N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. The extreme risk of an activity is a defense against imposing strict liability.
4. Manufacturers must use due care in selecting the materials to be used in a product.
answer: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
5. A product liability action based on negligence does not require privity of contract between the injured plaintiff and the defendant-manufacturer.
answer: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
6. Manufacturers must use due care in inspecting and testing any purchased components used in a product.
answer: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
7. The law imposes strict product liability as a matter of public policy based in part on the assumption that manufacturers can better bear the costs associated with injuries caused by their products.
answer: T PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
8. Because many products cannot be made entirely safe for all uses, sellers or lessors are liable only for products that are unreasonably dangerous.
answer: T PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
9. An action in strict product liability requires that a product be in a defective condition caused by its purchaser.
answer: F PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
10. The doctrine of strict liability can be applied to sellers of goods, including manufacturers, but not distributors.
answer: F PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
11. The types of product defects that have traditionally been recognized in product liability law include manufacturing defects.
12. A manufacturing defect is a departure from a product unit’s design specifications that results in products that are physically flawed.
answer: T PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
13. To successfully assert a design defect, a plaintiff has to show that no reasonable alternative design was available.
answer: F PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
14. Under a theory of market-share liability, a manufacturer sells “shares” of its potential strict liability and thereby spreads the risk and the cost.
answer: F PAGES: Section 3 TYPE: n BUSPROG: Analytic AICPA: BB-Critical Thinking
15. There is a duty to warn about risks that are obvious or commonly known.
answer: F PAGES: Section 3 TYPE: n BUSPROG: Analytic AICPA: BB-Critical Thinking
16. Sellers are required to take precautions against every conceivable misuse of a product.
answer: F PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Critical Thinking
17. Generally, a seller must warn those who purchase its product of the harm that can result from the foreseeable misuse of the product.
