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Exam 10: Product Liability

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Question 31

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Which of the following was the result in Radford v. Wells Fargo Bank, the case in the text in which the plaintiff sued claiming that a mortgage loan was a defective product?

A) The court allowed the case to proceed on the basis that a loan is a product.
B) The court ruled that while a loan is a product, the plaintiff was barred from proceeding because he had not alleged that he was in mortgage foreclosure, a necessary predicate for a lawsuit alleging defect based on a mortgage loan.
C) The court ruled that while a loan is a product, the plaintiff was barred from proceeding because he had not alleged usury, a necessary predicate for a lawsuit alleging defect based on a mortgage loan.
D) The court ruled that while a loan is a product, the plaintiff was barred from proceeding because he had not alleged that he was in bankruptcy, a necessary predicate for a lawsuit alleging defect based on a mortgage loan.
E) Recognizing that product liability focuses on tangible items, the court ruled that a loan is not a product for purposes of product liability law.

F) A) and E)
G) D) and E)

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Question 32

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Which of the following is set out in the Restatement (Second) of Torts as a method by which to prove a design defect?

A) The risk-utility test.
B) The consumer expectations test.
C) The feasible alternatives test.
D) The design defect test.
E) The consumer propensity test.

F) A) and B)
G) A) and C)

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Question 33

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"Disappointing Boat Purchase." Sally went to purchase a new boat. She wanted a boat that she could use in both a nearby lake and also a boat that she could take to the coast for use in ocean waters. Sally saw a boat that she liked and told the sales representative at the dealership that she wanted a boat for both lake usage and ocean usage. She told the sales representative that she particularly liked a boat that they were looking at in the showroom. The representative told her that the dealership had the best boats in the state, that the engine was great in the boat she liked, and that she would have no problem with steering or with the carburetor. He said nothing at all regarding whether or not the boat was appropriate for ocean waters. Sally purchased the boat. She immediately began to have significant problems with it. The engine did not perform adequately, and there were problems with the steering and carburetor among other things. Additionally, after Sally attempted to take the boat out into ocean waters and had significant difficulty, she discovered that it was not an ocean-going vessel. It was only appropriate for lake usage. -Which of the following is true regarding the representation of the sales representative that the boats at the dealership were the best in the state?

The state-of-the-art defense is not available in all states in strict liability cases.

Bob is a trained exterminator who received yearly instruction regarding precautions that should be taken in relation to use of pesticides. After being told that he suffered allergies and other ailments based on exposure to the pesticides, Bob sued the manufacturers of the pesticides at issue based on a failure to warn theory. The defendants' best argument based on Bob's prior training is the ______ defense.

Section 402A of the Restatement (Second) of Torts applies to which of the following?

"Squirt Gun Mishap." Zora decided to purchase a large squirt gun for her son, Rambo, to use while playing in the pool. The squirt gun was of the very elaborate variety and had a number of different attachments for different sprays of water. The squirt gun came with instructions for assembly and use, and provided warnings against various types of misuse. The pamphlet that came with the squirt gun advised that the squirt gun should be used only under adult supervision, that it must not be used by children under eleven, and that nothing should be put into the squirt gun except water. Rambo had a party for his tenth birthday at the pool. A number of children came. One of the children, Sam, who was ten years old at that time, decided to load pebbles along with water into the gun. He began shooting with the pebbles and hit Alice in the eye, requiring an emergency room visit. Alice required some minor surgery, but sustained no permanent injury. Alice's parents complained that they looked at the squirt gun when they initially arrived at the party but did not notice any warnings whatsoever affixed directly to the product. Alice's parents want to sue someone for something, but they do not particularly want to sue Rambo's mother. -Which of the following is true regarding a lawsuit brought by Alice's parents against the manufacturer for strict liability as the theory is applied under Section 402A of the Restatement?

"Disappointing Boat Purchase." Sally went to purchase a new boat. She wanted a boat that she could use in both a nearby lake and also a boat that she could take to the coast for use in ocean waters. Sally saw a boat that she liked and told the sales representative at the dealership that she wanted a boat for both lake usage and ocean usage. She told the sales representative that she particularly liked a boat that they were looking at in the showroom. The representative told her that the dealership had the best boats in the state, that the engine was great in the boat she liked, and that she would have no problem with steering or with the carburetor. He said nothing at all regarding whether or not the boat was appropriate for ocean waters. Sally purchased the boat. She immediately began to have significant problems with it. The engine did not perform adequately, and there were problems with the steering and carburetor among other things. Additionally, after Sally attempted to take the boat out into ocean waters and had significant difficulty, she discovered that it was not an ocean-going vessel. It was only appropriate for lake usage. -What type of warranty, if any, did the salesperson make by selling the boat to Sally knowing that she wanted it to be ocean-going?

Courts using the market share theory generally require that the plaintiff prove which of the following?

"Contraceptive Injuries." Drug company ABC Drugs came out with a new birth control pill guaranteed to prevent pregnancy for one year after the consumption of one pill. The FDA approved warnings of the drug's side effects including nausea and headache to be provided with the pill. After it was initially put on the market, the company became aware of some risks of dizziness from taking the drug. The company, however, did not warn of that risk because the company was concerned that individuals might not buy the pill, and federal law did not specifically require a warning regarding dizziness. Belinda thought the pill was a great idea and obtained a prescription for it at a date after the company became aware of the issues involving dizziness. She took one and felt fine for a few days. Then, however, she began feeling dizzy. Her dizziness caused her to fall breaking her leg on some steps. She later discovered that the birth control pill likely made her dizzy. Belinda decided to sue under a state law claim for failure to warn, however, she waited a number of years before bringing her action. The drug company claimed that it had no duty to list dizziness as a risk because its warning complied with all FDA requirements. The drug company also claimed that the time in which it could be sued had expired both because Belinda waited too long after she was injured and also too long from the date of product purchase. -The defense that Belinda waited too long to bring suit from the time that she was injured is a defense based upon which of the following?

Under which of the following theories may a plaintiff be able to proceed even if the plaintiff cannot trace an injury caused by a product to any particular manufacturer?

Compliance with federal laws may lead to the defense that use of state tort law is ______________ by a federal statute designed to ensure the safety of a particular class of products.

Which of the following are commonly used theories of recovery in product liability cases?

As recognized by the court in Sperry-New Holland v. John Paul Prestage and Pam Prestage, which of the following is true regarding the consumer expectations test for product defect?

In order to proceed in a products liability action, a plaintiff must establish to a certainty that the product was not damaged after its purchase.

"Squirt Gun Mishap." Zora decided to purchase a large squirt gun for her son, Rambo, to use while playing in the pool. The squirt gun was of the very elaborate variety and had a number of different attachments for different sprays of water. The squirt gun came with instructions for assembly and use, and provided warnings against various types of misuse. The pamphlet that came with the squirt gun advised that the squirt gun should be used only under adult supervision, that it must not be used by children under eleven, and that nothing should be put into the squirt gun except water. Rambo had a party for his tenth birthday at the pool. A number of children came. One of the children, Sam, who was ten years old at that time, decided to load pebbles along with water into the gun. He began shooting with the pebbles and hit Alice in the eye, requiring an emergency room visit. Alice required some minor surgery, but sustained no permanent injury. Alice's parents complained that they looked at the squirt gun when they initially arrived at the party but did not notice any warnings whatsoever affixed directly to the product. Alice's parents want to sue someone for something, but they do not particularly want to sue Rambo's mother. -Which of the following is true regarding warnings and the usage of products by children?

A bystander may not invoke the doctrine of strict-liability in a lawsuit.

Which of the following is true regarding the application of negligence per se in product liability cases based on negligence?

Which of the following may be sued in product liability actions?

"Disappointing Boat Purchase." Sally went to purchase a new boat. She wanted a boat that she could use in both a nearby lake and also a boat that she could take to the coast for use in ocean waters. Sally saw a boat that she liked and told the sales representative at the dealership that she wanted a boat for both lake usage and ocean usage. She told the sales representative that she particularly liked a boat that they were looking at in the showroom. The representative told her that the dealership had the best boats in the state, that the engine was great in the boat she liked, and that she would have no problem with steering or with the carburetor. He said nothing at all regarding whether or not the boat was appropriate for ocean waters. Sally purchased the boat. She immediately began to have significant problems with it. The engine did not perform adequately, and there were problems with the steering and carburetor among other things. Additionally, after Sally attempted to take the boat out into ocean waters and had significant difficulty, she discovered that it was not an ocean-going vessel. It was only appropriate for lake usage. -Without considering any statements made by either the salesperson or Sally regarding uses for the boat, what type of warranty did the seller make by merely selling the boat?