Deck 8: Allocating Risk and Responsibilities in the Global Marketplace: Products Liability

Question 1

The term caveat emptor means:

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

Answer 1

C

Question 2

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

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

Answer 2

A

Question 3

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

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

Answer 3

C

Question 4

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 5

The most notable exception to caveat emptor was for

A) Food
B) Automobiles
C) Clothing
D) Shoes

Question 6

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.

Question 7

Explain how injured parties can recover damages under the UCC.

Question 8

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 9

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

Question 10

Discuss Sugarman's "Performance-based regulation." Is this a viable means to create safer products or is it unnecessary government interference?

Question 11

What are punitive damages?

Question 12

Explain the features of Section 402A of the Restatement of Torts (Second).

Question 13

What did the Food Safety Modernization Act (FSMA) do? Has it accomplished what it should have? Why or why not?

Question 14

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

Question 15

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

A) Cabinet departments within the Executive Branch
B) Subcommittees of the Senate and House of Representatives within the Legislative Branch
C) Judicially created organizations to implement Supreme Court mandates related to product safety.
D) Independent agencies that report to no branch of government.