Question 1

Which of the following statements is true about the Ultramares Doctrine?

Accepted Answer

A) It protects accountants against lawsuits from their clients. 
B) It holds accountants liable only to those in a privity-of-contract relationship with the accountant. 
C) It holds accountants liable to a limited class of intended users of the information. 
D) It is followed by all the states of the U.S. 
A) It protects accountants against lawsuits from their clients. 
B) It holds accountants liable only to those in a privity-of-contract relationship with the accountant. 
C) It holds accountants liable to a limited class of intended users of the information. 
D) It is followed by all the states of the U.S.

Question 2

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 3

Why did some courts conclude that compliance with the Clean Air Act does not preclude oil companies from liability?

Accepted Answer

Oil companies have had mixed results in

Question 4

New Zealand's Accident Compensation Act provides for automatic payment of compensation for claims for pain and suffering.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

Statutes of repose bar actions that aris

Question 7

Which of the following statements is true of defenses to a strict product liability action?

Accepted Answer

A) Product misuse is available as a defense to a strict product liability action. 
B) Assumption of the risk is not permitted as a defense to a strict product liability action. 
C) State-of-the-art defense is generally allowed in a strict product liability action. 
D) State-of-the-art defense in a strict liability action requires testimony from an expert witness. 
A) Product misuse is available as a defense to a strict product liability action. 
B) Assumption of the risk is not permitted as a defense to a strict product liability action. 
C) State-of-the-art defense is generally allowed in a strict product liability action. 
D) State-of-the-art defense in a strict liability action requires testimony from an expert witness.

Question 8

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 9

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 10

Which of the following refers to unconscionability under the Uniform Commercial Code?

Accepted Answer

A) The seller was not aware of the defect at the time of purchase. 
B) The plaintiff is a minor. 
C) The contract clause is grossly unfair. 
D) The lawsuit was brought after the expiration date of the statute of repose. 
A) The seller was not aware of the defect at the time of purchase. 
B) The plaintiff is a minor. 
C) The contract clause is grossly unfair. 
D) The lawsuit was brought after the expiration date of the statute of repose.

Question 11

Which of the following has an issue of disagreement among the states regarding accounting malpractice?

Accepted Answer

A) the applicability of Generally Accepted Auditing Standards (GAASs) 
B) the applicability of Generally Accepted Accounting Principles (GAAPs) 
C) the accountant's liability to third parties 
D) the accountant's liability to his or her clients 
A) the applicability of Generally Accepted Auditing Standards (GAASs) 
B) the applicability of Generally Accepted Accounting Principles (GAAPs) 
C) the accountant's liability to third parties 
D) the accountant's liability to his or her clients

Question 12

Which of the following statements is true about malpractice suits?

Accepted Answer

A) They are service liability suits brought against professionals. 
B) They are service liability suits brought against manufacturers. 
C) Strict liability is usually applied to malpractice suits. 
D) Strict liability is generally not applied if the defendant has provided both a good and a service. 
A) They are service liability suits brought against professionals. 
B) They are service liability suits brought against manufacturers. 
C) Strict liability is usually applied to malpractice suits. 
D) Strict liability is generally not applied if the defendant has provided both a good and a service.

Question 13

Which of the following statements is true of defenses to a negligence-based product liability action?

Accepted Answer

A) For misuse of a product to constitute a valid defense, the misuse must be unreasonable or unforeseeable. 
B) An employee using an unsafe machine at work is presumed to have assumed the risk. 
C) If contributory negligence is proved, the plaintiff can recover for only that portion of the harm attributable to the defendant's negligence. 
D) If pure comparative negligence is proved, the plaintiff is barred from recovery. 
A) For misuse of a product to constitute a valid defense, the misuse must be unreasonable or unforeseeable. 
B) An employee using an unsafe machine at work is presumed to have assumed the risk. 
C) If contributory negligence is proved, the plaintiff can recover for only that portion of the harm attributable to the defendant's negligence. 
D) If pure comparative negligence is proved, the plaintiff is barred from recovery.

Question 14

Privity means that one is a party to a contract.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following refers to the state-of-the-art defense?

Accepted Answer

A) The defendant proves that a warning on the product would not have helped. 
B) The defendant proves that there was insufficient scientific knowledge to make a safer product at the time it was manufactured. 
C) The defendant proves that the plaintiff had insufficient knowledge to purchase the product. 
D) The defendant proves that the warning could have been understood by any reasonable person. 
A) The defendant proves that a warning on the product would not have helped. 
B) The defendant proves that there was insufficient scientific knowledge to make a safer product at the time it was manufactured. 
C) The defendant proves that the plaintiff had insufficient knowledge to purchase the product. 
D) The defendant proves that the warning could have been understood by any reasonable person.

Question 16

Which of the following statements is true of liability cases in foreign countries?

Accepted Answer

A) In New Zealand, most claims for damages due to pain and suffering receive automatic compensation due to its Accident Compensation Act. 
B) U.S. manufacturers facing lawsuits in foreign countries are unlikely to be joined by foreign importers, retailers, and wholesalers. 
C) U.S. courts do not enforce the judgment rendered by a foreign court. 
D) U.S. manufacturers who sell their products abroad are not free from product liability considerations. 
A) In New Zealand, most claims for damages due to pain and suffering receive automatic compensation due to its Accident Compensation Act. 
B) U.S. manufacturers facing lawsuits in foreign countries are unlikely to be joined by foreign importers, retailers, and wholesalers. 
C) U.S. courts do not enforce the judgment rendered by a foreign court. 
D) U.S. manufacturers who sell their products abroad are not free from product liability considerations.

Question 17

Which of the following best describes a statute of repose?

Accepted Answer

A) It is a statute that bars actions arising more than a specified number of years after the cause of the action arises. 
B) It is a statute that limits recoverable damages based on the percentage of harm caused by the defendant. 
C) It is a statute that limits recoverable damages to less than $1,000,000. 
D) It is a statute that bars actions arising more than a specified number of years after the product was purchased. 
A) It is a statute that bars actions arising more than a specified number of years after the cause of the action arises. 
B) It is a statute that limits recoverable damages based on the percentage of harm caused by the defendant. 
C) It is a statute that limits recoverable damages to less than $1,000,000. 
D) It is a statute that bars actions arising more than a specified number of years after the product was purchased.

Question 18

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 U.S.

Accepted Answer

A) True 
 B)False

Question 19

Implied warranty of fitness for a particular purpose refers to ________.

Accepted Answer

A) a warranty that allows the purchaser to recover the full purchase price f1 or any dissatisfactions with the product 
B) a warranty that is clearly stated by the seller or manufacturer 
C) a warranty that arises when the seller tells the consumer that a product is fit for a specific use 
D) a warranty that a product is reasonably fit for ordinary use 
A) a warranty that allows the purchaser to recover the full purchase price f1 or any dissatisfactions with the product 
B) a warranty that is clearly stated by the seller or manufacturer 
C) a warranty that arises when the seller tells the consumer that a product is fit for a specific use 
D) a warranty that a product is reasonably fit for ordinary use

Question 20

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.

Exam 12: Product and Service Liability Law

Which of the following statements is true about the Ultramares Doctrine?

Plaintiffs in product liability cases have traditionally used ________.

Why did some courts conclude that compliance with the Clean Air Act does not preclude oil companies from liability?

New Zealand's Accident Compensation Act provides for automatic payment of compensation for claims for pain and suffering.

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

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

Which of the following statements is true of defenses to a strict product liability action?

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

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

Which of the following refers to unconscionability under the Uniform Commercial Code?

Which of the following has an issue of disagreement among the states regarding accounting malpractice?

Which of the following statements is true about malpractice suits?

Which of the following statements is true of defenses to a negligence-based product liability action?

Privity means that one is a party to a contract.

Which of the following refers to the state-of-the-art defense?

Which of the following statements is true of liability cases in foreign countries?

Which of the following best describes a statute of repose?

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 U.S.

Implied warranty of fitness for a particular purpose refers to ________.

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?

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

Law and Business Associations

The Law of Administrative Agencies

The Employment Relationship

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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