Deck 6: Product and Strict Liability

Question 1

Intentional misrepresentation occurs when a seller or lessor ________.

A) fails to warn customers about the dangerous propensities of a product
B) shows negligence in product design
C) fails to assemble a product carefully
D) conceals a defect in a product

Answer 1

D

Question 2

Henry is undergoing a surgery at Sacred Heart Hospital to insert an artificial pacemaker that will keep his heartbeat regular. The pacemaker is manufactured by Benford Inc. In this case, Dr. DeBenedetto, the surgeon, is considered as the dominant element. If the pacemaker fails to function as expected after the surgery, who would be strictly liable for its failure?

A) Benford Inc.
B) Dr. DeBenedetto
C) Henry
D) Sacred Heart Hospital

Answer 2

A

Question 3

According to the doctrine of strict liability, which of the following parties is strictly liable for injuries caused by a defective product?

A) only the manufacturers of the products
B) only the parties directly involved in the sale of the product to the customer
C) all parties providing services related to the product
D) all parties in the chain of distribution

Answer 3

D

Question 4

Compare the tort doctrines of negligence and misrepresentation.

Question 5

Which of the following statements is true about strict liability?

A) It applies only to manufacturers of a defective product.
B) It is liability without fault.
C) It requires privity of contract between the plaintiff and the defendant.
D) It covers casual sales and transactions.

Question 6

Bertha, a surgeon, performed a kidney transplant on one of her patients. The surgery was not successful and the patient did not survive. Which of the following statements is true in this case?

A) Bertha cannot be held strictly liable as she is providing a service.
B) Bertha can be held strictly liable for the death of her patient.
C) Bertha and the medical staff assisting in the surgery are strictly liable for the death.
D) The donor of the kidney can be held strictly liable for the death of the patient.

Question 7

Intentional misrepresentation occurs when a seller or lessor conceals a defect in a product.

Question 8

Allenby Spares Inc. is a shop that sells spare automotive parts from various manufacturers. A customer buys a faulty brake manufactured by TurboDiezel Inc. from Allenby Spares and is involved in an accident caused by the faulty brake in his vehicle. Which of the following is true of this situation?

A) Allenby Spares cannot be held strictly liable since the brake was manufactured by TurboDiezel.
B) TurboDiezel cannot be held strictly liable as the company is not the seller in this case.
C) Neither Allenby nor TurboDiezel can be held strictly liable for the faulty brake.
D) Allenby Spares can be held strictly liable for the faulty brake as it is part of the distribution chain.

Question 9

Martin wins a car in a lottery. As he already owns a car, he decides to sell the new one to his friend Ted. While driving the car, Ted gets into a head-on collision with another car. Due to a defective Supplemental Restraint System (SRS) in the vehicle, the airbag does not deploy and Ted is seriously injured. Which of the following statements is true of this situation?

A) Martin can be held strictly liable because he sold the car to Ted.
B) The car manufacturer cannot be held strictly liable as Ted had not bought the car from it.
C) Martin cannot be held strictly liable as the sale of the car counts as a casual transaction.
D) The driver of the other car can be held strictly liable due to his or her involvement in the accident.

Question 10

Bartie's Inc. sells watercolors and pastels that are marketed as safe for use by children. However, several accounts of lead poisoning were reported in children who used the products. An investigation revealed that the company was knowingly manufacturing colors that contained a significant amount of a toxic heavy metal. Which of the following torts has Bartie's committed?

A) battery
B) disparagement
C) misrepresentation
D) professional malpractice

Question 11

________ is a tort doctrine that makes manufacturers, distributors, wholesalers, retailers, and others in the chain of distribution of a defective product liable for the damages caused by the defect, irrespective of fault.

A) Absolute liability
B) Contingent liability
C) Superior responsibility
D) Strict liability

Question 12

An injured party may bring a negligence lawsuit against the distributors and retailers of the defective product.

Question 13

In a negligence lawsuit, parties who were not actually negligent are also liable to the plaintiff.

Question 14

Because manufacturers, sellers and lessors often intentionally misrepresent the quality of their products, fraud is commonly the basis for a product liability lawsuit.

Question 15

Negligence requires a defendant to be at fault for causing the plaintiff's injuries.

Question 16

Intentional misrepresentation occurs when a seller or lessor affirmatively misrepresents the quality of a product.

Question 17

________ refers to all manufacturers, distributors, wholesalers, retailers, lessors, and subcomponent manufacturers involved in a transaction.

A) Demand chain
B) Chain of command
C) Chain of distribution
D) Value chain

Question 18

________ is a tort related to defective products in which the defendant has breached a duty of due care and caused harm to the plaintiff.

A) Misrepresentation
B) Negligence
C) Nuisance
D) Fraud

Question 19

Diane bought an action figure for David, her 3-year-old son, from Terrence's Toy Shop. The packaging did not mention that the toy contained small detachable parts. David accidentally swallowed and choked on one of the detachable parts and had to be taken to the hospital. On which of the following product liability charges can Diane sue Terrence's Toy Shop for damages?

A) negligence
B) misrepresentation
C) fraud
D) nuisance

Question 20

Betty buys a lawnmower manufactured by FlatPlanes Inc. from Harvey's department store. A defect in the design of the blades causes the lawnmower to kick back on operation, injuring Betty. Which of the following remedial actions is Betty entitled to?

A) Betty can sue Harvey's department store for negligence.
B) Betty can sue either Harvey's department store or FlatPlanes for strict liability.
C) Betty can only sue FlatPlanes for strict liability as it manufactured the defective lawnmower.
D) Betty can only sue Harvey's department store for strict liability as it sold her the defective lawnmower.

Question 21

Strict liability applies to services but not products.

Question 22

A seller of a defective product cannot be held strictly liable if it can be proved that he or she took all possible care in the preparation and sale of the product.

Question 23

The doctrine of strict liability holds the manufacturers of a defective product solely liable for injuries caused by that product.

Question 24

Which of the following statements is true about the strict liability doctrine?

A) Privity of contract between the injured party and defendant is mandatory.
B) Injured bystanders cannot recover damages under the strict liability doctrine.
C) Parties in the chain of distribution are strictly liable only to the customer who buys the product.
D) Injured bystanders are entitled to the same protection as the consumer or user.

Question 25

In hybrid transactions that involve both services and products, the dominant element of the transaction dictates whether strict liability applies.

Question 26

________ refers to monetary damages that are awarded to punish a defendant who either intentionally or recklessly injured the plaintiff.

A) Reliance damages
B) Consequential damages
C) Punitive damages
D) Nominal damages

Question 27

Under a theory of strict liability, who in the chain of distribution may be held strictly liable for injuries caused by a defective product? What public policy considerations are behind the inclusion of all of these parties in the list of possible defendants?

Question 28

What are product defects? What are the most common defects that will allow plaintiffs to recover for strict liability?

Question 29

John was driving his friend, Mary, back to her home in his new car. On the way to Mary's home, the car's brakes malfunctioned and they got into an accident. Which of the following is true in this situation?

A) Mary can recover from a strict liability lawsuit against the manufacturer of John's car.
B) Mary can file a strict liability lawsuit against John.
C) Mary can file a negligence lawsuit against the dealership that sold John his car.
D) John can file a negligence lawsuit against the dealership from which he bought the car.

Question 30

The doctrine of strict liability applies to sellers and lessors of products who are engaged in the business of selling and leasing products.

Question 31

Under the doctrine of strict liability, bystanders who are injured by a defective product are entitled to the same protection as the consumers or users.

Question 32

A defendant who has not been negligent but is made to pay a strict liability judgment can bring a separate action against the negligent party in the chain of distribution to recover his losses.

Question 33

To recover for strict liability, the injured party need not show that a product was defective.

Question 34

Plaintiffs can allege multiple product defects in one lawsuit.

Question 35

Casual sales and transactions are not covered under the strict liability doctrine.

Question 36

Privity of contract between the plaintiff and the defendant is not required in a strict liability suit.

Question 37

Under the doctrine of strict liability, a plaintiff cannot recover punitive damages for reckless conduct of the defendant.

Question 38

One common defect upon which a strict liability lawsuit may be based is failure to warn.

Question 39

The liability of manufacturers, sellers, lessors, and others for injuries caused by defective products is commonly referred to as product liability.

Question 40

Which of the following is NOT a common type of product defect upon which a strict liability lawsuit may be based?

A) defect in manufacture
B) defect in delivery
C) failure to warn
D) defect in packaging

Question 41

A defect in manufacture occurs when a manufacturer fails to ________.

A) design a product that is safe for users
B) adequately check the quality of a product
C) warn customers about the possible dangers of the product
D) provide proper packaging for the products

Question 42

Manufacturers and sellers have a duty to warn consumers about risks and side effects of products that could pose danger.

Question 43

Failure to properly assemble a product constitutes a defect in design by the manufacturer.

Question 44

________ refers to a defect that occurs when a manufacturer does not place information about the dangers of using a product on its packaging, causing injury if the dangers are unknown.

A) Failure to warn
B) Defect in manufacture
C) Failure to provide adequate instructions
D) Defect in packaging

Question 45

A defect in manufacture occurs when the manufacturer fails to warn customers about the dangerous propensities of its products.

Question 46

Spring Stream sells bottled water that it claims contains vital minerals and salts not found in rival brands. The company also claims that using tamperproof seals on the bottles would minimize the health benefits of the water. As a result, some merchants refill the used water bottles with contaminated water and resell them. People who drink the water suffer from various water-borne diseases. Which of the following forms the grounds on which affected customers can bring a strict liability lawsuit against Spring Stream?

A) There was a defect in the manufacture of the bottled water.
B) There was a defect in the packaging of the bottled water.
C) The company failed to provide warnings about the dangers of contaminated water.
D) There was a defect in the design of the water bottles.

Question 47

Which of the following statements is true when there is a defect in design of a product?

A) There was a failure to provide adequate instruction on use of the product.
B) There was a failure to warn customers about the possible dangers of using the product.
C) A single item is defectively designed, and it has the potential to cause injury.
D) All the products are defectively designed and have the potential to cause injury.

Question 48

When the containers of a product are not tamperproof, it is termed as a ________.

A) defect in manufacture
B) defect in design
C) defect in packaging
D) failure to warn

Question 49

When a drug manufacturer places prescription drugs in containers that can be easily opened by children, the manufacturer can be subjected to strict liability action due to defect in packaging.

Question 50

________ is a doctrine that says automobile manufacturers are under a duty to design automobiles by taking into account the possibility of harm from a person's body striking something inside the automobile in the case of a car crash.

A) Crash avoidance
B) Crashworthiness
C) Risk compensation
D) Conspicuity

Question 51

Courts can apply a consumer expectation test to evaluate the adequacy of a product's design.

Question 52

Kicker's Inc. has produced a new kind of candy bar, but it fails to mention on the packaging that the bar contains gluten and nuts. Consequently, many consumers who eat the bars suffer from severe allergic reactions. Which of the following can the injured customers cite as a defect in a strict liability lawsuit against Kicker's?

A) defect in design
B) defect in packaging
C) failure to warn
D) failure to provide adequate instructions

Question 53

A tamperproof seal on a product is considered as a defect in packaging.

Question 54

What is the purpose of the crashworthiness doctrine?

Question 55

Dorothy purchases a chair made by Woode Designs Inc. While making the chair, the legs were not fixed properly to the base. When Dorothy sat on the chair, it broke and she was injured. In a strict liability lawsuit, which of the following can Dorothy cite as a defect in the chair?

A) failure to provide adequate instructions
B) defect in design
C) failure to warn
D) defect in manufacture

Question 56

Clayton Inc. is a toy manufacturer that has released a new line of action figures. The toys are meant for children between the ages of one and two. However, they come with tiny detachable weapons that can be accidentally swallowed by children of that age. Which of the following defects do the action figures have that will make them strictly liable for any injuries caused?

A) defect in design
B) failure to provide adequate instructions
C) failure to avoid supervening event
D) defect in packaging

Question 57

Describe how courts can evaluate the adequacy of a product's design.

Question 58

A risk-utility analysis requires showing that a product is more dangerous than the ordinary consumer would expect.

Question 59

A toy manufacturer sells G.I. Joe figurines containing detachable limbs and weapons that could be swallowed by small children. It can be subject to a strict liability action owing to a defect in design.

Question 60

Michael wanted to build a small princess castle for his daughter in the backyard. He decided to turn it into a do-it-yourself project, so he bought the disassembled parts of the castle from Big Ben Forts Inc. However, after the purchase, he found that the manual provided by the company gave vague directions that were hard to understand. He built the castle by following the manual, but after a few days the castle collapsed and injured his daughter who was playing inside. Which of the following actions can Michael take in this situation?

A) He can file a negligence lawsuit against the store from which he bought the castle.
B) He can file a strict liability lawsuit against Big Ben Forts for failure to warn about the possible dangers of the product.
C) He can file a strict liability lawsuit against Big Ben Forts for failure to provide adequate instructions on assembling the product.
D) He can sue Big Ben Forts for defects in the packaging of their products.

Question 61

Companies that manufacture products according to government specifications are not liable if such products cause injury because ________.

A) the companies have government contractor defense
B) the use of these products entails generally known dangers
C) these products are abnormally misused
D) people assume the risk when using these products

Question 62

A man tries to swallow a pen as part of a circus act. The pen gets lodged in his throat, and he is taken to a hospital for immediate medical attention. The man sues the company that manufactured the pen. Which of the following would be the best defense for the pen manufacturer in this lawsuit?

A) It can claim that the product carried generally known dangers.
B) It can claim that the product was abnormally misused.
C) It can claim that the injury was caused by a supervening event.
D) It can claim that the plaintiff had assumed the risk when buying the product.

Question 63

The term ________ refers to a defense that says a person who is injured by a defective product but has been negligent and is partially responsible for his or her own injuries cannot recover from the defendant.

A) contributory negligence
B) negligence per se
C) assumption of risk
D) comparative negligence

Question 64

Ruggers Corp. is a maker of a range of highly popular cruise motorcycles. Tim buys a Ruggers motorcycle from a dealership and suffers an accident. While recuperating from his injuries, he learns that Ruggers has recalled all motorcycles it had manufactured and sold in the previous two years, owing to a previously unknown defect in their braking systems. Tim brings a product liability lawsuit against the motorcycle manufacturer and claims $50,000 in damages. The defect in the motorcycle is found to be half responsible for the accident, while Tim's own negligence of traffic rules contributed to the rest. Under the doctrine of contributory negligence, what would be the ruling of the court hearing this case?

A) Tim can recover $25,000 worth of damages from Ruggers and the rest from the dealership from which he purchased the motorcycle.
B) Tim can recover $50,000 worth of damages from the motorcycle manufacturer.
C) Tim can recover $50,000 worth of damages, plus any punitive damages that may be awarded by the jury.
D) Tim cannot recover any damages from the motorcycle manufacturer.

Question 65

Under the doctrine of comparative negligence, if the defendant is 50 percent responsible for injuries worth $10,000 suffered by the plaintiff, then the defendant must pay $5,000 in damages.

Question 66

Clive buys a rifle from Gun Manufacturing Company and goes hunting. During the hunting expedition, he accidentally shoots himself in the foot. Which of the following would be true of this case?

A) Clive can bring a strict liability lawsuit against the company for its failure to warn him about the possible dangers of firearms.
B) Clive can bring a strict liability lawsuit against the company for failure to provide adequate instructions on the use of the rifle.
C) Clive cannot take any action because the handling of firearms entails generally known dangers.
D) Clive cannot take any action against the company because he had abnormally misused the product.

Question 67

The plaintiff in a product liability lawsuit has suffered $100,000 worth of damages from an automobile accident. A defect in manufacture of the plaintiff's vehicle is found to be 60 percent responsible for the accident, while the plaintiff's own negligence is 40 percent responsible. Under the doctrine of comparative negligence, how much would the defendant-the manufacturer of the vehicle-have to pay the plaintiff in damages?

A) $60,000
B) $40,000
C) $100,000
D) The defendant would not have to pay any amount in damages.

Question 68

________ is a defect that occurs when a manufacturer does not provide detailed directions for safe assembly and use of a product.

A) Failure to warn
B) Failure to provide adequate instructions
C) Defect in manufacture
D) Defect in design

Question 69

________ refers to a statute that requires an injured person to bring an action within a certain number of years from the time that he or she was injured by a defective product.

A) Statute of limitations
B) Statute of frauds
C) Statute of repose
D) Statute of general application

Question 70

________ refers to an alteration or a modification of a product by a party in the chain of distribution that absolves all prior sellers from strict liability.

A) Generally known danger
B) Assumption of the risk
C) Abnormal misuse
D) Supervening event

Question 71

Bill buys a truck and replaces the regular tires with large tires to turn the vehicle into a monster truck. When he tries to drive the truck, the oversized tires cause the truck to roll over and crash. Bill then files a strict liability lawsuit against the truck manufacturer to recover for his injuries. Which of the following is the best defense for truck manufacturer in this lawsuit?

A) government contractor defense
B) assumption of the risk
C) generally known danger
D) supervening event

Question 72

To assert ________ as a defense, the defendant must prove that the plaintiff knew and appreciated the risk of the product.

A) supervening event
B) assumption of the risk
C) generally known dangers
D) abnormal misuse

Question 73

The term ________ refers to the doctrine that applies to strict liability actions that says a plaintiff who is contributorily negligent for his or her injuries is responsible for a proportional share of the damages.

A) negligence per se
B) assumption of risk
C) comparative fault
D) contributory negligence

Question 74

A pharmaceutical company has disclosed a list of side effects of its new prescription drug. A consumer who takes the drug in the right doses suffers from one of these side effects and sues the company for product liability. Which of the following would be the pharmaceutical company's defense in this lawsuit?

A) The consumer was injured due to a supervening event.
B) The consumer had assumed the disclosed risks when purchasing the drug.
C) The side effects suffered by the consumer were generally known dangers of the drug.
D) The consumer abnormally misused the drug.

Question 75

Manufacturers and sellers are strictly liable for failing to warn customers of the generally known dangers of a product.

Question 76

________ refers to a statute that limits the seller's liability to a certain number of years from the date when the product was first sold.

A) Statute of limitations
B) Statute of frauds
C) Statute of general application
D) Statute of repose

Question 77

Manufacturers and others in the chain of distribution are not strictly liable for failure to provide adequate instructions on assembly and use of a product.

Question 78

The statute of repose begins to run when the plaintiff suffers injury.

Question 79

The statute of limitations begins to run when a product is first sold.

Question 80

Inadequate testing of a product can support a product liability lawsuit based on strict liability.