Chapter 6: Product and Strict Liability

55) When a drug manufacturer places prescription drugs in containers that can be easily opened by children, the manufacturer can be subjected to strict liability action due to defect in packaging.

TRUE

57) Inadequate testing of a product can support a product liability lawsuit based on strict liability.

TRUE

7) Negligence requires a defendant to be at fault for causing the plaintiff's injuries.

TRUE

74) Under the doctrine of comparative negligence, if the defendant is 50 percent responsible for injuries worth $10,000 suffered by the plaintiff, then the defendant must pay $5,000 in damages.

TRUE

76) A manufacturer of matches is not strictly liable if an arsonist uses its matches to burn down a building.

TRUE

65) ________ refers to a statute that requires an injured person to bring an action within a certain number of years from the time that he or she was injured by a defective product.

A) Statute of limitations

20) Betty buys a lawnmower manufactured by FlatPlanes Inc. from Harvey's department store. A defect in the design of the blades causes the lawnmower to kick back on operation, injuring Betty. Which of the following remedial actions is Betty entitled to?

B) Betty can sue either Harvey's department store or FlatPlanes for strict liability.

37) ________ is a doctrine that says automobile manufacturers are under a duty to design automobiles by taking into account the possibility of harm from a person's body striking something inside the automobile in the case of a car crash.

B) Crashworthiness

14) Which of the following statements is true about strict liability?

B) It is liability without fault.

64) A pharmaceutical company has disclosed a list of side effects of its new prescription drug. A consumer who takes the drug in the right doses suffers from one of these side effects and sues the company for product liability. Which of the following would be the pharmaceutical company's defense in this lawsuit?

B) The consumer had assumed the disclosed risks when purchasing the drug.

36) Which of the following statements is true when there is a defect in design of a product?

D) All the products are defectively designed and have the potential to cause injury.

21) Which of the following statements is true about the strict liability doctrine?

D) Injured bystanders are entitled to the same protection as the consumer or user.

19) According to the doctrine of strict liability, which of the following parties is strictly liable for injuries caused by a defective product?

D) all parties in the chain of distribution

45) Describe how courts can evaluate the adequacy of a product's design.

In evaluating the adequacy of a product's design, a court may apply a risk-utility analysis. This requires the court to consider the gravity of the danger posed by the design, the likelihood that injury will occur, the availability and cost of producing a safer alternative design, the social utility of the product, and other factors. Some courts apply a consumer expectation test, which requires a showing that the product is more dangerous than the ordinary consumer would expect.

80) Describe the functions of the statute of limitations and the statute of repose.

Most states have statutes of limitations that require an injured person to bring an action within a certain number of years from the time that he or she was injured by a defective product. If the plaintiff does not bring the lawsuit in the allotted time, he loses the right to sue. Some states have enacted statutes of repose, which limit a manufacturer's and seller's liability to a certain number of years from the date when the product was first sold. The period of repose varies from state to state.

77) If the statute of limitations for strict liability for a particular state is two years and a plaintiff brings a product liability suit to court three years after the injury, the defendant is relieved of liability.

TRUE

1) ________ is a tort related to defective products in which the defendant has breached a duty of due care and caused harm to the plaintiff.

B) Negligence

33) A defect in manufacture occurs when a manufacturer fails to ________.

B) adequately check the quality of a product

63) To assert ________ as a defense, the defendant must prove that the plaintiff knew and appreciated the risk of the product.

B) assumption of the risk

18) ________ refers to all manufacturers, distributors, wholesalers, retailers, lessors, and subcomponent manufacturers involved in a transaction.

C) Chain of distribution

59) Clive buys a rifle from Gun Manufacturing Company and goes hunting. During the hunting expedition, he accidentally shoots himself in the foot. Which of the following would be true of this case?

C) Clive cannot take any action because the handling of firearms entails generally known dangers.

51) Michael wanted to build a small princess castle for his daughter in the backyard. He decided to turn it into a do-it-yourself project, so he bought the disassembled parts of the castle from Big Ben Forts Inc. However, after the purchase, he found that the manual provided by the company gave vague directions that were hard to understand. He built the castle by following the manual, but after a few days the castle collapsed and injured his daughter who was playing inside. Which of the following actions can Michael take in this situation?

C) He can file a strict liability lawsuit against Big Ben Forts for failure to provide adequate instructions on assembling the product.

68) The term ________ refers to the doctrine that applies to strict liability actions that says a plaintiff who is contributorily negligent for his or her injuries is responsible for a proportional share of the damages.

C) comparative fault

49) When the containers of a product are not tamperproof, it is termed as a ________.

C) defect in packaging

48) Kicker's Inc. has produced a new kind of candy bar, but it fails to mention on the packaging that the bar contains gluten and nuts. Consequently, many consumers who eat the bars suffer from severe allergic reactions. Which of the following can the injured customers cite as a defect in a strict liability lawsuit against Kicker's?

C) failure to warn

15) Allenby Spares Inc. is a shop that sells spare automotive parts from various manufacturers. A customer buys a faulty brake manufactured by TurboDiezel Inc. from Allenby Spares and is involved in an accident caused by the faulty brake in his vehicle. Which of the following is true of this situation?

D) Allenby Spares can be held strictly liable for the faulty brake as it is part of the distribution chain.

66) ________ refers to a statute that limits the seller's liability to a certain number of years from the date when the product was first sold.

D) Statute of repose

12) ________ is a tort doctrine that makes manufacturers, distributors, wholesalers, retailers, and others in the chain of distribution of a defective product liable for the damages caused by the defect, irrespective of fault.

D) Strict liability

58) ________ refers to an alteration or a modification of a product by a party in the chain of distribution that absolves all prior sellers from strict liability.

D) Supervening event

69) Ruggers Corp. is a maker of a range of highly popular cruise motorcycles. Tim buys a Ruggers motorcycle from a dealership and suffers an accident. While recuperating from his injuries, he learns that Ruggers has recalled all motorcycles it had manufactured and sold in the previous two years, owing to a previously-unknown defect in their braking systems. Tim brings a product liability lawsuit against the motorcycle manufacturer and claims $50,000 in damages. The defect in the motorcycle is found to be half responsible for the accident, while Tim's own negligence of traffic rules contributed to the rest. Under the doctrine of contributory negligence, what would be the ruling of the court hearing this case?

D) Tim cannot recover any damages from the motorcycle manufacturer.

3) Intentional misrepresentation occurs when a seller or lessor ________.

D) conceals a defect in a product

24) Strict liability applies to services but not products.

FALSE

26) The doctrine of strict liability holds the manufacturers of a defective product solely liable for injuries caused by that product.

FALSE

40) Failure to properly assemble a product constitutes a defect in design by the manufacturer.

FALSE

53) A defect in manufacture occurs when the manufacturer fails to warn customers about the dangerous propensities of its products.

FALSE

54) A tamperproof seal on a product is considered as a defect in packaging.

FALSE

56) Manufacturers and others in the chain of distribution are not strictly liable for failure to provide adequate instructions on assembly and use of a product.

FALSE

6) Under the doctrine of strict liability, a plaintiff cannot recover punitive damages for reckless conduct of the defendant.

FALSE

72) The statute of limitations begins to run when a product is first sold.

FALSE

73) The statute of repose begins to run when the plaintiff suffers injury.

FALSE

75) Under the defense of contributory negligence, if Mary is partially responsible for her injuries, then she can recover partial damages from the defendant.

FALSE

79) Any alteration or modification of a product after it leaves the seller's possession can make the seller strictly liable for injuries caused by the product.

FALSE

8) In a negligence lawsuit, parties who were not actually negligent are also liable to the plaintiff.

FALSE

9) An injured party may bring a negligence lawsuit against the distributors and retailers of the defective product.

FALSE

44) What are product defects? What are the most common defects that will allow plaintiffs to recover for strict liability?

Product defects occur when there is something wrong, inadequate, or improper in the manufacture, design, packaging, warning, or instructions about a product. The most common types of defects are defect in manufacture, defect in design, failure to warn, defect in packaging, and failure to provide adequate instructions.

46) What is the purpose of the crashworthiness doctrine?

Sometimes, when an automobile is involved in an accident, the driver or passengers are not injured by the blow itself. Instead, they are injured when their bodies strike something inside their own automobile (e.g., the dashboard, the steering wheel). This is commonly referred to as the "second collision." The courts have held that automobile manufacturers are under a duty to design automobiles to take into account the possibility of this second collision. This is called the crashworthiness doctrine.

10) Intentional misrepresentation occurs when a seller or lessor conceals a defect in a product.

TRUE

25) Under the doctrine of strict liability, bystanders who are injured by a defective product are entitled to the same protection as the consumers or users.

TRUE

27) A defendant who has not been negligent but is made to pay a strict liability judgment can bring a separate action against the negligent party in the chain of distribution to recover his losses.

TRUE

28) Privity of contract between the plaintiff and the defendant is not required in a strict liability suit.

TRUE

30) Casual sales and transactions are not covered under the strict liability doctrine.

TRUE

31) In hybrid transactions that involve both services and products, the dominant element of the transaction dictates whether strict liability applies.

TRUE

32) The doctrine of strict liability applies to sellers and lessors of products who are engaged in the business of selling and leasing products.

TRUE

39) Plaintiffs can allege multiple product defects in one lawsuit.

TRUE

5) The liability of manufacturers, sellers, lessors, and others for injuries caused by defective products is commonly referred to as product liability.

TRUE

78) If the statute of repose for strict liability is five years and an injured party files a suit seven years after the date of purchase of a defective product, the manufacturer or seller of that defective product is relieved of liability.

TRUE

38) To recover for strict liability, the injured party need not show that a product was defective.

FALSE

47) ________ refers to a defect that occurs when a manufacturer does not place information about the dangers of using a product on its packaging, causing injury if the dangers are unknown.

A) Failure to warn

22) John was driving his friend, Mary, back to her home in his new car. On the way to Mary's home, the car's brakes malfunctioned and they got into an accident. Which of the following is true in this situation?

A) Mary can recover from a strict liability lawsuit against the manufacturer of John's car.

52) ________ is a defect that occurs when a manufacturer does not provide detailed directions for safe assembly and use of a product.

B) Failure to provide adequate instructions

61) A man tries to swallow a pen as part of a circus act. The pen gets lodged in his throat, and he is taken to a hospital for immediate medical attention. The man sues the company that manufactured the pen. Which of the following would be the best defense for the pen manufacturer in this lawsuit?

B) It can claim that the product was abnormally misused.

23) ________ refers to monetary damages that are awarded to punish a defendant who either intentionally or recklessly injured the plaintiff.

C) Punitive damages

62) Bill buys a truck and replaces the regular tires with large tires to turn the vehicle into a monster truck. When he tries to drive the truck, the oversized tires cause the truck to roll over and crash. Bill then files a strict liability lawsuit against the truck manufacturer to recover for his injuries. Which of the following is the best defense for truck manufacturer in this lawsuit?

D) supervening event

29) A seller of a defective product cannot be held strictly liable if it can be proved that he or she took all possible care in the preparation and sale of the product.

FALSE

41) A toy manufacturer sells G.I. Joe figurines containing detachable limbs and weapons that could be swallowed by small children. It can be subject to a strict liability action owing to a defect in design.

TRUE

17) Bertha, a surgeon, performed a kidney transplant on one of her patients. The surgery was not successful and the patient did not survive. Which of the following statements is true in this case?

A) Bertha cannot be held strictly liable as she is providing a service.

70) The plaintiff in a product liability lawsuit has suffered $100,000 worth of damages from an automobile accident. A defect in manufacture of the plaintiff's vehicle is found to be 60 percent responsible for the accident, while the plaintiff's own negligence is 40 percent responsible. Under the doctrine of comparative negligence, how much would the defendant—the manufacturer of the vehicle—have to pay the plaintiff in damages?

A) $60,000

13) Henry is undergoing a surgery at Sacred Heart Hospital to insert an artificial pacemaker that will keep his heartbeat regular. The pacemaker is manufactured by Benford Inc. In this case, Dr. DeBenedetto, the surgeon, is considered as the dominant element. If the pacemaker fails to function as expected after the surgery, who would be strictly liable for its failure?

A) Benford Inc.

67) The term ________ refers to a defense that says a person who is injured by a defective product but has been negligent and is partially responsible for his or her own injuries cannot recover from the defendant.

A) contributory negligence

35) Clayton Inc. is a toy manufacturer that has released a new line of action figures. The toys are meant for children between the ages of one and two. However, they come with tiny detachable weapons that can be accidentally swallowed by children of that age. Which of the following defects do the action figures have that will make them strictly liable for any injuries caused?

A) defect in design

2) Diane bought an action figure for David, her 3-year-old son, from Terrence's Toy Shop. The packaging did not mention that the toy contained small detachable parts. David accidentally swallowed and choked on one of the detachable parts and had to be taken to the hospital. On which of the following product liability charges can Diane sue Terrence's Toy Shop for damages?

A) negligence

60) Companies that manufacture products according to government specifications are not liable if such products cause injury because ________.

A) the companies have government contractor defense

50) Spring Stream sells bottled water that it claims contains vital minerals and salts not found in rival brands. The company also claims that using tamperproof seals on the bottles would minimize the health benefits of the water. As a result, some merchants refill the used water bottles with contaminated water and resell them. People who drink the water suffer from various water-borne diseases. Which of the following forms the grounds on which affected customers can bring a strict liability lawsuit against Spring Stream?

B) There was a defect in the packaging of the bottled water.

16) Martin wins a car in a lottery. As he already owns a car, he decides to sell the new one to his friend Ted. While driving the car, Ted gets into a head-on collision with another car. Due to a defective Supplemental Restraint System (SRS) in the vehicle, the airbag does not deploy and Ted is seriously injured. Which of the following statements is true of this situation?

C) Martin cannot be held strictly liable as the sale of the car counts as a casual transaction.

4) Bartie's Inc. sells watercolors and pastels that are marketed as safe for use by children. However, several accounts of lead poisoning were reported in children who used the products. An investigation revealed that the company was knowingly manufacturing colors that contained a significant amount of a toxic heavy metal. Which of the following torts has Bartie's committed?

C) misrepresentation

34) Dorothy purchases a chair made by Woode Designs Inc. While making the chair, the legs were not fixed properly to the base. When Dorothy sat on the chair, it broke and she was injured. In a strict liability lawsuit, which of the following can Dorothy cite as a defect in the chair?

D) defect in manufacture

42) A risk utility analysis requires showing that a product is more dangerous than the ordinary consumer would expect.

FALSE

43) Courts can apply a consumer expectation test to evaluate the adequacy of a product's design.

FALSE

71) Manufacturers and sellers are strictly liable for failing to warn customers of the generally known dangers of a product.

FALSE

11) Compare the tort doctrines of negligence and misrepresentation.

Negligence requires the defendant to be at fault for causing the plaintiff's injuries. To be successful, the plaintiff must prove that the defendant breached a duty of due care to the plaintiff and thereby caused the plaintiff's injuries. In other words, the plaintiff must prove that the defendant was at fault for causing his or her injuries. Failure to exercise due care includes failing to assemble a product carefully, negligent product design, negligent inspection or testing of a product, negligent packaging, failure to warn of the dangerous propensities of a product, and such. It is important to note that in a negligence lawsuit only a party who was actually negligent is liable to the plaintiff. A buyer or lessee who is injured because a seller or lessor fraudulently misrepresented the quality of a product can sue the seller for the tort of intentional misrepresentation, or fraud. Recovery is limited to persons who were injured because they relied on the misrepresentation. Intentional misrepresentation occurs when a seller or lessor either (1) affirmatively misrepresents the quality of a product or (2) conceals a defect in it. Because most reputable manufacturers, sellers, and lessors do not intentionally misrepresent the quality of their products, fraud is not often used as the basis for product liability actions.