Question 1

To avoid product liability, a manufacturer must exercise due care in using the appropriate production process.​

Accepted Answer

A) True 
 B)False  True

Question 2

No court engages in a risk-utility analysis to determine whether the risk of harm from a product is outweighed by its utility.​

Accepted Answer

A) True 
 B)False  False

Question 3

Parties who can be held liable on a theory of product liability for physical injury or property damage caused by defective goods include all of the following except​

Accepted Answer

A)  ​a lessor of the goods. 
B)  ​a maker of the goods. 
C)  ​a seller of the goods. 
D)  ​a user of the goods. 
A)  ​a lessor of the goods. 
B)  ​a maker of the goods. 
C)  ​a seller of the goods. 
D)  ​a user of the goods. D

Question 4

Camp Gear, Inc., makes and sells a camp stove to Devin. Camp Gear fails to exercise "due care" to make the stove safe, however, and Devin is injured as a result. Camp Gear is most likely liable for​

Accepted Answer

A)  ​assumption of risk. 
B)  ​commonly known danger. 
C)  ​negligence. 
D)  ​product misuse. 
A)  ​assumption of risk. 
B)  ​commonly known danger. 
C)  ​negligence. 
D)  ​product misuse.

Question 5

A design defect in a product will support the imposition of liability on a strict product liability basis.​

Accepted Answer

A) True 
 B)False

Question 6

An inadequate warning will support the imposition of liability on a strict product liability basis.​

Accepted Answer

A) True 
 B)False

Question 7

Under a theory of market-share liability, a manufacturer sells "shares" of its potential strict liability and thereby spreads the risk and the cost.​

Accepted Answer

A) True 
 B)False

Question 8

As a defense to product liability, comparative negligence completely absolves a defendant of liability.​

Accepted Answer

A) True 
 B)False

Question 9

A product contains a manufacturing defect when the product departs from its intended design even though all possible care was exercised.​

Accepted Answer

A) True 
 B)False

Question 10

MedBeat Inc., makes medical devices, including heart pacemakers. Nina, a heart patient, files a product liability suit against MedBeat, alleging a warning defect with respect to its pacemaker. In deciding whether to hold MedBeat liable, the court may consider whether there is a foreseeable risk of harm posed by the pacemaker and​

Accepted Answer

A)  ​the omission of a warning renders the pacemaker not reasonably safe. 
B)  ​there is a reasonable alternative design. 
C)  ​MedBeat did not use due care in making the pacemaker. 
D)  ​Nina lacks insurance coverage. 
A)  ​the omission of a warning renders the pacemaker not reasonably safe. 
B)  ​there is a reasonable alternative design. 
C)  ​MedBeat did not use due care in making the pacemaker. 
D)  ​Nina lacks insurance coverage.

Question 11

Saki, an air conditioning and heating technician, files a suit against Temp-Set Corporation, alleging that its thermostats are unreasonably dangerous due to the possibility of electrical shock. Temp-Set's best defense is most likely​

Accepted Answer

A)  ​assumption of risk. 
B)  ​knowledgeable user. 
C)  ​commonly known danger. 
D)  ​none of the choices. 
A)  ​assumption of risk. 
B)  ​knowledgeable user. 
C)  ​commonly known danger. 
D)  ​none of the choices.

Question 12

A public policy underlying the imposition of strict product liability is that consumers should be protected against unsafe products.​

Accepted Answer

A) True 
 B)False

Question 13

Rose, who is obese, files a product liability suit against Burger Meal Corporation (BMC), alleging that BMC's food is unhealthy because, as Rose knows, it contains high levels of cholesterol and saturated fat. BMC can most successfully assert the defense of​

Accepted Answer

A)  ​preemption. 
B)  ​assumption of risk. 
C)  ​comparative negligence. 
D)  ​knowledgeable user. 
A)  ​preemption. 
B)  ​assumption of risk. 
C)  ​comparative negligence. 
D)  ​knowledgeable user.

Question 14

A statute of repose places outer time limits on product liability actions.​

Accepted Answer

A) True 
 B)False

Question 15

Digg Deep Inc. makes and leases a backhoe to Estes. Due to a defect attributable to Digg Deep's negligence, Estes is injured in an accident in which his neighbor Fortis is also hurt. In a product liability suit based on negligence, Digg Deep may be liable to​

Accepted Answer

A)  ​Estes only. 
B)  ​no one. 
C)  ​Estes and Fortis. 
D)  ​Fortis only. 
A)  ​Estes only. 
B)  ​no one. 
C)  ​Estes and Fortis. 
D)  ​Fortis only.

Question 16

Ceramics Corporation makes ceramic products for commercial uses, including heat-resistant tiles for industrial ovens. When damage occurs in an oven at Dura-mold, Inc., liability may be imposed on Ceramics if the tiles sold to Dura-mold were​

Accepted Answer

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. 
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.

Question 17

Generally, the strict liability of manufactures and other sellers does not extend to injured bystanders.​

Accepted Answer

A) True 
 B)False

Question 18

ClearCall Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liability suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider​

Accepted Answer

A)  ​Erna's intended use for the phone. 
B)  ​DefDeals' method of accounting. 
C)  ​ClearCall's quality control efforts. 
D)  ​an available alternative design. 
A)  ​Erna's intended use for the phone. 
B)  ​DefDeals' method of accounting. 
C)  ​ClearCall's quality control efforts. 
D)  ​an available alternative design.

Question 19

In making and marketing home maintenance products, Do-It-Rite Corporation, like other sellers, is required to take precautions with its products against​

Accepted Answer

A)  ​any misuse. 
B)  ​only foreseeable misuses. 
C)  ​no misuse. 
D)  ​only obvious misuses. 
A)  ​any misuse. 
B)  ​only foreseeable misuses. 
C)  ​no misuse. 
D)  ​only obvious misuses.

Question 20

When a user is injured as a result of a seller's misrepresentation, the basis of product liability may be the tort of fraud.​

Accepted Answer

A) True 
 B)False

Exam 7: Strict Liability and Product Liability

To avoid product liability, a manufacturer must exercise due care in using the appropriate production process.​

No court engages in a risk-utility analysis to determine whether the risk of harm from a product is outweighed by its utility.​

Parties who can be held liable on a theory of product liability for physical injury or property damage caused by defective goods include all of the following except​

Camp Gear, Inc., makes and sells a camp stove to Devin. Camp Gear fails to exercise "due care" to make the stove safe, however, and Devin is injured as a result. Camp Gear is most likely liable for​

A design defect in a product will support the imposition of liability on a strict product liability basis.​

An inadequate warning will support the imposition of liability on a strict product liability basis.​

Under a theory of market-share liability, a manufacturer sells "shares" of its potential strict liability and thereby spreads the risk and the cost.​

As a defense to product liability, comparative negligence completely absolves a defendant of liability.​

A product contains a manufacturing defect when the product departs from its intended design even though all possible care was exercised.​

Saki, an air conditioning and heating technician, files a suit against Temp-Set Corporation, alleging that its thermostats are unreasonably dangerous due to the possibility of electrical shock. Temp-Set's best defense is most likely​

A public policy underlying the imposition of strict product liability is that consumers should be protected against unsafe products.​

Rose, who is obese, files a product liability suit against Burger Meal Corporation (BMC), alleging that BMC's food is unhealthy because, as Rose knows, it contains high levels of cholesterol and saturated fat. BMC can most successfully assert the defense of​

A statute of repose places outer time limits on product liability actions.​

Digg Deep Inc. makes and leases a backhoe to Estes. Due to a defect attributable to Digg Deep's negligence, Estes is injured in an accident in which his neighbor Fortis is also hurt. In a product liability suit based on negligence, Digg Deep may be liable to​

Ceramics Corporation makes ceramic products for commercial uses, including heat-resistant tiles for industrial ovens. When damage occurs in an oven at Dura-mold, Inc., liability may be imposed on Ceramics if the tiles sold to Dura-mold were​

Generally, the strict liability of manufactures and other sellers does not extend to injured bystanders.​

ClearCall Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liability suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider​

In making and marketing home maintenance products, Do-It-Rite Corporation, like other sellers, is required to take precautions with its products against​

When a user is injured as a result of a seller's misrepresentation, the basis of product liability may be the tort of fraud.​

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Business and the Constitution

Business Ethics

Tort Law

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Writing Requirement in Our Digital World

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance and Breach of Sales and Lease Contracts

Warranties

International and Space Law

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Mergers and Takeovers

Investor Protection, Insider Trading, and Corporate Governance

Administrative Agencies

Consumer Law

Environmental Protection

Antitrust Law

Professional Liability and Accountability

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance

Wills and Trusts

The Legal Environment of Business

Torts and Crimes

Contracts and E-Contracts

Domestic and International Sales and Lease Contracts

Negotiable Instruments

Creditors Rights and Bankruptcy

Agency and Employment

Business Organizations

Government Regulation

Property and Its Protection

To avoid product liability, a manufacturer must exercise due care in using the appropriate production process.

No court engages in a risk-utility analysis to determine whether the risk of harm from a product is outweighed by its utility.

Parties who can be held liable on a theory of product liability for physical injury or property damage caused by defective goods include all of the following except

Camp Gear, Inc., makes and sells a camp stove to Devin. Camp Gear fails to exercise "due care" to make the stove safe, however, and Devin is injured as a result. Camp Gear is most likely liable for

A design defect in a product will support the imposition of liability on a strict product liability basis.

An inadequate warning will support the imposition of liability on a strict product liability basis.

Under a theory of market-share liability, a manufacturer sells "shares" of its potential strict liability and thereby spreads the risk and the cost.

As a defense to product liability, comparative negligence completely absolves a defendant of liability.

A product contains a manufacturing defect when the product departs from its intended design even though all possible care was exercised.

Saki, an air conditioning and heating technician, files a suit against Temp-Set Corporation, alleging that its thermostats are unreasonably dangerous due to the possibility of electrical shock. Temp-Set's best defense is most likely

A public policy underlying the imposition of strict product liability is that consumers should be protected against unsafe products.

Rose, who is obese, files a product liability suit against Burger Meal Corporation (BMC), alleging that BMC's food is unhealthy because, as Rose knows, it contains high levels of cholesterol and saturated fat. BMC can most successfully assert the defense of

A statute of repose places outer time limits on product liability actions.

Digg Deep Inc. makes and leases a backhoe to Estes. Due to a defect attributable to Digg Deep's negligence, Estes is injured in an accident in which his neighbor Fortis is also hurt. In a product liability suit based on negligence, Digg Deep may be liable to

Ceramics Corporation makes ceramic products for commercial uses, including heat-resistant tiles for industrial ovens. When damage occurs in an oven at Dura-mold, Inc., liability may be imposed on Ceramics if the tiles sold to Dura-mold were

Generally, the strict liability of manufactures and other sellers does not extend to injured bystanders.

ClearCall Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liability suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider

In making and marketing home maintenance products, Do-It-Rite Corporation, like other sellers, is required to take precautions with its products against

When a user is injured as a result of a seller's misrepresentation, the basis of product liability may be the tort of fraud.