b law ch 7

are

Manufacturers _ allowed to fight it out as to which should pay for amounts of damages.

strictly liable

Manufacturers are __ for defective products

caveat emptor

"Let the buyer beware"

utmost care

ultra hazardous activity: Common law rules developed about uncommon activities where __is needed

INTERFERENCE WITH PROSPECTIVE ADVANTAGE

A business attempts to improve its place in the market by interfering with another's business

ultra hazardous activity

Abnormally Dangerous Activity

- Not likely, as any company selling their products in the U.S. must meet same liability standard as U.S. companies. - High standards of products marketed abroad force improvement of standards worldwide.

Does a costly tort system make American firms less competitive than foreign forms?

do not

Courts __worry about due care, reasonableness, in production. The issue is if there was a defect as defined

fraud

Deliberate Deception

failure to warn

Failure by manufacturer to warn of dangers in using a product

product liability

General term applied that deals primarily in tort law Involves some contract law Involves some statutory law

MacPherson v. Buick Motor Company

If there was no relationship, caveat emptor applied - "Let the buyer beware" -This changed with _

privity of contract requirement

In the 19th century courts, there was the ___ - a contractual relationship with the manufacturer was needed

INTERFERENCE WITH PROSPECTIVE ADVANTAGE

One party makes it difficult/impossible for another party to continue in some/all business dealings

states

Most __ have held plaintiffs may sue any or all manufacturers to share the liability created.

negligence and strict liability

Restatement Third encourages courts to move away from the a distinction between __

risk-utility

Restatement Third speaks of "__ balancing"

Fraud or Intentional Misrepresentation Interference With Contractual Relations Interference With Prospective Advantage Product Liability Consumer Products & Negligence Strict Liability Primary Areas of Product Liability Law Ultrahazardous Activity

TORTS PARTICULAR TO BUSINESSES

Intentional Negligence Strict Liability

TYPES OF BUSINESS TORTS

tort crisis

The "__" in the U.S.: -Has abated since Supreme Court has cracked down on massive punitive damage awards and doubtful expert testimony

strict liability

The American Law Institute's (ALI) definition of__in Section 402A of the Restatement (Second of Torts)

misrepresentation, fraudulent misrepresentation or deceit

The tort may be called fraud, ___

business

There is no such thing as a "__ tort"

class actions suits

Tort reform legislation from Congress has made __ more difficult

common

Torts are traditionally __ law.

State laws

__ are working to cap liability for certain damage

Bulk supplier

__ does not have to police details of what is done as product continues down the chain, as bulk products go to intermediary in bulk and on down.

Product defect

__ law deals with design defects and manufacturing defects.

Any

__ of the defendant-manufacturers may be held responsible for all damages.

Sophisticated user

__ or Knowledgeable purchaser is one who "reasonably should know of the product's dangers" e.g. another manufacturer.

Tort payouts

__may have stabilized. -Between 2004 and 2006, growth seemed to have stopped

Express Warranty

f the buyer receives an oral or written statement about the quality of a good, that statement becomes part of their bargain with the manufacturer, and the buyer suffers an injury because the statement was not accurate.

dubious suits

firms subject to __ are devoting resources to "fending off the deep-pocket and frivolous litigators."

At Law

implied warranty -Implied __ - whether the manufacturer wants the warranty for the product or not

Scienter

intent to defraud