is: a. the intent to defraud b. the intent to befriend c. the lack of intent to defraud d. the ability to defraud e. none of the other choices are correct

a

The basis of the case in a(n) ______case is the relationship between the manufacturer and the injured party. a. strict liability b. felony c. partial liability d. intentional liability e. warranty expression

a

The term privity of contract refers to: a. the relationship that exists between the parties to a contract b. damage awards provided by juries in products liability cases c. the requirement that products liability law have its origin in the common law of contracts d. the risk that a product is of adequate legal quality e. the requirement that products liability litigation must be brought by private citizens

a

The tort of misrepresentation can be based on: a. negligence or intent b. negligence, but not intent c. intent, but not negligence d. neither intent or negligence; it requires fraud e. deceit only

a

There is currently a system made up of a mix of and contract law applying to products. a. tort law b. felony law c. business negotiations d. civilian law e. none of the other choices are correct

a

There is currently a system made up of a mix of and tort law applying to products. a. contract law b. felony law c. business negotiations d. civil law e. none of the other choices are correct

a

Under the rule of caveat emptor, the producer of a defective product that caused injury to a consumer was: a. not liable unless there was a contractual relationship between producer and injured party b. liable in tort law to any injured consumer if negligence by the producer could be shown c. liable in tort law to consumers who bought the good under the rule of strict liability d. liable in contract to all consumers who used the product under the rule of res ipsa loquitur e. not liable in tort or in contract law

a

Under the strict liability doctrine, the focus is on the____________rather than the reasonableness of the conduct of the manufacturer. a. problems with the product b. problems with advertising c. problems with the assembly line workers d. problems with the manufacturing process e. none of the other choices are correct

a

Unless a consumer buys a product directly from the producer: a. there is no privity between consumer and producer b. there is privity between consumer and producer c. there cannot be a case of battery d. there cannot be a damage award greater than $100,000 e. none of the other choices are correct

a

When a person suffers an injury due to deliberate deception, there may be a tort of: a. fraud b. assault c. battery d. all of the other specific choices e. none of the other specific choices

a

When considering the risk-utility balance, courts consider: a. the reality of technology, costs and use in practice b. the profit of the manufacturers against the rate of consumer injury c. the safety standards within the manufacturing plant d. the level of consumer education needed to safely use the product e. none of the other choices are correct

a

Which of the following is not usually asserted by business about tort awards: a. they are not costly b. they are often excessive c. they make American businesses less competitive d. the federal government should limit such awards e. all of the other choices

a

Which tort is concerned with a business attempting to improve itself in the market by interfering with another's business in an unreasonable and improper manner: a. interference with prospective advantage b. interference with competition c. interference with business practices d. interference with intent e. none of the other choices

a

. Key element(s) of the tort of intentional interference with contractual relations is (are): a. a contract between the injured party and the defendant who interfered b. the defendant knew about a contract between the injured party and another party c. malice by the defendant must be shown d. a warranty of performance in a contract is breached e. all of the other specific choices

b

An express warranty is: a. illegal in many states b. one the manufacturer contractually provides to the consumer c. one the law inserts into the relationship regardless of the actual contract terms d. one the consumer insists on e. none of the other choices are correct

b

Compensation for injured parties accounts for ________of the total cost of the tort system. a. about two-thirds b. less than half c. more than half d. about three-fourths e. over eighty percent

b

For the doctrine of strict liability to apply: a. a consumer must have purchased the product directly from the manufacturer b. a consumer need not have purchased the product directly from the manufacturer c. a consumer must suffer life threatening injuries d. a manufacturer must not intentionally misrepresent the product e. none of the other choices are correct

b

If it is not clear who the actual manufacturer of a product is, plaintiffs: a. may not sue more than one manufacturer of a defective product b. may sue any or all of the manufacturers of a defective product c. may sue more than one manufacturer if the injury from the defective product prevents the plaintiff from being able to "engage in normal activity" d. may sue up to three, but not more than three, manufacturers of a defective product e. none of the choices are correct

b

If the plaintiff in a fraud case was aware that the key information was false, but went ahead with the deal anyway, then: a. the damage award will not be as high b. there is no fraud c. the defendant will not have to pay damages, but will have to pay the plaintiff's attorney fees d. the case will go on to a higher court e. the court's decision cannot be appealed

b

In which of the following cases discussed in the text was the manufacturer held liable based on failure to warn: a. a gun manufacturer whose guns jammed, causing them to misfire b. Johnson and Johnson not warning Tylenol users that liver damage could occur in heavy drinkers who used Tylenol often c. a trampoline manufacturer that failed to put its warnings in French d. all of the other specific choices are correct e. none of the other specific choices are correct

b

In which of the following cases discussed in the text was the manufacturer held liable based on failure to warn: a. a gun manufacturer whose guns jammed, causing them to misfire b. a diet food producer that failed to provide adequate warnings about using the adult diet food as baby food c. a trampoline manufacturer that failed to put its warnings in French d. all of the other specific choices are correct e. none of the other specific choices are correct

b

In which of the following cases discussed in the text was the manufacturer held liable based on failure to warn: a. a gun manufacturer whose guns jammed, causing them to misfire b. a gun manufacturer that failed to warn users of damage to hearing from long-term exposure to gunfire c. a trampoline manufacturer that failed to put its warnings in French d. all of the other specific choices are correct e. none of the other specific choices are correct

b

Key element(s) of the tort of intentional interference with contractual relations is (are): a. a contract between the injured party and the defendant b. losses were incurred c. malice by the defendant must be shown d. a warranty of performance in a contract is breached e. all of the other specific choices

b

Key element(s) of the tort of intentional interference with contractual relations is (are): a. a contract between the injured party and the defendant who interfered b. the defendant intentionally interfered with a contract between the injured party and another party c. malice by the defendant must be shown d. a warranty of performance in a contract is breached e. all of the other specific choices

b

Liability based on negligence may be imposed on a manufacturer if: a. a partial connection can be established between the failure of the manufacturer to exercise reasonable care and an injury suffered by a consumer b. a causal connection can be established between the failure of the manufacturer to exercise reasonable care and an injury suffered by a consumer c. a probable connection can be established between the failure of the manufacturer to exercise reasonable care and an injury suffered by a consumer d. none of the other choices are correct

b

Negligence is: a. the cause of an intentional tort b. carelessness in a legal sense c. failure to file tax returns properly d. a business term for an accident e. none of the other choices are correct

b

One element of fraud or intentional misrepresentation is scienter. That means: a. false information about an important fact was passed on b. the defendant knew there was false information being passed on c. the defendant wanted the plaintiff to believe the falsehood d. there was a relationship between the parties that created a legal obligation e. the extent of damages caused

b

Strict liability may be imposed if you, the buyer, receive an oral or written statement about the quality of a good, that statement becomes part of your bargain with the manufacturer, and you suffer an injury because the statement was not accurate. This is known as: a. implied warranty b. express warranty c. caveat emptor d. Magnuson-Moss warranty e. none of the other choices

b

Strict liability under contract law for injuries caused by defective products is based on: a. the existence of a prospectus b. the existence of a warranty c. the existence of negligence d. the existence of an assault e. the existence of an arbitration clause

b

The case that led in adopting a general rule imposing strict liability in tort was: a. Morriss v. Akers b. Greenman v. Yuba Power c. MacPherson v. Buick Motor Company d. MDM Group Associates v. CX Reinsurance Company e. Johnson v. Chevrolet

b

The first major application of the doctrine of strict liability for consumer products was in the area of: a. automobiles b. food and drink c. glass windshields d. tires e. cigarettes

b

The law of product liability is primarily concerned with: a. harms suffered by stockholders when the value of their investment falls b. harms suffered by buyers and other persons who use defective products c. harms suffered by businesses for interference with their relations d. contractual harms suffered by institutional investors e. none of these

b

The law of product liability is primarily concerned with: a. harms suffered by stockholders when the value of their investment falls b. harms suffered by sellers of defective products c. harms suffered by businesses for interference with their relations d. contractual harms suffered by institutional investors e. none of these

b

The rule requiring producers to pay compensation to consumers injured by defective products, even though reasonable care has been exercised, is called: a. caveat emptor b. strict liability c. liability for negligent actions d. res ipsa loquitur e. none of the other choices

b

The___________ is primarily concerned with harms suffered by buyers and other persons who use defective products. a. law of stock protection b. law of product liability c. law of seller liability d. law of commercial liability e. law of malpractice liability

b

A warranty is: a. a legal document absolving a manufacturer of liability b. a consumer's agreement not to misuse a product c. a manufacturer's assurance that a product will meet certain quality and performance standards d. a manufacturer's assurance that a product will be below a certain cost except for special orders e. none of the other choices are correct

c

A(n) warranty is one the manufacturer contractually provides to the consumer. a. implied b. valid c. express d. rapid e. none of the other choices are correct

c

A__________ is a manufacturer's assurance that a product will meet certain quality and performance standards. a. certificate of quality b. certificate of use c. warranty d. pledge e. none of the other choices are correct

c

Although Japan is often cited as an example of a place with less litigation and fewer lawyers: a. Japan has more crime than the United States b. Japan actually has more lawyers, but they do not report them to international studies c. Japanese plaintiffs win a higher percentage of tort suits than do American plaintiffs d. Japan has a completely different system that cannot be compared to the American system e. none of the other choices are correct

c

An implied warranty is: a. illegal in many states b. one the manufacturer contractually provides to the consumer c. one the law inserts into the relationship regardless of the actual contract terms d. one the consumer insists on e. none of the other choices are correct

c

Businesses can: a. only be involved in negligence torts b. only be involved in intentional torts c. can be involved in both negligence and intentional torts d. are always the plaintiff in intentional tort cases e. are always the defendant in negligence court cases

c

During the 19th century, parties injured by a defective product, who did not have a contractual relationship with the seller, were under the rule of: a. res ipsa loquitur b. stare decisis c. caveat emptor d. proximate cause e. none of the other choices

c

If, instead of allowing a plaintiff to sue all manufacturers of a given product, a court allows defendants to bring in other manufacturers as defendants, this is known as: a. unknown hazard share liability b. defect sharing liability c. joint and several liability d. strict liability e. express liability

c

In product liability law, privity refers to: a. the relationship that exists between the plaintiff and the defendant b. the relationship that exists between the plaintiff and his attorney c. the relationship that exists between contracting parties d. the relationship that exists between the judge and jury e. the relationship that exists between construction crews and their contractors

c

Liability based on may be imposed on a manufacturer if a causal connection can be established between the failure of the manufacturer to exercise reasonable care and an injury suffered by a consumer. a. stare decisis b. intentional tort c. negligence d. neglect e. failure to inform

c

Strict liability in tort rule in product injury cases is described in: a. the Bill of Rights b. the Law of Torts Sec. 832 c. the Restatement (Second) of Torts Sect. 402A d. the Final Restatement of Torts Sect. 402A e. none of the other choices are correct

c

The doctrine holds manufacturers liable to consumers injured by defective products regardless of whether the manufacturer exercised all reasonable care or not. a. hazardous liability b. final liability c. strict liability d. less liability e. res ipsa loquitur

c

The American Law Institute's definition of strict liability has been revised in: a. the Bill of Rights b. the Constitution c. the Second Amendment of the U.S. Constitution d. the Restatement (Third) of Torts e. none of the other choices are correct

c

The Restatement (Third) of Torts on product liability says that when considering a defective product the courts should use: a. a cost-benefit analysis b. strict liability when any injury is inflicted c. a risk-utility balancing d. the rule of negligence e. none of the other choices

c

The elements of the tort of interference with a prospective advantage (relationship) include: a. fraud b. manipulation of the securities market for personal gain c. predatory behavior d. defamation of a competitor e. all of the other choices

c

The intent to defraud is called: a. defamation b. fraudulence c. scienter d. dishonesty e. none of the other choices are correct

c

Under the rule of , the producer of a defective product that caused injury to a consumer was not liable unless there was a contractual relationship between producer and injured party. a. res ipsa loquitur b. stare decisis c. caveat emptor d. proximate cause e. none of the other choices

c

Under the strict liability doctrine, the focus is on the problems with the product, rather than: a. problems with the court process b. integrity of the manufacturer c. the reasonableness of the conduct of the manufacturer d. the appropriateness of the conduct of the manufacturer e. none of the other choices are correct

c

Unknown hazards are: a. defects that occurred during the manufacturing process b. defects that the manufacturer knew about, but did not reveal to the consumers c. dangers that were not known or not fully appreciated at the time the product was manufactured d. dangers that the consumer was aware of, but not able to avoid e. none of the other choices are correct

c

When false information is intentionally presented as fact there may be a tort of: a. battery b. assault c. intentional misrepresentation d. unintentional misrepresentation e. intentional equivocating

c

When two professors conducted a study of the American and the Japanese tort systems, they found that the: a. two systems bear no comparison b. two systems have major differences c. two systems are not all that different in results d. Japanese tort system is far superior in protecting consumers e. American tort system if far superior in protecting consumers

c

Which of the following is not required to be shown in a successful action on the theory of strict liability in tort? a. the product was defective b. the defect created an unreasonably dangerous product c. the producer acted negligently in producing the item d. the defect was the proximate cause of the injury e. all of the other choices must be shown to be successful

c

A Pennsylvania court imposed strict liability on a gun manufacturer because of hearing losses caused by long-term users exposed to gunfire. The liability was based on: a. latent defect b. express warranty c. defective design d. failure to warn e. none of the other choices

d

Business organizations lobby Congress to impose federal statutory limits on tort damages because they claim that: a. many of the awards are excessive b. many of the awards are unjustified c. the costs of the awards are making American business less competitive d. all of the other specific choices are correct

d

Experts estimate the annual cost of the tort system at: a. one to two billion dollars b. ten to twenty billion dollars c. twenty to forty billion dollars d. about a quarter trillion dollars e. no estimates are available

d

In which of the following cases was the manufacturer held liable based on design defect: a. a worker lost a leg because he fell into a machine that was running, despite the removal of a metal plate. The court held that the machine should not have been able to run with the plate removed. b. a restaurant employee was seriously burned when he tried to retrieve something that fell out of his shirt pocket and into a commercial French fryer machine. The court held that the machine could have been designed more safely. c. a child pushed the emergency stop button on an escalator, causing a person to fall and be injured. The court held that the button was too attractive and accessible to children. d. all of the other specific choices are correct

d

In which of the following cases was the manufacturer held liable based on failure to warn: a. a gun manufacturer that failed to warn users of damage to hearing from long-term exposure to gunfire b. a diet food producer that failed to provide adequate warnings about using the adult diet food as baby food c. Johnson and Johnson not warning Tylenol users that liver damage could occur in heavy drinkers who used Tylenol often d. all of the other specific choices are correct e. none of the other specific choices are correct

d

Product misuse can be used as a defense in a product liability suit if: a. it can be shown that the product was misused b. it can be shown that the product was combined with another product to make it dangerous c. it can be shown that the product was not maintained properly d. all of the other specific choices are correct e. none of the other specific choices are correct

d

The Restatement (Third) of Torts on product liability states that the producer of a product may be liable for defect except in which case: a. the producer failed to use a reasonable alternative design that would have produced greater safety b. producer failed to provide reasonable instructions of foreseeable risks c. product contains a defect even if all possible care was used in making the product d. producer advertised features of the product that violated federal safety standards e. all of the other choices are correct

d

The Restatement (Third) of Torts refers to strict liability in tort as: a. product injury law b. product liability law c. product service law d. product defect law e. none of the other choices are correct

d

The elements of the tort of intentional interference with contractual relations include: a. the existence of a contractual relationship between the injured business and another party b. the wrongdoer's knowledge of the contractual relationship between the injured business and another party c. intentional interference with the contractual relationship d. all of the other specific choices are correct e. none of the other specific choices are correct

d

The most active area of strict liability litigation based on the concept of unknown hazards involves which product? a. nuclear waste b. automobiles c. petrochemicals d. asbestos e. financial securities

d

To minimize the likelihood of being liable for failure to warn manufacturers must: a. warn of possible dangers in use of a product b. warn of possible dangers in the storage of a product c. warn of possible dangers in the handling of a product d. all of the other specific choices are correct e. none of the other specific choices are correct

d

In cases involving strict liability for product failure based on contract law, the basis of the case is the relationship between which of the following parties? a. seller and manufacturer b. attorney and judge c. manufacturer and distributor d. seller and supplier e. manufacturer and injured party

e

Products liability suits are won for what reason(s): a. for being poorly designed b. for failure to warn consumers of hazards in use c. for latent injuries that arise from products d. a defect in manufacturing e. all of the other choices

e

The Restatement (Third) of Torts on product liability states that the producer of a product may be liable for defect except in which case: a. the producer failed to use a reasonable alternative design that would have produced greater safety b. producer failed to provide reasonable instructions of foreseeable risks c. product contains a defect even if all possible care was used in making the product d. none of the other choices; those refer to the Restatement (Second) e. all of the other specific choices are correct

e

The amount of money involved in asbestos liability litigation is at least: a. $1 billion b. $4 billion c. $10 billion d. $15 billion e. $100 billion

e

The elements needed to establish strict liability in tort do not include which of the following: a. the product was defective b. the defect created an unreasonably dangerous product c. the defect was the proximate cause in producing the injury suffered d. the injury caused damages e. all of the other choices are necessary

e

The key element(s) of the tort of intentional interference with contractual relations is (are): a. a contract between the injured party and another party (not the defendant) b. the defendant knew about a contract between the injured party and another party c. the defendant intentionally interfered with a contract between the injured party and another party d. losses were incurred e. all of the other choices

e

To avoid being sued for failure to warn users of products, manufacturers must: a. take lots of precautions in the manufacturing process b. invest a lot in safety research c. conduct regular customer satisfaction surveys d. have mandatory safety training sessions for all employees e. provide adequate warning labels and instructions on products

e

Under the rule of strict liability in tort, to be successful an injured party must show that the: a. defect in the product was the proximate cause of injury b. product in question was defective c. defect in a product caused it to be unreasonably dangerous d. losses were suffered e. all of the other choices

e

When a person suffers an injury due to deliberate deception, there may be a tort of: a. fraud b. misrepresentation c. fraudulent misrepresentation d. deceit e. all of the other choices may be correct

e

Which of the following is not needed to establish the tort of intentional misrepresentation: a. scienter or intent to defraud b. intent to induce reliance c. justifiable reliance by the plaintiff on the misrepresentation d. relationship between the parties e. all of the other choices are necessary elements to show the tort existed

e