Deck 9: Product Liability: Allocating Risk Responsibility

Question 1

To win a suit for negligence,a plaintiff must establish:
I)The defendant breached its duty of care,creating an unreasonable risk of harm
II)The defendant acted with total disregard to the harm that could result
III)the defendant's behavior was the proximate cause of the plaintiff's injuries​

A)I and II only
B)II only
C)I and III only
D)I, II and III only

Answer 1

C

Question 2

According to Stephen Sugarman,performance-based regulation happens when:

A)the government sets targets for how much harm is allowed for each product produced and the company is fined or penalized for any harm beyond the acceptable level.
B)the government creates a reporting structure for consumers to report corporation performance related to safety or environmental issues and then the government imposes fines by a specific formula for companies who exceed a certain number of negative reports.
C)consumer advocacy groups work with the independent agencies to determine which corporations are implementing best practices for consumer safety and then create regulations to impose those practices on other companies.
D)the government analyzes which companies make the most profit, indicating consumer approval of their performance on safety standards and then implement those companies' practices as legal standards.

Answer 2

A

Question 3

Explain three ways in which a product can be deemed defective or dangerous under strict product liability and provide an example of each.

Answer 3

A product can be defective or dangerous under strict product liability if it has a design defect,a manufacturing defect,or it contains inadequate warnings.  Design defects occur when the design of a product is faulty.  The Ford Pinto case is an example of this because the engineers at Ford designed the car in such a way that made the care more likely to catch fire in rear end collisions.  Manufacturing defects arise when products are designed properly,but are not made correctly,such as when a component in a car is improperly assembled.  An example of an inadequate product warning was presented in the Levine v.Wyeth case,in which the warning that accompanied the pharmaceutical drug was not specific enough regarding the potential danger facing patients who received the drug via the IV push method.

Question 4

Under the Restatement of Torts (Second),Section 402a,a product manufacturer must be negligent in order to be liable for a defective product.

Question 5

Explain how injured parties can recover damages under the UCC.

Question 6

The Ford Pinto exploded when rear-ended by another vehicle. The Pinto suffered from a(n):​

A)Design Defect
B)Manufacturing Defect
C)Warning Defect
D)End-user Defect

Question 7

The Food and Drug Administration,the Consumer Product Safety Commission,and the National Highway Transportation Safety Association are:

A)Law enforcement agencies that target corporate malfeasance.
B)Trade associations that promote safer products
C)Judicially created organizations to implement Supreme Court mandates related to product safety.
D)Government agencies that are tasked with ensuring product safety.

Question 8

The organization that works with companies on recalls of unsafe products (such as lead-paint laden Thomas the Train toys)is

A)The Consumer Protection Group (CPG)
B)The Consumer Product Safety Commission (CPSC)
C)The Product Protection People (P3)
D)The Buy American Coalition (BAC)

Question 9

In Wyeth v.Levine,the majority rejected the idea that primary responsibility for drug safety lies with the government and instead lies with the drug manufacturer.

Question 10

Compare the regulation of biotechnology in the United States to that of the European Union.​

Question 11

Identify three distinct legal theories that can lead to liability for an unsafe or defective product.

Question 12

Are contracts for the sale of computer software governed by the UCC?

A)Yes, because they are "goods".
B)No, because they are "services".
C)Sometimes, because some contracts for software are predominantly for the software itself, but others are predominantly for services that accompany the software, such as ongoing technical support.
D)No, because the purchase of products is governed exclusively by tort law.

Question 13

The term caveat emptor means:

A)"seller take care"
B)"empty the cave of deceit"
C)"buyer beware"
D)"truth shall prevail"

Question 14

The United States and the European Union place strict regulations on GMO products.

Question 15

Absent provisions in the contract,which of the following types of damage can be awarded to an injured party under a breach of contract?

A)General damages only
B)General and incidental damages only
C)General, incidental, and special damages only
D)General, incidental, special and punitive damages