Question 1

In which of the following cases was the manufacturer held liable based on failure to warn:

Accepted Answer

A)  a gun manufacturer that failed to warn users of damage to hearing from long-term exposure to gunfire 
B)  a diet food producer that failed to provide adequate warnings about using the adult diet food as baby food 
C)  Johnson and Johnson not warning Tylenol users that liver damage could occur in heavy drinkers who used Tylenol often 
D)  all of the other specific choices are correct 
E)  none of the other specific choices are correct

Question 2

In Parish v. ICON, where a person was severely injured when jumping on a trampoline and sued its maker and the maker of a safety net for failure to warn, the Iowa high court held that:

Accepted Answer

A)  the makers had no duty to warn because the danger was obvious 
B)  the makers had a poorly designed set of instructions 
C)  the case could be dismissed because the warnings were adequate 
D)  produced products that should never have been placed on the market because they are so dangerous that warnings are unhelpful 
E)  none of the other choices

Question 3

Liability based on negligence may be imposed on a manufacturer if:

Accepted Answer

A)  a partial connection can be established between the failure of the manufacturer to exercise reasonable care and an injury suffered by a consumer 
B)  a causal connection can be established between the failure of the manufacturer to exercise reasonable care and an injury suffered by a consumer 
C)  a probable connection can be established between the failure of the manufacturer to exercise reasonable care and an injury suffered by a consumer 
D)  none of the other choices are correct

Question 4

The bulk-supplier doctrine holds that the bulk supplier:

Accepted Answer

A)  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 
B)  has no duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users, and it does not have to police the details of what is done as the product continues down the chain of use 
C)  has a duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users and must police the details of what is done as the product continues down the chain of use 
D)  is liable for injuries caused by any item sold 
E)  none of the other choices are correct

Question 5

The elements needed to establish strict liability in tort do not include which of the following:

Accepted Answer

A)  the product was defective 
B)  the defect created an unreasonably dangerous product 
C)  the defect was the proximate cause in producing the injury suffered 
D)  the injury caused damages 
E)  all of the other choices are necessary

Question 6

A(n) ____ warranty is one the law inserts into the relationship regardless of the actual contract terms.

Accepted Answer

A)  inferred 
B)  valid 
C)  explicit 
D)  expiated 
E)  none of the other choices are correct

Question 7

Flush-O, a toilet cleaner, states clearly on its package that it is poison. Flush-O's cap is easy to remove. A small child opens a bottle left in a bathroom cabinet, drinks some Flush-O, and is injured. If the child's parents sue the makers of Flush-O, Flush-O is likely to:

Accepted Answer

A)  lose because of express warranty of safety 
B)  lose because of unknown hazards 
C)  lose because of failure to warn or design defect 
D)  win because of assumption of the risk 
E)  win because of contributory negligence by the parents

Question 8

In a suit for fraud, a plaintiff is presumed to have had the right to rely on any information provided by defendant.

Accepted Answer

A) True 
 B)False

Question 9

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)  transporting chemicals in a city 
D)  all of the other specific choices are correct 
E)  none of the other specific choices are correct

Question 10

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)  ultrahazardous activity 
D)  megahazardous activity 
E)  none of the other choices are correct

Question 11

Unknown hazards are:

Accepted Answer

A)  defects that occurred during the manufacturing process 
B)  defects that the manufacturer knew about, but did not reveal to the consumers 
C)  the only kind of hazard that manufacturers cannot be held liable for 
D)  dangers that the consumer was aware of, but not able to avoid 
E)  none of the other choices are correct

Question 12

Which of the following is not required to be shown in a successful action on the theory of strict liability in tort?

Accepted Answer

A)  the product was defective 
B)  the defect created an unreasonably dangerous product 
C)  the producer acted negligently in producing the item 
D)  the defect was the proximate cause of the injury 
E)  all of the other choices must be shown to be successful

Question 13

Parties engaging in ultrahazardous activities are liable for injuries:

Accepted Answer

A)  unless the injured party somehow profited from the activity before being injured 
B)  unless the injured party should have known better 
C)  regardless of the level of care exercised in carrying out the activity 
D)  unless there is sufficient care shown in carrying out the activity 
E)  none of the other choices are correct

Question 14

To avoid being sued for failure to warn users of products, manufacturers must:

Accepted Answer

A)  take lots of precautions in the manufacturing process 
B)  invest a lot in safety research 
C)  conduct regular customer satisfaction surveys 
D)  have mandatory safety training sessions for all employees 
E)  provide adequate warning labels and instructions on products

Question 15

The tort of fraud requires the wrongdoer to have a legal relationship with the tort victim.

Accepted Answer

A) True 
 B)False

Question 16

Business organizations lobby Congress to impose federal statutory limits on tort damages because they claim that:

Accepted Answer

A)  many of the awards are excessive 
B)  many of the awards are unjustified 
C)  the costs of the awards are making American business less competitive 
D)  all of the other specific choices are correct 
E)  none of the other specific choices are correct

Question 17

In which of the following cases discussed in the text was the manufacturer held liable based on failure to warn:

Accepted Answer

A)  a gun manufacturer whose guns jammed, causing them to misfire 
B)  a power tool company that failed to include grounded power cords with their product 
C)  a trampoline manufacturer that failed to put its warnings in French 
D)  all of the other specific choices are correct 
E)  none of the other specific choices are correct

Question 18

Unknown hazards products liability cases involve:

Accepted Answer

A)  a small number of products liability cases 
B)  only cases involving asbestos 
C)  the largest dollar volume of products liability cases 
D)  cases in which the government is the defendant 
E)  cases in which the government is the plaintiff

Question 19

Product misuse can be used as a defense in a product liability suit if:

Accepted Answer

A)  it can be shown that the product was misused 
B)  it can be shown that the product was combined with another product to make it dangerous 
C)  it can be shown that the product was not maintained properly 
D)  all of the other specific choices are correct 
E)  none of the other specific choices are correct

Question 20

Strict liability for defective products may arise from either an implied warranty or an express warranty.

Accepted Answer

A) True 
 B)False

Exam 7: Business Torts and Product Liability

In which of the following cases was the manufacturer held liable based on failure to warn:

In Parish v. ICON, where a person was severely injured when jumping on a trampoline and sued its maker and the maker of a safety net for failure to warn, the Iowa high court held that:

Liability based on negligence may be imposed on a manufacturer if:

The bulk-supplier doctrine holds that the bulk supplier:

The elements needed to establish strict liability in tort do not include which of the following:

A(n) ____ warranty is one the law inserts into the relationship regardless of the actual contract terms.

Flush-O, a toilet cleaner, states clearly on its package that it is poison. Flush-O's cap is easy to remove. A small child opens a bottle left in a bathroom cabinet, drinks some Flush-O, and is injured. If the child's parents sue the makers of Flush-O, Flush-O is likely to:

In a suit for fraud, a plaintiff is presumed to have had the right to rely on any information provided by defendant.

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

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:

Unknown hazards are:

Which of the following is not required to be shown in a successful action on the theory of strict liability in tort?

Parties engaging in ultrahazardous activities are liable for injuries:

To avoid being sued for failure to warn users of products, manufacturers must:

The tort of fraud requires the wrongdoer to have a legal relationship with the tort victim.

Business organizations lobby Congress to impose federal statutory limits on tort damages because they claim that:

In which of the following cases discussed in the text was the manufacturer held liable based on failure to warn:

Unknown hazards products liability cases involve:

Product misuse can be used as a defense in a product liability suit if:

Strict liability for defective products may arise from either an implied warranty or an express warranty.