LAW 3220 Ch7 Questions
In Baxter v. Ford Motor (where Baxter lost an eye from a broken windshield) Baxter was compensated by Ford under the rule of strict liability in tort for injuries he suffered due to Ford's defective product. a. True b. False
False
While interfering with an existing contractual relationship can be a tort, if a contract has not yet been formed, there can be no tort. a. True b. False
False
Caveat emptor means let the buyer beware. a. True b. False
True
In Gieseke v. IDCA, Gieseke formed a company to compete with his old employer and worked with one of the former owners of his old employer in the new company. His former employer moved some of the equipment of the new company and changed its mailing address without permission of Gieseke or his partner. When Gieseke sued, the courts held that the former employer had interfered with prospective business relations. a. True b. False
True
In the 19th century, consumers bore more of the cost of product-related injuries. a. True b. False
True
The Supreme Court of California, in Greenman v. Yuba Power, was the first court to adopt a general strict liability in tort rule in product-related injury cases. a. True b. False
True
The main author of the Restatement (Second) of Torts is the American Law Institute. a. True b. False
True
In Gieseke v. IDCA, Gieseke formed a company to compete with his old employer and worked with one of the former owners of his old employer in the new company. His former employer moved some of the equipment of the new company and changed its mailing address without permission of Gieseke or his partner. When Gieseke sued, the courts held that the former employer acted properly to recover property and information improperly taken by Gieseke.. a. True b. False
False
In Greenman v. Yuba Power Products the Supreme Court of California made negligence in tort the general rule in products liability cases. a. True b. False
False
In Greenman v. Yuba Power Products the court imposed strict liability on a producer for failure to warn the consumer of dangers involved in using the machine. a. True b. False
False
In MacPherson v. Buick Motor Co. the court held Buick not liable because it did not make the wheel that collapsed and was the proximate cause of injury. a. True b. False
False
MacPherson v. Buick Motor Co. introduced the rule of strict liability in tort for consumer products. a. True b. False
False
Only express warranties may create liability for the seller for defective products. a. True b. False
False
When a company buys dangerous chemicals to use in the workplace, it is presumed to be a sophisticated buyer who should know of many of the dangers involved in using the product, so strict liability is not likely to apply to the seller in case of work injury. a. True b. False
True
About a half-million tort cases are filed each year. a. True b. False
a. True
Fraud may be the same as deceit in tort law. a. True b. False
a. True
In Henningsen v. Bloomfield Motors, the New Jersey Supreme Court greatly expanded the legal protection offered by implied warranties of safety. a. True b. False
a. True
In Lightle v. Real Estate Commission, where Lightle was a real estate agent involved in the sale of a home, the Alaska high court held that there was good evidence that he was involved in fraudulent misrepresentation that caused losses to be suffered. a. True b. False
a. True
In Old Island Fumigation, a company was held liable for injuries caused by its fumigations activities despite it having been provided false information by the property owner. a. True b. False
a. True
In Slater Numismatics v. Driving Force, Driving Force was set up by former employees of a firm Slater worked closely with. Driving Force then move to capture business from a major client of Slater. Slater sued for interference with contractual relations. The appeals court held that Slater had a good cause of action due to acts that went beyond normal competition in business. a. True b. False
a. True
In a suit for fraud, the plaintiff must establish a good reason to rely on the bad information provided by the defendant. a. True b. False
a. True
In a suit for intentional misrepresentation, punitive damages may be awarded. a. True b. False
a. True
Intentional misrepresentation is also known as fraud. a. True b. False
a. True
Scienter means a defendant knew false information was being passed to another party. a. True b. False
a. True
Strict liability for ultrahazardous activities is an old concept going back more than a century. a. True b. False
a. True
The legal rules governing injury from asbestos in the United States are much tougher on producers than is the case in the United Kingdom. a. True b. False
a. True
The sophisticated user defense and bulk-supplier doctrine are similar in reducing liability for product sellers. a. True b. False
a. True
The sophisticated user defense and bulk-supplier doctrine are similar in reducing liability for product sellers. a. True b. False
a. True
The tort of fraud requires the wrongdoer to have a legal relationship with the tort victim. a. True b. False
a. True
The tort system in the U.S. is estimated to cost about $250 billion a year. a. True b. False
a. True
When a person suffers an injury due to deliberate deception, there may be a tort of fraud. a. True b. False
a. True
A company cannot be a defendant in a tort suit since a firm is not a natural person. a. True b. False
b. False
About 80 percent of the total costs involved in tort litigation goes to awards to plaintiffs (injured parties). a. True b. False
b. False
Foreign firms that sell products in the U.S. do not have to bear the costs of compliance with strict liability standards. a. True b. False
b. False
If Company A runs an aggressive advertising campaign that tells customers why they should quit doing business with Company B and do business with A instead, B will be able to sue A for interference with a prospective advantage. a. True b. False
b. False
In Lightle v. Real Estate Commission, where Lightle was a real estate agent involved in the sale of a home, the Alaska high court held that there may be a case of negligent misrepresentation by the home seller. a. True b. False
b. False
In Lightle v. Real Estate Commission, where Lightle was a real estate agent involved in the sale of a home, the Alaska high court held that the claim of fraudulent misrepresentation failed because plaintiff could not establish scienter. a. True b. False
b. False
In the 1913 case Mazetti v. Armour, the court held that privity of contract had to be proved before a plaintiff could sue a food company for breach of warranty in a product defect case. a. True b. False
b. False
Paul buys a bottle of Great Wine. He drinks it and becomes very ill. Doctors find the wine contained anti-freeze. Paul may not sue Great Wine because he assumed the risk of drinking alcohol, an inherently dangerous product. a. True b. False
b. False
Strict liability in tort was applied to food and drink first because of the promises of safety made by the sellers on the labels of their products. a. True b. False
b. False
The tort of intentional misrepresentation requires a showing that the defendant knew there was false information being passed. a. True b. False
b. False
The tort system in the U.S. is estimated to cost right about $40 billion per year. a. True b. False
b. False
Privity of contract is a contract with an express warranty. a. True b. False
false
MacPherson v. Buick Motor Co. introduced the rule of negligence in tort for consumer products. a. True b. False
true
