Question 1

In a case of intentional interference with contractual relations the claim is:

Accepted Answer

A)  the injured business's contractual relations were wrongfully interfered with by another party 
B)  the injured business's contractual relations were rightfully interfered with by another party 
C)  the injured business's contractual relations were illegal 
D)  the injured business's contractual relations were hindered by international regulations 
E)  none of the other choices are correct

Question 2

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

Accepted Answer

A)  fraud 
B)  misrepresentation 
C)  fraudulent misrepresentation 
D)  deceit 
E)  all of the other choices may be correct

Question 3

Unless a consumer buys a product directly from the producer:

Accepted Answer

A)  there is no privity between consumer and producer 
B)  there is privity between consumer and producer 
C)  there cannot be a case of battery 
D)  there cannot be a damage award greater than $100,000 
E)  none of the other choices are correct

Question 4

Company B uses dangerous acid made by Company A in its production. B fails to warn a new employee of the risks in using the acid and the employee is injured. If Company B is sued by the employee, its defense will be that A and the employee are:

Accepted Answer

A)  accomplices 
B)  in violation of federal safety regulations 
C)  sophisticated users 
D)  not covered due to lack of warranty 
E)  ruthless capitalist oppressors

Question 5

If a third party observes a fraud:

Accepted Answer

A)  they cannot sue 
B)  they can sue 
C)  they can sue, but not recover any damages 
D)  they can sue on the behalf of the injured party if they split the damage award with the injured party 
E)  they can sue in some states, but not others

Question 6

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)  bulk-supplier doctrine 
D)  small-scale supplier doctrine 
E)  Wal-Mart-supplier doctrine

Question 7

In Baxter v. Ford Motor (where Baxter lost an eye from a broken windshield) Baxter was compensated by Ford under the rule of strict liability in tort for injuries he suffered due to Ford's defective product.

Accepted Answer

A) True 
 B)False

Question 8

As seen in Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, misrepresentation about product quality in advertising may be the basis for:

Accepted Answer

A)  strict liability 
B)  false liability 
C)  privity of contract 
D)  fraud in sales 
E)  none of the other choices are correct

Question 9

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, so could be liable 
C)  the makers had failed to produce any warnings, so were liable 
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 10

Under the strict liability doctrine, the focus is on the problems with the product, rather than:

Accepted Answer

A)  problems with the court process 
B)  integrity of the manufacturer 
C)  the rationality of the conduct of the manufacturer 
D)  the appropriateness of the conduct of the manufacturer 
E)  none of the other choices are correct

Question 11

Kim lost control of his Toyota. The vehicle rolled and he suffered injuries. He sued for design defect because the vehicle lacked electronic stability control, a feature that would have increased his chance of controlling the vehicle so it would not have gone off the road. The appeals court held that:

Accepted Answer

A)  ​use of a risk-benefit analysis about adopting such safety features was not proper in a case of strict liability. 
B)  ​in cases involving motor vehicles, negligence, not strict liability was the standard to be applied. 
C)  ​it was appropriate to use a "consumer expectation" analysis in such instances. 
D)  ​expert testimony about the benefit of such devices would help the jury determine if such devices were to be expected or not by consumers. 
E)  ​none of the other choices are correct.

Question 12

Design defect cases focus on:

Accepted Answer

A)  whether an injury to users could have been prevented by designing the product differently 
B)  whether the manufacturer made a mistake during the manufacturing process 
C)  whether the manufacturer's employees had proper training 
D)  the extent of the injury caused by the product 
E)  none of the other choices are correct

Question 13

The rule of strict liability in torts used in the Restatement (Second) of Torts helped bring about nationwide adoption of the rule.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  automobiles 
B)  food and drink 
C)  glass windshields 
D)  tires 
E)  cigarettes

Question 15

The Restatement (Third) of Torts, which some state courts have adopted, tends to abandon the traditional distinction between negligence and strict liability in design defect cases.

Accepted Answer

A) True 
 B)False

Question 16

In Gieseke v. IDCA, Gieseke formed a company to compete with his old employer and worked with one of the former owners of his old employer in the new company. His former employer moved some of the equipment of the new company and changed its mailing address without permission of Gieseke or his partner. When Gieseke sued his former employer the courts held that he had a good cause of action for:

Accepted Answer

A)  was not liable as it had no obligation to write policies 
B)  was not liable as it was prohibited by the state from doing insurance business any longer 
C)  was liable as it prohibited MDM from continuing its relationships with clients 
D)  was liable as it induced MDM to develop business relationships that were suddenly cancelled 
E)  none of the other choices

Question 17

In a suit for fraud, the plaintiff must establish a good reason to rely on the bad information provided by the defendant.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

McKenzie worked in a service station. Changing a customer's tire, he over-inflated it, causing it to explode. This severely injured his left hand. Neither the tire nor the rim was found to be defective. In a lawsuit against the tire manufacturer McKenzie will likely:

Accepted Answer

A)  lose due to product abuse 
B)  win under a strict liability or a negligence standard 
C)  lose under strict liability but win under negligence 
D)  win due to implied warranty of safety 
E)  lose due to assumption of the risk

Question 20

A Pennsylvania court imposed strict liability on a gun manufacturer because of hearing losses caused by long-term users exposed to gunfire. The liability was based on:

Accepted Answer

A)  latent defect 
B)  express warranty 
C)  defective design 
D)  failure to warn 
E)  none of the other choices

Exam 7: Business Torts and Product Liability

In a case of intentional interference with contractual relations the claim is:

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

Unless a consumer buys a product directly from the producer:

Company B uses dangerous acid made by Company A in its production. B fails to warn a new employee of the risks in using the acid and the employee is injured. If Company B is sued by the employee, its defense will be that A and the employee are:

If a third party observes a fraud:

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.

In Baxter v. Ford Motor (where Baxter lost an eye from a broken windshield) Baxter was compensated by Ford under the rule of strict liability in tort for injuries he suffered due to Ford's defective product.

As seen in Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, misrepresentation about product quality in advertising may be the basis for:

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:

Under the strict liability doctrine, the focus is on the problems with the product, rather than:

Design defect cases focus on:

The rule of strict liability in torts used in the Restatement (Second) of Torts helped bring about nationwide adoption of the rule.

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

The Restatement (Third) of Torts, which some state courts have adopted, tends to abandon the traditional distinction between negligence and strict liability in design defect cases.

In a suit for fraud, the plaintiff must establish a good reason to rely on the bad information provided by the defendant.

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

McKenzie worked in a service station. Changing a customer's tire, he over-inflated it, causing it to explode. This severely injured his left hand. Neither the tire nor the rim was found to be defective. In a lawsuit against the tire manufacturer McKenzie will likely:

A Pennsylvania court imposed strict liability on a gun manufacturer because of hearing losses caused by long-term users exposed to gunfire. The liability was based on: