Chapter 7 - Business Torts and Product Liability

Match the types of protections against defamatory statements with their characteristics: An absolute privilege v A qualified privilege - Statements made by participants in a trial are protected by this privilege - Statements made to warn others or in self-defense are protected by this privilege

An absolute privilege - Statements made by participants in a trial are protected by this privilege A qualified privilege - Statements made to warn others or in self-defense are protected by this privilege

T/F: An act of batter can be treated either as a civil tort or as a crime, but not both

False

T/F: Public figured such as politicians and actors need not prove malice in a defamation claim.

False

Fill in the Blank: __________ __________, also known as trade libel, is a form of defamation that is directed against the property of a person.

Injurious falsehood

Match the kinds of torts with their definitions: Intentional torts v Negligent torts v Strict liability torts - They refer to a no-fault concept where an individual or organization is responsible for harm without proof of carelessness - They refer to actions that cause harm accidentally because of carelessness - They refer to all voluntary actions that harm one's protected interest

Intentional torts - They refer to all voluntary actions that harm one's protected interest Negligent torts - They refer to actions that cause harm accidentally because of carelessness Strict liability torts - They refer to a no-fault concept where an individual or organization is responsible for harm without proof of carelessness

In the context of analyzing design defects, match the principle lines of analysis with their descriptions: The risk-utility test v The consumer expectations test - It imposes on a manufacturer the duty to design its products so that they are safe not only for their intended use but also for any reasonably foreseeable use. - It holds that a product is negligently designed if the benefits of a product's design are outweighed by the risks that accompany that design.

The rise-utility test - It holds that a product is negligently designed if the benefits of a product's design are outweighed by the risks that accompany that design. The consumer expectations test - It imposes on a manufacturer the duty to design its products so that they are safe not only for their intended use but also for any reasonably foreseeable use.

Match the types of wrongs with their characteristics: Torts v Crimes - They are prosecuted by the state - They are initiated by individuals

Torts - They are initiated by individuals Crimes - They are prosecuted by the state

Match the tort claims with their descriptions: Trespass to real property v Trespass to personal property v Injurious falsehood v Nuisance - Intentional interference with a person's right to enjoy his or her own property - Defamation directed against the property of a person - Intentional entry onto the land of another without consent -Impairing the enjoyment of a person's land because of tortious interference

Trespass to real property - Intentional entry onto the land of another without consent Trespass to personal property - Intentional interference with a person's right to enjoy his or her own property Injurious falsehood - Defamation directed against the property of a person Nuisance -Impairing the enjoyment of a person's land because of tortious interference

Which of the following constitutes fraud? (Check all that apply.) a) An intentional misrepresentation occurs b) A material fact gets misrepresented c) An individual is touched without his or her consent d) A person anticipates an assault e) A person relies upon misrepresented fact

a) An intentional misrepresentation occurs b) A material fact gets misrepresented e) A person relies upon misrepresented fact

Identify a true statement about the Magnuson-Moss Warranty Act. a) It applied only to consumer products b) It does not apply to written warranties c) It is administered by the Securities and Exchange Commission d) If a limited warranty is offered, the limitation need not be displayed

a) It applied only to consumer products

Identify the requirements for the use of the assumption of risk defense. (Check all that apply.) a) Voluntary assumption of the risk b) The absence of consent in the resulting negligence c) Weight of negligence by the plaintiff in comparison to the defense d) Knowledge of the risk

a) Voluntary assumption of the risk d) Knowledge of the risk

In the context of intentional torts, intent is established by showing the __________. a) defendant meant to do the act that caused the harm b) defendant was inebriated when the act happened c) plaintiff meant to do the act that caused the harm d) defendant was careless when the plaintiff suffered injury

a) defendant meant to do the act that caused the harm

Strict liability coverage for defective products __________. a) makes all those engaged in the preparation and distribution of a defective product liable for any harm caused by the defect b) makes users liable for the harm caused by using a defective product c) covers only property damages, not personal injuries d) frees the defective products' manufacturers and distributors of all charges related to claims for damages

a) makes all those engaged in the preparation and distribution of a defective product liable for any harm caused by the defect

__________ occurs when store managers or owners intentionally confine someone suspected of shoplifting against his or her will. a) Battery b) False imprisonment c) Assault d) Invasion of privacy

b) False imprisonment

Identify the forms of invasion of privacy. (Check all that apply.) a) Assault b) Intrusion c) False light d) Misappropriation of a person's name e) Public disclosure of private facts f) False imprisonment

b) Intrusion c) False light d) Misappropriation of a person's name e) Public disclosure of private facts

Intentionally touching another in a harmful or offensive way without legal justification or the consent of that person is a(n) __________. a) assault b) battery c) misdemeanor d) false imprisonment

b) battery

Strict liability law focuses on the __________. a) conduct of the parties b) condition of a product c) size of a product d) transit of a product

b) condition of a product

An alleged act of carelessness is likely to result in a breach of the "__________." a) duty of loyalty b) duty of due care c) duty of strict liability d) duty of truthfulness

b) duty of due care

By operation of law, a(n) __________ warranty arises when a seller enters a contract for the sale of goods. a) express b) implied c) compelled d) false

b) implied

Rockooler is a company that produces energy drinks. Its most recent advertisement had pictures of the players of a basketball team wearing the team's jerseys and drinking Rockooler's energy drinks. The team sued Rockooler as the company had not secured any formal approval from the team management for the representation. This is an example of __________. a) false light b) misappropriation c) intrution d) defamation

b) misappropriation

Manny, a salesperson in a consumer electronics store, is explaining the features of a newly launched LED television to a customer. While doing so, he mentions that it is the best model in the prices ranging between $150 and $800. Manny's statement in this scenario is an example of __________. a) disclaimers b) puffing c) an express warranty d) an implied warranty

b) puffing

A(n) __________ claim is often used by a wronged consumer in addition to or in place of a negligence claim. a) false light b) warranty c) misappropriation d) assault

b) warranty

Which of the following statements exemplify puffing? (Check all that apply.) a) "The products will look similar to the model displayed here." b) "I promise to take back the product if it reached you in a damaged condition." c) "This is the most sought after model of the year." d) "This is the best laptop in the market."

c) "This is the most sought after model of the year." d) "This is the best laptop in the market."

Which of the following conditions must be satisfied to prove the doctrine of res ipsa loquitur? a) The plaintiff had absolute control over preventing the accident b) The plaintiff was informed of the possible injuries from performing an action c) The injury was caused by an instrumentally controlled by the defendant d) The accident happened only because of the defendant's negligence e) There is no evidence of other causes for the accident

c) The injury was caused by an instrumentally controlled by the defendant d) The accident happened only because of the defendant's negligence e) There is no evidence of other causes for the accident

Intentionally causing another to reasonably believe that he or she is about the be the victim of a battery is __________. a) fraud b) false imprisonment c) an assault d) defamation

c) an assault

Defamation in print or some other tangible form is known as __________. a) slander b) malice c) libel d) privilege

c) libel

Strict liability claims, according to the Restatement of the Law Third, Torts, are applicable to __________ case. a) warning defect b) usage defect c) manufacturing defect d) design defect

c) manufacturing defect

If a plaintiff completely ignored the directions for using a product and used the product in an unforeseeable manner, the defendant in a strict liability claim is likely to raise the __________ defense. a) necessity b) manufacturer liability c) product misuse d) assumption of risk

c) product misuse

In the case of strict liability, __________ is not a mandatory requirement for proceeding with the tort litigation. a) proof of breach of duty b) dangerousness of products c) proof of negligence d) defects in services

c) proof of negligence

According to the Magnuson-Moss Warranty Act, if a warranty is offered on goods costing more then $10, __________. a) the limited warranty requires free repair of any defect b) the warranty need not to be labeled full or limited c) the limitation in the limited warranty must be conspicuously displayed d) the buyer may not elect a refund on failure to repair a defect

c) the limitation in the limited warranty must be conspicuously displayed

__________ in tort offers the prospect of holding all of those in the chain of distribution liable for damages from a defective product, rather than imposing the entire burden on the injured consumer. a) A negligence claim b) Fraud c) Class action d) Strict liability

d) Strict liability

Among the valid defenses against a strict liability claim, __________ involves the plaintiff's decision to proceed to use the product despite obvious dangers associated with that use. a) product misuse b) necessity c) self-defense d) assumption of risk

d) assumption of risk

A(n) __________ exists if a seller of goods states a fact or makes a promise regarding the character or quality of the goods. a) false warranty b) implied warranty c) exclusive warranty d) express warranty

d) express warranty

False light claims involve injury to one's __________. a) real property b) reputation c) physical body d) mental well-being

d) mental well-being

Opening an employee's mail and an electronic probing of a person's bank account are examples of __________. a) assault b) false imprisonment c) misappropriation d) tortious intrusion

d) tortious intrusion

Fill in the Blank: Statements that are so inherently damaging that actual injury need not be shown are labeled __________ __________ __________.

slander per se