BUSAD 120 - Business Law » Summer 2022 » Chapter 7 Study Guide Quiz
Need help with your exam preparation?
Get Answers to this exam for $6 USD.
Get Answers to all exams in [ BUSAD 120 - Business Law ] course for $25 USD.
Existing Quiz Clients Login here
Question #1
BioChem Corporation, ChemCo Company, and DexLabs Inc. make and distribute toxic chemicals. In a product-liability suit against all of these parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties
A.
supplied the particular product that caused the injury
B.
was in privity with the injured plaintiff.
C.
holds the largest share of the market for the product.
D.
exercised the least amount of due care in making the product.
Question #2
ClearCall Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liability suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider
A.
Erna’s intended use for the phone.
B.
DefDeals’ method of accounting.
C.
an available alternative design.
D.
ClearCall’s quality control efforts.
Question #3
Fine Motor Company buys gas pedals and other parts from General Mechanix, Inc., and puts them in its vehicles without changing their composition. If the pedals or other parts are defective, strictly liable for any damage caused by the defects are
A.
General Mechanix only.
B.
Fine Motor only.
C.
Fine Motor and General Mechanix.
D.
no one.
Question #4
Good Cookin’ Products Company makes heat convection ovens. Heidi discovers that her Good Cookin’ oven is defective and sues the maker for product liability based on strict liability. To win, Heidi must show that she
A.
bought the oven from Good Cookin’.
B.
did not misuse the oven.
C.
D.
suffered an injury caused by the defect.
E.
did not know of the defect.
Question #5
Lipstik, Inc. makes cosmetics. Lipstik intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Mikayla buys a Lipstik product and suffers an injury. Lipstik is most likely liable for
A.
privity.
B.
fraud.
C.
product misuse.
D.
puffery.
Question #6
MedBeat Inc., makes medical devices, including heart pacemakers. Nina, a heart patient, files a product liability suit against MedBeat, alleging a warning defect with respect to its pacemaker. In deciding whether to hold MedBeat liable, the court may consider whether there is a foreseeable risk of harm posed by the pacemaker and
A.
MedBeat did not use due care in making the pacemaker.
B.
there is a reasonable alternative design.
C.
Nina lacks insurance coverage.
D.
the omission of a warning renders the pacemaker not reasonably safe.
Question #7
Roadbuilders, Inc., uses dynamite in its operations. Sky-Hi Fireworx, Inc., stores explosives in its warehouses. Most likely liable under the doctrine of strict liability for any injury caused by an abnormally dangerous activity will be
A.
Sky-Hi only.
B.
none of the choices.
C.
Roadbuilders and Sky-Hi.
D.
Roadbuilders only.
Question #8
Sea & Surf Corporation makes sailboards, which are bought and distributed by Tropical Marketing Company to UV Sports Stores, Inc., which sells them to consumers. Wen is injured while using a Sea & Surf board that he bought from UV Sports. In a product liability suit based on strict liability, Wen may recover from
A.
Sea & Surf only.
B.
none of the choices.
C.
UV Sports only.
D.
Sea & Surf, Tropical Marketing, or UV Sports.
Question #9
Soda Bubbles Corporation makes and sells soft drinks. Talia buys and drinks a Soda Bubbles beverage, which proves defective and injures her. One justification for holding Soda Bubbles strictly liable for the harm caused to Talia by its defective product is that
A.
Soda Bubbles and Talia are in privity.
B.
making and selling products are abnormally dangerous activities.
C.
Talia is a person, not a business.
D.
Soda Bubbles is making a profit from its activities.
Question #10
Stan, an air-conditioning and heating technician, files a suit against Temp-Set Corporation, alleging that its thermostats are unreasonably dangerous due to the possibility of electrical shock. Temp-Set’s best defense is most likely
A.
assumption of risk.
B.
commonly known danger.
C.
knowledgeable user.
D.
none of the choices.
Question #11
SurgeStop Company makes electrical cords and other connectors for electronic devices. Rollo files a product liability suit against SurgeStop, alleging a warning defect. In deciding whether to hold SurgeStop liable, the court may consider
A.
the obvious risks of this product.
B.
consumers’ general lack of desire to read the product’s warnings.
C.
the obvious risks of other products.
D.
the plaintiff’s specific lack of desire to read the product warnings.
Question #12
The brakes on a train owned by Rolling Stock Railway Inc. malfunction. The train rolls towards maintenance workers on the tracks. Everyone gets out of the way except Sid, who wants to show off. The train hits Sid, who sues Train Components, Inc., the brakes’ manufacturer. Train Components can raise the defense of
A.
product misuse.
B.
privity.
C.
a component-part manufacturer.
D.
assumption of risk.
Question #13
A manufacturing defect is a departure from a product unit’s design specifications that results in products that are physically flawed.
A.
True
B.
False
Question #14
An injured party may sue only the manufacturer of defective products that are subject to comprehensive federal regulatory schemes.
A.
False
B.
True
Question #15
Because many products cannot be made entirely safe for all uses, sellers or lessors are liable only for products that are unreasonably dangerous.
A.
False
B.
True
Question #16
Generally, a seller must warn those who purchase its product of the harm that can result from the foreseeable misuse of the product.
A.
True
B.
False
Question #17
Generally, the strict liability of manufactures and other sellers does not extend to injured bystanders.
A.
True
B.
False
Question #18
Manufacturers must use due care in inspecting and testing any purchased components used in a product.
A.
False
B.
True
Question #19
Manufacturers must use due care in selecting the materials to be used in a product.
A.
True
B.
False
Question #20
Misrepresentation in an ad is enough to show an intent to induce the reliance of anyone who may use the product.
A.
True
B.
False
Question #21
Statutes of repose places outer times limit on product liability actions.
A.
True
B.
False
Question #22
The doctrine of strict liability can be applied to sellers of goods, including manufacturers, but not distributors.
A.
False
B.
True
Question #23
The types of product defects that have traditionally been recognized in product liability law include manufacturing defects.
A.
True
B.
False
Question #24
There is a duty to warn about risks that are obvious or commonly known.
A.
True
B.
False
Question #25
To successfully assert a design defect, a plaintiff has to show that no reasonable alternative design was available.
A.
False
B.
True
Need help with your exam preparation?
Get Answers to this exam for $6 USD.
Get Answers to all exams in [ BUSAD 120 - Business Law ] course for $25 USD.
Existing Quiz Clients Login here