Question 1

An implied warranty is:

Accepted Answer

A)  illegal in many states 
B)  one the manufacturer contractually provides to the consumer 
C)  one the law inserts into the relationship regardless of the actual contract terms 
D)  one the consumer insists on 
E)  none of the other choices are correct

Question 2

If the manufacturer provides adequate warnings, as in the case of 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, consumers:

Accepted Answer

A)  can still sue for failure to warn, but are limited in the amount of damages they can recover 
B)  cannot sue for failure to warn 
C)  can recover up to half their medical bills from the manufacturer 
D)  cannot negotiate for damages outside of court 
E)  none of the other choices are correct

Question 3

In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the windshield were held to create an express warranty of safety because Ford misrepresented the quality and safety of the product.

Accepted Answer

A) True 
 B)False

Question 4

If you make an offer to sell a product to a person who is already buying the product from another party, you have interfered with contractual relations and will be liable in tort.

Accepted Answer

A) True 
 B)False

Question 5

In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the windshield were held to create an implied warranty of safety because Ford misrepresented the quality and safety of the product.

Accepted Answer

A) True 
 B)False

Question 6

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)  none of the other choices are completely correct

Question 7

The ____ doctrine holds manufacturers liable to consumers injured by defective products regardless of whether the manufacturer exercised all reasonable care or not.

Accepted Answer

A)  hazardous liability 
B)  final liability 
C)  strict liability 
D)  less liability 
E)  res ipsa loquitur

Question 8

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, the courts held that the former employer had interfered with prospective business relations.

Accepted Answer

A) True 
 B)False

Question 9

Defenses against strict liability include(s):

Accepted Answer

A)  product abuse 
B)  assumption of risk 
C)  sophisticated user 
D)  all of the other specific choices are possible 
E)  none of the other choices; there is no defense for strict liability

Question 10

The Restatement (Third) of Torts on product liability says that when considering a defective product the courts should use:

Accepted Answer

A)  a cost-benefit analysis 
B)  strict liability when any injury is inflicted 
C)  an express warranty rule 
D)  the rule of negligence 
E)  none of the other choices

Question 11

The law of product liability is primarily concerned with:

Accepted Answer

A)  harms suffered by stockholders when the value of their investment falls 
B)  harms suffered by sellers of defective products 
C)  harms suffered by businesses for interference with their relations 
D)  contractual harms suffered by institutional investors 
E)  none of these

Question 12

When two professors conducted a study of the American and the Japanese tort systems, they found that the:

Accepted Answer

A)  two systems bear no comparison 
B)  two systems have major differences 
C)  two systems are not all that different in results 
D)  Japanese tort system is far superior in protecting consumers 
E)  American tort system if far superior in protecting consumers

Question 13

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 strict liability standard 
B)  a comparative negligence standard 
C)  a caveat emptor standard 
D)  an assumption of risk standard 
E)  a business exemption standard

Question 14

An express warranty is a promise that is clearly stated by the seller to the buyer; it is a part of the contract.

Accepted Answer

A) True 
 B)False

Question 15

In Greenman v. Yuba Power Products the court imposed strict liability on a producer due to failure to prevent a defect in its product that caused injury to a consumer.

Accepted Answer

A) True 
 B)False

Question 16

A warranty is:

Accepted Answer

A)  a legal document absolving a manufacturer of liability 
B)  a consumer's agreement not to misuse a product 
C)  a legal document limiting how much a manufacturer can be sued for if a product fails 
D)  a manufacturer's assurance that a product will be below a certain cost 
E)  none of the other choices are correct

Question 17

As stated by the California high court in Greenman v. Yuba Power Products, where Greenman was injured when a tool his wife bought him malfunctioned, manufacturers should bear the costs of injuries their products cause and thus:

Accepted Answer

A)  strict liability should be applied to manufacturers of defective products 
B)  ultimate liability should be applied to manufacturers of defective products 
C)  consumers should bear all the risk of using defective products 
D)  manufacturers should bear some, but not all of the costs, of defective products 
E)  limited liability should be applied to manufacturers of defective products

Question 18

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)  implied warranty 
E)  none of the other choices

Question 19

If a producer did not foresee a possible danger with a product that does, in fact, cause injury, the producer cannot be held negligent in tort.

Accepted Answer

A) True 
 B)False

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 knows or reasonably should 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

An implied warranty is:

If the manufacturer provides adequate warnings, as in the case of 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, consumers:

In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the windshield were held to create an express warranty of safety because Ford misrepresented the quality and safety of the product.

If you make an offer to sell a product to a person who is already buying the product from another party, you have interfered with contractual relations and will be liable in tort.

In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the windshield were held to create an implied warranty of safety because Ford misrepresented the quality and safety of the product.

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

The ____ doctrine holds manufacturers liable to consumers injured by defective products regardless of whether the manufacturer exercised all reasonable care or not.

Defenses against strict liability include(s) :

The Restatement (Third) of Torts on product liability says that when considering a defective product the courts should use:

The law of product liability is primarily concerned with:

When two professors conducted a study of the American and the Japanese tort systems, they found that the:

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:

An express warranty is a promise that is clearly stated by the seller to the buyer; it is a part of the contract.

In Greenman v. Yuba Power Products the court imposed strict liability on a producer due to failure to prevent a defect in its product that caused injury to a consumer.

A warranty is:

As stated by the California high court in Greenman v. Yuba Power Products, where Greenman was injured when a tool his wife bought him malfunctioned, manufacturers should bear the costs of injuries their products cause and thus:

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:

If a producer did not foresee a possible danger with a product that does, in fact, cause injury, the producer cannot be held negligent in tort.

The sophisticated user defense: