Ch 7 - True/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
(B) 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
(B) False
8. When a person suffers an injury due to deliberate deception, there may be a tort of defamation. (A) True (B) False
(B) 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
(B) 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
(B) 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
(B) 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
(B) 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
(B) 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
(B) 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
(B) 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
(B) 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
(B) False
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
(A) True
14. Scienter means a defendant knew false information was being passed to another party. (A) True (B) False
(A) 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
(A) True
18. In a suit for intentional misrepresentation, punitive damages may be awarded. (A) True (B) False
(A) 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
(A) 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
(A) 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
(A) 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
(A) True
3. The tort system in the U.S. is estimated to cost about $250 billion a year. (A) True (B) False
(A) True
30. In the 19th century, consumers bore more of the cost of product-related injuries. (A) True (B) False
(A) True
32. Caveat emptor means let the buyer beware. (A) True (B) False
(A) 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
(A) True
39. MacPherson v. Buick Motor Co. introduced the rule of negligence in tort for consumer products. (A) True (B) False
(A) 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
(A) 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
(A) True
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
(A) 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
(A) 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
(A) True
49. Strict liability was first applied based on implied warranties of safety of food and drink. (A) True (B) False
(A) True
52. A warranty is an assurance from the manufacturer that its products will meet certain quality standards. (A) True (B) False
(A) True
54. Strict liability for defective products may arise from either an implied warranty or an express warranty. (A) True (B) False
(A) 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
(A) True
58. Strict liability based on express warranty of safety was first based on contract law. (A) True (B) False
(A) 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
(A) True
6. When a person suffers an injury due to deliberate deception, there may be a tort of fraud. (A) True (B) False
(A) 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
(A) True
65. Courts developed strict liability in tort when strict liability under contract law proved too restrictive. (A) True (B) False
(A) 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
(A) 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
(A) True
7. Fraud may be the same as deceit in tort law. (A) True (B) False
(A) True
70. The main author of the Restatement (Second) of Torts is the American Law Institute. (A) True (B) False
(A) 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
(A) True
77. The Restatement (Third) of Torts on product defect recommends that a risk-utility balancing test be used. (A) True (B) False
(A) 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
(A) 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
(A) True
82. The doctrine of strict liability has been extended to include cases where manufacturers produce a poorly designed product. (A) True (B) False
(A) 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
(A) 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
(A) 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
(A) 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
(A) True
9. Intentional misrepresentation is also known as fraud. (A) True (B) False
(A) 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
(A) 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
(A) True
93. Design defect cases usually do not concern one product that slips through the production process with a defect. (A) True (B) False
(A) 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
(A) True
98. At least $100 billion has been devoted to asbestos litigation. (A) True (B) False
(A) 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
(A) True
101. There are no defenses available in strict liability cases; manufacturers must pay whenever a consumer is injured. (A) True (B) False
(B) 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
(B) 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
(B) False
108. A manufacturer is liable for injuries suffered by product users regardless of the sophistication of the buyer. (A) True (B) False
(B) 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
(B) 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
(B) 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
(B) False
13. The tort of fraud requires the wrongdoer to intentionally mislead another party. (A) True (B) False
(B) False
15. Scienter in tort law means the plaintiff can see the results of a fraud that has been suffered. (A) True (B) False
(B) 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
(B) False
2. The tort system in the U.S. is estimated to cost right about $40 billion per year. (A) True (B) False
(B) 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
(B) 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
(B) 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
(B) False
1. About a half-million tort cases are filed each year. (A) True (B) False
(A) True
10. The tort of intentional misrepresentation requires a showing that the defendant knew there was false information being passed. (A) True (B) False
(A) 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
(A) True
102. Common defenses in strict liability cases are product misuse or assumption of risk. (A) True (B) False
(A) 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
(A) 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
(A) 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
(A) True
109. The sophisticated user defense and bulk-supplier doctrine are similar in reducing liability for product sellers. (A) True (B) False
(A) True
11. The tort of fraud requires the wrongdoer to have a legal relationship with the tort victim. (A) True (B) False
(A) 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
(A) True
111. There are statutes that limit product liability for certain products and services. (A) True (B) False
(A) True
112. Strict liability for ultrahazardous activities is an old concept going back more than a century. (A) True (B) False
(A) True
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
(B) 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
(B) False
31. Privity of contract is a contract with an express warranty. (A) True (B) False
(B) False
33. Strict liability was used as a standard by courts before caveat emptor was used. (A) True (B) False
(B) 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
(B) 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
(B) 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
(B) False
38. MacPherson v. Buick Motor Co. introduced the rule of strict liability in tort for consumer products. (A) True (B) False
(B) False
4. About 80 percent of the total costs involved in tort litigation goes to awards to plaintiffs (injured parties). (A) True (B) False
(B) 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
(B) 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
(B) 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
(B) 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
(B) False
5. A company cannot be a defendant in a tort suit since a firm is not a natural person. (A) True (B) False
(B) 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
(B) 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
(B) False
53. Only express warranties may create liability for the seller for defective products. (A) True (B) False
(B) 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
(B) False
57. Strict liability based on express warranties was applied originally to alcohol and tobacco products. (A) True (B) False
(B) 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
(B) 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
(B) 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
(B) 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
(B) 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
(B) 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
(B) False
71. The main author of the Restatement (Second) of Torts is the Association of State Supreme Courts. (A) True (B) False
(B) 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
(B) 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
(B) False
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
(B) False
76. The Restatement (Third) of Torts replaced the Second for the standard on product liability in 2010. (A) True (B) False
(B) False
