Question 1

________ refers to all manufacturers,distributors,wholesalers,retailers,lessors,and subcomponent manufacturers involved in a transaction.

Accepted Answer

A) Demand chain 
B) Chain of command 
C) Chain of distribution 
D) Value chain 
A) Demand chain 
B) Chain of command 
C) Chain of distribution 
D) Value chain

Question 2

When the containers of a product are not tamperproof,it is termed as a ________.

Accepted Answer

A) defect in manufacture 
B) defect in design 
C) defect in packaging 
D) failure to warn 
A) defect in manufacture 
B) defect in design 
C) defect in packaging 
D) failure to warn

Question 3

Michael wanted to build a small princess castle for his daughter in the backyard.He decided to turn it into a do-it-yourself project,so he bought the disassembled parts of the castle from Big Ben Forts Inc.However,after the purchase,he found that the manual provided by the company gave vague directions that were hard to understand.He built the castle by following the manual,but after a few days the castle collapsed and injured his daughter who was playing inside.Which of the following actions can Michael take in this situation?

Accepted Answer

A) He can file a negligence lawsuit against the store from which he bought the castle. 
B) He can file a strict liability lawsuit against Big Ben Forts for failure to warn about the possible dangers of the product. 
C) He can file a strict liability lawsuit against Big Ben Forts for failure to provide adequate instructions on assembling the product. 
D) He can sue Big Ben Forts for defects in the packaging of their products. 
A) He can file a negligence lawsuit against the store from which he bought the castle. 
B) He can file a strict liability lawsuit against Big Ben Forts for failure to warn about the possible dangers of the product. 
C) He can file a strict liability lawsuit against Big Ben Forts for failure to provide adequate instructions on assembling the product. 
D) He can sue Big Ben Forts for defects in the packaging of their products.

Question 4

The plaintiff in a product liability lawsuit has suffered $100,000 worth of damages from an automobile accident.A defect in manufacture of the plaintiff's vehicle is found to be 60 percent responsible for the accident,while the plaintiff's own negligence is 40 percent responsible.Under the doctrine of comparative negligence,how much would the defendant-the manufacturer of the vehicle-have to pay the plaintiff in damages?

Accepted Answer

A) $60,000 
B) $40,000 
C) $100,000 
D) The defendant would not have to pay any amount in damages. 
A) $60,000 
B) $40,000 
C) $100,000 
D) The defendant would not have to pay any amount in damages.

Question 5

Clayton Inc.is a toy manufacturer that has released a new line of action figures.The toys are meant for children between the ages of one and 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 avoid supervening event 
D) defect in packaging 
A) defect in design 
B) failure to provide adequate instructions 
C) failure to avoid supervening event 
D) defect in packaging

Question 6

When a drug manufacturer places prescription drugs in containers that can be easily opened by children,the manufacturer can be subjected to strict liability action due to defect in packaging.

Accepted Answer

A) True 
 B)False

Question 7

If the statute of repose for strict liability is five years and an injured party files a suit seven years after the date of purchase of a defective product,the manufacturer or seller of that defective product is relieved of liability.

Accepted Answer

A) True 
 B)False

Question 8

Bartie's Inc.sells watercolors and pastels that are marketed as safe for use by children.However,several accounts of lead poisoning were reported in children who used the products.An investigation revealed that the company was knowingly manufacturing colors that contained a significant amount of a toxic heavy metal.Which of the following torts has Bartie's committed?

Accepted Answer

A) battery 
B) disparagement 
C) misrepresentation 
D) professional malpractice 
A) battery 
B) disparagement 
C) misrepresentation 
D) professional malpractice

Question 9

A risk utility analysis requires showing that a product is more dangerous than the ordinary consumer would expect.

Accepted Answer

A) True 
 B)False

Question 10

What is the purpose of the crashworthiness doctrine?

Accepted Answer

Sometimes,when an automobile is involved

Question 11

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 12

Intentional misrepresentation occurs when a seller or lessor conceals a defect in a product.

Accepted Answer

A) True 
 B)False

Question 13

A tamperproof seal on a product is considered as a defect in packaging.

Accepted Answer

A) True 
 B)False

Question 14

Casual sales and transactions are not covered under the strict liability doctrine.

Accepted Answer

A) True 
 B)False

Question 15

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 caused by 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 16

Intentional misrepresentation occurs when a seller or lessor ________.

Accepted Answer

A) fails to warn customers about the dangerous propensities of a product 
B) shows negligence in product design 
C) fails to assemble a product carefully 
D) conceals a defect in a product 
A) fails to warn customers about the dangerous propensities of a product 
B) shows negligence in product design 
C) fails to assemble a product carefully 
D) conceals a defect in a product

Question 17

Manufacturers and others in the chain of distribution are not strictly liable for failure to provide adequate instructions on assembly and use of a product.

Accepted Answer

A) True 
 B)False

Question 18

Spring Stream sells bottled water that it claims contains vital minerals and salts not found in rival brands.The company also claims that using tamperproof seals on the bottles would minimize the health benefits of the water.As a result,some merchants refill the used water bottles with contaminated water and resell them.People who drink the water suffer from various water-borne diseases.Which of the following forms the grounds on which affected customers can bring a strict liability lawsuit against Spring Stream?

Accepted Answer

A) There was a defect in the manufacture of the bottled water. 
B) There was a defect in the packaging of the bottled water. 
C) The company failed to provide warnings about the dangers of contaminated water. 
D) There was a defect in the design of the water bottles. 
A) There was a defect in the manufacture of the bottled water. 
B) There was a defect in the packaging of the bottled water. 
C) The company failed to provide warnings about the dangers of contaminated water. 
D) There was a defect in the design of the water bottles.

Question 19

Under the doctrine of strict liability,a plaintiff cannot recover punitive damages for reckless conduct of the defendant.

Accepted Answer

A) True 
 B)False

Question 20

Kicker's Inc.has produced a new kind of candy bar,but it fails to mention on the packaging that the bar contains gluten and nuts.Consequently,many consumers who eat the bars suffer from severe allergic reactions.Which of the following can the injured customers cite as a defect in a strict liability lawsuit against Kicker's?

Accepted Answer

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

Exam 6: Product and Strict Liability

________ refers to all manufacturers,distributors,wholesalers,retailers,lessors,and subcomponent manufacturers involved in a transaction.

When the containers of a product are not tamperproof,it is termed as a ________.

When a drug manufacturer places prescription drugs in containers that can be easily opened by children,the manufacturer can be subjected to strict liability action due to defect in packaging.

If the statute of repose for strict liability is five years and an injured party files a suit seven years after the date of purchase of a defective product,the manufacturer or seller of that defective product is relieved of liability.

A risk utility analysis requires showing that a product is more dangerous than the ordinary consumer would expect.

What is the purpose of the crashworthiness doctrine?

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.

Intentional misrepresentation occurs when a seller or lessor conceals a defect in a product.

A tamperproof seal on a product is considered as a defect in packaging.

Casual sales and transactions are not covered under the strict liability doctrine.

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 caused by the faulty brake in his vehicle.Which of the following is true of this situation?

Intentional misrepresentation occurs when a seller or lessor ________.

Manufacturers and others in the chain of distribution are not strictly liable for failure to provide adequate instructions on assembly and use of a product.

Under the doctrine of strict liability,a plaintiff cannot recover punitive damages for reckless conduct of the defendant.

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Digital Law and E-Commerce

Formation of Sales and Lease Contracts

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Creation of Negotiable Instruments

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