Business & Finance Chapter 7 An express warranty is a promise that is clearly stated by 

subject Type Homework Help
subject Pages 14
subject Words 3046
subject Authors Al H. Ringleb, Frances L. Edwards, Roger E. Meiners

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63. An express warranty is a promise that is clearly stated by the seller to the buyer; it is a part of the contract.
a. True
b. False
64. An express warranty of safety in a product is one the law derives by inference from the nature of the transaction
between the parties.
a. True
b. False
65. The consumer must purchase the (defective) product directly from the manufacturer in order to prevail in strict
liability based on express warranty.
a. True
b. False
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66. In Baxter v. Ford Motor (where Baxter lost an eye from a broken windshield) Baxter was compensated by Ford
under the rule of strict liability in tort for injuries he suffered due to Ford's defective product.
a. True
b. False
67. In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the
windshield were held to create an express warranty of safety because Ford misrepresented the quality and safety
of the product.
a. True
b. False
68. In Baxter v. Ford Motor, where Baxter lost an eye from a broken windshield, Ford's ads about the quality of the
windshield were held to create an implied warranty of safety because Ford misrepresented the quality and safety of
the product.
a. True
b. False
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69. Courts developed strict liability in tort when strict liability under contract law proved too restrictive.
a. True
b. False
70. The Supreme Court of California, in Greenman v. Yuba Power, was the first court to adopt a general strict liability
in tort rule in product-related injury cases.
a. True
b. False
71. In Greenman v. Yuba Power Products the Supreme Court of California made negligence in tort the general rule in
products liability cases.
a. True
b. False
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72. In Greenman v. Yuba Power Products the court imposed strict liability on a producer due to failure to prevent a
defect in its product that caused injury to a consumer.
a. True
b. False
73. In Greenman v. Yuba Power Products the court imposed strict liability on a producer for failure to warn the
consumer of dangers involved in using the machine.
a. True
b. False
74. The main author of the Restatement (Second) of Torts is the American Law Institute.
a. True
b. False
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75. The main author of the Restatement (Second) of Torts is the Association of State Supreme Courts.
a. True
b. False
76. The rule of strict liability in torts used in the Restatement (Second) of Torts helped bring about nationwide adoption
of the rule.
a. True
b. False
77. Under the rule of strict liability in tort the injured party must show that the manufacturer failed to meet the standard
of care of the industry in question.
a. True
b. False
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78. Since the Greenman v. Yuba Power Products decision, strict liability in tort has meant intentional harms
committed by manufacturers against consumers.
a. True
b. False
79. A producer is relieved of strict liability in tort if it can show that it used all possible care to construct the product in
question.
a. True
b. False
80. The Restatement (Third) of Torts replaced the Second for the standard on product liability in 2010.
a. True
b. False
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81. The Restatement (Third) of Torts on product defect recommends that a risk-utility balancing test be used.
a. True
b. False
82. The Restatement (Third) of Torts on product defect recommends that the distinction between strict liability and
negligence be given less attention.
a. True
b. False
83. The Restatement (Third) of Torts, which some state courts have adopted, tends to abandon the traditional
distinction between negligence and strict liability in design defect cases.
a. True
b. False
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84. The Restatement (Third) of Torts on product defect eliminates the concern about inadequate warnings that was
critical to the Second version.
a. True
b. False
85. The Restatement (Third) of Torts on product defect recommends that courts use a cost-benefit test to see if added
safety is worthwhile.
a. True
b. False
86. The doctrine of strict liability has been extended to include cases where manufacturers produce a poorly designed
product.
a. True
b. False
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87. The doctrine of strict liability in tort applies primarily to cases of manufacturing defect, failure to warn, and to
design defects.
a. True
b. False
88. Even if a product is safe for ordinary use, a producer may be held strictly liable in tort for not telling consumers of
possible dangers associated with improperly using the product.
a. True
b. False
89. If a product is safe for ordinary use, and a producer provides instructions on use for consumers, then strictly liable
in tort is eliminated.
a. True
b. False
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90. In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that the product
was inherently defective because of the high rate of injury.
a. True
b. False
91. In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that while the
trampoline was not defective, the safety net around the trampoline was because its instructions were insufficient to
be clear.
a. True
b. False
92. In Parish v. ICON, where a man was seriously injured when using a trampoline, the courts held that the trampoline
had sufficient warnings of dangers so as to eliminate liability.
a. True
b. False
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93. 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.
a. True
b. False
94. A gun manufacturer that fails to warn its users that hearing loss may occur due to long-term exposure to gun fire
may be strictly liable in tort for hearing loss.
a. True
b. False
95. The Supreme Court of Alaska upheld a verdict of strict liability against a diet food producer who failed to provide
adequate warnings about the dangers of using a diet food as baby food.
a. True
b. False
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96. When Tylenol was sued for failure to warn of possible damage to livers by Tylenol users who drink alcohol, the
court held Tylenol's make not liable because alcohol is an unavoidably dangerous product.
a. True
b. False
97. Design defect cases usually do not concern one product that slips through the production process with a defect.
a. True
b. False
98. In liability cases claiming a design defect, the plaintiff argues that the product was so poorly manufactured at the
plant that it caused the plaintiff's harms.
a. True
b. False
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99. In one appeals court case it was held to be a design defect to make an emergency stop button red as that color is
attractive to children who push the button.
a. True
b. False
100. In Timpte Industries v. Gish, where Gish was hurt when he fell off the top of a truck, the Texas Supreme Court
held there was no design defect as there was no clearly superior design of the truck top at reasonable cost.
a. True
b. False
101. In Timpte Industries v. Gish, where Gish was hurt when he fell off the top of a truck, the Texas Supreme Court
held the top of the truck was defectively designed as it was unsafe for workers who needed to be on top of the
truck.
a. True
b. False
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102. Producers who do not know of that their products are potentially dangerous, because such dangers are not revealed
until after years of use, are not liable for damages.
a. True
b. False
103. Unknown hazards cases involve products whose dangers are known by the manufacturer at the time they are
produced, but are ignored until a later date.
a. True
b. False
104. At least $100 billion has been devoted to asbestos litigation.
a. True
b. False
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105. The courts have held that firms in an industry could be held liable jointly for damages done by products they had
produced.
a. True
b. False
106. Joint and several liability is liability rule in several states that allows each defendant to be potentially liable for the
entire damage award when more than one firm have a similar defective product.
a. True
b. False
107. There are no defenses available in strict liability cases; manufacturers must pay whenever a consumer is injured.
a. True
b. False
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108. Common defenses in strict liability cases are product misuse or assumption of risk.
a. True
b. False
109. Paul buys a bottle of Great Wine. He drinks it and becomes very ill. Doctors find the wine contained anti-freeze.
Paul may not sue Great Wine because he assumed the risk of drinking alcohol, an inherently dangerous product.
a. True
b. False
110. A person puts much more air in a tire than recommended. The tire explodes, injuring the person. The person is
unlikely to win a case against the tire maker because of product misuse.
a. True
b. False
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111. Any injuries suffered because a consumer ignored warning labels on prescription drugs will result in the
manufacturer being strictly liability in tort.
a. True
b. False
112. If consumption of large quantities of alcoholic beverages over time causes serious health problems a consumer may
not recover in tort against the beverage makers because of she assumed the risk.
a. True
b. False
113. The legal rules governing injury from asbestos in the United States are much tougher on producers than is the case
in the United Kingdom.
a. True
b. False
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114. A manufacturer is liable for injuries suffered by product users regardless of the sophistication of the buyer.
a. True
b. False
115. The sophisticated user defense and bulk-supplier doctrine are similar in reducing liability for product sellers.
a. True
b. False
116. When a company buys dangerous chemicals to use in the workplace, it is presumed to be a sophisticated buyer who
should know of many of the dangers involved in using the product, so strict liability is not likely to apply to the seller
in case of work injury.
a. True
b. False
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117. There are statutes that limit product liability for certain products and services.
a. True
b. False
118. Strict liability for ultrahazardous activities is an old concept going back more than a century.
a. True
b. False
119. In Old Island Fumigation, a company was not held liable for injuries caused by its fumigations activities because it
could not have foreseen those injuries.
a. True
b. False
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120. In Old Island Fumigation, a company was held liable for injuries caused by its fumigations activities despite it
having been provided false information by the property owner.
a. True
b. False
121. Foreign firms that sell products in the U.S. do not have to bear the costs of compliance with strict liability standards.
a. True
b. False

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