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Business Law Study Set 3
Exam 7: Strict Liability and Product Liability
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Question 21
Multiple Choice
Bright n' Clean Company makes shampoo and other hair care products. Cub is injured by the use of a Bright n' Clean product and sues the company for product liability based on negligence. To win, Cub must show that
Question 22
True/False
If a product was delivered in a safe condition and subsequent mishandling made it harmful to the user, the seller is usually strictly liable.
Question 23
Essay
Grass Green Company makes and sells hedge trimmers, which are designed to be safe if used properly. Hazel buys a Grass Green trimmer and lends it to her neighbor Ike. In his garage, Ike is using the trimmer as a prod to dislodge a box from a high shelf when the trimmer suddenly engages. Startled, Ike drops the trimmer, which swings around and cuts his leg. Ike files a product liability suit against Grass Green, on the ground of negligence. On what basis could the manufacturer prevail?
Question 24
True/False
Strict liability is imposed only for an act that departs from a reasonable standard of care to cause an injury.
Question 25
Multiple Choice
Mai is struck and injured when the brakes fail on Novi's all-terrain vehicle (ATV) , which is damaged in the collision. Off-Road Inc. sold the ATV to Novi. Under product liability laws, Off-Road could be liable to
Question 26
Multiple Choice
Opal is working on a construction site when she is injured on the job in the collapse of a Plank Company-made ceiling beam. At the time, Opal is not wearing any safety gear. In Opal's product liability suit against Plank, the company can most successfully raise the defense of
Question 27
Multiple Choice
Petro Parts Inc. makes and sells parts for the repair of motor vehicles. Olsen suffers a loss when a defective Petro part causes damage to her car's engine. With respect to Olsen's product liability suit against Petro, an applicable statute of repose
Question 28
Multiple Choice
EZ Co-op Inc. sells Fill-Up cattle feed to ranchers. Gina buys and feeds Fill-Up to her herd. The feed is poisoned. Gina sues EZ for product liability based on negligence. To win, Gina must show
Question 29
True/False
Those who do not make goods, but only sell or lease them, cannot be held liable for harm caused by those goods to a consumer.
Question 30
True/False
In deciding a claim of design defect, a court can consider the relative advantages and disadvantages of an alternative design for a product.
Question 31
True/False
The types of product defects that have traditionally been recognized in product liability law include careless marketing.
Question 32
True/False
Generally, a seller is not liable for failing to warn consumers of the harm that can result from a foreseeable misuse of a product.
Question 33
Multiple Choice
Ceramic Corporation makes commercial ceramic products, including heat-resistant tiles for industrial ovens. When damage occurs in an oven at Duramold Inc., strict product liability may be imposed on Ceramic if the tiles sold to Duramold were
Question 34
Multiple Choice
Recharge Corporation makes batteries. Sol is injured when the Recharge battery in his phone bursts into flame. In Sol's product liability suit against the maker, alleging a design defect, the court may consider