Exam 7: Business Torts and Product Liability

Only express warranties may create liability for the seller for defective products.

The sophisticated user defense and bulk-supplier doctrine are similar in reducing liability for product sellers.

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.

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.

Worden entered into an agreement that allowed Yazdianpour to be the exclusive seller of Safebood Technologies patented products outside of the United States. Worden knew that the patents were only valid in the United States, but did not tell Yazdianpour who learned that fact when he tried to sell licenses for the products. He sued Worden for fraud. The appeals court held that Worden could:​

Scienter in tort law means the plaintiff can see the results of a fraud that has been suffered.

"Super Wash" liquid dishwasher detergent is sold in a box shaped like a milk carton with a bright and cheery cover. Finding the carton under the kitchen sink, a two-year-old drinks it, suffering serious internal injuries. In a suit against "Super Wash" the court is likely to find the producer:

During the 19th century, parties injured by a defective product, who did not have a contractual relationship with the seller, were under the rule of:

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.

In the 19th century, consumers bore more of the cost of product-related injuries.

Federal regulations controlling radiation exposure are an example of:

For the doctrine of strict liability to apply:

There is currently a system made up of a mix of ____ and contract law applying to products.

Maria opens her refrigerator door to get a bottle of "Diet Wrong" soda. When she grabs the bottle it explodes, cutting her badly. Expert examination of bottle fragments does not reveal anything wrong with the bottle. Her lawsuit against "Diet Wrong" will likely result in the producer being held:

The Restatement (Third) of Torts replaced the Second for the standard on product liability in 2010.

When a person suffers an injury due to deliberate deception, there may be a tort of fraud.

The "tort crisis" in the U.S.:

In Greenman v. Yuba Power Products the Supreme Court of California made negligence in tort the general rule in products liability cases.

During the 20th century, when consumers were injured as a result of using defective products, courts adopted a new legal standard that could apply to such cases, so that negligence was no longer the only standard:

Which of the following activities is an example of an ultrahazardous activity: