Deck 33: Product Liability

Question 1

As the NHTSA is not responsible for the safety of automobiles, instead it focuses on controlling automobile emissions.

Answer 1

False

Question 2

All of the following create the basis for product liability claims against manufacturers and sellers, EXCEPT:

A) product flaw.
B) failure to warn.
C) guarantee.
D) design defect.

Answer 2

C

Question 3

Advertising of drugs is legal, so long as detailed information about the drug being advertised is not disclosed.

Answer 3

False

Question 4

In a product liability lawsuit, ________ is/are often difficult to prove because the plaintiff usually needs the opinions of expert witnesses who can evaluate whether the defendant negligently manufactured or sold the product.

A) damages
B) duty
C) breach
D) proximate cause

Question 5

A consequence of strict liability is that companies are sometimes hesitant to introduce new or innovative products because of the fear of liability lawsuits.

Question 6

In a product liability case, retailers, wholesalers, and manufacturers of component parts in the distribution channel cannot be liable for product related injury.

Question 7

A breach of warranty lawsuit is based upon tort law.

Question 8

The liability of a manufacturer or seller for injury to purchasers, users, and third parties is known as:

A) purchase liability.
B) customer care liability.
C) consumer liability.
D) product liability.

Question 9

The process of FDA approval has come under some criticism in recent years, as concerns over the costs and length of time for obtaining approval of prescription drugs have increased.

Question 10

Many purchasers or users of products, or even third parties, who sustain injury or property loss as a direct result of using the product, file a civil lawsuit based not on tort law, but on contract law.

Question 11

Federal law allows advertising of cigarettes and other tobacco products on the television and radio.

Question 12

Unreasonable risk of injury and death associated with consumer products cannot be achieved by governments' providing safety information to the public or developing voluntary or mandatory standards.

Question 13

The federal agency responsible for the safety of consumer products sold in the United States is the Consumer Product Safety Commission.

Question 14

A product flaw is an abnormality or a condition that was not intended and that makes a product more dangerous than necessary.

Question 15

Manufacturers and sellers have a duty to advise purchasers and users of dangers inherent in a product.

Question 16

All of the following are the elements that a plaintiff must prove in order to be successful in establishing the defendant's negligence in a product liability lawsuit EXCEPT:

A) warranty.
B) breach.
C) duty.
D) damages.

Question 17

Under traditional tort law, it is often difficult for injured parties to prove negligence and the defenses of manufacturers are often very effective.

Question 18

A pharmaceutical company earns most of its drug-related profits during the time that the patent for the drug is effective.

Question 19

The federal agency responsible for the safety of food and drugs sold in the United States is the Food and Drug Administration.

Question 20

A fault in a product that creates a hazardous condition that causes injury is a:

A) malfunction.
B) design defect.
C) product flaw.
D) proximate cause.

Question 21

The Food and Drug Administration (FDA) requires all drugs to be thoroughly tested to ensure that they are both safe and effective. The pharmaceutical companies subject drugs to _________ of testing.

A) two phases
B) four phases
C) five phases
D) six phases

Question 22

In the event of a product liability, the entities who are particularly vulnerable when the product manufacturer is insolvent or is a corporation that has been dissolved or is unreachable are the:

A) designers.
B) managers.
C) purchasers.
D) retailers.

Question 23

Governments reduce unreasonable risk of injury and death associated with consumer products by all of the following, except:

A) providing safety information to the public.
B) developing voluntary and mandatory standards.
C) restricting advertising on television and radio.
D) pursuing recalls of dangerous products.

Question 24

In a product liability case, the most obvious target of an injured party is the:

A) manufacturer.
B) licensor.
C) purchaser.
D) dealer.

Question 25

The federal agency responsible for the safety of automobiles sold in the United States is the:

A) Food and Drug Administration Commission.
B) Consumer Product Safety Commission.
C) Federal Administrative Commission.
D) National Highway Traffic Safety Administration.

Question 26

Consumer products with restrictions imposed on them by the Consumer Product Safety Commission include the following, EXCEPT:

A) services.
B) paint.
C) children's toys.
D) radiation-emitting products.

Question 27

In some states, strict liability applies only to products that:

A) are inherently dangerous.
B) have design defects.
C) have product flaws.
D) are degenerated.

Question 28

During the testing of drugs, the phase in which a small number of people are tested to determine safety and dosage, and to identify side effects that result from taking the drug, is:

A) Phase I.
B) Phase II.
C) Phase III.
D) Phase IV.

Question 29

In a Master Settlement Agreement, the major cigarette manufacturers in the United States agreed not to engage in:

A) advertising strategies.
B) consumer product safety strategies.
C) federal administrative strategies
D) producing strategies.

Question 30

Liability without the necessity of proving fault is:

A) tortuous liability.
B) strict liability.
C) business liability.
D) vicarious liability.

Question 31

The federal and state governments enact numerous statutes and rules to reduce unreasonable risks of injury and death associated with:

A) safety products.
B) manufacturer products.
C) retailer products.
D) consumer products.

Question 32

For a drug to be approved, it is estimated that it costs a pharmaceutical company approximately:

A) $400 million.
B) $500 million.
C) $600 million.
D) $700 million.

Question 33

In 1997, the major cigarette manufacturers in the United States entered into a contract, which was referred to as the:

A) Vicarious Liability Agreement.
B) Master Settlement Agreement.
C) Consumer Product Safety Agreement.
D) Federal Administrative Agreement.

Question 34

Despite the advent of strict liability, there is considerable activity to curb abuses of the system in various state legislatures with a view toward:

A) manufacture reform.
B) liability reform.
C) tort reform.
D) product reform.

Question 35

A pharmaceutical company earns most of its profits from its drugs only at the time during which the drug is effective and it is:

A) patented.
B) registered as a trade mark.
C) licensed as a copyright.
D) reasonably priced.

Question 36

Under traditional tort law, the injured party must prove that the manufacturer was _________ in producing a product.

A) unauthorized
B) negligent
C) advertent
D) ignorant

Question 37

After the patent expires, other companies may produce alternative versions of the drug, referred to as:

A) embargoes.
B) placebos.
C) generics.
D) superfunds.

Question 38

Numerous federal and state statutes strictly regulate cigarettes and other tobacco products. Federal law disallows _________ of these products on television and radio.

A) usage
B) selling
C) advertising
D) licensing

Question 39

During the testing of drugs, the phase in which the safety and effectiveness of the drug are evaluated in trials involving a great number of people is:

A) Phase I.
B) Phase IV.
C) Phase II.
D) Phase III.

Question 40

Hazardous household cleaners and substances have restrictions imposed on them by the:

A) Food and Drug Administration Commission.
B) Consumer Product Safety Commission.
C) Federal Administrative Commission.
D) Federal Trade Commission.

Question 41

Explain the legal reasoning behind the concept of strict liability.

Question 42

Distinguish among product flaw, failure to warn, and design defect in product liability lawsuits.

Question 43

Describe the purpose of the Food and Drug Administration (FDA).