BLAW 371 Ch7

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75. A producer is relieved of strict liability in tort if it can show that it used all possible care to construct the product in question. a. True b. False

False

76. The Restatement (Third) of Torts replaced the Second for the standard on product liability in 2010. a. True b. False

False

8. When a person suffers an injury due to deliberate deception, there may be a tort of defamation. a. True b. False

False

80. The Restatement (Third) of Torts on product defect eliminates the concern about inadequate warnings that was critical to the Second version. a. True b. False

False

81. The Restatement (Third) of Torts on product defect recommends that courts use a cost-benefit test to see if added safety is worthwhile. a. True b. False

False

85. If a product is safe for ordinary use, and a producer provides instructions on use for consumers, then strictly liable in tort is eliminated. a. True b. False

False

86. In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that the product was inherently defective because of the high rate of injury. a. True b. False

False

87. In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that while the trampoline was not defective, the safety net around the trampoline was because its instructions were insufficient to be clear. a. True b. False

False

92. When Tylenol was sued for failure to warn of possible damage to livers by Tylenol users who drink alcohol, the court held Tylenol's make not liable because alcohol is an unavoidably dangerous product. a. True b. False

False

94. In liability cases claiming a design defect, the plaintiff argues that the product was so poorly manufactured at the plant that it caused the plaintiff's harms. a. True b. False

False

96. Producers who do not know of that their products are potentially dangerous, because such dangers are not revealed until after years of use, are not liable for damages. a. True b. False

False

97. Unknown hazards cases involve products whose dangers are known by the manufacturer at the time they are produced, but are ignored until a later date. a. True b. False

False

117. 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

123. 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

134. 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

139. 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

144. 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

145. 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

101. There are no defenses available in strict liability cases; manufacturers must pay whenever a consumer is injured. a. True b. False

False

103. 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

False

105. Any injuries suffered because a consumer ignored warning labels on prescription drugs will result in the manufacturer being strictly liability in tort. a. True b. False

False

108. A manufacturer is liable for injuries suffered by product users regardless of the sophistication of the buyer. a. True b. False

False

113. In Old Island Fumigation, a company was not held liable for injuries caused by its fumigations activities because it could not have foreseen those injuries. a. True b. False

False

115. 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

False

12. If a stranger tells you to invest all your money in a company, and you do, and it collapses, losing all your money, you have a good fraud suit against that person. a. True b. False

False

13. The tort of fraud requires the wrongdoer to intentionally mislead another party. a. True b. False

False

15. Scienter in tort law means the plaintiff can see the results of a fraud that has been suffered. a. True b. False

False

17. In a suit for fraud, a plaintiff is presumed to have had the right to rely on any information provided by defendant. a. True b. False

False

2. The tort system in the U.S. is estimated to cost right about $40 billion per year. a. True b. False

False

20. If you make an offer to sell a product to a person who is already buying the product from another party, you have interfered with contractual relations and will be liable in tort. a. True b. False

False

22. When the tort of interference with contractual relations occurs, the party responsible for the tort is the party who breached an existing contract. a. True b. False

False

24. 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

False

25. 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

False

26. 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

27. 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

29. 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 was not liable for improper interference as that tort is not recognized in Minnesota. a. True b. False

False

31. Privity of contract is a contract with an express warranty. a. True b. False

False

33. Strict liability was used as a standard by courts before caveat emptor was used. a. True b. False

False

35. Under the old rule of caveat emptor a buyer injured by a defective product had no ability to sue the maker. a. True b. False

False

36. A study found that plaintiffs in Japan win a much smaller percentage of tort liability suits than do American plaintiffs. a. True b. False

False

37. The legal standard that imposes tort liability on manufacturers when they produce a product negligently so that it hurts a consumer was first introduced in 1865. a. True b. False

False

38. MacPherson v. Buick Motor Co. introduced the rule of strict liability in tort for consumer products. a. True b. False

False

4. About 80 percent of the total costs involved in tort litigation goes to awards to plaintiffs (injured parties). a. True b. False

False

40. 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

43. Negligence in product liability suits means the defendant is found to have intended to produce a substandard, unsafe product. a. True b. False

False

44. The rule of negligence in tort holds the producer responsible for any defect that is the proximate cause of an injury suffered by the user of the product. a. True b. False

False

46. If a producer did not foresee a possible danger with a product that does, in fact, cause injury, the producer cannot be held negligent in tort. a. True b. False

False

5. A company cannot be a defendant in a tort suit since a firm is not a natural person. a. True b. False

False

50. 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

False

51. 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

False

53. Only express warranties may create liability for the seller for defective products. a. True b. False

False

56. The case Henningsen v. Bloomfield Motors, had a major impact on the application of tort law to foreign producers. a. True b. False

False

57. Strict liability based on express warranties was applied originally to alcohol and tobacco products. a. True b. False

False

60. An express warranty of safety in a product is one the law derives by inference from the nature of the transaction between the parties. a. True b. False

False

61. The consumer must purchase the (defective) product directly from the manufacturer in order to prevail in strict liability based on express warranty. a. True b. False

False

62. 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

64. In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the windshield were held to create an implied warranty of safety because Ford misrepresented the quality and safety of the product. a. True b. False

False

67. 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

69. 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

71. The main author of the Restatement (Second) of Torts is the Association of State Supreme Courts. a. True b. False

False

73. Under the rule of strict liability in tort the injured party must show that the manufacturer failed to meet the standard of care of the industry in question. a. True b. False

False

74. Since the Greenman v. Yuba Power Products decision, strict liability in tort has meant intentional harms committed by manufacturers against consumers. a. True b. False

False

45. If a producer learns after it sells a product that it has a problem that might cause consumers injuries, the producer must warn consumers of the danger or face liability. a. True b. False

True

1. About a half-million tort cases are filed each year. a. True b. False

True

10. The tort of intentional misrepresentation requires a showing that the defendant knew there was false information being passed. a. True b. False

True

100. Joint and several liability is liability rule in several states that allows each defendant to be potentially liable for the entire damage award when more than one firm have a similar defective product. a. True b. False

True

102. Common defenses in strict liability cases are product misuse or assumption of risk. a. True b. False

True

104. A person puts much more air in a tire than recommended. The tire explodes, injuring the person. The person is unlikely to win a case against the tire maker because of product misuse. a. True b. False

True

106. If consumption of large quantities of alcoholic beverages over time causes serious health problems a consumer may not recover in tort against the beverage makers because of she assumed the risk. a. True b. False

True

107. 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

True

109. The sophisticated user defense and bulk-supplier doctrine are similar in reducing liability for product sellers. a. True b. False

True

11. The tort of fraud requires the wrongdoer to have a legal relationship with the tort victim. a. True b. False

True

110. 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

111. There are statutes that limit product liability for certain products and services. a. True b. False

True

112. Strict liability for ultrahazardous activities is an old concept going back more than a century. a. True b. False

True

114. 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

True

14. Scienter means a defendant knew false information was being passed to another party. a. True b. False

True

16. 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

True

18. In a suit for intentional misrepresentation, punitive damages may be awarded. a. True b. False

True

19. You may be sued in tort for the damages incurred for interfering with a contract between two other parties. a. True b. False

True

21. The tort of interference with contractual relations occurs when Party C attempts to get Party A, who has a contract with Party B, to breach the contract in favor of doing business with Party C. a. True b. False

True

23. In a case alleging interference with a contractual relation, the defendant must have known the plaintiff had a contract with a third party. a. True b. False

True

28. 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

3. The tort system in the U.S. is estimated to cost about $250 billion a year. a. True b. False

True

30. In the 19th century, consumers bore more of the cost of product-related injuries. a. True b. False

True

32. Caveat emptor means let the buyer beware. a. True b. False

True

34. The rule of caveat emptor meant that if there was no privity between a producer and an injured consumer, the consumer had no case against the producer. a. True b. False

True

39. MacPherson v. Buick Motor Co. introduced the rule of negligence in tort for consumer products. a. True b. False

True

41. In MacPherson v. Buick Motor Co. the court held Buick liable because it is responsible for the quality of wheels and other parts used on its vehicles. a. True b. False

True

42. Under the negligence standard, a manufacturer is required to exercise reasonable care under the circumstances in the production of its product. a. True b. False

True

47. Frustration over the difficulties of proving negligence led to the move in tort law from a negligence standard to a strict liability standard. a. True b. False

True

48. To win a case based on strict liability against a producer, the plaintiff must show that the product was defective, that a defect in it caused it to be dangerous, and the defect was the proximate cause of the injury. a. True b. False

True

49. Strict liability was first applied based on implied warranties of safety of food and drink. a. True b. False

True

52. A warranty is an assurance from the manufacturer that its products will meet certain quality standards. a. True b. False

True

54. Strict liability for defective products may arise from either an implied warranty or an express warranty. a. True b. False

True

55. 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

True

58. Strict liability based on express warranty of safety was first based on contract law. a. True b. False

True

59. An express warranty is a promise that is clearly stated by the seller to the buyer; it is a part of the contract. a. True b. False

True

6. When a person suffers an injury due to deliberate deception, there may be a tort of fraud. a. True b. False

True

63. In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the windshield were held to create an express warranty of safety because Ford misrepresented the quality and safety of the product. a. True b. False

True

65. Courts developed strict liability in tort when strict liability under contract law proved too restrictive. a. True b. False

True

66. 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

68. In Greenman v. Yuba Power Products the court imposed strict liability on a producer due to failure to prevent a defect in its product that caused injury to a consumer. a. True b. False

True

7. Fraud may be the same as deceit in tort law. a. True b. False

True

70. The main author of the Restatement (Second) of Torts is the American Law Institute. a. True b. False

True

72. The rule of strict liability in torts used in the Restatement (Second) of Torts helped bring about nationwide adoption of the rule. a. True b. False

True

77. The Restatement (Third) of Torts on product defect recommends that a risk-utility balancing test be used. a. True b. False

True

78. The Restatement (Third) of Torts on product defect recommends that the distinction between strict liability and negligence be given less attention. a. True b. False

True

79. The Restatement (Third) of Torts, which some state courts have adopted, tends to abandon the traditional distinction between negligence and strict liability in design defect cases. a. True b. False

True

82. The doctrine of strict liability has been extended to include cases where manufacturers produce a poorly designed product. a. True b. False

True

83. The doctrine of strict liability in tort applies primarily to cases of manufacturing defect, failure to warn, and to design defects. a. True b. False

True

84. Even if a product is safe for ordinary use, a producer may be held strictly liable in tort for not telling consumers of possible dangers associated with improperly using the product. a. True b. False

True

88. In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that the trampoline had sufficient warnings of dangers so as to eliminate liability. a. True b. False

True

89. Not only must manufacturers produce products safely, they must also think about how consumers might misuse the products and then warn consumers not to engage in these kinds of dangerous activities. a. True b. False

True

9. Intentional misrepresentation is also known as fraud. a. True b. False

True

90. A gun manufacturer that fails to warn its users that hearing loss may occur due to long-term exposure to gun fire may be strictly liable in tort for hearing loss. a. True b. False

True

91. The Supreme Court of Alaska upheld a verdict of strict liability against a diet food producer who failed to provide adequate warnings about the dangers of using a diet food as baby food. a. True b. False

True

93. Design defect cases usually do not concern one product that slips through the production process with a defect. a. True b. False

True

95. In one appeals court case it was held to be a design defect to make an emergency stop button red as that color is attractive to children who push the button. a. True b. False

True

98. At least $100 billion has been devoted to asbestos litigation. a. True b. False

True

99. The courts have held that firms in an industry could be held liable jointly for damages done by products they had produced. a. True b. False

True

267. 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

116. 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

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

125. 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

128. 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

129. 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

133. 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

136. 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

140. 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

141. 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

147. One well-known business torts is: a. intentional interference with contractual relations b. unintentional interference with contractual relations c. forced interference with contractual relations d. interference with advantaged clients e. interference with intent

148. 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

152. 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

153. Meddling with another's business in an unreasonable and improper manner to improve one's own place in the market it an example of the tort of: a. interference with prospective advantage b. interference with competition c. interference with business practices d. interference with intent e. none of the other choices

157. 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 his former employer the courts held that the former employer: a. was not liable in tort as its actions did not go beyond "normal business activities" b. was not liable as Gieseke was not properly licensedy c. was liable for criminal intent to misappropriate Gieseke's property d. was liable for breach of the "presumption of goodwill" in business relations e. none of the other choices are correct

163. 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

165. 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

166. 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

167. 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

171. 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

179. In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue Buick because: a. Buick was a manufacturer of automobiles and responsible for the finished product b. Buick was a wealthy enough company to afford paying damages c. Buick was liable because it advertised that the wheels were safe on every vehicle d. MacPherson's injuries were life-threatening e. none of the other choices are correct

183. 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

187. 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

191. 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

192. 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

197. 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

203. 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

207. 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

209. 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

221. 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

225. 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

233. 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

238. As seen in Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, misrepresentation about product quality in advertising may be the basis for: a. strict liability b. false liability c. privity of contract d. fraud in sales e. none of the other choices are correct

240. As seen in Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, ____ may be the basis for strict liability in tort. a. express warranty b. misrepresentation in contracts c. sales fraud d. breach of contract e. civil fraud

242. The Supreme Court of California in Greenman v. Yuba Power led in adopting a general rule: a. imposing strict liability in tort b. making the consumer prove the manufacturer's negligence c. allowing protection for manufacturers who did not warrant perfection of their products d. of strict liability in case of express warranty of safety e. none of the other choices

248. In Greenman v. Yuba Power Products, where Greenman was injured when a tool his wife bought him malfunctioned, the California high court stated the reason why strict liability should be applied to manufactures of defective products. The reason is: a. these manufacturers should bear the costs of injuries their products cause b. consumers should bear the costs of injuries to make them more careful c. consumers should split the costs of injuries with manufacturers; this will best insure the highest amount of care d. state statutes encouraged the adoption of a strict standard e. none of the other choices

250. As stated by the California high court in Greenman v. Yuba Power Products, where Greenman was injured when a tool his wife bought him malfunctioned, manufacturers should bear the costs of injuries their products cause and thus: a. strict liability should be applied to manufacturers of defective products b. ultimate liability should be applied to manufacturers of defective products c. consumers should bear all the risk of using defective products d. manufacturers should bear some, but not all of the costs, of defective products e. limited liability should be applied to manufacturers of defective products

265. 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

271. 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

288. 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

289. 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

295. 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

303. If the consumer knows the risks associated with the use of a product and still chooses to use it he is: a. assuming the risk and thus relieving the manufacturer of liability b. assuming the risk, but not relieving the manufacturer of liability c. still able to sue if the manufacturer if injured because of ultimate liability d. still able to sue the manufacturer if injured because of absolute liability e. none of the other choices are correct

306. The bulk-supplier doctrine holds that the bulk supplier: a. has a duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users, but it does not have to police the details of what is done as the product continues down the chain of use b. has no duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users, and it does not have to police the details of what is done as the product continues down the chain of use c. has a duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users and must police the details of what is done as the product continues down the chain of use d. is liable for injuries caused by any item sold e. none of the other choices are correct

313. The sophisticated user defense: a. relieves a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers" b. does not relieve a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers" c. limits damage awards to less than $1 million when "the end user knows or reasonably should know of a product's dangers" d. limits damage awards to less than $100,000 when "the end user knows or reasonably should know of a product's dangers" e. none of the other choices are correct

319. Worker compensation statutes are an example of: a. a potential statutory limit on workplace tort liability b. a statutory limit on how many cases may be brought against a manufacturer for a defective product that causes injuries c. a potential cause for tort liability for a manufacturer d. the main cause of most business tort cases e. none of the other choices are correct

320. Federal regulations controlling radiation exposure are an example of: a. a potential statutory limit on tort liability b. a statutory limit on how many cases may be brought against a manufacturer for a defective product that causes injuries c. a potential cause for tort liability for a manufacturer d. the main cause of most business tort cases e. none of the other choices are correct

328. In Old Island Fumigation v. Barbee, a fumigation company sprayed two condominiums. Some of the fumes leaked, without Old Island's knowledge, into a third, unprotected condominium. In this case: a. Old Island was strictly liable for the harms caused in the third condominium b. the condo owners were strictly liable for their harms c. the condo owners were contributorily negligent d. the condo owners were comparatively negligent e. the condo owners assumed the risk; Old Island was not liable

331. The rule concerning ultrahazardous activities has been applied to: a. crop dusting b. restaurant food c. airline crashes d. all of the other specific choices e. none of the other choices

332. Negligence of other parties is irrelevant to the imposition of liability in ____ cases. a. ultrahazardous activity b. limited liability c. misrepresentation d. fraud e. none of the other choices are correct

333. Negligence of other parties is irrelevant to the imposition of liability in ____ cases. a. megahazardous activity b. limited liability c. misrepresentation d. fraud e. none of the other choices are correct

342. While sitting beside a swimming pool, a neighbor, Bob, a roof installer, tells you that you should buy stock in HotNet because it is about to skyrocket in value. You invest all your money in the stock, which then drops to zero. You: a. cannot sue Bob for misrepresentation b. can sue Bob for negligent misrepresentation, but not for fraud c. can sue Bob for deceit, but not for intentional misrepresentation d. can sue Bob for negligent misrepresentation, but not for intentional misrepresentation e. can sue Bob for fraud, but not for fraudulent misrepresentation

351. Glasgow was electrocuted and died when he turned on his new television set. His family sued the TV maker, claiming design defect. The family will likely: a. win because the product was defective b. win because such products have express warranties against such accidents c. lose if the product used the normal wall plug design found successful in the overwhelming majority of such products d. lose on the basis of product misuse e. lose on the basis of sophisticated user

353. McKenzie worked in a service station. Changing a customer's tire, he over-inflated it, causing it to explode. This severely injured his left hand. Neither the tire nor the rim was found to be defective. In a lawsuit against the tire manufacturer McKenzie will likely: a. lose due to product abuse b. win under a strict liability or a negligence standard c. lose under strict liability but win under negligence d. win due to implied warranty of safety e. lose due to assumption of the risk

354. "Big Red" is a popular car. The dash board is covered with little steel studs. In an accident, Betty, sitting next to her boyfriend and not wearing a seat belt, smashes her face on the dash board. The steel studs make the injuries worse. Her boyfriend is at fault in the accident. Betty sues the maker of "Big Red" for injuries. She is likely to: a. win; the manufacturer did not exercise reasonable care to prevent foreseeable dangers b. win; car producers are held strictly liable for injuries suffered by accident victims c. lose; assumption of the risk in being in a car d. lose; assumption of risk by not wearing a seat belt e. lose; auto makers are not responsible for injuries incurred in accidents that are the fault of a driver

355. Chuck eats two pounds of potato chips a day for 20 years. He becomes obese and dies from high blood pressure at age thirty. Doctors attribute his death to consumption of the chips. In a suit against the chip makers, Chuck's heirs will probably: a. lose because of Chuck's assumption of risky behavior b. lose because the U.S. Dept. of Agriculture had certified the chips as safe to eat c. lose because of lack of warranty d. win because of the failure to warn consumers of dangers of such use e. win because of implied warranty of safety of food products

146. 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

158. 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

159. 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

160. 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

175. In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue: a. Buick for negligence under contract law b. Buick for negligence under tort law c. Buick for strict liability under contract law d. Buick for strict liability under tort law e. the wheel maker, not Buick, for negligence in product construction

194. 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

196. 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

199. 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

215. 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

227. 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

232. 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

234. 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

236. In Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, Ford's liability was based on: a. negligence in construction b. misrepresentation in advertisements c. privity in warranty d. fraud in sales e. none of the other choices

244. 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

252. The Restatement (Second) of Torts Sect. 402A describes: a. limited liability b. strict liability in tort c. contractual liability d. express warranty of safety e. all of the other choices

277. If the manufacturer provides adequate warnings, as in the case of Parish v. ICON, where a person was severely injured when jumping on a trampoline and sued its maker and the maker of a safety net for failure to warn, consumers: a. can still sue for failure to warn, but are limited in the amount of damages they can recover b. cannot sue for failure to warn c. can recover up to half their medical bills from the manufacturer d. cannot negotiate for damages outside of court e. none of the other choices are correct

284. 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

285. 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

286. 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

300. 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

321. Ultrahazardous activity is activity that: a. "necessarily involves a risk of serious harm to the person, land, or chattels of another, which can be eliminated by the exercise of the utmost care" and "is not a matter of common usage." b. "necessarily involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care" and "is not a matter of common usage." c. "necessarily involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care" and "is a matter of common usage." d. "necessarily involves a risk of serious harm to the person, land, or chattels of another, which can be eliminated by the exercise of the utmost care" and "is a matter of common usage." e. none of the other choices are correct

336. The "tort crisis" in the U.S.: a. is increasingly making American firms less competitive b. is abating c. is getting worse every year d. is growing slowly e. none of the other choices are correct

338. One evening you eat at the salad bar of a restaurant. The potato salad looks a bit odd, but you stuff it down anyway. You get food poisoning from the salad, which was left at room temperature too long. If you sue the restaurant, they are likely to be: a. strictly liable for violating express warranties that exist at all restaurants b. strictly liable for violating implied warranties that exist for food c. not liable because of your assumption of the risk at the restaurant d. not liable because of contributory negligence for not asking about the safety of the salad e. not liable because of the rule of caveat emptor

356. Worden entered into an agreement that allowed Yazdianpour to be the exclusive seller of Safebood Technologies patented products outside of the United States. Worden knew that the patents were only valid in the United States, but did not tell Yazdianpour who learned that fact when he tried to sell licenses for the products. He sued Worden for fraud. The appeals court held that Worden could: a. be liable for misrepresentation but not for intentional fraud. b. be liable for fraud. c. not be liable for fraud as the technology had no protection rights outside of the United States. d. not be liable for fraud or misrepresentation because Yazdianpour did not make any up-front payment for the rights. e. none of the other choices are correct.

118. 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

132. 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

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

151. 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

162. 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

169. 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

173. 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

177. In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held that: a. Buick was not responsible to the consumer because it did not make the defective wheel b. the wheel manufacturer was liable for negligence for making a defective wheel c. Buick was liable to the consumer for the finished product d. Buick was not liable; the dealer was liable as the seller of the finished product e. none of the other choices

189. 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

190. 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

195. 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

201. 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

205. 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

211. 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

213. 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

217. 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

219. 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

230. In Henningsen v. Bloomfield Motors, a New Jersey court allowed a woman to recover damages for injuries she suffered because of brake failure on her husband's car. The theory that the court applied to find strict liability was: a. negligence in tort b. breach of oral contract c. implied warranty of safety d. abuse of police powers e. misuse of the commerce clause

246. In Greenman v. Yuba Power Products, Greenman was injured when a tool his wife bought him malfunctioned. The Supreme Court of California imposed liability based on: a. express warranty b. implied warranty c. strict liability in tort d. lack of merchantability e. none of the other choices

254. 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

256. 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

258. 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

263. 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

274. In Parish v. ICON, where a person was severely injured when jumping on a trampoline and sued its maker and the maker of a safety net for failure to warn, the Iowa high court held that: a. the makers had no duty to warn because the danger was obvious b. the makers had a poorly designed set of instructions c. the case could be dismissed because the warnings were adequate d. produced products that should never have been placed on the market because they are so dangerous that warnings are unhelpful e. none of the other choices

291. Unknown hazards products liability cases involve: a. a small number of products liability cases b. only cases involving asbestos c. the largest dollar volume of products liability cases d. cases in which the government is the defendant e. cases in which the government is the plaintiff

293. 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

301. 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

307. The ____ holds that the bulk supplier has a duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users, but it does not have to police the details of what is done as the product continues down the chain of use. a. commercial-supplier doctrine b. final-supplier doctrine c. bulk-supplier doctrine d. small-scale supplier doctrine e. Wal-Mart-supplier doctrine

315. Company B uses dangerous acid made by Company A in its production. B fails to warn a new employee of the risks in using the acid and the employee is injured. If Company B is sued by the employee, its defense will be that A and the employee are: a. accomplices b. in violation of federal safety regulations c. sophisticated users d. not covered due to lack of warranty e. ruthless capitalist oppressors

317. Which of the following is not a potential statutory limit on potential tort liability: a. worker compensation statutes b. certain products that must follow federal labeling requirements c. products made in foreign country under their liability laws for sale in the U.S. d. government contractors building according to government specifications e. federal regulations controlling radiation exposure

322. Activity that "necessarily involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care" and "is not a matter of common usage" is called: a. metahazardous activity b. superhazardous activity c. ultrahazardous activity d. megahazardous activity e. none of the other choices are correct

325. Which of the following activities is an example of an ultrahazardous activity: a. jumping on a trampoline b. operating a nail gun c. transporting chemicals in a city d. all of the other specific choices are correct e. none of the other specific choices are correct

326. Which of the following activities is an example of an ultrahazardous activity: a. jumping on a trampoline b. operating a nail gun c. blasting with explosives d. all of the other specific choices are correct e. none of the other specific choices are correct

327. Which of the following activities is an example of an ultrahazardous activity: a. jumping on a trampoline b. operating a nail gun c. crop dusting d. all of the other specific choices are correct e. none of the other specific choices are correct

334. Parties engaging in ultrahazardous activities are liable for injuries: a. unless the injured party somehow profited from the activity before being injured b. unless the injured party should have known better c. regardless of the level of care exercised in carrying out the activity d. unless there is sufficient care shown in carrying out the activity e. none of the other choices are correct

340. Claude Farmer wants flooring material to put in his dairy barn so that his prize cows will not have to stand on concrete. Julie Salesperson assures Claude that Like-A-Cloud rubber flooring will provide adequate cushioning for Claude's herd. Based on her assurances, Claude buys the flooring. He has: a. a warranty of fitness for a particular purpose b. no warranty at all c. an express warranty d. a warranty of habitability e. none of the other choices

345. "Super Wash" liquid dishwasher detergent is sold in a box shaped like a milk carton with a bright and cheery cover. Finding the carton under the kitchen sink, a two-year-old drinks it, suffering serious internal injuries. In a suit against "Super Wash" the court is likely to find the producer: a. liable in contract for express warranty of safety b. liable for misrepresentation c. liable in strict liability for failure to warn or for design defect d. all of the other specific choices are likely e. not liable because of contributory negligence by parents

347. Retired pesticide workers develop brain tumors. Evidence shows all were exposed to the chemical Kudzu. Kudzu has been around for 30 years, and this is the first sign of a problem with the product. In a lawsuit against the producer of Kudzu, the workers will likely: a. lose because their exposure was years ago and the statute of limitations has run out b. lose because the injuries are associated with "ordinary diseases of life" c. win if the manufacturer did not undertake tests to determine effects on users d. win if the manufacturer engaged in misrepresentation e. win based on express warranty in contract

348. Flush-O, a toilet cleaner, states clearly on its package that it is poison. Flush-O's cap is easy to remove. A small child opens a bottle left in a bathroom cabinet, drinks some Flush-O, and is injured. If the child's parents sue the makers of Flush-O, Flush-O is likely to: a. lose because of express warranty of safety b. lose because of unknown hazards c. lose because of failure to warn or design defect d. win because of assumption of the risk e. win because of contributory negligence by the parents

350. "No Gordo" is a common artificial sweetener. Researchers find it is responsible for cancer of the liver in some people. A person with liver cancer, who has eaten products containing "No Gordo" for years, wants to sue manufacturers who used the sweetener. In this case: a. there is no one to sue since "No Gordo" is not patented and is used in many products b. there is an assumption of the risk by consumers of such chemical products, so there is no liability c. he may sue in strict liability for unknown hazards against all makers of "No Gordo" d. there may be a suit in negligence against all makers of "No Gordo" for failure to adequately test the product e. there may be a suit for intentional liability under the Magnuson-Moss Warranty Act

360. Kim lost control of his Toyota. The vehicle rolled and he suffered injuries. He sued for design defect because the vehicle lacked electronic stability control, a feature that would have increased his chance of controlling the vehicle so it would not have gone off the road. The appeals court held that: a. use of a risk-benefit analysis about adopting such safety features was not proper in a case of strict liability. b. in cases involving motor vehicles, negligence, not strict liability was the standard to be applied. c. it was appropriate to use risk-benefit analysis in strict products liability cases. d. expert testimony about the benefit of such devices would help the jury determine if such devices were to be expected or not by consumers. e. none of the other choices are correct.

122. 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

126. 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 e. none of the other specific choices are correct

131. 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.

150. 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

181. In MacPherson v. Buick Motor the court held for MacPherson for injuries caused by defective wheels on his Buick. This case allowed for negligence for product liability: a. with privity b. with exception c. with implied warranty d. without privity e. without exception

182. In MacPherson v. Buick Motor the court held for MacPherson for injuries caused by defective wheels on his Buick. This case allowed for negligence for product liability: a. only when privity existed b. with exception for contract warranty c. with implied warranty d. without exception e. except for commercial sales

229. In Mazetti v. Armour, a court in 1913 held that a food producer must provide food safe for human consumption, even if there is no privity of contract. Liability was based on: a. misrepresentation b. caveat emptor c. UCC Section 2-314 d. implied warranty of safety e. express warranty of safety

261. 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

269. 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

275. In Parish v. ICON, where a person was severely injured when jumping on a trampoline and sued its maker and the maker of a safety net for failure to warn, the Iowa high court held that the manufacturers were not liable because: a. trampolines are commonly known to be unavoidably dangerous b. the is no requirement to provide warnings on products classified as toys c. Parish was over 18 and thus should be held as a responsible adult d. the warnings provided by the manufactures were adequate e. none of the other choices are correct

280. 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

281. 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

283. 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

290. 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 e. none of the other specific choices are correct

297. 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

302. 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

304. Defenses against strict liability include(s): a. product abuse b. assumption of risk c. sophisticated user d. all of the other specific choices are possible e. none of the other choices; there is no defense for strict liability

305. Assumption of the risk may bar recovery under strict liability for which products? a. alcoholic beverages b. prescription drugs c. cigarettes d. all of the other specific choices e. none of the other choices are relevant

309. One who by experience and expertise is aware of the possible health hazards associated with the use of a product and who has an obligation to inform its employees and customers of potential hazards is referred to as a(n): a. company buyer b. secondary purchaser c. primary purchaser d. sophisticated user e. informed buyer

311. The ____ relieves a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers" a. naïve user defense b. smart user defense c. intelligent user defense d. sophisticated user defense e. informed user defense

324. Which of the following activities is an example of an ultrahazardous activity: a. crop dusting b. blasting with explosives c. transporting chemicals in a city d. all of the other specific choices are correct e. none of the other specific choices are correct

330. The rule concerning ultrahazardous activities has been applied to: a. crop dusting b. chemicals in water supplies c. blasting with explosives d. all of the other specific choices e. none of the other choices

339. "Sports Glasses" advertises that is product will not break when used in contact sports. A hockey player catches a stick in the face; his "Sports Glasses" break and injure him. He sues the makers of "Sports Glasses." They likely be held: a. not liable because of assumption of the risk in contact sports b. not liable because evidence shows that no technology exists that will prevent glasses from breaking under strong enough force c. not liable because of lack of a written warranty d. liable in strict liability based on express warranty e. liable in strict liability for market share liability

346. A company packages poisoned wheat to use on farms in the Southwest to kill rats. The package states how dangerous the product is and explains needed precautions. A Mexican farm worker takes some wheat home. Since he cannot read English, he has no knowledge of the danger and feeds the wheat to his family. Two children die. In a liability suit against the poisoned wheat producer, the worker likely will likely: a. lose; he used the product improperly b. lose; the warning of the dangers was adequate c. lose; he contributed his negligence by not asking if the product was safe to eat d. win; the warning was not adequate given the market where the product was distributed e. win; market share liability

349. Green bought a scoop attachment for the front of his tractor that could be used to scoop up grain for his farm animals. After a snow, Green used the tractor to clear his driveway. Because of the cold, the scoop snapped-off and injured Green. In a suit against the maker, Green will likely: a. lose because of assumption of the risk b. lose because of contributory negligence c. lose because of improper use d. win on basis of design defect e. win on basis of manufacturer's warranty under the Federal Trade Commission Act

358. HMA, operator of a hospital, contracted with Emcare to provide emergency medical services to the hospital. Emcare hired Dr. Hamby as an emergency medical physician on a one-year contract. Hamby argued with the manager of HMA about its billing procedure and Hamby was fired by Emcare before the year ended. The appeals court held that Hamby: a. could only sue Emcare for breach of contract. b. could only sue HMA for breach of contract. c. could sue both Emcare and HMA for breach of contract. d. could sue HMA for tortious interference with c contract. e. none of the other choices are correct.

119. Each year about one-half million tort suits are filed. Most are in ____ courts. a. federal b. appellate c. municipal d. small claims e. none of the other choices

121. Most tort suits are filed in: a. municipal courts b. federal courts c. appellate courts d. small claims courts e. none of the other choices are correct

124. Compensation for injured parties accounts for ____ of the total cost of the tort system. a. about two-thirds b. over 80% c. more than half d. about three-fourths e. none of the other choices are correct

127. 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

130. 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

135. One element of fraud or intentional misrepresentation is scienter. That means: a. false information about an important fact was passed on b. the defendant wanted the plaintiff to believe the falsehood c. there was a relationship between the parties that created a legal obligation d. the extent of damages caused e. none of the other choices

137. Scienter is: a. the intent to prosecute 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

142. The tort of misrepresentation can be based on: a. negligence, but not intent b. intent, but not negligence c. neither intent or negligence; it requires fraud d. deceit only e. none of the other choices

143. 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

149. In a case of intentional interference with contractual relations the claim is: a. the injured business's contractual relations caused them to lose money 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

154. 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 his former employer the courts held that he had a good cause of action for: a. trespass of business property b. fraud c. interference with prospective contractual relations d. negligent misrepresentation e. none of the other choices

155. 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 his former employer the courts held that he had a good cause of action for: a. was not liable as it had no obligation to write policies b. was not liable as it was prohibited by the state from doing insurance business any longer c. was liable as it prohibited MDM from continuing its relationships with clients d. was liable as it induced MDM to develop business relationships that were suddenly cancelled e. none of the other choices

156. 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 his former employer the courts held that the former employer: a. was not liable in tort as its actions did not go beyond "normal business activities" b. was not liable as Gieseke was not properly licensed c. was liable for negligent misrepresentation of Gieseke's business to other parties d. was liable for interference with prospective contractual relations e. none of the other choices

161. The ____ is primarily concerned with harms suffered by buyers and other persons who use defective products. a. law of stock protection b. law of malpractice liability c. law of seller liability d. law of commercial liability e. none of the other choices are completely correct

164. Privity is: a. an agreement to privacy b. an understanding between friends c. a "gentlemen's agreement" d. an agreement to agree in the future e. none of the other choices are accurate

168. The term privity of contract refers to: a. damage awards provided by juries in products liability cases b. the requirement that products liability law have its origin in the common law of contracts c. the risk that a product is of adequate legal quality d. the requirement that products liability litigation must be brought by private citizens e. none of the other choices

170. 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. strict liability d. proximate cause e. none of the other choices

172. Under the rule of caveat emptor, the producer of a defective product that caused injury to a consumer was: a. not liable in either tort law or contract law 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. none of the other choices

174. 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. manufacturer liability d. proximate cause e. none of the other choices

176. In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue: a. Buick for negligence under contract law b. Buick for deceptive sales practices c. Buick for strict liability under contract law d. Buick for strict liability under tort law e. none of the other choices

223. 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

178. In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held that: a. Buick was not responsible to the consumer because it did not make the defective wheel b. the wheel manufacturer was liable for negligence for making a defective wheel c. Buick was not liable because it did not have privity with MacPherson, the buyer d. Buick was not liable; the dealer was liable as the seller of the finished product e. none of the other choices

180. In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue Buick because: a. Buick was only a dealer of automobiles, but still was responsible for the finished product b. Buick was a wealthy enough company to afford paying damages c. Buick was liable because it advertised that the wheels were safe on every vehicle d. MacPherson's injuries were life-threatening e. none of the other choices are correct

184. 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. Lightle v. Real Estate Commission 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

185. 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

186. The legal standard articulated in MacPherson v. Buick Motor, regarding negligence in of producers of products dominated product liability law until: a. 1901, when soldiers were poisoned in the Spanish-American War 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. none of the other choices

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

193. Liability based on negligence: a. means the manufacturer must exercise reasonable care in the production of product b. includes reasonable care in presenting the product to the public to avoid misrepresentation c. means a causal connection between the defendant's lack of care and the plaintiff's harms d. losses are suffered e. all of the other choices

198. 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 comparative negligence standard b. a caveat emptor standard c. an assumption of risk standard d. a business exemption standard e. none of the other choices

200. 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. hazardous liability c. liability for misrepresentation d. res ipsa loquitur e. none of the other choices

202. 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. res ipsa loquitur d. less liability e. none of the other choices are correct

204. Under the strict liability doctrine, the focus is on the ____, rather than the reasonableness of the conduct of the manufacturer. a. problem the plaintiff had understanding the manufacturer's instructions b. problems with advertising c. problem created by careless production workers d. problems with the manufacturing process e. none of the other choices are correct

206. 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 rationality of the conduct of the manufacturer d. the appropriateness of the conduct of the manufacturer e. none of the other choices are correct

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

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

212. A warranty is: a. a legal document absolving a manufacturer of liability b. a consumer's agreement not to misuse a product c. a legal document limiting how much a manufacturer can be sued for if a product fails d. a manufacturer's assurance that a product will be below a certain cost e. none of the other choices are correct

214. A ____ is, legally, a manufacturer's assurance that a product will meet certain quality and performance standards. a. certificate of quality b. certificate of use c. notarized promise d. pledge e. none of the other choices are correct

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

218. An implied warranty is: a. illegal in many states b. one the manufacturer always provides to the buyer in every relationship c. one that the law prohibits from being waived d. one consumers demand in all contracts e. none of the other choices are correct

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

222. A(n) ____ warranty is one the law inserts into the relationship regardless of the actual contract terms. a. inferred b. valid c. explicit d. expiated e. none of the other choices are correct

224. 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. none of the other choices

226. The basis of the case in a(n) ____ case is the relationship between the manufacturer and the injured party. a. warranty expression b. felony c. partial liability d. intentional liability e. none of the other choices are correct

228. The first major application of the doctrine of strict liability for consumer products was in the area of: a. automobiles b. tobacco c. glass windshields d. tires e. none of the other choices

231. In Henningsen v. Bloomfield Motors, a New Jersey court allowed a woman to recover damages for injuries she suffered because of brake failure on her husband's car. The theory that the court applied to find strict liability was: a. negligence in tort b. breach of oral contract c. abuse of police powers d. misuse of the commerce clause e. none of the other choices

235. For the doctrine of strict liability to apply: a. a consumer must have purchased the product directly from the manufacturer b. a consumer must misuse the product due to faulty instructions 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

237. In Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, Ford's liability was based on: a. negligence in construction b. breach of tort c. privity in warranty d. fraud in sales e. none of the other choices

239. As seen in Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, misrepresentation about product quality in advertising may be the basis for: a. felony liability b. false liability c. privity of contract d. fraud in sales e. none of the other choices are correct

241. As seen in Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, ____ may be the basis for strict liability in tort. a. civil fraud b. misrepresentation in privity c. sales fraud d. breach of tort e. none of the other choices are correct

243. The Supreme Court of California in Greenman v. Yuba Power led in adopting a general rule: a. imposing liability for ultrahazardous products b. making the consumer prove the manufacturer's negligence c. allowing protection for manufacturers who did not warrant perfection of their products d. of strict liability in case of express warranty of safety e. none of the other choices

245. The case that led in adopting a general rule imposing strict liability in tort was: a. Morriss v. Akers b. Johnson v. Chevrolet c. MacPherson v. Buick Motor Company d. MDM Group Associates v. CX Reinsurance Company e. none of the other choices are correct

247. In Greenman v. Yuba Power Products, Greenman was injured when a tool his wife bought him malfunctioned. The Supreme Court of California imposed liability based on: a. express warranty b. implied warranty c. negligence in tort d. lack of merchantability e. none of the other choices

249. In Greenman v. Yuba Power Products, where Greenman was injured when a tool his wife bought him malfunctioned, the California high court stated the reason why strict liability should be applied to manufactures of defective products. The reason is: a. that insurance covers such losses b. consumers should bear the costs of injuries to make them more careful c. consumers should split the costs of injuries with manufacturers; this will best insure the highest amount of care d. state statutes encouraged the adoption of a strict standard e. none of the other choices

251. As stated by the California high court in Greenman v. Yuba Power Products, where Greenman was injured when a tool his wife bought him malfunctioned, manufacturers should bear the costs of injuries their products cause and thus: a. limited liability should be applied to manufacturers of defective products b. ultimate liability should be applied to manufacturers of defective products c. consumers should bear all the risk of using defective products d. manufacturers should bear some, but not all of the costs, of defective products e. none of the other choices are correct

253. The Restatement (Second) of Torts Sect. 402A describes: a. limited liability b. liability for negligence by manufacturers c. contractual liability d. express warranty of safety e. none of the other choices

255. Strict liability in tort rule in product injury cases is described in: a. the Bill of Rights b. the Constitution c. the Second Amendment of the U.S. Constitution d. the Final Restatement of Torts Sect. 412A e. none of the other choices are correct

257. 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 Final Restatement of Torts Sect. 402A e. none of the other choices are correct

259. 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

260. 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

262. 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

264. 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. an express warranty rule d. the rule of negligence e. none of the other choices

266. Risk-utility balancing refers to the fact that: a. manufacturers must disclose all risks to using their product before putting it on the market b. all products can be made completely 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. none of the other choices are correct

268. When considering the risk-utility balance, courts consider: a. the extent of the manufacturer's investment in making a safe product 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

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

272. 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

273. In Parish v. ICON, where a person was severely injured when jumping on a trampoline and sued its maker and the maker of a safety net for failure to warn, the Iowa high court held that: a. the makers had no duty to warn because the danger was obvious b. the makers had a poorly designed set of instructions, so could be liable c. the makers had failed to produce any warnings, so were liable d. produced products that should never have been placed on the market because they are so dangerous that warnings are unhelpful e. none of the other choices

276. In Parish v. ICON, where a person was severely injured when jumping on a trampoline and sued its maker and the maker of a safety net for failure to warn, the Iowa high court held that the manufacturers were not liable because: a. trampolines are commonly known to be unavoidably dangerous b. the is no requirement to provide warnings on products classified as toys c. Parish was over 18 and thus should be held as a responsible adult d. the warnings provided by the manufactures were not adequate, but Parish was being reckless e. none of the other choices are correct

278. 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

279. 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. none of the other choices are completely correct

282. 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. implied warranty e. none of the other choices

287. 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 power tool company that failed to include grounded power cords with their product 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

292. Unknown hazards products liability cases involve: a. a small number of products liability cases b. only cases involving asbestos c. mostly cases in which the government is the defendant d. mostly cases in which the government is the plaintiff e. none of the other choices

294. 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. the only kind of hazard that manufacturers cannot be held liable for d. dangers that the consumer was aware of, but not able to avoid e. none of the other choices are correct

296. 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. potential hazards or delayed defects b. known hazards or latent defects c. unknown hazards or quiet defects d. unknown hazards or delayed defects e. none of the other choices are correct

298. 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

299. When an injured party is allowed to sue all manufacturers of a defective product, so that all these manufacturers might be liable together, this is sometimes called: a. absolute liability b. strict liability c. limited liability d. industry liability e. none of the other choices

308. The ____ holds that the bulk supplier has a duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users, but it does not have to police the details of what is done as the product continues down the chain of use. a. commercial-supplier doctrine b. final-supplier doctrine c. Wal-Mart-supplier doctrine d. small-scale supplier doctrine e. none of the other choices are correct

310. One who by experience and expertise is aware of the possible health hazards associated with the use of a product and who has an obligation to inform its employees and customers of potential hazards is: a. company buyer b. secondary purchaser c. primary purchaser d. informed buyer e. none of the other choices

312. The ____ relieves a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers" a. naïve user defense b. smart user defense c. intelligent user defense d. informed user defense e. none of the other choices are correct

314. The sophisticated user defense: a. relieves a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user does not know of a product's dangers" b. does not relieve a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers" c. limits damage awards to less than $1 million when "the end user knows or reasonably should know of a product's dangers" d. limits damage awards to less than $100,000 when "the end user knows or reasonably should know of a product's dangers" e. none of the other choices are correct

316. Company B uses dangerous acid made by Company A in its production. B fails to warn a new employee of the risks in using the acid and the employee is injured. If Company B is sued by the employee, its defense will be that A and the employee are: a. accomplices b. in violation of federal safety regulations c. in privity of contract d. not covered due to lack of warranty e. none of the other choices

318. Which of the following is a potential statutory limit on potential tort liability: a. worker compensation statutes b. certain products that must follow federal labeling requirements c. federal regulations controlling radiation exposure d. government contractors building according to government specifications e. all of the other choices are correct

323. Activity that "necessarily involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care" and "is not a matter of common usage" is called: a. metahazardous activity b. superhazardous activity c. very hazardous activity d. megahazardous activity e. none of the other choices are correct

329. In Old Island Fumigation v. Barbee, a fumigation company sprayed two condominiums. Some of the fumes leaked, without Old Island's knowledge, into a third, unprotected condominium. In this case Old Island: a. was not liable because adequate warnings had been given b. was contributorily negligent c. was subject to comparative negligence d. was not liable; the owners of the buildings were e. none of the other choices

335. Parties engaging in ultrahazardous activities are liable for injuries: a. unless the injured party somehow profited from the activity before being injured b. unless the injured party should have known better c. unless there are sufficient warning signs and labels d. unless there is sufficient care shown in carrying out the activity e. none of the other choices are correct

337. The "tort crisis" in the U.S.: a. punishes American companies but not foreign firms that sell in the U.S. b. keeps jumping in costs annually c. has seen a rise in bad-quality expert testimony d. has caused the bankruptcy of 15 of the largest 100 firms in the U.S. in the past decade e. none of the other choices

341. Maria opens her refrigerator door to get a bottle of "Diet Wrong" soda. When she grabs the bottle it explodes, cutting her badly. Expert examination of bottle fragments does not reveal anything wrong with the bottle. Her lawsuit against "Diet Wrong" will likely result in the producer being held: a. not liable for lack of evidence of defect b. not liable because of contributory negligence by Maria c. not liable; the lawsuit must be filed against the company that produced the bottle d. liable for violating the Magnuson-Moss Warranty Act e. liable in strict liability for producing a defective product that injured a consumer

343. While sitting beside a swimming pool, a neighbor, Bob, a roof installer, tells you that you should buy stock in HotNet because it is about to skyrocket in value. You invest all your money in the stock, which then drops to zero. You can successfully sue Bob for: a. negligent misrepresentation, but not for fraud b. deceit, but not for intentional misrepresentation c. negligent misrepresentation, but not for intentional misrepresentation d. fraud, but not for fraudulent misrepresentation e. none of the other choices

344. E Corp. sold five million toasters. The company never had a safety problem. One of its toasters, for no clear reason, electrocutes the son of the woman who bought the toaster. In her suit against E Corp. for the death of her son (a tort), the company is likely to be held: a. not liable because one in five million is evidence of high quality, not a safety problem b. not liable because the toaster was purchased by the woman, not her son, so there is no right of suit c. not liable because of assumption of the risk d. liable for failure to warn of dangers in use e. liable in strict liability for producing a product with a defect that caused injury

352. Coch suffered from painful arthritis. Dr. Brooke prescribed an FDA-approved drug made by Sterling that was known to help treat this disease. Sterling knew the drug could cause vision problems and warned doctors about this. Brooke warned Coch of the possible side effects of the drug. After three year's use, Coch began to suffer blurred vision, so Brooke stopped prescribing the medication. Later Coch went blind, probably from the drug. Coch sued the doctor and the drug company. in this case a court would probably: a. hold Dr. Brooke and Sterling drug and FDA liable b. hold Dr. Brooke and Sterling drug liable c. hold Dr. Brooke liable d. hold Sterling drug company liable e. find no liability due to assumption of risk for unavoidably dangerous product

357. Worden entered into an agreement that allowed Yazdianpour to be the exclusive seller of Safebood Technologies patented products outside of the United States. Worden knew that the patents were only valid in the United States, but did not tell Yazdianpour who learned that fact when he tried to sell licenses for the products. He sued Worden for fraud. The appeals court held that Worden could: a. be liable for misrepresentation but not for intentional fraud. b. be liable for breach of contract but not for fraud or misrepresentation. c. not be liable for fraud as the technology had no protection rights outside of the United States. d. not be liable for fraud or misrepresentation because Yazdianpour did not make any up-front payment for the rights. e. none of the other choices are correct.

359. HMA, operator of a hospital, contracted with Emcare to provide emergency medical services to the hospital. Emcare hired Dr. Hamby as an emergency medical physician on a one-year contract. Hamby argued with the manager of HMA about its billing procedure and Hamby was fired by Emcare before the year ended. The appeals court held that Hamby: a. could only sue Emcare for breach of contract. b. could only sue HMA for breach of contract. c. could sue both Emcare and HMA for breach of contract. d. could sue Emcare for tortious interference with a contract. e. none of the other choices are correct.

361. Kim lost control of his Toyota. The vehicle rolled and he suffered injuries. He sued for design defect because the vehicle lacked electronic stability control, a feature that would have increased his chance of controlling the vehicle so it would not have gone off the road. The appeals court held that: a. use of a risk-benefit analysis about adopting such safety features was not proper in a case of strict liability. b. in cases involving motor vehicles, negligence, not strict liability was the standard to be applied. c. it was appropriate to use a "consumer expectation" analysis in such instances. d. expert testimony about the benefit of such devices would help the jury determine if such devices were to be expected or not by consumers. e. none of the other choices are correct.

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