Question 1

In most cases, an employee using an unsafe machine at work is not presumed to have assumed the risk.

Accepted Answer

A) True 
 B)False

Question 2

George met with an accident while skiing. He brings a negligence suit against Joe, who rented the skis to George. Which of the following statements is true of this scenario?

Accepted Answer

A)  If Joe is 40 percent responsible, George would be able to recover 40 percent of the damages in a state that has adopted modified comparative negligence. 
B)  If Joe is 40 percent responsible, George would be able to recover 40 percent of the damages in a state that has adopted pure comparative negligence. 
C)  George can recover damages even if Joe proves contributory negligence. 
D)  George can recover damages if misuse of the product is proved. 
A)  If Joe is 40 percent responsible, George would be able to recover 40 percent of the damages in a state that has adopted modified comparative negligence. 
B)  If Joe is 40 percent responsible, George would be able to recover 40 percent of the damages in a state that has adopted pure comparative negligence. 
C)  George can recover damages even if Joe proves contributory negligence. 
D)  George can recover damages if misuse of the product is proved.

Question 3

Which of the following is not a factor generally necessary for applying market share theory?

Accepted Answer

A)  All defendants intended to cause the plaintiff harm. 
B)  All defendants are tortfeasors. 
C)  The allegedly harmful products are identical and share the same defective qualities. 
D)  The plaintiff is unable, through no fault of his or her own, to identify which defendant caused his or her injury. 
A)  All defendants intended to cause the plaintiff harm. 
B)  All defendants are tortfeasors. 
C)  The allegedly harmful products are identical and share the same defective qualities. 
D)  The plaintiff is unable, through no fault of his or her own, to identify which defendant caused his or her injury.

Question 4

Which of the following refers to a scenario in which courts will impose liability due to negligent design?

Accepted Answer

A)  A reasonable person concluding that the warning labels were simply inadequate. 
B)  A reasonable person concluding that despite any warnings given with the product, the risk of harm outweighed the utility of the product as designed. 
C)  A reasonable person concluding that the utility of the product as designed outweighed the risk of harm. 
D)  A reasonable person concluding that the product's design violated statutory duties. 
A)  A reasonable person concluding that the warning labels were simply inadequate. 
B)  A reasonable person concluding that despite any warnings given with the product, the risk of harm outweighed the utility of the product as designed. 
C)  A reasonable person concluding that the utility of the product as designed outweighed the risk of harm. 
D)  A reasonable person concluding that the product's design violated statutory duties.

Question 5

Tom purchases a new set of tires for his vehicle. He informs Richard, the vendor who specializes in such goods, that he intends to use it in snowy conditions. The tires do not provide sufficient grip in snow, and his vehicle meets with an accident. Which of the following statements is true of this scenario?

Accepted Answer

A)  Richard cannot be held liable as Tom voluntarily assumed the risk of driving in snowy conditions. 
B)  Richard cannot be held liable if an express warranty was not issued with the product. 
C)  Richard is liable on the basis of negligent design. 
D)  Richard is liable as he breached an implied warranty of fitness for a particular purpose. 
A)  Richard cannot be held liable as Tom voluntarily assumed the risk of driving in snowy conditions. 
B)  Richard cannot be held liable if an express warranty was not issued with the product. 
C)  Richard is liable on the basis of negligent design. 
D)  Richard is liable as he breached an implied warranty of fitness for a particular purpose.

Question 6

How did the 1916 case of MacPherson v. Buick Motor Co. lead to the elimination of the privity requirement?

Accepted Answer

Courts had already begun to eliminate th

Question 7

If a product is to be used by someone other than the original purchaser, the manufacturer is generally required to put some sort of warning on the product itself.

Accepted Answer

A) True 
 B)False

Question 8

In most states, the statute of limitations for tort actions is .

Accepted Answer

A)  30 days from the date of injury 
B)  45 days to 11 months from the date of injury 
C)  2 to 4 years from the date of injury 
D)  4 to 7 years from the date of injury 
A)  30 days from the date of injury 
B)  45 days to 11 months from the date of injury 
C)  2 to 4 years from the date of injury 
D)  4 to 7 years from the date of injury

Question 9

Which of the following statements is true of the privity limitation?

Accepted Answer

A)  The privity limitation allowed negligence suits against the manufacturer only if the owner of the product was using it when it failed. 
B)  The court indicated that it is unfair to impose liability on the manufacturer and seller even if they earn profits from a defectively made product. 
C)  Eradication of the privity requirement led to a shift in social policy toward placing responsibility for injuries on the victims. 
D)  It did not allow the plaintiff to recover damages unless the plaintiff purchased the defective goods directly from the manufacturer. 
A)  The privity limitation allowed negligence suits against the manufacturer only if the owner of the product was using it when it failed. 
B)  The court indicated that it is unfair to impose liability on the manufacturer and seller even if they earn profits from a defectively made product. 
C)  Eradication of the privity requirement led to a shift in social policy toward placing responsibility for injuries on the victims. 
D)  It did not allow the plaintiff to recover damages unless the plaintiff purchased the defective goods directly from the manufacturer.

Question 10

Which of the following statements is true of breach of warranty actions?

Accepted Answer

A)  Most courts do not require that the purchaser provide the manufacturer a notice within a reasonable time of becoming aware of the breach of warranty if the two parties have not dealt with each other. 
B)  According to the Uniform Commercial Code, the cause of action arises the day the product malfunctions. 
C)  Most courts allow a manufacturer to relieve itself of liability for breach of warranty by using disclaimers even if the disclaimers are not stated on an integral part of the product or package. 
D)  The Uniform Commercial Code contains a provision stating that disclaimers on products cannot be considered as unconscionable. 
A)  Most courts do not require that the purchaser provide the manufacturer a notice within a reasonable time of becoming aware of the breach of warranty if the two parties have not dealt with each other. 
B)  According to the Uniform Commercial Code, the cause of action arises the day the product malfunctions. 
C)  Most courts allow a manufacturer to relieve itself of liability for breach of warranty by using disclaimers even if the disclaimers are not stated on an integral part of the product or package. 
D)  The Uniform Commercial Code contains a provision stating that disclaimers on products cannot be considered as unconscionable.

Question 11

In early product liability cases, the privity limitation meant that the plaintiff was required to demonstrate that .

Accepted Answer

A)  he or she purchased the defective product directly from the manufacturer 
B)  the seller owed a duty of care to the consumer 
C)  the manufacturer breached a duty of care 
D)  the damages are actual as opposed to punitive 
A)  he or she purchased the defective product directly from the manufacturer 
B)  the seller owed a duty of care to the consumer 
C)  the manufacturer breached a duty of care 
D)  the damages are actual as opposed to punitive

Question 12

Printing claims about products on their packaging creates an implied warranty of fitness for a particular purpose.

Accepted Answer

A) True 
 B)False

Question 13

Plaintiffs in product liability cases have traditionally used .

Accepted Answer

A)  theories of warranty 
B)  theories of negligence 
C)  the strict product liability theory 
D)  the market share theory 
A)  theories of warranty 
B)  theories of negligence 
C)  the strict product liability theory 
D)  the market share theory

Question 14

Which of the following statements is true of the market share theory?

Accepted Answer

A)  It is used when various manufacturers have produced different parts of the product. 
B)  It is used when the allegedly harmful products differ based on the manufacturer who has produced them. 
C)  It apportions liability among the defendants on the basis of the market share they held at the time the product was produced. 
D)  It apportions liability among the defendants on the basis of the market share they hold when the lawsuit is filed in court. 
A)  It is used when various manufacturers have produced different parts of the product. 
B)  It is used when the allegedly harmful products differ based on the manufacturer who has produced them. 
C)  It apportions liability among the defendants on the basis of the market share they held at the time the product was produced. 
D)  It apportions liability among the defendants on the basis of the market share they hold when the lawsuit is filed in court.

Question 15

Explain the implied warranty of merchantability.

Accepted Answer

The implied warranty of merchantability

Question 16

Which of the following describes the condition in which courts impose liability based on negligent design?

Accepted Answer

A)  when the materials used by the manufacturer satisfy most of the standards acceptable in the trade 
B)  when the risk of harm outweighs the utility of the product 
C)  when the manufacturer fails to include a warning about obvious dangers 
D)  when the manufacturer warns only the original purchaser and not the user 
A)  when the materials used by the manufacturer satisfy most of the standards acceptable in the trade 
B)  when the risk of harm outweighs the utility of the product 
C)  when the manufacturer fails to include a warning about obvious dangers 
D)  when the manufacturer warns only the original purchaser and not the user

Question 17

Which of the following statements describes a circumstance in which the manufacturer or distributor is liable for selling a defective product according to strict liability in tort?

Accepted Answer

A)  The seller is not engaged in the business of selling the type of product that was found to be defective. 
B)  The product developed by the manufacturer is expected to reach the consumer or user after undergoing substantial change. 
C)  The product develops a defect four years after it was purchased by the consumer. 
D)  The user or consumer has not bought the defective product from or entered into any contractual relation with the seller. 
A)  The seller is not engaged in the business of selling the type of product that was found to be defective. 
B)  The product developed by the manufacturer is expected to reach the consumer or user after undergoing substantial change. 
C)  The product develops a defect four years after it was purchased by the consumer. 
D)  The user or consumer has not bought the defective product from or entered into any contractual relation with the seller.

Question 18

Strict liability theory has been frequently applied to the provision of services.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is true of the statute of limitations?

Accepted Answer

A)  It limits the time within which all types of civil actions may be brought. 
B)  It limits the types of civil actions that may be brought to court. 
C)  In most states, it permits lawsuits only when intentional torts have been committed. 
D)  If the injured party is a minor, it permits the parent or guardian to bring a civil action suit. 
A)  It limits the time within which all types of civil actions may be brought. 
B)  It limits the types of civil actions that may be brought to court. 
C)  In most states, it permits lawsuits only when intentional torts have been committed. 
D)  If the injured party is a minor, it permits the parent or guardian to bring a civil action suit.

Question 20

Which of the following is not a common legal theory that serves as a basis for a malpractice suit?

Accepted Answer

A)  negligence 
B)  breach of contract 
C)  strict liability 
D)  fraud 
A)  negligence 
B)  breach of contract 
C)  strict liability 
D)  fraud

Exam 12: Product and Service Liability Law

In most cases, an employee using an unsafe machine at work is not presumed to have assumed the risk.

George met with an accident while skiing. He brings a negligence suit against Joe, who rented the skis to George. Which of the following statements is true of this scenario?

Which of the following is not a factor generally necessary for applying market share theory?

Which of the following refers to a scenario in which courts will impose liability due to negligent design?

How did the 1916 case of MacPherson v. Buick Motor Co. lead to the elimination of the privity requirement?

If a product is to be used by someone other than the original purchaser, the manufacturer is generally required to put some sort of warning on the product itself.

In most states, the statute of limitations for tort actions is .

Which of the following statements is true of the privity limitation?

Which of the following statements is true of breach of warranty actions?

In early product liability cases, the privity limitation meant that the plaintiff was required to demonstrate that .

Printing claims about products on their packaging creates an implied warranty of fitness for a particular purpose.

Plaintiffs in product liability cases have traditionally used .

Which of the following statements is true of the market share theory?

Explain the implied warranty of merchantability.

Which of the following describes the condition in which courts impose liability based on negligent design?

Which of the following statements describes a circumstance in which the manufacturer or distributor is liable for selling a defective product according to strict liability in tort?

Strict liability theory has been frequently applied to the provision of services.

Which of the following statements is true of the statute of limitations?

Which of the following is not a common legal theory that serves as a basis for a malpractice suit?

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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