Exam 5: Torts and Product Liability

Motor Corporation (MC)makes cars and trucks.National Sales Company sells all MC vehicles.Open Road Inc.leases only the cars.Under product liability laws,liability for injuries or damage caused by an MC vehicle may be imposed on

Ness,a broker,advises Ollie to invest in Penny Stock Inc.When the share price of Penny's stock drops,Ollie accuses Ness of fraud,claiming reliance on the broker's advice.The reliance that gives rise to liability for fraud requires

To gain a share of a market,a businessperson can interfere in another's business,even if the behavior is predatory.

Excavation,Inc. ,uses explosives to prepare land for construction projects.Strict liability is imposed on this activity because

To make a sale,Fran tells Gio that her Hyundai Kia has never been in an accident.This may give rise to an action for fraud if the statement is

Bix backs out of City Parking Garage,colliding with Dill's car.Dill may recover $7,500 to cover the cost of the repairs if Bix failed to act as

Cato is driving a car in which Diego is a passenger when an accident occurs.Diego is not injured.In Diego's tort action against Cato for negligence,Cato can most likely assert as a successful defense that

Steps & Rungs Inc.makes ladders.Ty discovers that his Steps & Rungs ladder is defective and sues the maker for product liability based on strict liability.To win,Ty must show that

In an online blog,Oren states that Publicity Corporation invaded the privacy of individuals to collect marketing data for its clients.If the firm can prove all of the elements of defamation and Oren cannot assert a sufficient defense,Oren is most likely liable for

Do-It-Rite Inc.makes and markets tools.Evan uses a Do-It-Rite power screwdriver to scrape grout-a purpose for which it was not intended-and is injured when the tool slips.Evan files a product liability suit against the maker.The defendant's best defense is most likely

For the purpose of tort liability,intent can be transferred when an individual intends to harm one individual but unintentionally harms another.

Errol works for Food Packing Company.Errol's supervisor Gwen writes a negative review of Errol's performance.Gwen believes the statements are true,and limits their communication to the firm's management.In a tort action for defamation,Gwen can most likely assert as a successful defense