Question 1

The __________________ holds that the bulk supplier has a duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users,but it does not have to police the details of what is done as the product continues down the chain of use.

Accepted Answer

A)  commercial-supplier doctrine
B)  final-supplier doctrine
C)  bulk-supplier doctrine
D)  small-scale supplier doctrine
E)  Wal-Mart-supplier doctrineF) B) and E)
G) All of the above

Question 2

In Baxter v.Ford Motor,where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed,Ford's liability was based on:

Accepted Answer

A)  negligence in construction
B)  misrepresentation in advertisements
C)  privity in warranty
D)  fraud in sales
E)  none of the other choicesF) C) and D)
G) A) and B)

Question 3

If,instead of allowing a plaintiff to sue all manufacturers of a given product,a court allows defendants to bring in other manufacturers as defendants,this is known as:

Accepted Answer

A)  unknown hazard share liability
B)  defect sharing liability
C)  joint and several liability
D)  strict liability
E)  express liabilityF) B) and D)
G) B) and C)

Question 4

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.ChevroletF) B) and E)
G) A) and E)

Question 5

A __________ is a manufacturer's assurance that a product will meet certain quality and performance standards.

Accepted Answer

A)  certificate of quality
B)  certificate of use
C)  warranty
D)  pledge
E)  none of the other choices are correctF) None of the above
G) A) and B)

Question 6

In MDM Group v.CX Reinsurance,where CX quit writing ski season insurance,which causes MDM to lose insurance business it could have had,the court held CX liable to its insurance clients,not to MDM,for interference with prospective advantage.

Accepted Answer

A) True 
 B)False

Question 7

A warranty is an assurance from the manufacturer that its products will meet certain quality standards.

Accepted Answer

A) True 
 B)False

Question 8

In a case alleging interference with a contractual relation,the defendant must have known the plaintiff had a contract with a third party.

Accepted Answer

A) True 
 B)False

Question 9

In ASC Construction Equipment USA v.City Commercial Real Estate,where City sued ASC for tortious interference with business relations,the appeals court held that City:

Accepted Answer

A)  could not sue for tortious interference because ASC was not a stranger to the businessRelationship at issue
B)  could sue for tortious interference because ASC was not a stranger to the businessRelationship at issue
C)  had be defrauded by ASC
D)  could not sue ASC because one business cannot sue another
E)  none of the other choices are correctF) A) and E)
G) B) and C)

Question 10

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)  sophisticated user defense
E)  informed user defenseF) None of the above
G) B) and D)

Question 11

Not only must manufacturers produce products safely,they must also think about how consumers might misuse the products and then warn consumers not to engage in these kinds of dangerous activities.

Accepted Answer

A) True 
 B)False

Question 12

The ___________________ is primarily concerned with harms suffered by buyers and other persons who use defective products.

Accepted Answer

A)  law of stock protection
B)  law of malpractice liability
C)  law of seller liability
D)  law of commercial liability
E)  none of the other choices are completely correctF) B) and E)
G) A) and D)

Question 13

Meddling with another's business in an unreasonable and improper manner to improve one's own place in the market it an example of the tort of:

Accepted Answer

A)  interference with prospective advantage
B)  interference with competition
C)  interference with business practices
D)  interference with intent
E)  none of the other choicesF) B) and C)
G) A) and E)

Question 14

Activity that "necessarily involves a risk of serious harm to the person,land,or chattels of another,which cannot be eliminated by the exercise of the utmost care" and "is not a matter of common usage" is called:

Accepted Answer

A)  metahazardous activity
B)  superhazardous activity
C)  ultrahazardous activity
D)  megahazardous activity
E)  none of the other choices are correctF) B) and E)
G) A) and B)

Question 15

The __________________ holds that the bulk supplier has a duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users,but it does not have to police the details of what is done as the product continues down the chain of use.

Accepted Answer

A)  commercial-supplier doctrine
B)  final-supplier doctrine
C)  Wal-Mart-supplier doctrine
D)  small-scale supplier doctrine
E)  none of the other choices are correctF) B) and E)
G) A) and E)

Question 16

Defenses against strict liability include(s) :

Accepted Answer

A)  product abuse
B)  assumption of risk
C)  sophisticated user
D)  all of the other specific choices are possible
E)  none of the other choices;there is no defense for strict liabilityF) A) and B)
G) None of the above

Question 17

Most tort suits are filed in:

Accepted Answer

A)  state courts
B)  federal courts
C)  appellate courts
D)  small claims courts
E)  municipal courtsF) C) and E)
G) None of the above

Question 18

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:

Accepted Answer

A)  Buick for negligence under contract law
B)  Buick for negligence under tort law
C)  Buick for strict liability under contract law
D)  Buick for strict liability under tort law
E)  the wheel maker,not Buick,for negligence in product constructionF) A) and B)
G) C) and D)

Question 19

McKenzie worked in a service station.Changing a customer's tire,he over-inflated it,causing it to explode.This severely injured his left hand.Neither the tire nor the rim was found to be defective.In a lawsuit against the tire manufacturer McKenzie will likely:

Accepted Answer

A)  lose due to product abuse
B)  win under a strict liability or a negligence standard
C)  lose under strict liability but win under negligence
D)  win due to implied warranty of safety
E)  lose due to assumption of the riskF) A) and D)
G) A) and C)

Question 20

There are no defenses available in strict liability cases;manufacturers must pay whenever a consumer is injured.

Accepted Answer

A) True 
 B)False

Exam 7: Business Torts and Product Liability

McKenzie worked in a service station.Changing a customer's tire,he over-inflated it,causing it to explode.This severely injured his left hand.Neither the tire nor the rim was found to be defective.In a lawsuit against the tire manufacturer McKenzie will likely:

Correct AnswerverifiedShow Answer

In MDM Group v.CX Reinsurance,where CX quit writing ski season insurance,which causes MDM to lose insurance business it could have had,the court held CX liable to its insurance clients,not to MDM,for interference with prospective advantage.

Correct AnswerverifiedShow Answer

A __________ is a manufacturer's assurance that a product will meet certain quality and performance standards.

Correct AnswerverifiedShow Answer

If,instead of allowing a plaintiff to sue all manufacturers of a given product,a court allows defendants to bring in other manufacturers as defendants,this is known as:

Correct AnswerverifiedShow Answer

Most tort suits are filed in:

Correct AnswerverifiedShow Answer

In a case alleging interference with a contractual relation,the defendant must have known the plaintiff had a contract with a third party.

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

A warranty is an assurance from the manufacturer that its products will meet certain quality standards.

Correct AnswerverifiedShow Answer

The __________________ holds that the bulk supplier has a duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users,but it does not have to police the details of what is done as the product continues down the chain of use.

Correct AnswerverifiedShow Answer

There are no defenses available in strict liability cases;manufacturers must pay whenever a consumer is injured.

Correct AnswerverifiedShow Answer

In Baxter v.Ford Motor,where Baxter lost an eye because the glass in his car windshield was not shatterproof as Ford had claimed,Ford's liability was based on:

Correct AnswerverifiedShow Answer

The __________________ holds that the bulk supplier has a duty to take reasonable steps to insure that its buyer is knowledgeable and equipped to provide warnings to the ultimate users,but it does not have to police the details of what is done as the product continues down the chain of use.

Correct AnswerverifiedShow Answer

Not only must manufacturers produce products safely,they must also think about how consumers might misuse the products and then warn consumers not to engage in these kinds of dangerous activities.

Correct AnswerverifiedShow Answer

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

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:

Correct AnswerverifiedShow Answer

Meddling with another's business in an unreasonable and improper manner to improve one's own place in the market it an example of the tort of:

Correct AnswerverifiedShow Answer

Defenses against strict liability include(s) :

Correct AnswerverifiedShow Answer

Activity that "necessarily involves a risk of serious harm to the person,land,or chattels of another,which cannot be eliminated by the exercise of the utmost care" and "is not a matter of common usage" is called:

Correct AnswerverifiedShow Answer

The ___________________ is primarily concerned with harms suffered by buyers and other persons who use defective products.

Correct AnswerverifiedShow Answer

In ASC Construction Equipment USA v.City Commercial Real Estate,where City sued ASC for tortious interference with business relations,the appeals court held that City:

Correct AnswerverifiedShow Answer

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