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Exam 7: Strict Liability and Product Liability

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Question 1

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Motor Corporation (MC) makes cars and trucks. National Sales Company sells all MC vehicles. Open Road Inc. leases only the cars. Under product liability laws, liability for injuries or damage caused by an MC vehicle may be imposed on

A) MC only.
B) none of the parties.
C) MC or National Sales only.
D) MC, National Sales, or Open Road.

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

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Question 2

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The explosive demolition of a rock formation by Mountain Blasters Inc. injures Noh, who is hiking on a nearby slope. Under the doctrine of strict liability, Mountain Blasters must pay for Noh's injury

A) only if the company failed to use reasonable care.
B) only if the company was greater than 50 percent at fault.
C) only if the company was entirely at fault.
D) without regard to the fault of the company.

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

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Question 3

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In a product liability case based on negligence, a defendant may be liable even if the plaintiff has not met the requirements for an action in negligence.

In a product liability suit based on a design defect, a manufacturer is liable only when the harm was not reasonably preventable.

To be liable on a theory of strict product liability, a defendant must be in a better position than the plaintiff to bear the costs associated with the harm caused by a product.

Fit Corporation makes running shoes. Gaby, a marathoner, files a product liability suit against Fit, alleging a design defect. In deciding whether to hold the company liable, the court may consider an alternative design's

Only big businesses face potential liability for the products they sell.

Rev Motor Company buys plugs and points from Sparkplugs Inc. and puts them in Rev vehicles without changing their composition. If the parts are defective, strictly liable for any damage caused by the defects may be

A person who is injured by a defective product can bring a negligence suit only if he or she was the one who purchased the product.

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

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

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

Stents Inc. makes medical devices. Toni files a product liability suit against Stents, alleging a warning defect with respect to its device. In deciding whether to hold the maker liable, the court may consider whether

Holding defendants strictly liable for manufacturing defects encourages greater investment in product safety.

Sail-Away Corporation makes sailboards, which are distributed by Tropical Marketing Company to UV Sports Stores Inc., which sells them to consumers. Wen is injured while using a Sail-Away board that he bought from UV Sports. In a product liability suit based on strict liability, Wen may recover from

Felice is injured when a can of Ground-Up explodes into flames. Herbicides Inc. manufactured the Ground-Up. Under product liability laws, Felice's options include

Bedding Plus Inc. makes a pillow that Comfort Stuff sells to Demi. Bedding fails to exercise "due care," and Demi is injured by toxic material used as fill in the pillow. Comfort Stuff is most likely liable for

The elements of an action in strict product liability include that a plaintiff must have incurred harm by the use or consumption of a product.

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

Liability is imposed on a manufacturer for a manufacturing defect only when the manufacturer's quality control efforts were "reasonable."