Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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.

Accepted Answer

A)  commercial-supplier doctrine 
B)  final-supplier doctrine 
C)  Wal-Mart-supplier doctrine 
D)  small-scale supplier doctrine 
E)  none of the other choices are correct

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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:​

Accepted Answer

A)  ​be liable for misrepresentation but not for intentional fraud. 
B)  ​be liable for breach of contract but not for fraud or misrepresentation. 
C)  ​not be liable for fraud as the technology had no protection rights outside of the United States. 
D)  ​not be liable for fraud or misrepresentation because Yazdianpour did not make any up-front payment for the rights. 
E)  ​none of the other choices are correct.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

"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:

Accepted Answer

A)  liable in contract for express warranty of safety 
B)  liable for misrepresentation 
C)  liable in strict liability for failure to warn or for design defect 
D)  all of the other specific choices are likely 
E)  not liable because of contributory negligence by parents

Question 8

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:

Accepted Answer

A)  res ipsa loquitur 
B)  stare decisis 
C)  strict liability 
D)  proximate cause 
E)  none of the other choices

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Federal regulations controlling radiation exposure are an example of:

Accepted Answer

A)  a potential statutory limit on tort liability 
B)  a statutory limit on how many cases may be brought against a manufacturer for a defective product that causes injuries 
C)  a potential cause for tort liability for a manufacturer 
D)  the main cause of most business tort cases 
E)  none of the other choices are correct

Question 12

For the doctrine of strict liability to apply:

Accepted Answer

A)  a consumer must have purchased the product directly from the manufacturer 
B)  a consumer must misuse the product due to faulty instructions from the manufacturer 
C)  a consumer must suffer life threatening injuries 
D)  a manufacturer must not intentionally misrepresent the product 
E)  none of the other choices are correct

Question 13

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

Accepted Answer

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

Question 14

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:

Accepted Answer

A)  not liable for lack of evidence of defect 
B)  not liable because of contributory negligence by Maria 
C)  not liable; the lawsuit must be filed against the company that produced the bottle 
D)  liable for violating the Magnuson-Moss Warranty Act 
E)  liable in strict liability for producing a defective product that injured a consumer

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  punishes American companies but not foreign firms that sell in the U.S. 
B)  keeps jumping in costs annually 
C)  has seen a rise in bad-quality expert testimony 
D)  has caused the bankruptcy of 15 of the largest 100 firms in the U.S. in the past decade 
E)  none of the other choices

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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:

Accepted Answer

A)  a comparative negligence standard 
B)  a caveat emptor standard 
C)  an assumption of risk standard 
D)  a business exemption standard 
E)  none of the other choices

Question 20

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)  blasting with explosives 
D)  all of the other specific choices are correct 
E)  none of the other specific choices are correct

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.

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: