Question 1

Any injuries suffered because a consumer ignored warning labels on prescription drugs will result in the manufacturer being strictly liability in tort.

Accepted Answer

A) True 
 B)False

Question 2

The basis of the case in a(n) ____ case is the relationship between the manufacturer and the injured party.

Accepted Answer

A)  warranty expression 
B)  felony 
C)  partial liability 
D)  intentional liability 
E)  none of the other choices are correct 
A)  warranty expression 
B)  felony 
C)  partial liability 
D)  intentional liability 
E)  none of the other choices are correct

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  fraud 
B)  assault 
C)  battery 
D)  all of the other specific choices 
E)  none of the other specific choices 
A)  fraud 
B)  assault 
C)  battery 
D)  all of the other specific choices 
E)  none of the other specific choices

Question 5

A company packages poisoned wheat to use on farms in the Southwest to kill rats. The package states how dangerous the product is and explains needed precautions. A Mexican farm worker takes some wheat home. Since he cannot read English, he has no knowledge of the danger and feeds the wheat to his family. Two children die. In a liability suit against the poisoned wheat producer, the worker likely will likely:

Accepted Answer

A)  lose; he used the product improperly 
B)  lose; the warning of the dangers was adequate 
C)  lose; he contributed his negligence by not asking if the product was safe to eat 
D)  win; the warning was not adequate given the market where the product was distributed 
E)  win; market share liability 
A)  lose; he used the product improperly 
B)  lose; the warning of the dangers was adequate 
C)  lose; he contributed his negligence by not asking if the product was safe to eat 
D)  win; the warning was not adequate given the market where the product was distributed 
E)  win; market share liability

Question 6

The term privity of contract refers to:

Accepted Answer

A)  damage awards provided by juries in products liability cases 
B)  the requirement that products liability law have its origin in the common law of contracts 
C)  the risk that a product is of adequate legal quality 
D)  the requirement that products liability litigation must be brought by private citizens 
E)  none of the other choices 
A)  damage awards provided by juries in products liability cases 
B)  the requirement that products liability law have its origin in the common law of contracts 
C)  the risk that a product is of adequate legal quality 
D)  the requirement that products liability litigation must be brought by private citizens 
E)  none of the other choices

Question 7

Risk-utility balancing refers to the fact that:

Accepted Answer

A)  manufacturers must disclose all risks to using their product before putting it on the market 
B)  all products can be made completely safe if manufacturers are willing to spend enough money 
C)  some products are inherently dangerous and should be banned from the market 
D)  consumers will always manage to hurt themselves by improperly using products 
E)  none of the other choices are correct 
A)  manufacturers must disclose all risks to using their product before putting it on the market 
B)  all products can be made completely safe if manufacturers are willing to spend enough money 
C)  some products are inherently dangerous and should be banned from the market 
D)  consumers will always manage to hurt themselves by improperly using products 
E)  none of the other choices are correct

Question 8

In product liability law, privity refers to:

Accepted Answer

A)  the relationship that exists between the plaintiff and the defendant 
B)  the relationship that exists between the plaintiff and his attorney 
C)  the relationship that exists between contracting parties 
D)  the relationship that exists between the judge and jury 
E)  the relationship that exists between construction crews and their contractors 
A)  the relationship that exists between the plaintiff and the defendant 
B)  the relationship that exists between the plaintiff and his attorney 
C)  the relationship that exists between contracting parties 
D)  the relationship that exists between the judge and jury 
E)  the relationship that exists between construction crews and their contractors

Question 9

Strict liability in tort rule in product injury cases is described in:

Accepted Answer

A)  the Bill of Rights 
B)  the Law of Torts Sec. 832 
C)  the Restatement (Second) of Torts Sect. 402A 
D)  the Final Restatement of Torts Sect. 402A 
E)  none of the other choices are correct 
A)  the Bill of Rights 
B)  the Law of Torts Sec. 832 
C)  the Restatement (Second) of Torts Sect. 402A 
D)  the Final Restatement of Torts Sect. 402A 
E)  none of the other choices are correct

Question 10

Frustration over the difficulties of proving negligence led to the move in tort law from a negligence standard to a strict liability standard.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not usually asserted by business about tort awards:

Accepted Answer

A)  they are not costly 
B)  they are often excessive 
C)  they make American businesses less competitive 
D)  the federal government should limit such awards 
E)  all of the other choices 
A)  they are not costly 
B)  they are often excessive 
C)  they make American businesses less competitive 
D)  the federal government should limit such awards 
E)  all of the other choices

Question 12

If the consumer knows the risks associated with the use of a product and still chooses to use it he is:

Accepted Answer

A)  assuming the risk and thus relieving the manufacturer of liability 
B)  assuming the risk, but not relieving the manufacturer of liability 
C)  still able to sue if the manufacturer if injured because of ultimate liability 
D)  still able to sue the manufacturer if injured because of absolute liability 
E)  none of the other choices are correct 
A)  assuming the risk and thus relieving the manufacturer of liability 
B)  assuming the risk, but not relieving the manufacturer of liability 
C)  still able to sue if the manufacturer if injured because of ultimate liability 
D)  still able to sue the manufacturer if injured because of absolute liability 
E)  none of the other choices are correct

Question 13

If, instead of allowing a plaintiff to sue all manufacturers of a given product, a court allows defendants to bring in other manufacturers as defendants, this is known as:

Accepted Answer

A)  unknown hazard share liability 
B)  defect sharing liability 
C)  joint and several liability 
D)  strict liability 
E)  express liability 
A)  unknown hazard share liability 
B)  defect sharing liability 
C)  joint and several liability 
D)  strict liability 
E)  express liability

Question 14

An express warranty is:

Accepted Answer

A)  illegal in many states 
B)  one the consumer contractually provides to the manufacturer 
C)  one the law inserts into the relationship regardless of the actual contract terms 
D)  one demanded in all consumer transactions 
E)  none of the other choices are correct 
A)  illegal in many states 
B)  one the consumer contractually provides to the manufacturer 
C)  one the law inserts into the relationship regardless of the actual contract terms 
D)  one demanded in all consumer transactions 
E)  none of the other choices are correct

Question 15

If it is not clear who the actual manufacturer of a product is, plaintiffs:

Accepted Answer

A)  may not sue more than one manufacturer of a defective product 
B)  may sue any or all of the manufacturers of a defective product 
C)  may sue more than one manufacturer if the injury from the defective product prevents the plaintiff from being able to "engage in normal activity" 
D)  may sue up to three, but not more than three, manufacturers of a defective product 
E)  none of the choices are correct 
A)  may not sue more than one manufacturer of a defective product 
B)  may sue any or all of the manufacturers of a defective product 
C)  may sue more than one manufacturer if the injury from the defective product prevents the plaintiff from being able to "engage in normal activity" 
D)  may sue up to three, but not more than three, manufacturers of a defective product 
E)  none of the choices are correct

Question 16

Assumption of the risk may bar recovery under strict liability for which products?

Accepted Answer

A)  alcoholic beverages 
B)  prescription drugs 
C)  cigarettes 
D)  all of the other specific choices 
E)  none of the other choices are relevant 
A)  alcoholic beverages 
B)  prescription drugs 
C)  cigarettes 
D)  all of the other specific choices 
E)  none of the other choices are relevant

Question 17

The first major application of the doctrine of strict liability for consumer products was in the area of:

Accepted Answer

A)  automobiles 
B)  tobacco 
C)  glass windshields 
D)  tires 
E)  none of the other choices 
A)  automobiles 
B)  tobacco 
C)  glass windshields 
D)  tires 
E)  none of the other choices

Question 18

The Restatement (Third) of Torts on product liability states that the producer of a product may be liable for defect except in which case:

Accepted Answer

A)  the producer failed to use a reasonable alternative design that would have produced greater safety 
B)  producer failed to provide reasonable instructions of foreseeable risks 
C)  product contains a defect even if all possible care was used in making the product 
D)  none of the other choices; those refer to the Restatement (Second) 
E)  all of the other specific choices are correct 
A)  the producer failed to use a reasonable alternative design that would have produced greater safety 
B)  producer failed to provide reasonable instructions of foreseeable risks 
C)  product contains a defect even if all possible care was used in making the product 
D)  none of the other choices; those refer to the Restatement (Second) 
E)  all of the other specific choices are correct

Question 19

In a suit for intentional misrepresentation, punitive damages may be awarded.

Accepted Answer

A) True 
 B)False

Question 20

Chuck eats two pounds of potato chips a day for 20 years. He becomes obese and dies from high blood pressure at age thirty. Doctors attribute his death to consumption of the chips. In a suit against the chip makers, Chuck's heirs will probably:

Accepted Answer

A)  lose because of Chuck's assumption of risky behavior 
B)  lose because the U.S. Dept. of Agriculture had certified the chips as safe to eat 
C)  lose because of lack of warranty 
D)  win because of the failure to warn consumers of dangers of such use 
E)  win because of implied warranty of safety of food products 
A)  lose because of Chuck's assumption of risky behavior 
B)  lose because the U.S. Dept. of Agriculture had certified the chips as safe to eat 
C)  lose because of lack of warranty 
D)  win because of the failure to warn consumers of dangers of such use 
E)  win because of implied warranty of safety of food products

Exam 7: Business Torts and Product Liability

Any injuries suffered because a consumer ignored warning labels on prescription drugs will result in the manufacturer being strictly liability in tort.

The basis of the case in a(n) ____ case is the relationship between the manufacturer and the injured party.

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

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

The term privity of contract refers to:

Risk-utility balancing refers to the fact that:

In product liability law, privity refers to:

Strict liability in tort rule in product injury cases is described in:

Frustration over the difficulties of proving negligence led to the move in tort law from a negligence standard to a strict liability standard.

Which of the following is not usually asserted by business about tort awards:

If the consumer knows the risks associated with the use of a product and still chooses to use it he is:

If, instead of allowing a plaintiff to sue all manufacturers of a given product, a court allows defendants to bring in other manufacturers as defendants, this is known as:

An express warranty is:

If it is not clear who the actual manufacturer of a product is, plaintiffs:

Assumption of the risk may bar recovery under strict liability for which products?

The first major application of the doctrine of strict liability for consumer products was in the area of:

The Restatement (Third) of Torts on product liability states that the producer of a product may be liable for defect except in which case:

In a suit for intentional misrepresentation, punitive damages may be awarded.

Chuck eats two pounds of potato chips a day for 20 years. He becomes obese and dies from high blood pressure at age thirty. Doctors attribute his death to consumption of the chips. In a suit against the chip makers, Chuck's heirs will probably:

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