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Management 311 > MGMT 311 Exam 2 - FLASHCARDS - Chapter 7 (1) > Flashcards

MGMT 311 Exam 2 - FLASHCARDS - Chapter 7 (1)

1
Q

What is strict liability?

A

Liability without regard to fault/automatic liability. Focus on the nature of the situation instead of the actor’s actions. For example if someone breeds alligators in their backyard and someone gets injured the person is automatically liable because they created a situation that led to harm

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2
Q

What is also known as no fault liability?

A

Strict liability

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3
Q

What is the doctrine of strict liability?

A

under the doctrine of strict liability, people may be liable for the results of their acts regardless of their intentions or their exercise of reasonable care.

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4
Q

What two factors is strict liability based on?

A

The manufacturer can better bear the cost of injury because it can spread the cost throughout society by increasing the prices of its goods.

The manufacturer is making a profit from its activities and therefore should bear the cost of injury as an operating expense.

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5
Q

What are abnormally dangerous activities?

A

those that involve a high risk of serious harm to persons or property that cannot be completely guarded against by the exercise of reasonable care.

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6
Q

True or false: abnormally dangerous activities involve a potential degree of serious harm?

A

TRUE

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7
Q

Can the risk from an abnormally dangerous activity be completely guarded against with the use of reasonable care?

A

No

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8
Q

Are abnormally dangerous activities commonly performed in the community?

A

No

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9
Q

What is an example of an abnormally dangerous activity?

A

Fireworks

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10
Q

True or false: keeping wild animals is an example of strict liability?

A

TRUE

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11
Q

What is the most commonly sued over domestic animal?

A

Dog

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12
Q

How can keeping domestic animals be an example of strict liability?

A

You are only strictly reliable if you know or should know your dog is dangerous

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13
Q

What is Quid Pro Quo Sexual Harassment?

A

This for that. Boss says he will give you a promotion if you sleep with him. Liability would be on the harasser

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14
Q

What are lawsuits involving facts of a company selling or making a product that is the case of plaintiff’s injuries such as a defective product?

A

Products Liability

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15
Q

What is product liability?

A

Those who make, sell, or lease goods can be held liable for physical harm or property damage caused by those goods to a consumer, user, or bystander.

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16
Q

If a manufacturer fails to exercise “due care” to make a product safe, what might a person who is injured by the product do?

A

sue the manufacturer for negligence

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17
Q

In what areas must manufacturers exercise due care?

A

Designing the product.

Selecting the materials.

Using the appropriate production process.

Assembling and testing the product.

Placing adequate warnings on the label to inform the user of dangers of which an ordinary person might not be aware.

Inspecting and testing any purchased components used in the product.

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18
Q

What refers to the relationship that exists between the parties to a contract?

A

Privity of contract

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19
Q

Is privity of contract required?

A

No

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20
Q

Does the plantiff in a defective products case have to be in contact with the defendant?

A

No

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21
Q

In the context of product liability law, though, privity is not required. Individuals who are injured by a defective product may bring negligence suits even though they were not the ones who actually purchased the products—and thus are not in privity.

A

.

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22
Q

What is cause in fact?

A

In a product liability suit based on negligence, as in any action alleging that the defendant was negligent, the plaintiff must show that the defendant’s conduct was the “cause in fact” of an injury. “Cause in fact” requires showing that “but for” the defendant’s action, the injury would not have occurred

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23
Q

What is proximate cause?

A

focuses on the foreseeability of the consequences of the act. For proximate cause to become a relevant issue, however, a plaintiff first must establish cause in fact

24
Q

True or false: For proximate cause to become a relevant issue, a plaintiff first must establish cause in fact

A

TRUE

25
Q

What is fraudulent misrepresentation?

A

Misrepresentation of a material fact concerning quality, nature or approximate use of the product is made knowingly or with reckless disregard for the truth

26
Q

What are intentional mislabeling of products and concealment of product defects examples of?

A

fraudulent misrepresentation. You said something was safe when you knew it wasn’t.

27
Q

What is an example of fraudulent misrepresentation?

A

The tobacco companies found out smoking was bad for you and that it caused cancer many years before the public knew about it and they didn’t tell the public

28
Q

Should consumers be protected against unsafe products?

A

Yes

29
Q

Should manufacturers and distributors escape liability for defective products just because they are not not in privity of contract with user who has been injured?

A

No

30
Q

True or false: manufacturers and sellers are in a better position to bear the costs associated with injuries caused by their own products?

A

TRUE

31
Q

Why are manufacturers and sellers in a better position to bear the costs associated with injuries caused by their own products?

A

because they can ultimately pass the costs on to all consumers in the form of higher prices

32
Q

What assumptions does the public policy of strict product liability rest on?

A
  1. Consumers should be protected against unsafe products.
  2. Manufacturers and distributors should not escape liability for faulty products simply because they are not in privity of contract with the ultimate user of those products.
  3. Manufacturers and distributors can better bear the costs associated with injuries caused by their products, because they can ultimately pass the costs on to all consumers in the form of higher prices.
33
Q

What does the law impose strict product liability as?

A

as a matter of public policy, which may be expressed in a statute or in the common law.

34
Q

What are the six requirements of strict product liability?

A
  1. The product must be in a defective condition when the defendant sells it.
  2. The defendant must normally be engaged in the business of selling (or otherwise distributing) that product.
  3. The product must be unreasonably dangerous to the user or consumer because of its defective condition (in most states).
  4. The plaintiff must incur physical harm to self or property by use or consumption of the product.
  5. The defective condition must be the proximate cause of the injury or damage.
  6. The goods must not have been substantially changed from the time the product was sold to the time the injury was sustained.
35
Q

In a strict product liability case, does the product have to be in a defective condition when the defendant sells it?

A

Yes

36
Q

In a strict product liability case, must the product must be unreasonably dangerous to the user or consumer because of its defective condition?

A

Yes

37
Q

To be elegible for a strict product liability case, does the plaintiff need to incur physical harm to self or property by use or consumption of the product?

A

Yes

38
Q

In a strict product liability case, must the defective condition of the product be the proximate cause of the injury or damage?

A

Yes

39
Q

In a strict product liability case, could the goods have been substantially changed from the time the product was sold to the time the injury was sustained?

A

No

40
Q

How must the plantiff prove that the condition was defective?

A

the plaintiff does not need to show why or in what manner the product became defective. The plaintiff does, however, have to prove that the product was defective at the time it left the hands of the seller or lessor. The plaintiff must also show that this defective condition made the product “unreasonably dangerous” to the user or consumer.

41
Q

What is an unreasonably dangerous product?

A

the product was dangerous beyond the expectation of the ordinary consumer

42
Q

What is risk utility analysis?

A

The risk outweighs the usefulness

43
Q

What must you have to prove for a product to be unreasonably dangerous?

A

The product was dangerous beyond the expectation of the ordinary consumer. The risk outweighs the usefulness.

A less dangerous alternative was economically feasible, but the manufacturer failed to produce it. There is a safer alternative design - technology exists and it is economically feasible to produce it

44
Q

What if there was a safer alternative design?

A

A less dangerous alternative was economically feasible, but the manufacturer failed to produce it.

45
Q

What is a manufacturing defect?

A

departure from a product’s design specifications that results in products that are physically flawed, damaged, or incorrectly assembled. A glass bottle that is made too thin and explodes in a consumer’s face is an example of a product with a manufacturing defect.

46
Q

Why does a manufacturing defect occur?

A

Usually, manufacturing defects occur when a manufacturer fails to assemble, test, or check the quality of a product adequately

47
Q

What is when the foreseeable risk of harm posed by the product could have been reduced or avoided by the adoption of a reasonable alternative design?

A

Design defect

48
Q

What is a test for design defects?

A
  1. Safer alternative design
    2. Because of defendant’s failure to use SAD, the product is unreasonably safe
49
Q

What type of defect is it when the foreseeable risk of harm posed by the product could have been reduced or avoided by reasonable instructions or warnings?

A

Warning defects

50
Q

What are obvious risks?

A

No duty to warn about risks that are obvious or commonly known

51
Q

True or false: the seller must warn about forseeable misuses?

A

TRUE

52
Q

What is an example of a forseeable misuse?

A

Tag at the end of hair dryer says to not use it around water or we would be electrocuted

53
Q

What are defenses to product liability?

A

Assumption of the Risk
1. Plaintiff knew of the risk
2. Plaintiff voluntarily assumed the risk

Product Misuse
1. Product is used in a way not intended by the manufacturer.

54
Q

Must the manufacturer warn if the use of product is reasonably foreseeable?

A

Yes

55
Q

Are warnings neccesary on products with commonly known dangers?

A

No. For example, a knife will cut you, a hammer will smash your thumb

56
Q

What is a statute of repose?

A

Within 10 years of purchase, the manufacturer can no longer be sued

Management 311 (25 decks)

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