b law ch 7
are
Manufacturers _ allowed to fight it out as to which should pay for amounts of damages.
strictly liable
Manufacturers are __ for defective products
caveat emptor
"Let the buyer beware"
utmost care
ultra hazardous activity: Common law rules developed about uncommon activities where __is needed
INTERFERENCE WITH PROSPECTIVE ADVANTAGE
A business attempts to improve its place in the market by interfering with another's business
ultra hazardous activity
Abnormally Dangerous Activity
- Not likely, as any company selling their products in the U.S. must meet same liability standard as U.S. companies. - High standards of products marketed abroad force improvement of standards worldwide.
Does a costly tort system make American firms less competitive than foreign forms?
do not
Courts __worry about due care, reasonableness, in production. The issue is if there was a defect as defined
fraud
Deliberate Deception
failure to warn
Failure by manufacturer to warn of dangers in using a product
product liability
General term applied that deals primarily in tort law Involves some contract law Involves some statutory law
MacPherson v. Buick Motor Company
If there was no relationship, caveat emptor applied - "Let the buyer beware" -This changed with _
privity of contract requirement
In the 19th century courts, there was the ___ - a contractual relationship with the manufacturer was needed
INTERFERENCE WITH PROSPECTIVE ADVANTAGE
One party makes it difficult/impossible for another party to continue in some/all business dealings
states
Most __ have held plaintiffs may sue any or all manufacturers to share the liability created.
negligence and strict liability
Restatement Third encourages courts to move away from the a distinction between __
risk-utility
Restatement Third speaks of "__ balancing"
Fraud or Intentional Misrepresentation Interference With Contractual Relations Interference With Prospective Advantage Product Liability Consumer Products & Negligence Strict Liability Primary Areas of Product Liability Law Ultrahazardous Activity
TORTS PARTICULAR TO BUSINESSES
Intentional Negligence Strict Liability
TYPES OF BUSINESS TORTS
tort crisis
The "__" in the U.S.: -Has abated since Supreme Court has cracked down on massive punitive damage awards and doubtful expert testimony
strict liability
The American Law Institute's (ALI) definition of__in Section 402A of the Restatement (Second of Torts)
misrepresentation, fraudulent misrepresentation or deceit
The tort may be called fraud, ___
business
There is no such thing as a "__ tort"
class actions suits
Tort reform legislation from Congress has made __ more difficult
common
Torts are traditionally __ law.
State laws
__ are working to cap liability for certain damage
Bulk supplier
__ does not have to police details of what is done as product continues down the chain, as bulk products go to intermediary in bulk and on down.
Product defect
__ law deals with design defects and manufacturing defects.
Any
__ of the defendant-manufacturers may be held responsible for all damages.
Sophisticated user
__ or Knowledgeable purchaser is one who "reasonably should know of the product's dangers" e.g. another manufacturer.
Tort payouts
__may have stabilized. -Between 2004 and 2006, growth seemed to have stopped
Express Warranty
f the buyer receives an oral or written statement about the quality of a good, that statement becomes part of their bargain with the manufacturer, and the buyer suffers an injury because the statement was not accurate.
dubious suits
firms subject to __ are devoting resources to "fending off the deep-pocket and frivolous litigators."
At Law
implied warranty -Implied __ - whether the manufacturer wants the warranty for the product or not
Scienter
intent to defraud