True / False
1. About a half-million tort cases are filed each year.
a. True
b. False
2. The tort system in the U.S. is estimated to cost right about $40 billion per year.
a. True
b. False
3. The tort system in the U.S. is estimated to cost about $250 billion a year.
a. True
b. False
4. About 80 percent of the total costs involved in tort litigation goes to awards to plaintiffs (injured parties).
a. True
b. False
5. A company cannot be a defendant in a tort suit since a firm is not a natural person.
a. True
b. False
6. When a person suffers an injury due to deliberate deception, there may be a tort of fraud.
a. True
b. False
7. Fraud may be the same as deceit in tort law.
a. True
b. False
8. When a person suffers an injury due to deliberate deception, there may be a tort of defamation.
a. True
b. False
9. Intentional misrepresentation is also known as fraud.
a. True
b. False
10. The tort of intentional misrepresentation requires a showing that the defendant knew there was false information
being passed.
a. True
b. False
11. The tort of fraud requires the wrongdoer to have a legal relationship with the tort victim.
a. True
b. False
12. If a stranger tells you to invest all your money in a company, and you do, and it collapses, losing all your money, you
have a good fraud suit against that person.
a. True
b. False
13. The tort of fraud requires the wrongdoer to intentionally mislead another party.
a. True
b. False
14. Scienter means a defendant knew false information was being passed to another party.
a. True
b. False
15. Scienter in tort law means the plaintiff can see the results of a fraud that has been suffered.
a. True
b. False
16. In a suit for fraud, the plaintiff must establish a good reason to rely on the bad information provided by the
defendant.
a. True
b. False
17. In a suit for fraud, a plaintiff is presumed to have had the right to rely on any information provided by defendant.
a. True
b. False
18. In a suit for intentional misrepresentation, punitive damages may be awarded.
a. True
b. False
19. In Lightle v. Real Estate Commission, where Lightle was a real estate agent involved in the sale of a home, the
Alaska high court held that there may be a case of negligent misrepresentation by the home seller.
a. True
b. False
20. In Lightle v. Real Estate Commission, where Lightle was a real estate agent involved in the sale of a home, the
Alaska high court held that there was good evidence that he was involved in fraudulent misrepresentation that
caused losses to be suffered.
a. True
b. False
21. In Lightle v. Real Estate Commission, where Lightle was a real estate agent involved in the sale of a home, the
Alaska high court held that the claim of fraudulent misrepresentation failed because plaintiff could not establish
scienter.
a. True
b. False
22. You may be sued in tort for the damages incurred for interfering with a contract between two other parties.
a. True
b. False
23. If you make an offer to sell a product to a person who is already buying the product from another party, you have
interfered with contractual relations and will be liable in tort.
a. True
b. False
24. The tort of interference with contractual relations occurs when Party C attempts to get Party A, who has a
contract with Party B, to breach the contract in favor of doing business with Party C.
a. True
b. False
25. When the tort of interference with contractual relations occurs, the party responsible for the tort is the party who
breached an existing contract.
a. True
b. False
26. In a case alleging interference with a contractual relation, the defendant must have known the plaintiff had a
contract with a third party.
a. True
b. False
27. In Slater Numismatics v. Driving Force, Driving Force was set up by former employees of a firm Slater
worked closely with. Driving Force then move to capture business from a major client of Slater. Slater sued for
interference with contractual relations. The appeals court held that Slater had a good cause of action due to acts
that went beyond normal competition in business.
a. True
b. False
28. 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.
a. True
b. False
29. 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.
a. True
b. False
30. While interfering with an existing contractual relationship can be a tort, if a contract has not yet been formed, there
can be no tort.
a. True
b. False
31. In Gieseke v. IDCA, Gieseke formed a company to compete with his old employer and worked with one of the
former owners of his old employer in the new company. His former employer moved some of the equipment of
the new company and changed its mailing address without permission of Gieseke or his partner. When Gieseke
sued, the courts held that the former employer acted properly to recover property and information improperly
taken by Gieseke..
a. True
b. False
32. In Gieseke v. IDCA, Gieseke formed a company to compete with his old employer and worked with one of the
former owners of his old employer in the new company. His former employer moved some of the equipment of
the new company and changed its mailing address without permission of Gieseke or his partner. When Gieseke
sued, the courts held that the former employer had interfered with prospective business relations.
a. True
b. False
33. In Gieseke v. IDCA, Gieseke formed a company to compete with his old employer and worked with one of the
former owners of his old employer in the new company. His former employer moved some of the equipment of
the new company and changed its mailing address without permission of Gieseke or his partner. When Gieseke
sued, the courts held that the former employer was not liable for improper interference as that tort is not
recognized in Minnesota.
a. True
b. False
34. In the 19th century, consumers bore more of the cost of product-related injuries.
a. True
b. False
35. Privity of contract is a contract with an express warranty.
a. True
b. False
36. Caveat emptor means let the buyer beware.
a. True
b. False
37. Strict liability was used as a standard by courts before caveat emptor was used.
a. True
b. False
38. The rule of caveat emptor meant that if there was no privity between a producer and an injured consumer, the
consumer had no case against the producer.
a. True
b. False
39. Under the old rule of caveat emptor a buyer injured by a defective product had no ability to sue the maker.
a. True
b. False
40. A study found that plaintiffs in Japan win a much smaller percentage of tort liability suits than do American
plaintiffs.
a. True
b. False
41. The legal standard that imposes tort liability on manufacturers when they produce a product negligently so that it
hurts a consumer was first introduced in 1865.
a. True
b. False
42. MacPherson v. Buick Motor Co. introduced the rule of strict liability in tort for consumer products.
a. True
b. False
43. MacPherson v. Buick Motor Co. introduced the rule of negligence in tort for consumer products.
a. True
b. False
44. In MacPherson v. Buick Motor Co. the court held Buick not liable because it did not make the wheel that
collapsed and was the proximate cause of injury.
a. True
b. False
45. In MacPherson v. Buick Motor Co. the court held Buick liable because it is responsible for the quality of wheels
and other parts used on its vehicles.
a. True
b. False
46. Under the negligence standard, a manufacturer is required to exercise reasonable care under the circumstances in
the production of its product.
a. True
b. False
47. Negligence in product liability suits means the defendant is found to have intended to produce a substandard, unsafe
product.
a. True
b. False
48. The rule of negligence in tort holds the producer responsible for any defect that is the proximate cause of an injury
suffered by the user of the product.
a. True
b. False
49. If a producer learns after it sells a product that it has a problem that might cause consumers injuries, the producer
must warn consumers of the danger or face liability.
a. True
b. False
50. If a producer did not foresee a possible danger with a product that does, in fact, cause injury, the producer cannot
be held negligent in tort.
a. True
b. False
51. Frustration over the difficulties of proving negligence led to the move in tort law from a negligence standard to a
strict liability standard.
a. True
b. False
52. To win a case based on strict liability against a producer, the plaintiff must show that the product was defective,
that a defect in it caused it to be dangerous, and the defect was the proximate cause of the injury.
a. True
b. False
53. Strict liability was first applied based on implied warranties of safety of food and drink.
a. True
b. False
54. 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.
a. True
b. False
55. In the 1913 case Mazetti v. Armour, the court held that privity of contract had to be proved before a plaintiff could
sue a food company for breach of warranty in a product defect case.
a. True
b. False
56. A warranty is an assurance from the manufacturer that its products will meet certain quality standards.
a. True
b. False
57. Only express warranties may create liability for the seller for defective products.
a. True
b. False
58. Strict liability for defective products may arise from either an implied warranty or an express warranty.
a. True
b. False
59. In Henningsen v. Bloomfield Motors, the New Jersey Supreme Court greatly expanded the legal protection
offered by implied warranties of safety.
a. True
b. False
60. The case Henningsen v. Bloomfield Motors, had a major impact on the application of tort law to foreign
producers.
a. True
b. False
61. Strict liability based on express warranties was applied originally to alcohol and tobacco products.
a. True
b. False
62. Strict liability based on express warranty of safety was first based on contract law.
a. True
b. False