Question 1

According to the American Law Institute's Restatement (Third) of Torts: Product Liability, .

Accepted Answer

A)  the liability is strict when there is a manufacturing defect 
B)  the liability is strict when there is a defective warning 
C)  a manufacturing defect is said to exist if the consumer uses it for its original purpose 
D)  the seller's liability is determined by the percentage of fault apportioned by the court 
A)  the liability is strict when there is a manufacturing defect 
B)  the liability is strict when there is a defective warning 
C)  a manufacturing defect is said to exist if the consumer uses it for its original purpose 
D)  the seller's liability is determined by the percentage of fault apportioned by the court

Question 2

The feasible alternatives test, set out in the Restatement (Second) of Torts, is the consumer- expectations test.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true of liability suits that involve a foreign defendant?

Accepted Answer

A)  If the manufacturer is located in another country, the U.S. importer, wholesaler, or distributor is liable for the injuries caused by the defective imported product. 
B)  If a foreign corporation produced the defective goods, the long-arm statute always provides a U.S. court jurisdiction over the corporation. 
C)  The Hague Convention on the Service of Judicial and Extrajudicial Documents in Civil and Commercial Matters accepts the means of service used in the United States. 
D)  If a foreign defendant has no assets in the United States, the U.S. importer, wholesaler, or distributor has to pay the damages. 
A)  If the manufacturer is located in another country, the U.S. importer, wholesaler, or distributor is liable for the injuries caused by the defective imported product. 
B)  If a foreign corporation produced the defective goods, the long-arm statute always provides a U.S. court jurisdiction over the corporation. 
C)  The Hague Convention on the Service of Judicial and Extrajudicial Documents in Civil and Commercial Matters accepts the means of service used in the United States. 
D)  If a foreign defendant has no assets in the United States, the U.S. importer, wholesaler, or distributor has to pay the damages.

Question 4

In terms of product liability, a strict liability in tort standard is applied when there is a .

Accepted Answer

A)  misrepresentation in an advertisement 
B)  false statement made by the seller 
C)  product that was defective when it was sold 
D)  substandard degree of care exercised by the manufacturer 
A)  misrepresentation in an advertisement 
B)  false statement made by the seller 
C)  product that was defective when it was sold 
D)  substandard degree of care exercised by the manufacturer

Question 5

Which of the following doctrines helps a plaintiff to recover damages when a manufacturer fails to meet the standards imposed by a statute?

Accepted Answer

A)  res ipsa loquitur 
B)  breach-of-warranty doctrine 
C)  disclaimer doctrine 
D)  negligence per se 
A)  res ipsa loquitur 
B)  breach-of-warranty doctrine 
C)  disclaimer doctrine 
D)  negligence per se

Question 6

Which court created market share theory in the 1980 case Sindell v. Abbott Laboratories?

Accepted Answer

A)  the U.S. Court of Appeals for the Ninth Circuit 
B)  the U.S. Supreme Court 
C)  the North Carolina Court of Appeals 
D)  the California Supreme Court 
A)  the U.S. Court of Appeals for the Ninth Circuit 
B)  the U.S. Supreme Court 
C)  the North Carolina Court of Appeals 
D)  the California Supreme Court

Question 7

Which of the following statements is true of accountants' liability?

Accepted Answer

A)  The plaintiff only has to prove breach of duty in malpractice actions against accountants that are based on negligence. 
B)  All states follow the same guidelines to determine to whom an accountant can be held liable. 
C)  The Ultramares Doctrine allows third parties to sue accountants. 
D)  The smallest minority of states holds the accountant liable to any reasonably foreseeable user of the statement the accountant prepares. 
A)  The plaintiff only has to prove breach of duty in malpractice actions against accountants that are based on negligence. 
B)  All states follow the same guidelines to determine to whom an accountant can be held liable. 
C)  The Ultramares Doctrine allows third parties to sue accountants. 
D)  The smallest minority of states holds the accountant liable to any reasonably foreseeable user of the statement the accountant prepares.

Question 8

The plaintiff will have to ask a foreign court to execute a judgment against the defendant's assets if the foreign defendant refuses to pay damages and has no assets in the United States.

Accepted Answer

A) True 
 B)False

Question 9

State-of-the-art defense is valid in a negligence case because the focus is on the reasonableness of the defendant's conduct.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true about malpractice actions?

Accepted Answer

A)  They are no longer permitted under the Restatement (Third) of Torts. 
B)  They generally apply the strict liability standard. 
C)  The number of malpractice actions against professionals is rising at a rapid rate. 
D)  The number of malpractice actions against manufacturers is rising at a rapid rate. 
A)  They are no longer permitted under the Restatement (Third) of Torts. 
B)  They generally apply the strict liability standard. 
C)  The number of malpractice actions against professionals is rising at a rapid rate. 
D)  The number of malpractice actions against manufacturers is rising at a rapid rate.

Question 11

A defendant raising the defense is claiming that the harm was not caused by the defendant's negligence.

Accepted Answer

A)  res ipsa loquitur 
B)  contributory negligence 
C)  product misuse 
D)  comparative negligence 
A)  res ipsa loquitur 
B)  contributory negligence 
C)  product misuse 
D)  comparative negligence

Question 12

Which of the following is an incorrect statement regarding service liability?

Accepted Answer

A)  Strict liability has been frequently applied to services. 
B)  Most service liability cases involve services provided by professionals, such as doctors and lawyers. 
C)  Along with the growth in lawsuits for defective products, there has also been an increase in the number of lawsuits brought for defective services. 
D)  Lawsuits for defective services are generally brought when someone or someone's property is harmed as a result of an inadequately performed service. 
A)  Strict liability has been frequently applied to services. 
B)  Most service liability cases involve services provided by professionals, such as doctors and lawyers. 
C)  Along with the growth in lawsuits for defective products, there has also been an increase in the number of lawsuits brought for defective services. 
D)  Lawsuits for defective services are generally brought when someone or someone's property is harmed as a result of an inadequately performed service.

Question 13

Explain the theory of market share liability.

Accepted Answer

When injuries from a product show up 10

Question 14

Which theory of accountants' liability is used in the smallest minority of states?

Accepted Answer

A)  the Ultramares Doctrine 
B)  Section 552 of the Restatement (Second) of Torts 
C)  the reasonably foreseeable user rule 
D)  market share theory 
A)  the Ultramares Doctrine 
B)  Section 552 of the Restatement (Second) of Torts 
C)  the reasonably foreseeable user rule 
D)  market share theory

Question 15

Producers are generally required to warn customers of obvious dangers associated with a product.

Accepted Answer

A) True 
 B)False

Question 16

A(n) warranty is one that automatically arises out of a transaction.

Accepted Answer

A)  express 
B)  implied 
C)  limited 
D)  impact 
A)  express 
B)  implied 
C)  limited 
D)  impact

Question 17

Which of the following statements is true of negligent failure to warn?

Accepted Answer

A)  The manufacturers must provide warnings about obvious dangers. 
B)  The manufacturers have to include warnings only for the original purchaser of the product, but not the user. 
C)  The manufacturers need not include warnings about dangers from unforeseeable misuses of the product. 
D)  The manufacturers of prescription drugs need not provide warnings to physicians of any chance of serious adverse reactions. 
A)  The manufacturers must provide warnings about obvious dangers. 
B)  The manufacturers have to include warnings only for the original purchaser of the product, but not the user. 
C)  The manufacturers need not include warnings about dangers from unforeseeable misuses of the product. 
D)  The manufacturers of prescription drugs need not provide warnings to physicians of any chance of serious adverse reactions.

Question 18

Section 402A of the Restatement (Second) of Torts is generally considered to be the foundation of modern product liability law.

Accepted Answer

A) True 
 B)False

Question 19

In terms of the strict liability in tort theory of product liability, the focus is on the producer or seller, not the product.

Accepted Answer

A) True 
 B)False

Question 20

What are the arguments for and against the statutes of repose?

Accepted Answer

Statutes of repose bar actions that aris

Exam 12: Product and Service Liability Law

According to the American Law Institute's Restatement (Third) of Torts: Product Liability, .

The feasible alternatives test, set out in the Restatement (Second) of Torts, is the consumer- expectations test.

Which of the following statements is true of liability suits that involve a foreign defendant?

In terms of product liability, a strict liability in tort standard is applied when there is a .

Which of the following doctrines helps a plaintiff to recover damages when a manufacturer fails to meet the standards imposed by a statute?

Which court created market share theory in the 1980 case Sindell v. Abbott Laboratories?

Which of the following statements is true of accountants' liability?

The plaintiff will have to ask a foreign court to execute a judgment against the defendant's assets if the foreign defendant refuses to pay damages and has no assets in the United States.

State-of-the-art defense is valid in a negligence case because the focus is on the reasonableness of the defendant's conduct.

Which of the following statements is true about malpractice actions?

A defendant raising the defense is claiming that the harm was not caused by the defendant's negligence.

Which of the following is an incorrect statement regarding service liability?

Explain the theory of market share liability.

Which theory of accountants' liability is used in the smallest minority of states?

Producers are generally required to warn customers of obvious dangers associated with a product.

A(n) warranty is one that automatically arises out of a transaction.

Which of the following statements is true of negligent failure to warn?

Section 402A of the Restatement (Second) of Torts is generally considered to be the foundation of modern product liability law.

In terms of the strict liability in tort theory of product liability, the focus is on the producer or seller, not the product.

What are the arguments for and against the statutes of repose?

Critical Thinking and Legal Reasoning

Introduction to Law and the Legal Environment of Business

The American Legal System

Alternative Tools of Dispute Resolution

Constitutional Principles

White-Collar Crime and the Business Community

Ethics, Social Responsibility, and the Business Manager

The International Legal Environment of Business

The Law of Contracts and Sales I

The Law of Contracts and Sales Ii

The Law of Torts

Law of Property: Real and Personal

Intellectual Property

Agency Law

Law and Business Associations I

Law and Business Associations II

The Law of Administrative Agencies

The Employment Relationship and Immigration Laws

Laws Governing Labor-Management Relations

Employment Discrimination

Environmental Law

Rules Governing the Issuance and Trading of Securities

Antitrust Laws

Laws of Debtor-Creditor Relations and Consumer Protection

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