Ch 7 - True/False

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25. If Company A runs an aggressive advertising campaign that tells customers why they should quit doing business with Company B and do business with A instead, B will be able to sue A for interference with a prospective advantage. (A) True (B) False

(B) False

26. While interfering with an existing contractual relationship can be a tort, if a contract has not yet been formed, there can be no tort. (A) True (B) False

(B) False

8. When a person suffers an injury due to deliberate deception, there may be a tort of defamation. (A) True (B) False

(B) False

80. The Restatement (Third) of Torts on product defect eliminates the concern about inadequate warnings that was critical to the Second version. (A) True (B) False

(B) False

81. The Restatement (Third) of Torts on product defect recommends that courts use a cost-benefit test to see if added safety is worthwhile. (A) True (B) False

(B) False

85. If a product is safe for ordinary use, and a producer provides instructions on use for consumers, then strictly liable in tort is eliminated. (A) True (B) False

(B) False

86. In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that the product was inherently defective because of the high rate of injury. (A) True (B) False

(B) False

87. In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that while the trampoline was not defective, the safety net around the trampoline was because its instructions were insufficient to be clear. (A) True (B) False

(B) False

92. When Tylenol was sued for failure to warn of possible damage to livers by Tylenol users who drink alcohol, the court held Tylenol's make not liable because alcohol is an unavoidably dangerous product. (A) True (B) False

(B) False

94. In liability cases claiming a design defect, the plaintiff argues that the product was so poorly manufactured at the plant that it caused the plaintiff's harms. (A) True (B) False

(B) False

96. 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. (A) True (B) False

(B) False

97. 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. (A) True (B) False

(B) False

114. In Old Island Fumigation, a company was held liable for injuries caused by its fumigations activities despite it having been provided false information by the property owner. (A) True (B) False

(A) True

14. Scienter means a defendant knew false information was being passed to another party. (A) True (B) False

(A) True

16. In a suit for fraud, the plaintiff must establish a good reason to rely on the bad information provided by the defendant. (A) True (B) False

(A) True

18. In a suit for intentional misrepresentation, punitive damages may be awarded. (A) True (B) False

(A) True

19. You may be sued in tort for the damages incurred for interfering with a contract between two other parties. (A) True (B) False

(A) True

21. The tort of interference with contractual relations occurs when Party C attempts to get Party A, who has a contract with Party B, to breach the contract in favor of doing business with Party C. (A) True (B) False

(A) True

23. In a case alleging interference with a contractual relation, the defendant must have known the plaintiff had a contract with a third party. (A) True (B) False

(A) True

28. In Gieseke v. IDCA, Gieseke formed a company to compete with his old employer and worked with one of the former owners of his old employer in the new company. His former employer moved some of the equipment of the new company and changed its mailing address without permission of Gieseke or his partner. When Gieseke sued, the courts held that the former employer had interfered with prospective business relations. (A) True (B) False

(A) True

3. The tort system in the U.S. is estimated to cost about $250 billion a year. (A) True (B) False

(A) True

30. In the 19th century, consumers bore more of the cost of product-related injuries. (A) True (B) False

(A) True

32. Caveat emptor means let the buyer beware. (A) True (B) False

(A) True

34. The rule of caveat emptor meant that if there was no privity between a producer and an injured consumer, the consumer had no case against the producer. (A) True (B) False

(A) True

39. MacPherson v. Buick Motor Co. introduced the rule of negligence in tort for consumer products. (A) True (B) False

(A) True

41. In MacPherson v. Buick Motor Co. the court held Buick liable because it is responsible for the quality of wheels and other parts used on its vehicles. (A) True (B) False

(A) True

42. Under the negligence standard, a manufacturer is required to exercise reasonable care under the circumstances in the production of its product. (A) True (B) False

(A) True

45. If a producer learns after it sells a product that it has a problem that might cause consumers injuries, the producer must warn consumers of the danger or face liability. (A) True (B) False

(A) True

47. Frustration over the difficulties of proving negligence led to the move in tort law from a negligence standard to a strict liability standard. (A) True (B) False

(A) True

48. To win a case based on strict liability against a producer, the plaintiff must show that the product was defective, that a defect in it caused it to be dangerous, and the defect was the proximate cause of the injury. (A) True (B) False

(A) True

49. Strict liability was first applied based on implied warranties of safety of food and drink. (A) True (B) False

(A) True

52. A warranty is an assurance from the manufacturer that its products will meet certain quality standards. (A) True (B) False

(A) True

54. Strict liability for defective products may arise from either an implied warranty or an express warranty. (A) True (B) False

(A) True

55. In Henningsen v. Bloomfield Motors, the New Jersey Supreme Court greatly expanded the legal protection offered by implied warranties of safety. (A) True (B) False

(A) True

58. Strict liability based on express warranty of safety was first based on contract law. (A) True (B) False

(A) True

59. An express warranty is a promise that is clearly stated by the seller to the buyer; it is a part of the contract. (A) True (B) False

(A) True

6. When a person suffers an injury due to deliberate deception, there may be a tort of fraud. (A) True (B) False

(A) True

63. In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the windshield were held to create an express warranty of safety because Ford misrepresented the quality and safety of the product. (A) True (B) False

(A) True

65. Courts developed strict liability in tort when strict liability under contract law proved too restrictive. (A) True (B) False

(A) True

66. 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. (A) True (B) False

(A) True

68. In Greenman v. Yuba Power Products the court imposed strict liability on a producer due to failure to prevent a defect in its product that caused injury to a consumer. (A) True (B) False

(A) True

7. Fraud may be the same as deceit in tort law. (A) True (B) False

(A) True

70. The main author of the Restatement (Second) of Torts is the American Law Institute. (A) True (B) False

(A) True

72. The rule of strict liability in torts used in the Restatement (Second) of Torts helped bring about nationwide adoption of the rule. (A) True (B) False

(A) True

77. The Restatement (Third) of Torts on product defect recommends that a risk-utility balancing test be used. (A) True (B) False

(A) True

78. The Restatement (Third) of Torts on product defect recommends that the distinction between strict liability and negligence be given less attention. (A) True (B) False

(A) True

79. The Restatement (Third) of Torts, which some state courts have adopted, tends to abandon the traditional distinction between negligence and strict liability in design defect cases. (A) True (B) False

(A) True

82. The doctrine of strict liability has been extended to include cases where manufacturers produce a poorly designed product. (A) True (B) False

(A) True

83. The doctrine of strict liability in tort applies primarily to cases of manufacturing defect, failure to warn, and to design defects. (A) True (B) False

(A) True

84. 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. (A) True (B) False

(A) True

88. In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that the trampoline had sufficient warnings of dangers so as to eliminate liability. (A) True (B) False

(A) True

89. Not only must manufacturers produce products safely, they must also think about how consumers might misuse the products and then warn consumers not to engage in these kinds of dangerous activities. (A) True (B) False

(A) True

9. Intentional misrepresentation is also known as fraud. (A) True (B) False

(A) True

90. A gun manufacturer that fails to warn its users that hearing loss may occur due to long-term exposure to gun fire may be strictly liable in tort for hearing loss. (A) True (B) False

(A) True

91. The Supreme Court of Alaska upheld a verdict of strict liability against a diet food producer who failed to provide adequate warnings about the dangers of using a diet food as baby food. (A) True (B) False

(A) True

93. Design defect cases usually do not concern one product that slips through the production process with a defect. (A) True (B) False

(A) True

95. In one appeals court case it was held to be a design defect to make an emergency stop button red as that color is attractive to children who push the button. (A) True (B) False

(A) True

98. At least $100 billion has been devoted to asbestos litigation. (A) True (B) False

(A) True

99. The courts have held that firms in an industry could be held liable jointly for damages done by products they had produced. (A) True (B) False

(A) True

101. There are no defenses available in strict liability cases; manufacturers must pay whenever a consumer is injured. (A) True (B) False

(B) False

103. Paul buys a bottle of Great Wine. He drinks it and becomes very ill. Doctors find the wine contained anti-freeze. Paul may not sue Great Wine because he assumed the risk of drinking alcohol, an inherently dangerous product. (A) True (B) False

(B) False

105. Any injuries suffered because a consumer ignored warning labels on prescription drugs will result in the manufacturer being strictly liability in tort. (A) True (B) False

(B) False

108. A manufacturer is liable for injuries suffered by product users regardless of the sophistication of the buyer. (A) True (B) False

(B) False

113. In Old Island Fumigation, a company was not held liable for injuries caused by its fumigations activities because it could not have foreseen those injuries. (A) True (B) False

(B) False

115. Foreign firms that sell products in the U.S. do not have to bear the costs of compliance with strict liability standards. (A) True (B) False

(B) False

12. If a stranger tells you to invest all your money in a company, and you do, and it collapses, losing all your money, you have a good fraud suit against that person. (A) True (B) False

(B) False

13. The tort of fraud requires the wrongdoer to intentionally mislead another party. (A) True (B) False

(B) False

15. Scienter in tort law means the plaintiff can see the results of a fraud that has been suffered. (A) True (B) False

(B) False

17. In a suit for fraud, a plaintiff is presumed to have had the right to rely on any information provided by defendant. (A) True (B) False

(B) False

2. The tort system in the U.S. is estimated to cost right about $40 billion per year. (A) True (B) False

(B) False

20. If you make an offer to sell a product to a person who is already buying the product from another party, you have interfered with contractual relations and will be liable in tort. (A) True (B) False

(B) False

22. When the tort of interference with contractual relations occurs, the party responsible for the tort is the party who breached an existing contract. (A) True (B) False

(B) False

24. If Company A runs an aggressive advertising campaign that tells customers why they should quit doing business with Company B and do business with A instead, B will be able to sue A for interference with a prospective advantage. (A) True (B) False

(B) False

1. About a half-million tort cases are filed each year. (A) True (B) False

(A) True

10. The tort of intentional misrepresentation requires a showing that the defendant knew there was false information being passed. (A) True (B) False

(A) True

100. Joint and several liability is liability rule in several states that allows each defendant to be potentially liable for the entire damage award when more than one firm have a similar defective product. (A) True (B) False

(A) True

102. Common defenses in strict liability cases are product misuse or assumption of risk. (A) True (B) False

(A) True

104. A person puts much more air in a tire than recommended. The tire explodes, injuring the person. The person is unlikely to win a case against the tire maker because of product misuse. (A) True (B) False

(A) True

106. If consumption of large quantities of alcoholic beverages over time causes serious health problems a consumer may not recover in tort against the beverage makers because of she assumed the risk. (A) True (B) False

(A) True

107. The legal rules governing injury from asbestos in the United States are much tougher on producers than is the case in the United Kingdom. (A) True (B) False

(A) True

109. The sophisticated user defense and bulk-supplier doctrine are similar in reducing liability for product sellers. (A) True (B) False

(A) True

11. The tort of fraud requires the wrongdoer to have a legal relationship with the tort victim. (A) True (B) False

(A) True

110. When a company buys dangerous chemicals to use in the workplace, it is presumed to be a sophisticated buyer who should know of many of the dangers involved in using the product, so strict liability is not likely to apply to the seller in case of work injury. (A) True (B) False

(A) True

111. There are statutes that limit product liability for certain products and services. (A) True (B) False

(A) True

112. Strict liability for ultrahazardous activities is an old concept going back more than a century. (A) True (B) False

(A) True

27. In Gieseke v. IDCA, Gieseke formed a company to compete with his old employer and worked with one of the former owners of his old employer in the new company. His former employer moved some of the equipment of the new company and changed its mailing address without permission of Gieseke or his partner. When Gieseke sued, the courts held that the former employer acted properly to recover property and information improperly taken by Gieseke.. (A) True (B) False

(B) False

29. In Gieseke v. IDCA, Gieseke formed a company to compete with his old employer and worked with one of the former owners of his old employer in the new company. His former employer moved some of the equipment of the new company and changed its mailing address without permission of Gieseke or his partner. When Gieseke sued, the courts held that the former employer was not liable for improper interference as that tort is not recognized in Minnesota. (A) True (B) False

(B) False

31. Privity of contract is a contract with an express warranty. (A) True (B) False

(B) False

33. Strict liability was used as a standard by courts before caveat emptor was used. (A) True (B) False

(B) False

35. Under the old rule of caveat emptor a buyer injured by a defective product had no ability to sue the maker. (A) True (B) False

(B) False

36. A study found that plaintiffs in Japan win a much smaller percentage of tort liability suits than do American plaintiffs. (A) True (B) False

(B) False

37. The legal standard that imposes tort liability on manufacturers when they produce a product negligently so that it hurts a consumer was first introduced in 1865. (A) True (B) False

(B) False

38. MacPherson v. Buick Motor Co. introduced the rule of strict liability in tort for consumer products. (A) True (B) False

(B) False

4. About 80 percent of the total costs involved in tort litigation goes to awards to plaintiffs (injured parties). (A) True (B) False

(B) False

40. 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. (A) True (B) False

(B) False

43. Negligence in product liability suits means the defendant is found to have intended to produce a substandard, unsafe product. (A) True (B) False

(B) False

44. The rule of negligence in tort holds the producer responsible for any defect that is the proximate cause of an injury suffered by the user of the product. (A) True (B) False

(B) False

46. If a producer did not foresee a possible danger with a product that does, in fact, cause injury, the producer cannot be held negligent in tort. (A) True (B) False

(B) False

5. A company cannot be a defendant in a tort suit since a firm is not a natural person. (A) True (B) False

(B) False

50. Strict liability in tort was applied to food and drink first because of the promises of safety made by the sellers on the labels of their products. (A) True (B) False

(B) False

51. In the 1913 case Mazetti v. Armour, the court held that privity of contract had to be proved before a plaintiff could sue a food company for breach of warranty in a product defect case. (A) True (B) False

(B) False

53. Only express warranties may create liability for the seller for defective products. (A) True (B) False

(B) False

56. The case Henningsen v. Bloomfield Motors, had a major impact on the application of tort law to foreign producers. (A) True (B) False

(B) False

57. Strict liability based on express warranties was applied originally to alcohol and tobacco products. (A) True (B) False

(B) False

60. An express warranty of safety in a product is one the law derives by inference from the nature of the transaction between the parties. (A) True (B) False

(B) False

61. The consumer must purchase the (defective) product directly from the manufacturer in order to prevail in strict liability based on express warranty. (A) True (B) False

(B) False

62. 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. (A) True (B) False

(B) False

64. In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the windshield were held to create an implied warranty of safety because Ford misrepresented the quality and safety of the product. (A) True (B) False

(B) False

67. In Greenman v. Yuba Power Products the Supreme Court of California made negligence in tort the general rule in products liability cases. (A) True (B) False

(B) False

69. In Greenman v. Yuba Power Products the court imposed strict liability on a producer for failure to warn the consumer of dangers involved in using the machine. (A) True (B) False

(B) False

71. The main author of the Restatement (Second) of Torts is the Association of State Supreme Courts. (A) True (B) False

(B) False

73. Under the rule of strict liability in tort the injured party must show that the manufacturer failed to meet the standard of care of the industry in question. (A) True (B) False

(B) False

74. Since the Greenman v. Yuba Power Products decision, strict liability in tort has meant intentional harms committed by manufacturers against consumers. (A) True (B) False

(B) False

75. A producer is relieved of strict liability in tort if it can show that it used all possible care to construct the product in question. (A) True (B) False

(B) False

76. The Restatement (Third) of Torts replaced the Second for the standard on product liability in 2010. (A) True (B) False

(B) False


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