Business Law Questions Chapter 10

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

A

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

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.

A

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.

A

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.

A

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.

A

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.

A

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.

A

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.

A

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.

A

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.

A

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

B

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.

B

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.

B

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.

B

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.

B

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.

B

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.

C

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.

C

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.

C

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.

C

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.

D

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.

D

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

D

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.

D

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.

D

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.

D

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.

E

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.

E

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.

E

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.

E