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1. The term caveat emptor means:
a. “seller take care”
b. “empty the cave of deceit”
c. “buyer beware”
d. “truth shall prevail”
2. In Wyeth v. Levine, the majority rejected the idea that primary responsibility for drug safety
lies with the government and instead lies with the drug manufacturer.
a. True
b. False
3. The Food and Drug Administration, the Consumer Product Safety Commission and the
National Highway Transportation Safety Association are
a. Cabinet departments within the Executive Branch
b. Subcommittees of the Senate and House of Representatives within the Legislative Branch
c. Judicially created organizations to implement Supreme Court mandates related to product
safety.
d. Independent agencies that report to no branch of government.
4. The organization that works with companies on recalls of unsafe products (such as lead-
paint laden Thomas the Train toys) is
a. The Consumer Protection Group (CPG)
b. The Consumer Product Safety Commission (CPSC)
c. The Product Protection People (P3)
d. The Buy American Coalition (BAC)
5. The most notable exception to caveat emptor was for
a. Food
b. Automobiles
c. Clothing
d. Shoes
6. To win a suit for negligence, a plaintiff must establish that the defendant:
I. breached its duty of care
II. created an unreasonable risk of harm
III. acted with total disregard to the harm that could result
IV. behavior was the proximate cause of the plaintiff’s injuries
a. I and II only
b. II and III only
c. I, II and IV only
d. I, II, III and IV
7. The Ford Pinto exploded when rear-ended by another vehicle. The Pinto suffered from
a(an):
a. Design Defect
b. Manufacturing Defect
c. Warning Defect
d. End-user Defect
8. Absent provisions in the contract, which of the following types of damage can be awarded to
an injured party under a breach of contract?
a. General damages only
b. General and incidental damages only
c. General, incidental, and special damages only
d. General, incidental, special and punitive damages
9. According to Stephen Sugarman, performance-based regulation happens when:
a. the government sets targets for how much harm is allowed for each product produced and
the company is fined or penalized for any harm beyond the acceptable level.
b. the government creates a reporting structure for consumers to report corporation
performance related to safety or environmental issues and then the government imposes
fines by a specific formula for companies who exceed a certain number of negative
reports.
c. consumer advocacy groups work with the independent agencies to determine which
corporations are implementing best practices for consumer safety and then create
regulations to impose those practices on other companies.
d. the government analyzes which companies make the most profit, indicating consumer
approval of their performance on safety standards and then implement those companies’
practices as legal standards.
10. What did the Food Safety Modernization Act (FSMA) do? Has it accomplished what it
should have? Why or why not?
11. Compare the regulation of biotechnology in the United States to that of the European Union.
12. Explain the features of Section 402A of the Restatement of Torts (Second).
13. What are punitive damages?
14. Explain how injured parties can recover damages under the UCC.
15. Discuss Sugarman’s “Performance-based regulation.” Is this a viable means to create safer
products or is it unnecessary government interference?
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