Exam 10: Product Liability.
Exam 1: Law, Value Creation, and Risk Management.64 Questions
Exam 2: Ethics and the Law.67 Questions
Exam 3: Sources of Law, Courts, and Dispute Resolution.65 Questions
Exam 4: Constitutional Bases for Business Regulation.67 Questions
Exam 5: Agency.67 Questions
Exam 6: Administrative Law.63 Questions
Exam 7: Contracts.66 Questions
Exam 8: Sales, Licensing, and E-Commerce.64 Questions
Exam 9: Torts and Privacy Protection.64 Questions
Exam 10: Product Liability.65 Questions
Exam 11: Intellectual Property.69 Questions
Exam 12: The Employment Agreement.65 Questions
Exam 13: Civil Rights and Employment Discrimination.64 Questions
Exam 14: Criminal Law.67 Questions
Exam 15: Environmental Law and Sustainability.66 Questions
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Exam 18: Real Property and Land Use.66 Questions
Exam 19: Forms of Business Organizations.69 Questions
Exam 21: Public and Private Offerings of Securities.67 Questions
Exam 22: Securities Fraud and Insider Trading.68 Questions
Exam 23: Debtor-Creditor Relations and Bankruptcy.69 Questions
Exam 24: International Law and Transactions.69 Questions
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A statute of __________ prevents recovery for product injuries by limiting the time period for recovery from the date when the injury occurred.
Free
(Multiple Choice)
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Correct Answer:
A
What are the four basic parts of the rationale for strict product liability?
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(Essay)
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Correct Answer:
The four basic parts are as follows:
1.The law should protect consumers against unsafe products.
2.Manufacturers and sellers of products are in the best position to bear the costs of injuries caused by their products because they can insure against losses and also pass these costs on to all consumers in the form of higher prices.
3.Imposing strict liability encourages manufactures to produce safer products.Manufacturers should not escape liability simply because they typically do not sign a formal contract with the end user of their product (or with nonusers who might be injured by their product).
4.The law should give sellers an incentive to deal only with reputable manufacturers.
The main question for the U.S.Supreme Court in CASE 10.4 Mutual Pharmaceutical Co.,Inc.v.Bartlett (2013)was whether:
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(Multiple Choice)
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Correct Answer:
D
Product liability is the legal liability manufacturers and sellers have for defective products that cause injury to purchasers,users,bystanders,or their property.
(True/False)
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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?
(Multiple Choice)
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The assumption of risk doctrine makes the manufacturer liable for a resulting injury.
(True/False)
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Which of the following products has traditionally been viewed as "unavoidably unsafe" by the courts?
(Multiple Choice)
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Fact Pattern 10-1
Polly buys a new iron and uses it for a few months without incident. She was surprised, however, when one day the iron gave her a significant shock. She suffered no lasting damages, but did have some pain from the incident. A few weeks later she read in the newspaper that the manufacturer had known for over a year about the iron's propensity to shock users, but had refused to take recall measures. She also read that some users had been severely shocked. Polly was outraged but wondered if she could sue because she really did not have significant injuries.
-Refer to Fact Pattern 10-1.Which of the following would be an advantageous type of action with which Polly should become associated?
(Multiple Choice)
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The Restatement (Third)requires that any claim of design defect be supported by a showing of a reasonable alternative design.
(True/False)
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Under what circumstances will a successor corporation be held liable in a product liability action under the traditional successor liability rule?
(Essay)
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Sally purchased a used toaster at a yard sale.The seller told Sally that although the toaster was over ten years old,she had not had any problems with it.Sally takes the toaster home and uses if for a few months.One day,however,as Sally was using the toaster,it malfunctioned and caused a small fire in Sally's kitchen along with significant smoke damage.Sally decides that she wants to sue the manufacturer of the toaster and that she is going to do so within one month of the fire.What would likely be the manufacturer's best defense in a strict liability in tort action brought by Sally?
(Multiple Choice)
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Under federal law,manufacturers,but not sellers,may be held strictly liable for a defective product.
(True/False)
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The preemption defense involves certain __________,which set minimum safety standards for products.
(Multiple Choice)
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Which of the following is NOT a rationale of strict product liability?
(Multiple Choice)
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In 1963,the state of __________ became the first state to adopt the __________ theory,after the state supreme court decided the __________ case.
(Multiple Choice)
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Under the preemption defense,certain federal laws and regulations that set minimum safety standards are held to preempt state-law product liability claims.
(True/False)
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Which state court was the first to adopt the doctrine of strict product liability?
(Multiple Choice)
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A court might consider a product to be unreasonably dangerous if:
(Multiple Choice)
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