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DIY-Haul, Inc., makes, sells, and leases hauling equipment for consumer use. Ed files a product liability suit against DIY-Haul, alleging a design defect. In deciding whether to hold the maker liable, the court may consider


A) the assumptions of DIY-Haul.
B) the identity of DIY-Haul's owner.
C) the intentions of DIY-Haul.
D) the expectations of the ordinary consumer.

E) C) and D)
F) None of the above

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A product liability claim against the manufacturer of a product that is subject to extensive government regulation may be preempted.

A) True
B) False

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Wild Life LLC keeps and displays domestic and wild animals in a rural setting for an interested public. Strict liability is imposed on this activity because


A) Wild Life is not a corporation.
B) the public is considered inherently negligent.
C) the activity is extremely risky.
D) the amount of liability can be added to the costs of attendance.

E) B) and D)
F) B) and C)

Correct Answer

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Soda Bubbles Corporation makes soft drinks. Toby drinks a Soda beverage, which proves defective and injures him. One justification for holding Soda strictly liable for the harm caused to Toby is that


A) Soda is in a better position than Toby to bear the cost of her injury.
B) Toby is a consumer, not a corporation.
C) making products is an abnormally dangerous activity.
D) Soda and Toby are in privity.

E) None of the above
F) A) and B)

Correct Answer

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Airsoft, Inc. makes toys. Airsoft intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Bing buys an Airsoft product and suffers an injury. Airsoft is most likely liable for


A) product misuse.
B) fraud.
C) privity of contract.
D) comparative negligence.

E) B) and D)
F) A) and C)

Correct Answer

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A manufacturer or seller has a duty to warn about a risk that is obvious or commonly known.

A) True
B) False

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Product misuse is recognized as a defense to a claim for product liability only when the particular misuse was reasonably foreseeable.

A) True
B) False

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Manufacturers are commonly held liable when their negligence causes users of their products to be injured.

A) True
B) False

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Under the doctrine of strict liability, persons are liable only for the results of their intentional acts or their failure to exercise due care.

A) True
B) False

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Baby Things Inc. makes and sells a crib to Cara. Baby Things fails to exercise "due care" to make the crib safe, and Cara's child Dua is injured as a result. Baby Things is most likely liable for


A) fraud.
B) misrepresentation.
C) negligence
D) strict liability.

E) A) and B)
F) All of the above

Correct Answer

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A seller who introduces into commerce an unreasonably dangerous product may be subject to a tort action for strict liability.

A) True
B) False

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Sea Wind Corporation makes boats. Teresa files a product liability suit against Sea Wind, alleging a design defect. In deciding whether to hold the maker liable, the court may consider an alternative design's


A) popularity among boat designers.
B) attractiveness to boat buyers.
C) frequency of use among boat makers.
D) effect on Sea Wind's boat.

E) None of the above
F) A) and B)

Correct Answer

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