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Managers and the Legal Environment
Exam 10: Product-Liability
Path 4
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Question 1
Multiple Choice
If a product valuable to society is unavoidably unsafe,the __________ determines whether the dangerous product is also defective.
Question 2
True/False
A design defect may result from the manufacturer's choice of the product's materials.
Question 3
True/False
Most states in the United States have adopted strict product liability whereby an injured person may recover damages by showing that a defendant was negligent.
Question 4
True/False
In no states are a plaintiff's damages reduced by comparative fault on the part of the plaintiff's negligence.
Question 5
Multiple Choice
To prove __________ in a product liability case,the injured party must show that the defendant did not use reasonable care in the design or manufacture of its product.
Question 6
Multiple Choice
Which of the following provides some protection to defendants in that they establish a rebuttable presumption about how long consumers can continue to safely use a product?
Question 7
Multiple Choice
In 1963,the state of __________ became the first state to adopt the __________ theory,after the state supreme court decided the Greenman v.Yuba Power Products case.
Question 8
Multiple Choice
A few years ago Bennie purchased some medication through a veterinarian for an aging pet iguana,Scales,who had a skin disease.Scales died a few months after beginning the medication.At the time of the death,Bennie thought that Scales had died of natural causes.Bennie later read in the newspaper that a number of reptilian-type animals had been harmed by the drug Scales ingested.Immediately Bennie talked to Scale's veterinarian who admitted the medication was most likely harmful to Scales,it was manufactured by a number of different manufacturers,and there is no way to determine the exact manufacturer of the medication given to Scales.Which of the following is Bennie's best chance at recovery?
Question 9
Multiple Choice
On a failure-to-warn claim,adequate warnings and instructions for a product's safe use can shield a manufacturer from liability for a:
Question 10
Multiple Choice
CASE 10.2 Branham v.Ford Motor Co.(2010) was reversed and remanded for a new trial,with plaintiff ordered to prove the __________ approach,after the court adopted the __________ regarding defective product claims.
Question 11
True/False
Lack of cohesiveness does not affect certification for class action in product liability cases.
Question 12
Essay
Explain what a manufacturer of products under contract to the government must show in order to avoid product liability based on the government-contractor defense along with the rationale for the government-contractor defense.
Question 13
Multiple Choice
ABC Company manufactures a contraption meant to enable a rider to fly behind a ski boat.After a few months,ABC begins to hear of injuries when riders crash into water or boats.In hopes of escaping liability,the president of ABC Company decides to discontinue business and sell all assets to XYZ Company.The president of XYZ Company is excited to purchase the assets at a bargain price and help ABC avoid liability based upon the assertion of the president of ABC that XYZ cannot legally be held liable for the flying accidents.Which of the following is true in a majority of states applying the traditional successor liability rule?
Question 14
True/False
Under federal law a retailer who had no role in the manufacture of a defective good may not be held liable to a consumer injured by the good.
Question 15
True/False
An unusual use that is reasonably foreseeable may be considered a normal use of a product.
Question 16
Multiple Choice
Scuba manufacturer designs and sells the best scuba gear on the market.All industry and governmental standards are met,and there is no better technologically feasible design than that used by the manufacturer.There had been no previous problems with the gear,but on one unfortunate day,the breathing apparatus on a unit malfunctioned,resulting in a diver needing medical care.Assuming recognition in the jurisdiction involved,which of the following is the best defense to a lawsuit alleging a design defect brought by the diver?
Question 17
Multiple Choice
CASE 10.3 Savage Arms,Inc.v.Western Auto Supply Co.(2001) addressed the issue of whether a company be held liable for personal injury caused by a defect in the product purchased as assets as part of another company.How did the court rule?