Question 1

When an injured party is allowed to sue all manufacturers of a defective product, so that all these manufacturers might be liable together, this is sometimes called:

Accepted Answer

A)  absolute liability 
B)  strict liability 
C)  limited liability 
D)  industry liability 
E)  none of the other choices

Question 2

In the 1913 case Mazetti v. Armour, the court held that privity of contract had to be proved before a plaintiff could sue a food company for breach of warranty in a product defect case.

Accepted Answer

A) True 
 B)False

Question 3

Each year about one-half million tort suits are filed. Most are in ____ courts.

Accepted Answer

A)  federal 
B)  appellate 
C)  municipal 
D)  small claims 
E)  none of the other choices

Question 4

In Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, Ford's liability was based on:

Accepted Answer

A)  negligence in construction 
B)  misrepresentation in advertisements 
C)  privity in warranty 
D)  fraud in sales 
E)  none of the other choices

Question 5

The tort of misrepresentation can be based on:

Accepted Answer

A)  negligence or intent 
B)  negligence, but not intent 
C)  intent, but not negligence 
D)  neither intent or negligence; it requires fraud 
E)  deceit only

Question 6

The main author of the Restatement (Second) of Torts is the Association of State Supreme Courts.

Accepted Answer

A) True 
 B)False

Question 7

The case that led in adopting a general rule imposing strict liability in tort was:

Accepted Answer

A)  Morriss v. Akers 
B)  Johnson v. Chevrolet 
C)  MacPherson v. Buick Motor Company 
D)  MDM Group Associates v. CX Reinsurance Company 
E)  none of the other choices are correct

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

Question 9

The legal standard articulated in MacPherson v. Buick Motor, regarding negligence in of producers of products dominated product liability law until:

Accepted Answer

A)  1901, when soldiers were poisoned in the Spanish-American War 
B)  1914, when World War I broke out 
C)  1929, when the Great Depression began 
D)  1945, when the Restatement of Torts was adopted 
E)  none of the other choices

Question 10

When Tylenol was sued for failure to warn of possible damage to livers by Tylenol users who drink alcohol, the court held Tylenol's make not liable because alcohol is an unavoidably dangerous product.

Accepted Answer

A) True 
 B)False

Question 11

While sitting beside a swimming pool, a neighbor, Bob, a roof installer, tells you that you should buy stock in HotNet because it is about to skyrocket in value. You invest all your money in the stock, which then drops to zero. You:

Accepted Answer

A)  cannot sue Bob for misrepresentation 
B)  can sue Bob for negligent misrepresentation, but not for fraud 
C)  can sue Bob for deceit, but not for intentional misrepresentation 
D)  can sue Bob for negligent misrepresentation, but not for intentional misrepresentation 
E)  can sue Bob for fraud, but not for fraudulent misrepresentation

Question 12

Liability based on negligence:

Accepted Answer

A)  means the manufacturer must exercise reasonable care in the production of product 
B)  includes reasonable care in presenting the product to the public to avoid misrepresentation 
C)  means a causal connection between the defendant's lack of care and the plaintiff's harms 
D)  losses are suffered 
E)  all of the other choices

Question 13

The American Law Institute's definition of strict liability has been revised in:

Accepted Answer

A)  the Bill of Rights 
B)  the Constitution 
C)  the Second Amendment of the U.S. Constitution 
D)  the Final Restatement of Torts Sect. 402A 
E)  none of the other choices are correct

Question 14

E Corp. sold five million toasters. The company never had a safety problem. One of its toasters, for no clear reason, electrocutes the son of the woman who bought the toaster. In her suit against E Corp. for the death of her son (a tort), the company is likely to be held:

Accepted Answer

A)  not liable because one in five million is evidence of high quality, not a safety problem 
B)  not liable because the toaster was purchased by the woman, not her son, so there is no right of suit 
C)  not liable because of assumption of the risk 
D)  liable for failure to warn of dangers in use 
E)  liable in strict liability for producing a product with a defect that caused injury

Question 15

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)  manufacturer and injured party

Question 16

In Greenman v. Yuba Power Products, where Greenman was injured when a tool his wife bought him malfunctioned, the California high court stated the reason why strict liability should be applied to manufactures of defective products. The reason is:

Accepted Answer

A)  that insurance covers such losses 
B)  consumers should bear the costs of injuries to make them more careful 
C)  consumers should split the costs of injuries with manufacturers; this will best insure the highest amount of care 
D)  state statutes encouraged the adoption of a strict standard 
E)  none of the other choices

Question 17

About a half-million tort cases are filed each year.

Accepted Answer

A) True 
 B)False

Question 18

"Big Red" is a popular car. The dash board is covered with little steel studs. In an accident, Betty, sitting next to her boyfriend and not wearing a seat belt, smashes her face on the dash board. The steel studs make the injuries worse. Her boyfriend is at fault in the accident. Betty sues the maker of "Big Red" for injuries. She is likely to:

Accepted Answer

A)  win; the manufacturer did not exercise reasonable care to prevent foreseeable dangers 
B)  win; car producers are held strictly liable for injuries suffered by accident victims 
C)  lose; assumption of the risk in being in a car 
D)  lose; assumption of risk by not wearing a seat belt 
E)  lose; auto makers are not responsible for injuries incurred in accidents that are the fault of a driver

Question 19

A ____ is a manufacturer's assurance that a product will meet certain quality and performance standards.

Accepted Answer

A)  certificate of quality 
B)  certificate of use 
C)  warranty 
D)  pledge 
E)  none of the other choices are correct

Question 20

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 reasonableness of the conduct of the manufacturer 
D)  the appropriateness of the conduct of the manufacturer 
E)  none of the other choices are correct

Exam 7: Business Torts and Product Liability

When an injured party is allowed to sue all manufacturers of a defective product, so that all these manufacturers might be liable together, this is sometimes called:

In the 1913 case Mazetti v. Armour, the court held that privity of contract had to be proved before a plaintiff could sue a food company for breach of warranty in a product defect case.

Each year about one-half million tort suits are filed. Most are in ____ courts.

In Baxter v. Ford Motor, where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed, Ford's liability was based on:

The tort of misrepresentation can be based on:

The main author of the Restatement (Second) of Torts is the Association of State Supreme Courts.

The case that led in adopting a general rule imposing strict liability in tort was:

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:

The legal standard articulated in MacPherson v. Buick Motor, regarding negligence in of producers of products dominated product liability law until:

When Tylenol was sued for failure to warn of possible damage to livers by Tylenol users who drink alcohol, the court held Tylenol's make not liable because alcohol is an unavoidably dangerous product.

While sitting beside a swimming pool, a neighbor, Bob, a roof installer, tells you that you should buy stock in HotNet because it is about to skyrocket in value. You invest all your money in the stock, which then drops to zero. You:

Liability based on negligence:

The American Law Institute's definition of strict liability has been revised in:

E Corp. sold five million toasters. The company never had a safety problem. One of its toasters, for no clear reason, electrocutes the son of the woman who bought the toaster. In her suit against E Corp. for the death of her son (a tort) , the company is likely to be held:

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?

In Greenman v. Yuba Power Products, where Greenman was injured when a tool his wife bought him malfunctioned, the California high court stated the reason why strict liability should be applied to manufactures of defective products. The reason is:

About a half-million tort cases are filed each year.

A ____ is a manufacturer's assurance that a product will meet certain quality and performance standards.

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