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Exam 7: Strict Liability and Product Liability

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Question 31

True/False

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To bring a product liability lawsuit on the ground of misrepresentation, the plaintiff must not have relied on the misrepresentation.

A) True
B) False

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Question 32

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Petro Parts Inc. makes and sells parts for the repair of motor vehicles. Olsen suffers a loss when a defective Petro part causes damage to her car's engine. With respect to Olsen's product liability suit against Petro, an applicable statute of repose

A) restricts the time within which Olsen may file a suit.
B) suspends the action until discovery is complete.
C) places an outer time limit on bringing the suit.
D) limits the amount of damages available.

E) A) and B)
F) C) and D)

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Question 33

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If a product was delivered in a safe condition and subsequent mishandling made it harmful to the user, the seller is usually strictly liable.

Grass Green Company makes and sells hedge trimmers, which are designed to be safe if used properly. Hazel buys a Grass Green trimmer and lends it to her neighbor Ike. In his garage, Ike is using the trimmer as a prod to dislodge a box from a high shelf when the trimmer suddenly engages. Startled, Ike drops the trimmer, which swings around and cuts his leg. Ike files a product liability suit against Grass Green, on the ground of negligence. On what basis could the manufacturer prevail?

For fraud to be the basis of liability in a product liability suit, the misrepresentation must have been intentional.

Meg is shopping in Nate's Hardware Store when a nail gun in use by Ovid, one of the store's employees, fires without warning and hits Meg in the leg. Nate checks the gun and discovers that it was assembled improperly. Meg files a suit against Power Tools Inc., the maker of the gun, on the ground of strict product liability. What are the elements for an action based on strict product liability? In whose favor is the court likely to rule and why?

Courts apply a "reasonableness" test to determine if a warning adequately alerts consumers to a product's risks.

Soda Bubbles Corporation makes soft drinks. Toby drinks a Soda beverage, which proves defective and injures him. One justification for holding Soda strictly liable for the harm caused to Toby is that

Touch Screens Inc. makes and markets tablets. When problems develop with Touch products or sales, the company may be liable in product liability for any of the following except

Opal is working on a construction site when she is injured on the job in the collapse of a Plank Company-made ceiling beam. At the time, Opal is not wearing any safety gear. In Opal's product liability suit against Plank, the company can most successfully raise the defense of

Cold Play Corporation makes snowmobiles. Dale is injured when a defect unexpectedly accelerates the Cold Play vehicle he is driving, and he is thrown off. Esty, a hiker standing in the path of the unmanned vehicle, is struck and injured. In a suit based on strict product liability, Cold Play may be liable to

A manufacturer does not need to inspect and test any purchased components used in the final product to avoid product liability.

Manufacturers are commonly held liable when their negligence causes users of their products to be injured.

Overland Corporation makes trucks. The brakes on Pho's Overland truck malfunction, but he continues to drive it. Unable to slow down, the truck crashes through a guardrail and careens off the road. In Pho's product liability suit against Overland, the defendant can assert the defense of

To maintain an action in strict product liability, the plaintiff must show why and how the product became defective.

Insulate Inc. makes and sells fire-retardant building materials. In a product liability suit against Insulate, a court would use a risk-utility analysis of the company's product as designed to determine whether

Mai is struck and injured when the brakes fail on Novi's all-terrain vehicle (ATV) , which is damaged in the collision. Off-Road Inc. sold the ATV to Novi. Under product liability laws, Off-Road could be liable to

Ceramic Corporation makes commercial ceramic products, including heat-resistant tiles for industrial ovens. When damage occurs in an oven at Duramold Inc., strict product liability may be imposed on Ceramic if the tiles sold to Duramold were

A product will be considered defective when the omission of reasonable warnings renders the product not reasonably safe.

Safe-T Company makes electrical cords and other connectors for electronic devices. Tina files a product liability suit against Safe-T, alleging a warning defect. In deciding whether to hold Safe-T liable, the court may consider