Chapter 7: Strict Liability and Product Liability: Legal and Social Environment
d
"If consumers know (or reasonably should know) the potential ill health effects of eating at McDonald's, they cannot blame McDonald's if they, nonetheless, choose to satiate [satisfy] their appetite with a surfeit [excess] of supersized McDonald's products." This court opinion illustrates the defense of: a. assumption of risk. b. preemption. c. product misuse. d. knowledgeable user.
product misuse
A defense against product liability that may be raised when the plaintiff used a product in a manner not intended by the manufacturer. If the misuse is reasonably foreseeable, the seller will not escape liability unless measures were taken to guard against the harm that could result from the misuse.
a
A glass bottle is made thinner than its design specifications required. The bottle explodes in a consumer's face. This is an example of: a. a manufacturing defect. b. an inadequate warning. c. a conformity defect. d. a design defect
t
A manufacturer may be liable for a failure to exercise due care to any person who sustains an injury caused by a defective product. True False
a
A product liability action based on negligence does not require: a. privity of contract. b. breach of the duty of care. c. injury to the plaintiff. d. none of these choices
a
Abnormally dangerous activities are those that: a. involve a high risk of serious harm to persons or property that cannot be eliminated by the exercise of reasonable care. b. involve a serious risk of serious harm to persons or property. c. are based on negligence. d. involve some danger
a
Acme, Co. was using dynamite to blast rocks at a quarry. They exercised all reasonable care, but Tom was still injured by a piece of debris. Acme can be held strictly liable for Tom's injury. a. True b. False
d
Assume that someone is blasting with dynamite and using all reasonable care, but someone is still injured. Which of the statements below is a correct statement? a. If the person was using all reasonable care and someone was injured, the court will determine if the injured person was also at fault before deciding liability issues. b. If the person was using all reasonable care and someone was injured, because all reasonable care was used, the person using the dynamite will not be liable for the injuries suffered by the person injured. c. If the person was using all reasonable care and someone was injured, because this is an abnormally dangerous activity, under negligence theory, the person using the dynamite will be liable for the injuries suffered by the person injured. d. If the person was using all reasonable care and someone was injured, because this is an abnormally dangerous activity, under the strict liability doctrine, the person using the dynamite will be liable for the injuries suffered by the person injured.
a
Assumption of the risk: a. is a viable defense in a product liability action. b. is not a viable defense in a product liability action. c. can only be used if the plaintiff was more than 50% liable. d. is only a viable defense for a negligence action.
Statute of Repose
Basically, a statute of limitations that is not dependent on the happening of a cause of action. Statutes of repose generally begin to run at an earlier date and run for a longer period of time than statutes of limitations.
c
Because many products cannot be made 100 percent safe for all uses, sellers are only liable for products that are: a. dangerous after a few years b. dangerous when used incorrectly c. unreasonably dangerous d. reasonably dangerous
a
Cool Electronics makes DVD players. Edie is injured while using a Cool player, which also damages her house. She sues Cool for product liability based on strict liability. In most states, to recover damages, she must show: a. neither in what manner nor why the player became defective. b. in what manner but not why the player became defective. c. why but not in what manner the player became defective. d. in what manner and why the player became defective.
a
Each of the following is an example of a manufacturing defect except: a. conformity with design specifications. b. an incorrectly assembled product. c. a physically flawed product. d. nonconformity with design specifications
d
Farm Equipment, Inc., makes farming machinery. Gail discovers that her Farm Equipment tractor is defective and sues the maker for product liability based on negligence. To win, Gail must show that: a. Gail knew and appreciated the risk caused by the defect. b. Farm Equipment sold the tractor to Gail. c. the "defect" was a commonly known danger. d. Gail suffered an injury caused by the defect
a
George Nesselrode lost his life in an airplane crash. The plane had been manufactured by Beech Aircraft Corp. and was owned by Executive Beechcraft, Inc. Shortly before the crash occurred, Executive Beechcraft had conducted a routine inspection of the plane and found that some of the parts needed to be replaced. The new parts were supplied by Beech Aircraft but installed by Executive Beechcraft. These particular parts could be installed backward, and if they were, the plane would crash. The parts did not carry any written warning about the danger of improper installation. The crash that took Nesselrode's life resulted from just such an incorrect installation of the airplane parts. Nesselrode's estate filed a lawsuit against Beech Aircraft for damages on a theory of strict product liability. The court most likely held that Beech was: a. liable, because it had failed to place adequate warnings on the airplane parts. b. not liable, because Nesselrode had assumed the risk. c. not liable, because it had exercised due care by d. providing proper replacement parts. d. liable, because airplanes are inherently dangerous.
c
Gunter installs a large glass door in his house and then runs into it, breaking his nose. Gunter sues the manufacturer, because he was not warned about the possibility of such an injury. Will Gunter prevail in his lawsuit? a. Yes, because sellers of large glass doors are held to strict liability standards. b. Yes, because manufacturers must provide adequate warnings. c. No, because everyone knows that people may run into glass doors; therefore, the manufacturer does not have to provide such a warning.
b
Halogenics, Inc., manufactures a medical device that is heavily regulated by the government and has to undergo a rigorous pre-market approval process. Halogenics can use the following defense if it is sued: a. no-knowledge exemption. b. preemption. c. causation. d. full basis
a
If a defective product injures a bystander, the bystander can sue the manufacturer for strict liability. a. True b. False
a
If a defendant can succeed in convincing the court that a plaintiff's injury resulted from a commonly known danger, the defendant normally will not be liable. a. True b. False
b
In a product liability action, a contractual relationship between the manufacturer and the injured plaintiff must exist before the plaintiff can sue the manufacturer in court. a. True b. False
a
In a situation in which market-share liability is imposed, the: a. plaintiff need not prove which particular distributor of a widely distributed product caused his or her injury. b. plaintiff must prove which distributor supplied the product that caused his or her injury only if the product was distributed internationally. c. defense of assumption of risk allows the defendants to avoid liability. d. plaintiff must prove which distributor supplied the product that caused his or her injury.
a
In a strict product liability lawsuit, the product must be in a defective condition when the defendant sells it. a. True b. False
c
In a strict product liability lawsuit, who has to show why or in what manner the product became defective? a. The plaintiff b. The defendant c. No one
c
In product liability suits, statutes of limitations normally are set by: a. federal law. b. municipal law. c. state law
unreasonably dangerous product
In product liability, a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it.
b, c
In which of the following situations would strict liability apply: (Select all that apply) a. A company transports wheat for processing but does not exercise reasonable care at all times b. A company who transports highly flammable gases but exercises reasonable care at all times c. A person keeps a tiger as a pet, which bites a guest in the person's home d. A person keeps a rabbit as a pet, which bites a guest in the person's home unexpectedly
b
In-House Products Company makes convection ovens. Joy discovers that her In-House oven is defective and sues the maker for product liability based on strict liability. To win, Joy must show that: a. In-House sold the oven to Joy. b. Joy suffered an injury caused by the defect. c. the "defect" was a commonly known danger. d. Joy knew and appreciated the risk caused by the defect.
a
Individuals who frequently buy and consume supersized portions of food will not succeed in lawsuits against the manufacturers if they become overweight. a. True b. False
b
Jenkins is using a chef's knife to cut vegetables. The knife slips and cuts off her finger. Jenkins sues the manufacturer of the knife. The manufacturer can use the defense that: a. Jenkins voluntarily assumed the risk created by the product defect. b. the injury resulted from a commonly known danger. c. preemption. d. Jenkins misused the knife.
Strict Liability
Liability regardless of fault. In tort law, it may be imposed on defendants in cases involving abnormally dangerous activities, dangerous animals, or defective products.
c
Liability without fault is also referred to as: a. negligent liability. b. intentional liability. c. strict liability. d. absolute liability.
c
Market-share liability is a: a. theory used to reduce damages based on a plaintiff's proportion of fault. b. theory used to require that an injury was caused by a specific defendant. c. theory used to divide damages among multiple distributors of a harmful product.
d
Mitch is baking a cake in the oven in his home kitchen. Mitch severely burns his hand when he inadvertently touches the inside of the oven door as he is opening it to take the cake out of the oven. Mitch sues the manufacturer of the oven. The manufacturer can use the defense that: a. Mitch misused the oven. b. Mitch voluntarily assumed the risk created by the defective oven. c. Mitch's alteration of the oven caused his injury. d. Mitch's injury resulted from a commonly known danger.
c
Morabido mails registered letters, sends e-mails, and places ads in local newspapers where it sold a defective weed killer. Huntington knows of the recall but ignores it, applies the weed killer to his crops, suffers damages, and sues. Which defense can Morabido use at trial? a. Preemption b. Causation c. Assumption of risk
a
One good defense against strict product liability is that a. the goods were altered after they were sold b. the goods were sold at a heavily discounted price c. the goods were advertised on TV d. the goods were meant for children, not adults
f
People who keep domestic animals are strictly liable for any harm inflicted by the animals. True or False
c
People who keep wild animals are strictly liable for: a. any harm caused by the animal after it escapes. b. any negligent harm caused by the animal. c. any harm caused by the animal. d. any intentional harm caused by the animal.
c
Privity of contract refers to: a. the level of fraudulent misrepresentation in a contract. b. the length of time a contract has existed. c. the relationship that exists between the parties to a contract. d. the relationship between the manufacturer and the seller of a dangerous product.
b
Product liability claims may be based on which of the following tort theories? a. Strict liability only b. Strict liability, negligence, and misrepresentation c. Strict liability and negligence only d. Misrepresentation and negligence only
c
Safe-Rite Company makes electrical cords and other connectors for electronic devices. Tina files a product liability suit against Safe-Rite alleging a warning defect. Under the Restatement (Third) of Torts: Products Liability, in deciding whether to hold Safe-Rite liable, the court may consider: a. neither the characteristics of expected users nor the content of any warning. b. only the content of any warning. c. the characteristics of expected users and the content of any warning. d. only the characteristics of expected users.
b, c
Select the TWO public policy reasons from the following list for the application of strict liability in product liability cases: a. Manufacturers are in a better position to determine privity of contract b. Manufacturers should bear the cost of injury as an operating expense since it is profiting from its activities c. Manufacturers can better bear the cost of injury d. Manufacturers are bailors and therefore better bear the cost of injury
b
Strict liability exists in certain types of bailments. What is a bailment? a. A situation where goods are transferred permanently into the care of another. b. A situation where goods are transferred temporarily into the care of another. c. A situation where goods are transferred to a warehouse for safekeeping when there is a danger of theft. d. A situation where goods are transferred to an attorney for safekeeping.
tolled
Temporary suspension of the running of a prescribed period (such as a statute of limitations). For instance, a statute of limitations may be tolled until the party suffering an injury has discovered it or should have discovered it.
b
The U.S. Food and Drug Administration puts medical devices through a rigorous approval process before they are marketed to make sure they are safe and effective. Therefore, the Supreme Court reasoned in the Medtronic case that a man who was injured by an approved medical device could not sue its maker for negligence or strict product liability. This is the controversial defense of: a. comparative negligence. b. preemption. c. knowledgeable user. d. assumption of risk.
a
The doctrine of strict product liability applies to suppliers of component parts. a. True b. False
a
The doctrine of strict product liability does NOT apply to which of the following? a. Advertising agencies b. Wholesalers c. Manufacturers d. Assemblers e. Bottlers f. Packagers g. Processors h. Distributors i. Retailers
product liability
The legal liability of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods.
b
The modern concept of strict liability traces its origins, in part, to what famous English case? a. Palsgraf v. Long Island Railroad Co. b. Rylands v. Fletcher. c. Yorkshire Pudding Co. v. Thompkins. d. Ramona v. Rex.
privity of contract
The relationship that exists between the promisor and the promisee of a contract.
t
The use of a product for a purpose that was not intended is a defense to a suit for product liability if the use was not reasonably foreseeable. True False
b
Under the tort doctrine of strict liability, liability is: a. based on fault. b. not based on fault. c. imposed only for intended wrongful acts. d. based on negligence.
b
When a manufacturer argues that it engaged in reasonable quality control efforts, that argument will act as a sufficient defense in a strict product liability lawsuit. a. True b. False
c
When a user or customer is injured because of fraudulent misrepresentation, the seller must have: a. Intended to cause injury. b. been negligent in its statements. c. intended to induce the buyer's reliance on the misrepresentation. d. not known the user would rely on his statements.
b
When the defense of comparative negligence is successful at trial, it completely absolves the defendant of liability. a. True b. False
b
Which of the following IS NOT a characteristic of abnormally dangerous activities? a. The activity is not commonly performed in the area or community. b. The activity is one that involves a low degree of risk but that may be extremely dangerous if not performed with reasonable care. c. The activity involves potential serious harm to people or property. d. The activity involves a high degree of risk that cannot completely be guarded against by the exercise of reasonable care.
b
Why can't you sue the manufacturer when a sharp knife cuts you? a. Because you implicitly signed an agreement against such lawsuits when you bought the knife. b. Because there is a commonly known danger of cutting oneself when using a knife. c. Because knife manufacturers are subject to market-share liability.
a
Without establishing cause in fact, a plaintiff cannot succeed on a claim even if she proves injury. a. True b. False
Risk-utility analysis
____________ occurs when courts look at the risk of harm from a product as designed compared to the utility to the user and to the public.
b
________________ often allow for unlimited liability for manufacturers of defective products, no matter how far in the past. a. Statutes of repose b. Statutes of limitation c. Strict liability claims d. The Restatement of Torts
Market Share Liability
a theory under which liability is shared among all firms that manufactured and distributed a particular product during a certain period of time. This theory of liabilty is used only when the specific source of the harmful product is unidentifiable
