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As recognized by the court in Sperry-New Holland v.John Paul Prestage and Pam Prestage,which of the following is true under the risk-utility analysis of product liability?


A) That if the plaintiff, applying the knowledge of an ordinary consumer, sees a danger and can appreciate that danger, then he cannot recover for any injury resulting from that appreciated danger.
B) That a plaintiff must show that a retailer failed to do a proper risk-utility analysis before the plaintiff can recover against the retailer.
C) That a plaintiff must show that a manufacturer failed to do a proper risk-utility analysis before the plaintiff can recover against the manufacturer.
D) That a product is unreasonably dangerous if a reasonable person would conclude that the danger-in-fact, whether foreseeable or not, outweighs the utility of product.
E) That a reasonable person must conclude that the use-in-fact of a product outweighs the risk-utility of the product.

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

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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?


A) The sale itself constituted an implied warranty of merchantability but not an express warranty or a warranty of fitness for a particular purpose.
B) The sale itself constituted a warranty of fitness for a particular purpose but not an express warranty or an implied warranty of merchantability.
C) The sale itself constituted an express warranty but not an implied warranty of merchantability or a warranty of fitness for a particular purpose.
D) The sale itself constituted both an express warranty and a warranty of fitness for a particular purpose but not an implied warranty of merchantability.
E) The sale itself constituted both an express warranty and an implied warranty of merchantability but not an express warranty.

F) B) and D)
G) B) and C)

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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?


A) The statute of limitations.
B) The statute of repose.
C) The statute of perpetuity.
D) The statute of time.
E) The statute of dates.

F) A) and E)
G) B) and E)

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Under which of the following is the breach of warranty theory of liability established?


A) The Uniform Commercial Code.
B) The Federal Contract Guide.
C) The Federal Commercial Code.
D) The Restatement (Second) of Torts.
E) The Restatement (Third) of Torts.

F) C) and D)
G) B) and C)

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


A) Retailers, wholesalers, and manufacturers.
B) Retailers and wholesalers but not manufacturers.
C) Wholesalers and manufacturers but not retailers.
D) Retailers and manufacturers but not wholesalers.
E) Manufacturers but not retailers or wholesalers.

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

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Which of the following is true regarding any assertion by Alice's parents that a warning should have been affixed to the product to warn adults as well as children?


A) There is a federal law that provides that manufacturers are not required to affix warnings directly to a product.
B) Most state laws provide that manufacturers are not required to affix warnings directly to a product.
C) Alice's parents cannot complain because they did not purchase the squirt gun.
D) If parties other than the original purchasers will likely use the product, a warning should be placed directly on the product itself.
E) Court cases hold that warnings on a product are not required so long as the purchaser is given an instructional pamphlet setting forth warnings.

F) B) and D)
G) A) and B)

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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?


A) An implied warranty of merchantability.
B) An implied warranty of fitness for a particular purpose.
C) An express warranty.
D) A strict liability warranty.
E) A federal law warranty.

F) C) and E)
G) C) and D)

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Which of the following is a reference to being a party to a contract?


A) Being in privity of contract.
B) Being in association with contract.
C) Being in connect to contract.
D) Being in affiliation with contract.
E) Being connected by contract.

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

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In German product liability cases,consumers do not have a right to recover damages for pain and suffering or for emotional distress.

A) True
B) False

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The lack of a feasible way to make a safer product as a matter of law prevents liability based upon an alleged defective product.

A) True
B) False

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As of the date of text publication,what was the status of the lawsuit Pelman v.McDonald's,the case in which the plaintiffs asserted that McDonald's engaged in a scheme of deceptive advertising that in effect created the impression that McDonald's food products were nutritionally beneficial and part of a healthy lifestyle?


A) The case was dismissed and plaintiffs are appealing.
B) The case settled.
C) The judge had refused to dismiss the plaintiffs' claims, and the case is moving forward as a class action.
D) The judge ruled that only minor plaintiffs could sue, and their case is moving forward on a class action basis.
E) The judge ruled that only plaintiffs who could prove that they had eaten a sufficient amount of food at McDonald's could sue and also that the plaintiffs could not proceed on a class action basis.

F) None of the above
G) B) and C)

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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) C) and D)
G) C) and E)

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List the seven factors set forth in the text from the Sperry-New Holland v.Prestage case,involving injuries caused by a combine,that a trial court may find helpful when balancing a product's utility against the risk the product creates.

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The factors are as follows:
1.The useful...

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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 B)
G) A) and C)

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Which of the following do courts often consider in determining whether a manufacturer was negligent in failing to warn?


A) The likelihood of the injury only.
B) The seriousness of the injury only.
C) The ease of warning only.
D) The likelihood of the injury and the seriousness of the injury but not the ease of warning.
E) The likelihood of the injury, the seriousness of the injury, and the ease of warning.

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

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What was the result in the case opener involving the lawsuit against the sperm bank for providing sperm with a genetic defect?


A) The lawsuit was dismissed because of the court's decision that sperm is not a product.
B) The lawsuit was dismissed because of the court's decision that the plaintiffs had suffered no damages.
C) The lawsuit was dismissed because of the court's decision that the sperm was not defective.
D) The lawsuit was not dismissed, and the court ruled that a sperm bank could be sued under product liability laws.
E) The lawsuit was not dismissed although the court ruled that the plaintiff could proceed only under a negligence theory.

F) None of the above
G) B) and D)

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

A) True
B) False

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What was the ruling of the court in the case of Welge v.Planters Lifesavers Co.,the case in which the plaintiff injured his hand when a jar containing peanuts broke?


A) That the case would be dismissed because the plaintiff could not establish that the jar was maintained in a pristine condition after its purchase.
B) That the plaintiff was unable to recover because negligence in manufacture of the jar could not be established.
C) That the plaintiff was unable to recover because he was not the actual purchaser of the jar of peanuts.
D) That the plaintiff would be allowed to proceed because negligence was established.
E) That the plaintiff would be allowed to proceed with the lawsuit because of a lack of evidence that the jar had been damaged after its purchase.

F) B) and D)
G) A) and D)

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Under a strict product liability theory,who may be held liable to an injured party?


A) Manufacturers only.
B) Distributors only.
C) Retailers only.
D) Manufacturers and distributors but not retailers.
E) Manufacturers, distributors, and retailers.

F) B) and D)
G) A) and D)

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When all products of a particular design are defective and dangerous,those products have which of the following type of defects?


A) Design.
B) Warning.
C) Primary.
D) Exclusionary.
E) Manufacturing.

F) C) and E)
G) B) and C)

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