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Ed 15 - Kenneth Clarkson Roger Leroy Miller - Test Bank...

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Ch07: Strict Liability and Product Liability True / False 1. The manufacturer of a product may incur liability when a defect causes injury to a user but not when the defect causes property damage to a bystander. a. True b. Fals e ANSWER: Fals e 2. Those who do not make goods, but only sell or lease them, cannot be held liable for harm caused by those goods to a consumer. a. True b. Fals e ANSWER: Fals e 3. Only big businesses face potential liability for the products they sell. a. True b. Fals e ANSWER: Fals e 4. Strict liability is imposed only for an act that departs from a reasonable standard of care to cause an injury. a. True b. Fals e ANSWER: Fals e 5. A seller who introduces into commerce an unreasonably dangerous product may be subject to a tort action for strict liability. a. True b. Fals e ANSWER: True 6. A manufacturer does not need to inspect and test any purchased components used in the final product to avoid product liability. a. True b. Fals e ANSWER: Fals e Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability 7. A person who is injured by a defective product can bring a negligence suit only if he or she was the one who purchased the product. a. True b. Fals e ANSWER: Fals e 8. Manufacturers are commonly held liable when their negligence causes users of their products to be injured. a. True b. Fals e ANSWER: True 9. In a product liability suit based on negligence, the plaintiff must show that the defendant’s conduct was the “cause in fact” of an injury. a. True b. Fals e ANSWER: True 10. For cause in fact to become a relevant issue in a product liability suit, a plaintiff must first establish proximate cause. a. True b. Fals e ANSWER: Fals e 11. For fraud to be the basis of liability in a product liability suit, the misrepresentation must have been intentional. a. True b. Fals e ANSWER: True 12. To bring a product liability lawsuit on the ground of misrepresentation, the plaintiff must not have relied on the misrepresentation. a. True b. Fals e ANSWER: Fals e 13. Under the doctrine of strict liability, persons are liable only for the results of their intentional acts or their failure to exercise due care. a. True Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability b. Fals e ANSWER: Fals e 14. Under the doctrine of strict liability, a defendant’s liability depends on privity of contract. a. True b. Fals e ANSWER: Fals e 15. The elements of an action in strict product liability include that a plaintiff must have incurred harm by the use or consumption of a product. a. True b. Fals e ANSWER: True 16. The doctrine of strict liability applies to sellers of goods, including wholesalers. a. True b. Fals e ANSWER: True 17. To maintain an action in strict product liability, the plaintiff must show why and how the product became defective. a. True b. Fals e ANSWER: Fals e 18. To be liable on a theory of strict product liability, a defendant must be in a better position than the plaintiff to bear the costs associated with the harm caused by a product. a. True b. Fals e ANSWER: Fals e 19. If a product was delivered in a safe condition and subsequent mishandling made it harmful to the user, the seller is usually strictly liable. a. True b. Fals e ANSWER: Fals Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability e 20. A defective product is an unreasonably dangerous product when it is dangerous beyond the expectation of the ordinary consumer. a. True b. Fals e ANSWER: True 21. The types of product defects that have traditionally been recognized in product liability law include careless marketing. a. True b. Fals e ANSWER: Fals e 22. Liability is imposed on a manufacturer for a manufacturing defect only when the manufacturer’s quality control efforts were “reasonable.” a. True b. Fals e ANSWER: Fals e 23. Holding defendants strictly liable for manufacturing defects encourages greater investment in product safety. a. True b. Fals e ANSWER: True 24. A product made in conformity with a manufacturer’s design specifications is not considered defective regardless of a flaw in the design. a. True b. Fals e ANSWER: Fals e 25. In a product liability suit based on a design defect, a manufacturer is liable only when the harm was not reasonably preventable. a. True b. Fals e ANSWER: Fals e Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability 26. In deciding a claim of design defect, a court can consider the relative advantages and disadvantages of an alternative design for a product. a. True b. Fals e ANSWER: True 27. A product will be considered defective when the omission of reasonable warnings renders the product not reasonably safe. a. True b. Fals e ANSWER: True 28. Generally, a seller is not liable for failing to warn consumers of the harm that can result from a foreseeable misuse of a product. a. True b. Fals e ANSWER: Fals e 29. Courts apply a “reasonableness” test to determine if a warning adequately alerts consumers to a product’s risks. a. True b. Fals e ANSWER: True 30. A manufacturer or seller has a duty to warn about a risk that is obvious or commonly known. a. True b. Fals e ANSWER: Fals e 31. In a product liability case based on negligence, a defendant may be liable even if the plaintiff has not met the requirements for an action in negligence. a. True b. Fals e ANSWER: Fals e 32. A product liability claim against the manufacturer of a product that is subject to extensive government regulation may be preempted. Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability a. True b. Fals e ANSWER: True 33. Product misuse is recognized as a defense to a claim for product liability only when the particular misuse was reasonably foreseeable. a. True b. Fals e ANSWER: Fals e 34. Some courts do not allow assumption of risk as a defense to a strict product liability claim because the theory focuses on the nature of a product, not the plaintiff’s conduct. a. True b. Fals e ANSWER: True 35. A defendant may be able to limit liability for injuries caused by a defective product by showing that a plaintiff’s negligence contributed to the injuries. a. True b. Fals e ANSWER: True Multiple Choice 36. Felice is injured when a can of Ground-Up explodes into flames. Herbicides Inc. manufactured the Ground-Up. Under product liability laws, Felice’s options include a. any of the choices. b. ordering a halt to the production of GroundUp. c. issuing a recall of all Ground-Up. d. suing Herbicides Inc. ANSWER: d 37. Mai is struck and injured when the brakes fail on Novi’s all-terrain vehicle (ATV), which is damaged in the collision. Off-Road Inc. sold the ATV to Novi. Under product liability laws, Off-Road could be liable to a. Novi, but not Mai. b. Mai, but not Novi. c. none of the parties. d. Mai and Novi. Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability ANSWER: d 38. The explosive demolition of a rock formation by Mountain Blasters Inc. injures Noh, who is hiking on a nearby slope. Under the doctrine of strict liability, Mountain Blasters must pay for Noh’s injury a. only if the company failed to use reasonable care. b. only if the company was greater than 50 percent at fault. c. only if the company was entirely at fault. d. without regard to the fault of the company. ANSWER: d 39. Wild Life LLC keeps and displays domestic and wild animals in a rural setting for an interested public. Strict liability is imposed on this activity because a. Wild Life is not a corporation. b. the public is considered inherently negligent. c. the activity is extremely risky. d. the amount of liability can be added to the costs of attendance. ANSWER: c 40. Baby Things Inc. makes and sells a crib to Cara. Baby Things fails to exercise “due care” to make the crib safe, and Cara’s child Dua is injured as a result. Baby Things is most likely liable for a. fraud. b. misrepresentation . c. negligence d. strict liability. ANSWER: c 41. Cultivator Inc. designs and makes tractors, balers, and other farm equipment. In a product liability suit based on negligence, Cultivator could be liable for failing to exercise due care with respect to all of the following except a. the inspection of components purchased to use in the equipment. b. the selection of materials used to make the equipment. c. the assembly and testing of the equipment. d. the growth of the equipment’s sales. ANSWER: d 42. Motor Corporation (MC) makes cars and trucks. National Sales Company sells all MC vehicles. Open Road Inc. leases only the cars. Under product liability laws, liability for injuries or damage caused by an MC vehicle may be imposed on a. MC only. b. none of the parties. c. MC or National Sales only. d. MC, National Sales, or Open Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability Road. ANSWER: d 43. Bright n’ Clean Company makes shampoo and other hair care products. Cub is injured by the use of a Bright n’ Clean product and sues the company for product liability based on negligence. To win, Cub must show that a. Bright n’ Clean failed to use due care in making the product. b. Bright n’ Clean recklessly disregarded facts in its ad copy. c. Cub was not a hair care professional, such as a barber. d. Cub was in privity with Bright n’ Clean. ANSWER: a 44. Airsoft, Inc. makes toys. Airsoft intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Bing buys an Airsoft product and suffers an injury. Airsoft is most likely liable for a. product misuse. b. fraud. c. privity of contract. d. comparative negligence. ANSWER: b 45. Bedding Plus Inc. makes a pillow that Comfort Stuff sells to Demi. Bedding fails to exercise “due care,” and Demi is injured by toxic material used as fill in the pillow. Comfort Stuff is most likely liable for a. misrepresentation. b. none of the choices. c. negligence. d. product misuse. ANSWER: c 46. EZ Co-op Inc. sells Fill-Up cattle feed to ranchers. Gina buys and feeds Fill-Up to her herd. The feed is poisoned. Gina sues EZ for product liability based on negligence. To win, Gina must show a. why the feed was poisoned. b. how the feed became poisoned. c. that the feed caused her damage. d. all of the choices. ANSWER: c 47. Grill Time Inc. makes commercial cooking appliances, including a grill in use by Haute Cuisine Food Cart. Inez, a Haute employee, is injured when the grill malfunctions. If the injury occurred as a result of a misrepresentation about the product, Grill Time is most likely liable for a. negligence. b. fraud. c. privity. Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability d. puffery. ANSWER: b 48. Soda Bubbles Corporation makes soft drinks. Toby drinks a Soda beverage, which proves defective and injures him. One justification for holding Soda strictly liable for the harm caused to Toby is that a. Soda is in a better position than Toby to bear the cost of her injury. b. Toby is a consumer, not a corporation. c. making products is an abnormally dangerous activity. d. Soda and Toby are in privity. ANSWER: a 49. Sail-Away Corporation makes sailboards, which are distributed by Tropical Marketing Company to UV Sports Stores Inc., which sells them to consumers. Wen is injured while using a Sail-Away board that he bought from UV Sports. In a product liability suit based on strict liability, Wen may recover from a. Sail-Away only. b. Sail-Away, Tropical, or UV Sports. c. UV Sports only. d. none of the choices. ANSWER: b 50. Ceramic Corporation makes commercial ceramic products, including heat-resistant tiles for industrial ovens. When damage occurs in an oven at Duramold Inc., strict product liability may be imposed on Ceramic if the tiles sold to Duramold were a. in perfect condition at the time of their sale. b. damaged by their use. c. substantially changed after their sale. d. in a defective condition that was the proximate cause of the damage. ANSWER: d 51. Steps & Rungs Inc. makes ladders. Ty discovers that his Steps & Rungs ladder is defective and sues the maker for product liability based on strict liability. To win, Ty must show that a. Ty bought the ladder from Steps & Rungs. b. all of the choices. c. the ladder was in a defective condition when Steps & Rungs sold it. d. Ty is normally engaged in the business use of ladders. ANSWER: c 52. Recharge Corporation makes batteries. Sol is injured when the Recharge battery in his phone bursts into flame. In Sol’s product liability suit against the maker, alleging a design defect, the court may consider a. Recharge’s knowledge of the uses of its battery. b. Recharge’s share of its market. c. Recharge’s advertising. Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability d. an available alternative design. ANSWER: d 53. Fit Corporation makes running shoes. Gaby, a marathoner, files a product liability suit against Fit, alleging a design defect. In deciding whether to hold the company liable, the court may consider an alternative design’s a. popularity among consumers. b. weight and heft. c. aesthetics. d. advantages and disadvantages. ANSWER: d 54. Sea Wind Corporation makes boats. Teresa files a product liability suit against Sea Wind, alleging a design defect. In deciding whether to hold the maker liable, the court may consider an alternative design’s a. popularity among boat designers. b. attractiveness to boat buyers. c. frequency of use among boat makers. d. effect on Sea Wind’s boat. ANSWER: d 55. Insulate Inc. makes and sells fire-retardant building materials. In a product liability suit against Insulate, a court would use a risk-utility analysis of the company’s product as designed to determine whether a. a risk of harm outweighs the products’ utility to the users and the public. b. the product performed as a consumer would reasonably expect. c. the product is as useful and as risky as the public expects. d. the risk of return on investment in the product supports its utility. ANSWER: a 56. DIY-Haul, Inc., makes, sells, and leases hauling equipment for consumer use. Ed files a product liability suit against DIY-Haul, alleging a design defect. In deciding whether to hold the maker liable, the court may consider a. the assumptions of DIY-Haul. b. the identity of DIY-Haul’s owner. c. the intentions of DIY-Haul. d. the expectations of the ordinary consumer. ANSWER: d 57. Bounce Company makes trampolines and other gym equipment. Chet files a product liability suit against Bounce, alleging a warning defect in one of its products. In deciding whether to hold Bounce liable, the court may consider that a manufacturer has no duty to warn about risks that are a. avoidable by an alternative design. b. foreseeable. c. contrary to the instructions for the use of the product. Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability d. obvious. ANSWER: d 58. Chem Company and Dura Plastics Inc. make and distribute a certain toxic chemical that is discovered in the water supply of the county in which their plants are located. In a product liability suit against both makers, market-share liability may be imposed on a. only the party who realized the most profit from the use of the chemical. b. only the party with the largest market share. c. both parties. d. only the party who most aggressively marketed its product. ANSWER: c 59. EquiMeds Company and GenDrugs Inc. make and distribute prescription drugs. In a product-liability suit against both parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties a. was in privity with the injured plaintiff. b. exercised the least amount of due care in making the product. c. supplied the particular product that caused the injury. d. holds the largest share of the market for the product. ANSWER: c 60. Cold Play Corporation makes snowmobiles. Dale is injured when a defect unexpectedly accelerates the Cold Play vehicle he is driving, and he is thrown off. Esty, a hiker standing in the path of the unmanned vehicle, is struck and injured. In a suit based on strict product liability, Cold Play may be liable to a. Dale and Esty. b. Dale only. c. Esty only. d. none of the parties. ANSWER: a 61. Rev Motor Company buys plugs and points from Sparkplugs Inc. and puts them in Rev vehicles without changing their composition. If the parts are defective, strictly liable for any damage caused by the defects may be a. Rev only. b. Rev, Sparkplugs, and the owner and operator of the Rev vehicle. c. Rev and Sparkplugs. d. Sparkplugs only. ANSWER: c 62. Touch Screens Inc. makes and markets tablets. When problems develop with Touch products or sales, the company may be liable in product liability for any of the following except a. a manufacturing defect. b. a design defect. c. an inadequate warning. Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict Liability and Product Liability d. an ineffective marketing plan. ANSWER: d 63. Epsilon Corporation makes scientific instruments that are subject to extensive government regulation and undergo a rigorous premarket approval process. In a design defect product liability suit against Epsilon by a party allegedly injured by one of the devices, the company can most successfully raise the defense of a. preemption. b. assumption of risk. c. comparative negligence. d. knowledgeable user. ANSWER: a 64. Overland Corporation makes trucks. The brakes on Pho’s Overland truck malfunction, but he continues to drive it. Unable to slow down, the truck crashes through a guardrail and careens off the road. In Pho’s product liability suit against Overland, the defendant can assert the defense of a. commonly known danger. b. assumption of risk. c. inadequate warning. d. product misuse. ANSWER: b 65. Stents Inc. makes medical devices. Toni files a product liability suit against Stents, alleging a warning defect with respect to its device. In deciding whether to hold the maker liable, the court may consider whether a. the omission of a warning rendered the device not reasonably safe. b. there was a reasonable alternative design. c. the maker used due care in making the device. d. the patient took due care of her health. ANSWER: a 66. Safe-T Company makes electrical cords and other connectors for electronic devices. Tina files a product liability suit against Safe-T, alleging a warning defect. In deciding whether to hold Safe-T liable, the court may consider a. the public’s general failure to read the product’s warnings. b. the plaintiff’s specific failure to read the product warnings. c. the obvious risks of other products. d. the obvious risks of this product. ANSWER: d 67. Do-It-Rite Inc. makes and markets tools. Evan uses a Do-It-Rite power screwdriver to scrape grout—a purpose for which it was not intended—and is injured when the tool slips. Evan files a product liability suit against the maker. The defendant’s best defense is most likely a. commonly known danger. b. assumption of risk. c. inadequate warning. Copyright Cengage Learning. Powered by Cognero.

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Ch07: Strict...