Question 1

In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that the trampoline had sufficient warnings of dangers so as to eliminate liability.

Accepted Answer

A) True 
 B)False  True

Question 2

The doctrine of strict liability in tort applies primarily to cases of manufacturing defect, failure to warn, and to design defects.

Accepted Answer

A) True 
 B)False  True

Question 3

An implied warranty is:

Accepted Answer

A)   illegal in many states
B)   one the manufacturer always provides to the buyer in every relationship
C)   one that the law prohibits from being waived
D)   one consumers demand in all contracts
E)   none of the other choices are correct E

Question 4

Activity that "necessarily involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care" and "is not a matter of common usage" is called:

Accepted Answer

A)   metahazardous activity
B)   superhazardous activity
C)   very hazardous activity
D)   megahazardous activity
E)   none of the other choices are correct

Question 5

The main author of the Restatement (Second) of Torts is the American Law Institute.

Accepted Answer

A) True 
 B)False

Question 6

If a producer learns after it sells a product that it has a problem that might cause consumers injuries, the producer must warn consumers of the danger or face liability.

Accepted Answer

A) True 
 B)False

Question 7

If consumption of large quantities of alcoholic beverages over time causes serious health problems a consumer may not recover in tort against the beverage makers because of she assumed the risk.

Accepted Answer

A) True 
 B)False

Question 8

Key element(s) of the tort of intentional interference with contractual relations is (are):

Accepted Answer

A)   a contract between the injured party and the defendant who interfered
B)   the defendant intentionally interfered with a contract between the injured party and another party
C)   malice by the defendant must be shown
D)   a warranty of performance in a contract is breached
E)   all of the other specific choices

Question 9

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

Accepted Answer

A)   tort law
B)   felony law
C)   business negotiations
D)   civilian law
E)   none of the other choices are correct

Question 10

Under the old rule of caveat emptor a buyer injured by a defective product had no ability to sue the maker.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   jumping on a trampoline
B)   operating a nail gun
C)   crop dusting
D)   all of the other specific choices are correct
E)   none of the other specific choices are correct

Question 12

Which tort is concerned with a business attempting to improve itself in the market by interfering with another's business in an unreasonable and improper manner:

Accepted Answer

A)   interference with prospective advantage
B)   interference with competition
C)   interference with business practices
D)   interference with intent
E)   none of the other choices

Question 13

Design defect cases usually do not concern one product that slips through the production process with a defect.

Accepted Answer

A) True 
 B)False

Question 14

In MacPherson v. Buick Motor Co. the court held Buick liable because it is responsible for the quality of wheels and other parts used on its vehicles.

Accepted Answer

A) True 
 B)False

Question 15

Paul buys a bottle of Great Wine. He drinks it and becomes very ill. Doctors find the wine contained anti-freeze. Paul may not sue Great Wine because he assumed the risk of drinking alcohol, an inherently dangerous product.

Accepted Answer

A) True 
 B)False

Question 16

The case Henningsen v. Bloomfield Motors, had a major impact on the application of tort law to foreign producers.

Accepted Answer

A) True 
 B)False

Question 17

The most active area of strict liability litigation based on the concept of unknown hazards involves which product?

Accepted Answer

A)   nuclear waste
B)   automobiles
C)   petrochemicals
D)   asbestos
E)   financial securities

Question 18

In Henningsen v. Bloomfield Motors, the New Jersey Supreme Court greatly expanded the legal protection offered by implied warranties of safety.

Accepted Answer

A) True 
 B)False

Question 19

In cases involving strict liability for product failure based on contract law, the basis of the case is the relationship between which of the following parties?

Accepted Answer

A)   seller and manufacturer
B)   attorney and judge
C)   manufacturer and distributor
D)   seller and supplier
E)   none of the other choices

Question 20

The sophisticated user defense:

Accepted Answer

A)   relieves a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user does not know of a product's dangers"
B)   does not relieve a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers"
C)   limits damage awards to less than $1 million when "the end user knows or reasonably should know of a product's dangers"
D)   limits damage awards to less than $100,000 when "the end user knows or reasonably should know of a product's dangers"
E)   none of the other choices are correct

Exam 7: Business Torts and Product Liability

In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that the trampoline had sufficient warnings of dangers so as to eliminate liability.

The doctrine of strict liability in tort applies primarily to cases of manufacturing defect, failure to warn, and to design defects.

An implied warranty is:

Activity that "necessarily involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care" and "is not a matter of common usage" is called:

The main author of the Restatement (Second) of Torts is the American Law Institute.

If a producer learns after it sells a product that it has a problem that might cause consumers injuries, the producer must warn consumers of the danger or face liability.

If consumption of large quantities of alcoholic beverages over time causes serious health problems a consumer may not recover in tort against the beverage makers because of she assumed the risk.

Key element(s) of the tort of intentional interference with contractual relations is (are) :

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

Under the old rule of caveat emptor a buyer injured by a defective product had no ability to sue the maker.

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

Which tort is concerned with a business attempting to improve itself in the market by interfering with another's business in an unreasonable and improper manner:

Design defect cases usually do not concern one product that slips through the production process with a defect.

In MacPherson v. Buick Motor Co. the court held Buick liable because it is responsible for the quality of wheels and other parts used on its vehicles.

Paul buys a bottle of Great Wine. He drinks it and becomes very ill. Doctors find the wine contained anti-freeze. Paul may not sue Great Wine because he assumed the risk of drinking alcohol, an inherently dangerous product.

The case Henningsen v. Bloomfield Motors, had a major impact on the application of tort law to foreign producers.

The most active area of strict liability litigation based on the concept of unknown hazards involves which product?

In Henningsen v. Bloomfield Motors, the New Jersey Supreme Court greatly expanded the legal protection offered by implied warranties of safety.

In cases involving strict liability for product failure based on contract law, the basis of the case is the relationship between which of the following parties?

The sophisticated user defense: