Question 1

The statute of limitations begins to run when a product is first sold.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is true when there is a defect in design of a product?

Accepted Answer

A) There was a failure to provide adequate instruction on use of the product. 
B) There was a failure to warn customers about the possible dangers of using the product. 
C) A single item is defectively designed and it has the potential to cause injury. 
D) All of the products are defectively designed and have the potential to cause injury. 
A) There was a failure to provide adequate instruction on use of the product. 
B) There was a failure to warn customers about the possible dangers of using the product. 
C) A single item is defectively designed and it has the potential to cause injury. 
D) All of the products are defectively designed and have the potential to cause injury.

Question 3

A pharmaceutical company has disclosed a list of side effects of its new prescription drug.A consumer, taking the drug in the right doses, suffers from one of these side effects and sues the company for product liability.Which of the following would be the pharmaceutical company's defense in this lawsuit?

Accepted Answer

A) The consumer was injured due to a supervening event. 
B) The consumer had assumed the disclosed risks when purchasing the drug. 
C) The side effects suffered by the consumer were generally known dangers of the drug. 
D) The consumer abnormally misused the drug. 
A) The consumer was injured due to a supervening event. 
B) The consumer had assumed the disclosed risks when purchasing the drug. 
C) The side effects suffered by the consumer were generally known dangers of the drug. 
D) The consumer abnormally misused the drug.

Question 4

Mary was getting a ride home in John's new car.On the way, a malfunctioning brake caused an accident and both Mary and John were injured.Which of the following statements is true of this situation?

Accepted Answer

A) Mary can recover from a strict liability lawsuit against the manufacturer of John's car. 
B) Mary can file a strict liability lawsuit against John. 
C) Mary can file a negligence lawsuit against the dealership that sold John his car. 
D) John can file a negligence lawsuit against the dealership from which he bought the car. 
A) Mary can recover from a strict liability lawsuit against the manufacturer of John's car. 
B) Mary can file a strict liability lawsuit against John. 
C) Mary can file a negligence lawsuit against the dealership that sold John his car. 
D) John can file a negligence lawsuit against the dealership from which he bought the car.

Question 5

Ruggers is a maker of a range of highly popular cruise motorcycles.Tim buys a Ruggers motorcycle from a dealership and suffers an accident.While recuperating from his injuries, he learns that Ruggers has recalled all motorcycles it had manufactured and sold in the previous two years, owing to a previously unknown defect in their braking systems.Tim brings a product liability lawsuit against the motorcycle manufacturer and claims $50, 000 in damages.The defect in the motorcycle is found to be half responsible for the accident, while Tim's own negligence of traffic rules contributed to the rest.Under the doctrine of contributory negligence, what would be the ruling of the court hearing this case?

Accepted Answer

A) Tim can recover $25, 000 worth of damages from the Ruggers and the rest from the dealership from which he purchased the motorcycle. 
B) Tim can recover $50, 000 worth of damages from the motorcycle manufacturer. 
C) Tim can recover $50, 000 worth of damages plus any punitive damages that may be awarded by the jury. 
D) Tim cannot recover any damages from the motorcycle manufacturer. 
A) Tim can recover $25, 000 worth of damages from the Ruggers and the rest from the dealership from which he purchased the motorcycle. 
B) Tim can recover $50, 000 worth of damages from the motorcycle manufacturer. 
C) Tim can recover $50, 000 worth of damages plus any punitive damages that may be awarded by the jury. 
D) Tim cannot recover any damages from the motorcycle manufacturer.

Question 6

Clayton, Inc.is a toy manufacturer that has released a new line of action figures.The toys are targeted to children between the ages of one to two.However, they come with tiny detachable weapons that can be accidentally swallowed by children of that age.Which of the following defects do the action figures have that will make them strictly liable for any injuries caused?

Accepted Answer

A) defect in design 
B) failure to provide adequate instructions 
C) failure to warn 
D) defect in packaging 
A) defect in design 
B) failure to provide adequate instructions 
C) failure to warn 
D) defect in packaging

Question 7

Under the doctrine of comparative negligence, if the defendant is 50 percent responsible for injuries worth $10, 000 suffered by the plaintiff, then the defendant must pay $5, 000 in damages.

Accepted Answer

A) True 
 B)False

Question 8

________ is a tort doctrine that makes manufacturers, distributors, wholesalers, retailers, and others in the chain of distribution of a defective product liable for the damages caused by the defect, irrespective of fault.

Accepted Answer

A) Absolute liability 
B) Contingent liability 
C) Superior responsibility 
D) Strict liability 
A) Absolute liability 
B) Contingent liability 
C) Superior responsibility 
D) Strict liability

Question 9

________ is a doctrine that says automobile manufacturers are under a duty to design automobiles so they take into account the possibility of harm from a person's body striking something inside the automobile in the case of a car accident.

Accepted Answer

A) Crash avoidance 
B) Crashworthiness 
C) Risk compensation 
D) Conspicuity 
A) Crash avoidance 
B) Crashworthiness 
C) Risk compensation 
D) Conspicuity

Question 10

A seller of a defective product cannot be held strictly liable if it can be proved that he or she took all possible care in the preparation and sale of the product.

Accepted Answer

A) True 
 B)False

Question 11

The doctrine of strict liability holds the manufacturers of a defective product solely liable for injuries caused by that product.

Accepted Answer

A) True 
 B)False

Question 12

Compare the tort doctrines of negligence and misrepresentation.

Accepted Answer

Negligence requires the defendant to be

Question 13

The term ________ refers to the doctrine which applies to strict liability actions that says a plaintiff who is contributorily negligent for his or her injuries is responsible for a proportional share of the damages.

Accepted Answer

A) negligence per se 
B) assumption of risk 
C) comparative fault 
D) contributory negligence 
A) negligence per se 
B) assumption of risk 
C) comparative fault 
D) contributory negligence

Question 14

Manufacturers and sellers are strictly liable for failing to warn customers of the generally known dangers of a product.

Accepted Answer

A) True 
 B)False

Question 15

Failure to properly assemble a product constitutes a defect in design by the manufacturer.

Accepted Answer

A) True 
 B)False

Question 16

________ refers to a statute that limits the seller's liability to a certain number of years from the date when the product was first sold.

Accepted Answer

A) Statute of limitations 
B) Statute of frauds 
C) Statute of general application 
D) Statute of repose 
A) Statute of limitations 
B) Statute of frauds 
C) Statute of general application 
D) Statute of repose

Question 17

Allenby Spares, Inc.is a shop that sells spare automotive parts from various manufacturers.A customer buys a faulty brake manufactured by TurboDiezel, Inc.from Allenby Spares and is involved in an accident due to the use of the faulty brake in his vehicle.Which of the following is true of this situation?

Accepted Answer

A) Allenby Spares cannot be held strictly liable since the brake was manufactured by TurboDiezel. 
B) TurboDiezel cannot be held strictly liable as the company is not the seller in this case. 
C) Neither Allenby nor TurboDiezel can be held strictly liable for the faulty brake. 
D) Allenby Spares can be held strictly liable for the faulty brake as it is part of the distribution chain. 
A) Allenby Spares cannot be held strictly liable since the brake was manufactured by TurboDiezel. 
B) TurboDiezel cannot be held strictly liable as the company is not the seller in this case. 
C) Neither Allenby nor TurboDiezel can be held strictly liable for the faulty brake. 
D) Allenby Spares can be held strictly liable for the faulty brake as it is part of the distribution chain.

Question 18

Describe the functions of the statute of limitations and the statute of repose.

Accepted Answer

Most states have statutes of limitations

Question 19

Strict liability applies to services, but not products.

Accepted Answer

A) True 
 B)False

Question 20

Clive buys a rifle from Gun Manufacturing Company and goes hunting.During the hunting expedition he accidentally shoots himself in the foot.Which of the following would be true of this case?

Accepted Answer

A) Clive can bring a strict liability lawsuit against the company for its failure to warn him about the possible dangers of firearms. 
B) Clive can bring a strict liability lawsuit against the company for failure to provide adequate instructions on the use of the rifle. 
C) Clive cannot take any action because the handling of firearms entails generally known dangers. 
D) Clive cannot take any action against the company because he had abnormally misused the product. 
A) Clive can bring a strict liability lawsuit against the company for its failure to warn him about the possible dangers of firearms. 
B) Clive can bring a strict liability lawsuit against the company for failure to provide adequate instructions on the use of the rifle. 
C) Clive cannot take any action because the handling of firearms entails generally known dangers. 
D) Clive cannot take any action against the company because he had abnormally misused the product.

Exam 6: Product and Strict Liability

The statute of limitations begins to run when a product is first sold.

Which of the following statements is true when there is a defect in design of a product?

Mary was getting a ride home in John's new car.On the way, a malfunctioning brake caused an accident and both Mary and John were injured.Which of the following statements is true of this situation?

Under the doctrine of comparative negligence, if the defendant is 50 percent responsible for injuries worth $10, 000 suffered by the plaintiff, then the defendant must pay $5, 000 in damages.

________ is a tort doctrine that makes manufacturers, distributors, wholesalers, retailers, and others in the chain of distribution of a defective product liable for the damages caused by the defect, irrespective of fault.

________ is a doctrine that says automobile manufacturers are under a duty to design automobiles so they take into account the possibility of harm from a person's body striking something inside the automobile in the case of a car accident.

A seller of a defective product cannot be held strictly liable if it can be proved that he or she took all possible care in the preparation and sale of the product.

The doctrine of strict liability holds the manufacturers of a defective product solely liable for injuries caused by that product.

Compare the tort doctrines of negligence and misrepresentation.

The term ________ refers to the doctrine which applies to strict liability actions that says a plaintiff who is contributorily negligent for his or her injuries is responsible for a proportional share of the damages.

Manufacturers and sellers are strictly liable for failing to warn customers of the generally known dangers of a product.

Failure to properly assemble a product constitutes a defect in design by the manufacturer.

________ refers to a statute that limits the seller's liability to a certain number of years from the date when the product was first sold.

Describe the functions of the statute of limitations and the statute of repose.

Strict liability applies to services, but not products.

Clive buys a rifle from Gun Manufacturing Company and goes hunting.During the hunting expedition he accidentally shoots himself in the foot.Which of the following would be true of this case?

Legal Heritage and the Digital Age

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Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

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Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

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Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

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