Question 1

Common defenses in strict liability cases are product misuse or assumption of risk.

Accepted Answer

A) True 
 B)False

Question 2

In liability cases claiming a design defect, the plaintiff argues that the product was so poorly manufactured at the plant that it caused the plaintiff's harms.

Accepted Answer

A) True 
 B)False

Question 3

Experts estimate the annual cost of the tort system at:

Accepted Answer

A)   one to two billion dollars
B)   ten to twenty billion dollars
C)   twenty to forty billion dollars
D)   about a quarter trillion dollars
E)   no estimates are available

Question 4

The ____ relieves a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers"

Accepted Answer

A)   naïve user defense
B)   smart user defense
C)   intelligent user defense
D)   informed user defense
E)   none of the other choices are correct

Question 5

A(n)  ____ warranty is one the manufacturer contractually provides to the consumer.

Accepted Answer

A)   expiated
B)   valid
C)   explicit
D)   rapid
E)   none of the other choices are correct

Question 6

The elements of the tort of interference with a prospective advantage (relationship)  include:

Accepted Answer

A)   fraud
B)   manipulation of the securities market for personal gain
C)   predatory behavior
D)   defamation of a competitor
E)   all of the other choices

Question 7

A company cannot be a defendant in a tort suit since a firm is not a natural person.

Accepted Answer

A) True 
 B)False

Question 8

Negligence is:

Accepted Answer

A)   the cause of an intentional tort
B)   carelessness in a legal sense
C)   failure to file tax returns properly
D)   a business term for an accident
E)   none of the other choices are correct

Question 9

The Restatement (Third)  of Torts refers to strict liability in tort as:

Accepted Answer

A)   product injury law
B)   product quality assurance law
C)   product service law
D)   consumer protection law
E)   none of the other choices are correct

Question 10

The tort of misrepresentation can be based on:

Accepted Answer

A)   negligence, but not intent
B)   intent, but not negligence
C)   neither intent or negligence; it requires fraud
D)   deceit only
E)   none of the other choices

Question 11

HMA, operator of a hospital, contracted with Emcare to provide emergency medical services to the hospital. Emcare hired Dr. Hamby as an emergency medical physician on a one-year contract. Hamby argued with the manager of HMA about its billing procedure and Hamby was fired by Emcare before the year ended. The appeals court held that Hamby:​

Accepted Answer

A)   ​could only sue Emcare for breach of contract.
B)   ​could only sue HMA for breach of contract.
C)   ​could sue both Emcare and HMA for breach of contract.
D)   ​could sue HMA for tortious interference with c contract.
E)   ​none of the other choices are correct.

Question 12

If Company A runs an aggressive advertising campaign that tells customers why they should quit doing business with Company B and do business with A instead, B will be able to sue A for interference with a prospective advantage.

Accepted Answer

A) True 
 B)False

Question 13

The case that led in adopting a general rule imposing strict liability in tort was:

Accepted Answer

A)   Morriss v. Akers
B)   Greenman v. Yuba Power
C)   MacPherson v. Buick Motor Company
D)   MDM Group Associates v. CX Reinsurance Company
E)   Johnson v. Chevrolet

Question 14

In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue Buick because:

Accepted Answer

A)   Buick was only a dealer of automobiles, but still was responsible for the finished product
B)   Buick was a wealthy enough company to afford paying damages
C)   Buick was liable because it advertised that the wheels were safe on every vehicle
D)   MacPherson's injuries were life-threatening
E)   none of the other choices are correct

Question 15

One well-known business torts is:

Accepted Answer

A)   intentional interference with contractual relations
B)   unintentional interference with contractual relations
C)   forced interference with contractual relations
D)   interference with advantaged clients
E)   interference with intent

Question 16

Strict liability in tort was applied to food and drink first because of the promises of safety made by the sellers on the labels of their products.

Accepted Answer

A) True 
 B)False

Question 17

Retired pesticide workers develop brain tumors. Evidence shows all were exposed to the chemical Kudzu. Kudzu has been around for 30 years, and this is the first sign of a problem with the product. In a lawsuit against the producer of Kudzu, the workers will likely:

Accepted Answer

A)   lose because their exposure was years ago and the statute of limitations has run out
B)   lose because the injuries are associated with "ordinary diseases of life"
C)   win if the manufacturer did not undertake tests to determine effects on users
D)   win if the manufacturer engaged in misrepresentation
E)   win based on express warranty in contract

Question 18

The amount of money involved in asbestos liability litigation is at least:

Accepted Answer

A)   $1 billion
B)   $4 billion
C)   $10 billion
D)   $15 billion
E)   $100 billion

Question 19

HMA, operator of a hospital, contracted with Emcare to provide emergency medical services to the hospital. Emcare hired Dr. Hamby as an emergency medical physician on a one-year contract. Hamby argued with the manager of HMA about its billing procedure and Hamby was fired by Emcare before the year ended. The appeals court held that Hamby:​

Accepted Answer

A)   ​could only sue Emcare for breach of contract.
B)   ​could only sue HMA for breach of contract.
C)   ​could sue both Emcare and HMA for breach of contract.
D)   ​could sue Emcare for tortious interference with a contract.
E)   ​none of the other choices are correct.

Question 20

The Restatement (Third)  of Torts on product liability says that when considering a defective product the courts should use:

Accepted Answer

A)   a cost-benefit analysis
B)   strict liability when any injury is inflicted
C)   a risk-utility balancing
D)   the rule of negligence
E)   none of the other choices

Exam 7: Business Torts and Product Liability

A company cannot be a defendant in a tort suit since a firm is not a natural person.

Correct Answer
verified

If Company A runs an aggressive advertising campaign that tells customers why they should quit doing business with Company B and do business with A instead, B will be able to sue A for interference with a prospective advantage.

Correct Answer
verified

Retired pesticide workers develop brain tumors. Evidence shows all were exposed to the chemical Kudzu. Kudzu has been around for 30 years, and this is the first sign of a problem with the product. In a lawsuit against the producer of Kudzu, the workers will likely:

Correct Answer
verified

The Restatement (Third) of Torts on product liability says that when considering a defective product the courts should use:

Correct Answer
verified

Negligence is:

Correct Answer
verified

The case that led in adopting a general rule imposing strict liability in tort was:

Correct Answer
verified

Experts estimate the annual cost of the tort system at:

Correct Answer
verified

Correct Answer
verified

Common defenses in strict liability cases are product misuse or assumption of risk.

Correct Answer
verified

In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue Buick because:

Correct Answer
verified

In liability cases claiming a design defect, the plaintiff argues that the product was so poorly manufactured at the plant that it caused the plaintiff's harms.

Correct Answer
verified

One well-known business torts is:

Correct Answer
verified

The Restatement (Third) of Torts refers to strict liability in tort as:

Correct Answer
verified

The tort of misrepresentation can be based on:

Correct Answer
verified

A(n) ____ warranty is one the manufacturer contractually provides to the consumer.

Correct Answer
verified

The amount of money involved in asbestos liability litigation is at least:

Correct Answer
verified

The ____ relieves a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers"

Correct Answer
verified

Correct Answer
verified

Strict liability in tort was applied to food and drink first because of the promises of safety made by the sellers on the labels of their products.

Correct Answer
verified

The elements of the tort of interference with a prospective advantage (relationship) include:

Correct Answer
verified

Exam 7: Business Torts and Product Liability

A company cannot be a defendant in a tort suit since a firm is not a natural person.

Correct AnswerverifiedShow Answer

If Company A runs an aggressive advertising campaign that tells customers why they should quit doing business with Company B and do business with A instead, B will be able to sue A for interference with a prospective advantage.

Correct AnswerverifiedShow Answer

Retired pesticide workers develop brain tumors. Evidence shows all were exposed to the chemical Kudzu. Kudzu has been around for 30 years, and this is the first sign of a problem with the product. In a lawsuit against the producer of Kudzu, the workers will likely:

Correct AnswerverifiedShow Answer

The Restatement (Third) of Torts on product liability says that when considering a defective product the courts should use:

Correct AnswerverifiedShow Answer

Negligence is:

Correct AnswerverifiedShow Answer

The case that led in adopting a general rule imposing strict liability in tort was:

Correct AnswerverifiedShow Answer

Experts estimate the annual cost of the tort system at:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Common defenses in strict liability cases are product misuse or assumption of risk.

Correct AnswerverifiedShow Answer

In MacPherson v. Buick, where the wheel on a new Buick collapsed, causing the car to crash, injuring MacPherson, the court of appeals held MacPherson could sue Buick because:

Correct AnswerverifiedShow Answer

In liability cases claiming a design defect, the plaintiff argues that the product was so poorly manufactured at the plant that it caused the plaintiff's harms.

Correct AnswerverifiedShow Answer

One well-known business torts is:

Correct AnswerverifiedShow Answer

The Restatement (Third) of Torts refers to strict liability in tort as:

Correct AnswerverifiedShow Answer

The tort of misrepresentation can be based on:

Correct AnswerverifiedShow Answer

A(n) ____ warranty is one the manufacturer contractually provides to the consumer.

Correct AnswerverifiedShow Answer

The amount of money involved in asbestos liability litigation is at least:

Correct AnswerverifiedShow Answer

The ____ relieves a manufacturer of liability for failing to warn of a product's characteristics or dangers when "the end user knows or reasonably should know of a product's dangers"

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Strict liability in tort was applied to food and drink first because of the promises of safety made by the sellers on the labels of their products.

Correct AnswerverifiedShow Answer

The elements of the tort of interference with a prospective advantage (relationship) include:

Correct AnswerverifiedShow Answer

Correct Answer
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