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