chapter 7 test questions
The most active area of strict liability litigation based on the concept of unknown hazards involves which product?
asbestos
In a intentional misrepresentation suit, the facts alleged to have been presented falsely must be:
material
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
negligence
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.
negligence
MacPherson v. Buick Motor Co. introduced the rule of ________ in tort for consumer products
negligence
The manufacturer of goods is liable in tort to users for foreseeable harms caused by defects in the goods. This is:
negligence in tort
The tort of misrepresentation can be based on:
negligence or intent
. The elements of the tort of interference with a prospective advantage (relationship) include:
predatory behavior
A legal relationship is:
privity
The Restatement (Third) of Torts refers to strict liability in tort as:
product defect law
In a suit for intentional misrepresentation, ______ damages may be awarded
punitive
Experts estimate the annual cost of the tort system at about a _______ dollars
quarter trillion
The Restatement (Third) of Torts on product liability says that when considering a defective product the courts should use:
risk-utility balancing
The intent to defraud is called:
scienter
_____ means a defendant knew false information was being passed to another party
scienter
The American Law Institute's definition of strict liability has been revised in:
second amendment
The tort of fraud requires the wrongdoer to have a legal relationship with the tort victim
true
There are statutes that limit product liability for certain products and services.
true
When a person suffers an injury due to deliberate deception, there may be a tort of fraud
true
You may be sued in tort for the damages incurred for interfering with a contract between two other parties.
true
At least _____ billion has been devoted to asbestos litigation
100
The amount of money involved in asbestos liability litigation is at least
100 billion
The legal standard articulated in MacPherson v. Buick Motor, regarding negligence in of producers of products dominated product liability law until the:
1960s
The tort system in the U.S. is estimated to cost about ____ billion a year.
250
The main author of the Restatement (Second) of Torts is the _______
American Law Institute
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
C
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
E
The "tort crisis" in the U.S is:
abating
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.
bulk-supplier doctrine
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
caveat emptor
_________ means let the buyer beware
caveat emptor
Strict liability based on express warranty of safety was first based on _________
contract law
There is currently a system made up of a mix of ____ and tort law applying to products.
contract law
Fraud may be the same as _____ in tort law
deceit
Fraud, misrepresentation, fraudulent misrepresentation and deceit are all examples of torts caused by:
deliberate deception
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:
design defect
The sophisticated user defense and bulk-supplier doctrine are similar in reducing liability for product sellers.
true
Strict liability under contract law for injuries caused by defective products is based on the:
existence of a warranty
A(n) ____ warranty is one the manufacturer contractually provides to the consumer.
express
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.
express warranty
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:
express warranty
A company cannot be a defendant in a tort suit since a firm is not a natural person
false
A manufacturer is liable for injuries suffered by product users regardless of the sophistication of the buyer.
false
About 80 percent of the total costs involved in tort litigation goes to awards to plaintiffs (injured parties).
false
An express warranty of safety in a product is one the law derives by inference from the nature of the transaction between the parties.
false
Foreign firms that sell products in the U.S. do not have to bear the costs of compliance with strict liability standards.
false
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.
false
In Greenman v. Yuba Power Products the Supreme Court of California made negligence in tort the general rule in products liability cases.
false
In MacPherson v. Buick Motor Co. the court held Buick not liable because it did not make the wheel that collapsed and was the proximate cause of injury.
false
In a suit for fraud, a plaintiff is presumed to have had the right to rely on any information provided by defendant.
false
Only express warranties may create liability for the seller for defective products
false
Privity of contract is a contract with an express warranty.
false
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
false
Strict liability was used as a standard by courts before caveat emptor was used.
false
The consumer must purchase the (defective) product directly from the manufacturer in order to prevail in strict liability based on express warranty.
false
The tort of fraud requires the wrongdoer to intentionally mislead another party.
false
There are no defenses available in strict liability cases; manufacturers must pay whenever a consumer is injured
false
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
false
When a person suffers an injury due to deliberate deception, there may be a tort of defamation.
false
While interfering with an existing contractual relationship can be a tort, if a contract has not yet been formed, there can be no tort.
false
Strict liability was first applied based on implied warranties of safety of _______
food and drink
The first major application of the doctrine of strict liability for consumer products was in the area of:
food and drink
Intentional misrepresentation is also known as
fraud
When a person suffers an injury due to deliberate deception, there may be a tort of:
fraud
About ______ tort cases are filed each year
half million
A(n) ____ warranty is one the law may insert regardless of actual contract terms.
implied
When false information is intentionally presented as fact there may be a tort of:
intentional misrepresentation
The ____ is primarily concerned with harms suffered by buyers and other persons who use defective products.
law of product liability
Compensation for injured parties accounts for ____ of the total cost of the tort system
less than half
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):
sophisticated user
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"
sophisticated user defense
most tort suits are filed in:
state courts
The basis of the case in a(n) ____ case is the relationship between the manufacturer and the injured party.
strict liability
The Restatement (Second) of Torts Sect. 402A describes:
strict liability in tort
If a third party observes a fraud:
they cant sue
There is currently a system made up of a mix of ____ and contract law applying to products.
tort law
Courts developed strict liability in tort when strict liability under contract law proved too restrictive.
true
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.
true
In a suit for fraud, the plaintiff must establish a good reason to rely on the bad information provided by the defendant.
true
In the 19th century, consumers bore more of the cost of product-related injuries.
true
Strict liability for defective products may arise from either an implied warranty or an express warranty
true
Strict liability for ultrahazardous activities is an old concept going back more than a century.
true
The Supreme Court of California, in Greenman v. Yuba Power, was the first court to adopt a general strict liability in tort rule in product-related injury cases.
true
The courts have held that firms in an industry could be held liable jointly for damages done by products they had produced
true
The doctrine of strict liability in tort applies primarily to cases of manufacturing defect, failure to warn, and to design defects.
true
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:
ultrahazardeous activity
Negligence of other parties is irrelevant to the imposition of liability in ____ cases
ultrahazardous or megahazardous activity
Which of the following is not needed to establish the tort of intentional misrepresentation:
use of force by defendant
In Henningsen v. Bloomfield Motors, the New Jersey Supreme Court greatly expanded the legal protection offered by implied __________
warranties of safety
A ____ is a manufacturer's assurance that a product will meet certain quality and performance standards.
warranty
A ______ is an assurance from the manufacturer that its products will meet certain quality standards
warranty