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Business Law Unit 2 Challenges Sophia
Unit no # 2
Challenge no #2
The purpose of contracts is __________.
·       a.)
to equalize outcomes in capitalistic societies
·       b.)
to prevent people from making independent choices
·       c.)
to encourage the exchange of goods and services between people
·       d.)
to maintain a traditional social hierarchy
Contracts function as a symbol of __________ in modern society.
·       a.)
chaos
·       b.)
individual freedom
·       c.)
corruption
·       d.)
prosperity
Contracts allow a free society to __________.
·       a.)
create order out of disorder
·       b.)
achieve total equality
·       c.)
assert control over its members
·       d.)
do away with capitalism
Select the true statement about the Convention on Contracts for the International Sale of Goods (CISG).
·       a.)
The Convention is consistent with the Uniform Commercial Code (UCC) in every way.
·       b.)
Parties to a contract may mutually agree to follow the CISG rather than the Uniform Commercial Code (UCC).
·       c.)
The Convention is only applicable to countries in the Western Hemisphere.
·       d.)
The United States has not formally adopted the CISG.
Select the true statement about the Restatement of the Law of Contracts.
·       a.)
It supersedes the Uniform Commercial Code (UCC) when deciding contract cases relating to the sale of goods.
·       b.)
It clarified and simplified the case law that had developed around contract disputes by the early twentieth century.
·       c.)
It was drafted in 1932 and has not been revised since.
·       d.)
It codified a series of statutes that judges must now follow when deciding contract cases.
Why was the Uniform Commercial Code (UCC) created?
·       a.)
To standardize contract laws between states to assist in commercial trade regarding the sale or lease of goods
·       b.)
To simplify the law to enable courts to reach fairer resolutions to contract disputes
·       c.)
To create a single set of regulations governing the international trade of goods
·       d.)
To provide an organized system of taxing commercial transactions
The local police station offers a $1,000 reward for anyone who can provide information about a robbery at a gas station. Mason calls the police with a tip that leads to the arrest of the thief.
Mason and the police have a(n) __________.
·       a.)
unilateral contract
·       b.)
illegal contract
·       c.)
unenforceable contract
·       d.)
bilateral contract
Riya writes an email promising to sell her car to Manish for $500, and Manish replies that he will pay Riya on the 24th of the month. On the 24th, Manish pays Riya and she gives him the title to the car.
Manish and Riya have a(n) __________.
·       a.)
executory contract
·       b.)
executed contract
·       c.)
unilateral contract
·       d.)
implied contract
After your surgery, you tell me that you can't walk your dog anymore. You ask me to walk your dog for $50 a week, and I agree. This Monday, I began walking your dog.
We have a(n) __________.
·       a.)
unilateral contract
·       b.)
bilateral contract
·       c.)
quasi-contract
·       d.)
implied contract
The contractual element of agreement requires __________.
·       a.)
an offer with definite terms, but not an acceptance
·       b.)
a verbally communicated offer and acceptance
·       c.)
an offer and acceptance in written form
·       d.)
mutual assent between persons
A contract with consideration from only one party __________.
·       a.)
is always enforceable, if the consideration is reasonable
·       b.)
may be enforceable under promissory estoppel
·       c.)
is enforceable only if mutual assent existed
·       d.)
is always void and never enforceable
The contractual element of consideration means that __________.
·       a.)
each party to a contract must give and receive value
·       b.)
one party to a contract must receive value
·       c.)
each party to a contract must give and receive equitable value
·       d.)
one party to a contract must give value
A contract is always rendered unenforceable when __________.
·       a.)
a party to the contract cannot meet the financial obligations of the contract
·       b.)
a party to the contract returns the consideration
·       c.)
the subject or purpose of the contract is illegal
·       d.)
the contract was formed under emotional strain
A contract is always voidable when __________.
·       a.)
the contract has not been reviewed by an attorney
·       b.)
the contract is formed under financial strain
·       c.)
one party to the contract is not of a legal age
·       d.)
the parties to the contract have a power imbalance
A contract is usually rendered unenforceable when __________.
·       a.)
the contract unfairly disadvantages one party to the contract
·       b.)
the contract is formed under the threat of bankruptcy
·       c.)
the contract represents an unequal exchange of goods or services
·       d.)
one party's assent to the contract occurs because of a threat of physical force
A contract is usually rendered unenforceable when __________.
·       a.)
the contract unfairly disadvantages one party to the contract
·       b.)
the contract is formed under the threat of bankruptcy
·       c.)
the contract represents an unequal exchange of goods or services
·       d.)
one party's assent to the contract occurs because of a threat of physical force
A purpose of the Statute of Frauds is to __________.
·       a.)
specify the types of contracts that are most likely to be fraudulent
·       b.)
designate the kinds of contracts that must be in writing to be valid and enforceable
·       c.)
make it illegal to enter into a contract to commit fraud
·       d.)
invalidate contracts that are formed for fraudulent purposes
A purpose of the Statute of Frauds is to __________.
·       a.)
determine whether a contract has been partially or fully executed
·       b.)
warn consumers about the areas of exchange in which they are likely to encounter fraud
·       c.)
ensure that all contracts that have been reviewed by a lawyer are enforceable
·       d.)
make certain contracts unenforceable if they are only in oral form
A purpose of the Statute of Frauds is to __________.
·       a.)
ensure that contracts formed for fraudulent purposes are preserved in writing
·       b.)
prevent one party from falsely claiming that a contract was formed in certain areas of exchange
·       c.)
outline the penalties for committing fraud in certain kinds of contracts
·       d.)
enforce the full execution of oral contracts
                                               challenge no 2
A store owner receives reimbursement for the difference in price of a product that the seller could not deliver.
This is an example of which type of monetary award?
·       a.)
Compensatory damages
·       b.)
Incidental damages
·       c.)
Nominal damages
·       d.)
Punitive damages
When an exterminator is hired to rid a home of termites and fails to do so, extensive damage is done by the insects to the home's deck. The exterminator is required to pay for the necessary repairs.
This is an example of which type of monetary award?
·       a.)
Nominal damages
·       b.)
Incidental damages
·       c.)
Punitive damages
·       d.)
Consequential damages
Lisa promises Ophelia a 5% return on her investment if Ophelia gives her $1,000 to invest. Little does Ophelia know, Lisa has no intention of investing the money. Instead, Lisa spends the money to pay off a prior gambling debt. A court requires Lisa to return the $1,000 to Ophelia.
This is an example of which type of monetary award?
·       a.)
Specific performance
·       b.)
Incidental damages
·       c.)
Punitive damages
·       d.)
Restitution
Which of the following people would likely be issued an order for specific performance or an injunction, rather than a monetary award?
·       a.)
Mark agrees to install a new fence at Deirdre's home for $5,000. When Mark is halfway finished, he hurts his back and stops working. After several months, Deirdre sues for beach of contract.
·       b.)
Max, an artist, completes a painting and sells it to a buyer for $3,000. Max delivers the painting to the buyer, but the buyer still has not paid him after three months. Max sues the buyer for breach of contract.
·       c.)
Chris signs a written agreement to buy a one-of-a-kind antique sports car from Pete for $65,000. When Pete later refuses to sell the car to Chris, Chris files suit against Pete for breach of contract.
·       d.)
Sally's company orders and pays for a new round of office supplies from their usual supplier. Sally's company sues the supplier for breach of contract when the supplies are never delivered.
Which of the following people would likely be issued an order for specific performance or an injunction, rather than a monetary award?
·       a.)
Franco hires a builder to build his new house. After a year of construction, Franco moves in and discovers that the workmanship is subpar and many parts of the house violate the building code. Franco sues the builder for breach of contract.
·       b.)
Teagan owns an appliance store, and he decides to bend his usual store policy by allowing Pierce to buy a new refrigerator with a personal check. When the check bounces and Pierce refuses to pay with cash, Teagan sues Pierce for breach of contract.
·       c.)
Julie buys a used laptop from a local computer repair shop for $350. When she gets the computer home, she discovers it doesn't work. The shop refuses to repair the computer or refund her money, so Julie sues the shop for breach of contract.
·       d.)
Alicia, an artist, has a signed contract with one of her patrons that promises them the right of first refusal for any sculpture she completes. When she finishes her latest sculpture, she wants to sell it to another friend for $75,000 instead. The patron sues Alicia for breach of contract.
Which of the following people would likely be issued an order for specific performance or an injunction, rather than a monetary award?
·       a.)
Lee signs a contract to purchase the last remaining beachfront plot of land in his town from Ursula. Ursula then decides she will keep the land and build a house for herself on it. Lee files suit against Ursula for breach of contract.
·       b.)
Fallon's moving company accidentally breaks three dining chairs when they transport Aliyah's furniture to her new home. The chairs are expensive, but not irreplaceable. Aliyah sues Fallon's moving company for breach of contract when they refuse to replace the chairs.
·       c.)
Louisa's screenprinting company orders a new batch of t-shirts from their supplier for delivery on Monday. The order is delayed and doesn't arrive until Wednesday. Louisa's company sues for breach of contract.
·       d.)
Jonah orders and pays for some wood from a local lumber company to build a custom desk for his home office. When the wood arrives, part of it is rotting. When Jonah can't get the lumber company to return his phone call, he sues them for breach of contract.
Select the example that is inconsistent with the provisions of the UCC for contract remedies for a seller's breach of contract.
·       a.)
In its sales contract, a car dealership specifies that there is no remedy for the buyer if the dealership delivers the correct make and model of car, but in the wrong color.
·       b.)
The sales contract for a clothing company specifies that the only remedy for non-delivery of items ordered by the buyer is a full refund.
·       c.)
In its sales contract, a manufacturing company that makes sewing machines excludes responsibility for any commercially-related consequential damages that stem from the company's failure to deliver goods on time.
·       d.)
The sales contract for a furniture company specifies that the statute of limitations for any charges of breach of contract shall be limited to two years.
Select the example that is inconsistent with the provisions of the UCC for contract remedies for a seller's breach of contract.
·       a.)
The sales contract for a company that sells art includes a liquidated damages clause in the event of a breach of contract that the courts have deemed reasonable.
·       b.)
A toy company sells a defective rocket launcher that injures a young boy. The sales contract excludes responsibility for all consequential damages related to the sale of its products, so the company only agrees to refund the cost of the defective toy.
·       c.)
In its sales contract, a bookseller imposes a one-year limit on charges of breach of contract.
·       d.)
A sporting goods store allows for a single remedy for any contract breaches in its sales contract.
Select the example that is inconsistent with the provisions of the UCC for contract remedies for a seller's breach of contract.
·       a.)
The sales contract for an art dealer excludes specific performance as a remedy for non-delivery of items ordered by the buyer, but it does not exclude all remedies.
·       b.)
In its sales contract, an airplane manufacturer eliminates responsibility for consequential damages related to loss of business in the case of a delivery error.
·       c.)
An appliance manufacturer's sales contract gives buyers a maximum of six months to raise any concerns relating to breach of contract.
·       d.)
A cell phone company specifies in its sales contract that if a product is defective, the buyer's only remedy is to receive a replacement phone.
Cynthia signs a written contract for 100 shirts priced at $4.99 each for her screenprinting business from Juan, a shirt supplier. After Cynthia receives the first box (which contains 50 shirts), she decides she has enough and tells Juan she will not accept delivery of the second box of 50 shirts. The second box is already in transit and will be delivered by the postal service tomorrow.
What remedy does Juan have in this scenario?
·       a.)
Juan may recover the funds owed to him by Cynthia, minus the depreciated value of the shirts.
·       b.)
Juan may stop delivery of the box by the post office, who must immediately return the goods to him instead of delivering them to Cynthia.
·       c.)
Juan may not stop delivery of the box by the postal service, but he may recover the funds owed to him by Cynthia.
·       d.)
Juan's only recourse is to accept Cynthia's decision and refuse to sell to her in the future.
Cynthia orders 100 shirts priced at $4.99 each for her screenprinting business from Juan, a shirt supplier. Cynthia is not insolvent, but after she receives the first box (which contains 50 shirts), she decides she has enough and will not accept delivery of the second box of 50 shirts.
What remedy does Juan have in this scenario?
·       a.)
Juan must ship the remaining 50 shirts if he has not already done so, and once Cynthia refuses to accept delivery, he can reclaim the shirts and recover damages.
·       b.)
Juan's only recourse in this scenario is to sue Cynthia for the contracted price of the 50 remaining shirts.
·       c.)
Juan can resell the remaining 50 shirts to another buyer, upon which time he is entitled to recover the difference between his contract price with Cynthia and the contract price with the new buyer, plus any incidental costs incurred.
·       d.)
Juan can resell the remaining 50 shirts at public auction, but since they have already been identified to his contract with Cynthia, he may not sell them through another private contract.
Jackson signs a written contract to purchase a custom sofa for his new home. The custom sofa is designed to fit perfectly in his living room. While the sofa is being built, Jackson notifies the manufacturer that he is insolvent and can no longer fulfill his end of the contract.
What remedy does the manufacturer have in this scenario?
·       a.)
The manufacturer is obligated to complete production of the sofa and attempt to resell it, but he is entitled to recover any difference between the resale price and the price he contracted with Jackson.
·       b.)
The manufacturer must put the sofa up for sale at auction, and he must share the additional profits with Jackson if the sofa sells for more than the originally-contracted price.
·       c.)
Assuming that the sofa would be of little or no value on resale to another buyer, the manufacturer should immediately cease production and sue Jackson for the contract price, less any expenses saved by stopping production.
·       d.)
The manufacturer has no recourse in this scenario, since the buyer is insolvent.
Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt supplier. When Cynthia receives the shirts, she sees that they are not the same brand that she ordered. Nevertheless, she accepts delivery. Within a couple of weeks, Cynthia notices that the stitching on half of the shirts is unraveling, rendering the shirts unsellable to her customers. She had no indication that the shirts had defective stitching when she accepted delivery.
What remedy does Cynthia have in this scenario?
·       a.)
Regardless of whether Cynthia notified Juan of her acceptance of non-conforming goods, she can recover what she paid for the shirts since they are of inferior quality from what she contracted for.
·       b.)
Since Cynthia accepted delivery of non-conforming goods, she has no recourse in this scenario.
·       c.)
If Cynthia notified Juan of her acceptance of non-conforming goods, she can recover what she paid for the shirts, since she will not be able to resell them.
·       d.)
Cynthia may obtain specific performance from Juan, since high-quality shirts are necessary to her business.
Heidi purchases an original work by one of her favorite sculptors from an art dealer for $8,000. After three months of waiting for the sculpture to be delivered, Heidi discovers that the art dealer sold the sculpture to another buyer for $10,000 after her contract was signed.
What remedy does Heidi have in this scenario?
·       a.)
Heidi is entitled to recover her $8000 and any other damages she may be able to prove, including compensatory, consequential, and incidental damages.
·       b.)
Heidi is entitled to sue the new buyer to recover the sculpture, but she has no recourse against the art dealer other than recovering the $8,000 that she paid.
·       c.)
Heidi is entitled to punitive damages, so that the art dealer is discouraged from breaking another contract in the future.
·       d.)
Heidi is only entitled to recover the $8,000 that she paid for the sculpture.
Cynthia orders 100 shirts priced at $4.99 each for her screenprinting business from Juan, a shirt supplier. The shirts are supposed to be delivered within three days, but they do not arrive, so Cynthia runs down to a local store during her lunch break and buys another 100 shirts so that she can fill her customers' orders on time.
What remedy does Cynthia have in this scenario?
·       a.)
Cynthia may either cancel her contract with Juan and recover the price she paid for his shirts, or she can replevy the shirts.
·       b.)
Cynthia can recover the price she paid for Juan's shirts, and she is entitled to a refund from the local store for the difference between the cost of its shirts and Juan's shirts.
·       c.)
Cynthia may recover the money she paid to Juan for the undelivered shirts, but only if she notifies him that they are non-conforming.
·       d.)
Cynthia can cancel her contract with Juan and recover the price she paid for his shirts. Additionally, she can recover from Juan any money she paid for shirts from the local store that exceeded her original contracted cost.
When one party to a contract breaches the contract, what duty is placed on the non-breaching party?
·       a.)
Since they did not breach the contract, nothing is required of them.
·       b.)
The non-breaching party has a duty to mitigate their damages.
·       c.)
If the breach includes tortious conduct, the non-breaching party must file a civil lawsuit.
·       d.)
The non-breaching party is required to pursue all of their contractual remedies.
The test of "certainty of damages" for breach of contract is whether __________.
·       a.)
the non-breaching party was reasonably likely to prevail in a lawsuit
·       b.)
the non-breaching party made a reasonable effort to mitigate any damages suffered as a result of the breach
·       c.)
it was reasonably clear that the non-breaching party suffered a loss equal to the damages being claimed
·       d.)
it was reasonably certain that the non-breaching party made a good-faith effort to execute the contract
The test of whether damages claimed for breach of contract are "foreseeable" is whether __________.
·       a.)
it was reasonably conceivable to the breaching party that a breach of contract might occur
·       b.)
it was reasonably imaginable to the breaching party that a breach of contract would cause the damages claimed
·       c.)
the breaching party repudiated a contract in the past and was reasonably likely to do so again
·       d.)
the amount claimed by the injured party was reasonably fair
                                     challenge no 3
Unlike a crime, a tort __________.
·       a.)
is a wrongdoing against a private individual
·       b.)
is a wrongdoing against the community
·       c.)
is a violation of legal statutes
·       d.)
is a violation of ethical norms
Unlike a crime, a tort __________.
·       a.)
must have specific intent
·       b.)
is a moral wrongdoing
·       c.)
is governed by common law
·       d.)
is a wrongdoing against society
Unlike a crime, a tort __________.
·       a.)
is a wrong which is punishable by incarceration
·       b.)
is an immoral act that can cause mental or physical injury
·       c.)
is a wrong which has a legal remedy of damages
·       d.)
is an act which, by definition, lacks intention
A young women is walking home at night when a large man jumps out from behind some bushes and verbally threatens her.
Which type of intentional tort does this represent?
·       a.)
Assault and battery
·       b.)
This action does not rise to the level of an intentional tort.
·       c.)
Assault only
·       d.)
Battery only
A hotel owner has a customer who refuses to pay his bill at the end of his stay. The hotel owner gets very angry. He tells the customer that he may not leave without paying, and if he tries to, the owner will sue him.
Which type of intentional tort does this represent?
·       a.)
This action does not rise to the level of an intentional tort.
·       b.)
False imprisonment
·       c.)
Battery
·       d.)
Intentional infliction of emotional distress
In an effort to boost sales, a small-scale clothing company prints an image of a famous musician's face on its new run of shirts.
Which type of intentional tort does this represent?
·       a.)
Defamation
·       b.)
Misrepresentation
·       c.)
Invasion of privacy
·       d.)
This action does not rise to the level of an intentional tort.
A woman is driving down the road and sees two bicyclists crash into one another. They are clearly hurt and in need of help, but because she is late for work, she doesn't stop.
Is the woman liable for negligence if one of the bicyclists later sues?
·       a.)
No, because no proximate cause can be established between the crash and her driving.
·       b.)
Yes, because the woman breached her duty when she decided not to stop.
·       c.)
No, because no duty of care existed between the woman and the bicyclists.
·       d.)
Yes, because the woman acted unreasonably by prioritizing her job over offering aid to others.
A toddler spills a cup of juice on the floor of a grocery store. An employee sees the spill, but he's too busy to clean it up right away or mark it with a sign, and no one else notices it. A few minutes later, a shopper slips on the juice and falls, but fortunately, she's not hurt and she continues her shopping.
Is the store liable for negligence if the shopper later sues?
·       a.)
Yes, because even if she wasn't injured, the risk posed by the spilled juice was foreseeable.
·       b.)
Yes, because the store's employee failed to act reasonably by not cleaning up the spill right away.
·       c.)
Yes, but only if the shopper can demonstrate that she was actually injured.
·       d.)
No, because the store had no duty of care to the shopper who slipped.
A pharmaceutical company produces a drug to control blood pressure, but it's taken off the market after a number of consumers suffer strokes that some believe are linked to the medication.
Is the pharmaceutical company liable for negligence in the case of a lawsuit?
·       a.)
No, because no one forced consumers to use the medication.
·       b.)
No, because drug companies do not have a duty of care to consumers.
·       c.)
Yes, because consumers had legally recognizable injuries.
·       d.)
Yes, but only if causation can be established.
A large hole in the sidewalk in front of a pet supply store is being repaired. A customer trips on the hole when leaving the store and breaks her ankle. She sues the store for negligence.
Assuming it is true, which of the following would represent at least a partial defense against the negligence claim?
·       a.)
The customer has a history of suing businesses for negligence.
·       b.)
The store owner genuinely thought that the hole had already been repaired.
·       c.)
The customer assumed the risks associated with walking down a public sidewalk.
·       d.)
The store owner had placed a sign over the hole saying, "Caution, watch your step."
A pedestrian walks into a crosswalk and is hit by a bicyclist and injured. The pedestrian sues the bicyclist for negligence.
Assuming it is true, which of the following would represent at least a partial defense against the negligence claim?
·       a.)
The pedestrian sees many bicyclists on the road every day, and assumed the risk of walking anyway.
·       b.)
The pedestrian had been involved in other crashes with bicyclists in the past.
·       c.)
The bicyclist was riding to the scene of another accident in order to provide first aid.
·       d.)
The pedestrian had headphones on, was busily engaged in texting, and did not look up before entering the crosswalk.
A man is in a car accident, and a woman who sees the accident rushes over to help him. The man ends up with permanent partial paralysis resulting from the woman's care. The injured man later sues the woman for negligence.
Assuming it is true, which of the following would represent a strong defense against the negligence claim?
·       a.)
Although she was not medically trained or a first responder, the woman was attempting to deliver first aid to the man.
·       b.)
The man knowingly and voluntarily assumed the risks associated with driving a car.
·       c.)
The woman was a doctor and was delivering first aid to the man.
·       d.)
The man has a documented history of speeding.
A bicycle rider falls and injures himself.
To successfully sue the bicycle manufacturer for strict liability, what would the bicycle rider need to prove?
·       a.)
Nothing, because bicycle riding is an ultrahazardous activity
·       b.)
There is no way for strict liability to apply, because falling from bicycles is a commonly known danger.
·       c.)
That the product design or manufacturing process was flawed in a way that caused the fall
·       d.)
That the bicycle lacked a warning label about the possibility of falls
A mother with a sick child accidentally gives her child a fever reducer that is meant for adults, rather than a fever reducer meant for children, because the packaging of each is very similar. The child ends up in the hospital due to an overdose.
To successfully sue the pharmaceutical company for strict liability, what would the mother need to prove?
·       a.)
That the adult medicine the mother used was part of a batch that turned out defective
·       b.)
There is no way for strict liability to apply, because overdosing on medication is a commonly known danger.
·       c.)
Nothing, because producing and selling medications is an ultrahazardous activity
·       d.)
That mixing up the two medications as a result of their similar packaging was a foreseeable customer misuse
A truck carrying hazardous materials rolls over and spills chemicals, temporarily polluting a town's water supply.
To successfully sue the company for strict liability, what would the town need to prove?
·       a.)
There is no way for strict liability to apply, because transporting hazardous materials is a commonly known danger.
·       b.)
That the company failed to take reasonable precautions to prevent the spill
·       c.)
Nothing, because transporting hazardous materials is extremely dangerous
·       d.)
That the truck carrying the hazardous materials had a design defect or a manufacturing flaw
Select the statement that is true of consumer law prior to the 20th century, rather than current products liability law.
·       a.)
It encouraged consumers to sue manufacturers for both obvious and hidden defects.
·       b.)
It recognized an implied warranty in consumer transactions.
·       c.)
It assumed that most commerce was anonymous and across great distance.
·       d.)
It followed the precept of "buyer beware."
Select the statement that is true of current products liability law.
·       a.)
It arose as a result of consumer products becoming easier to understand and operate.
·       b.)
It developed as the processes of production and consumption were increasingly separated.
·       c.)
It essentially functions the same as 19th century consumer law.
·       d.)
As a general rule, it holds consumers responsible to protect themselves against both obvious and hidden defects.
Select the statement that is true of current products liability law.
·       a.)
Its central tenet is "caveat emptor."
·       b.)
It relies primarily on local reputation to ensure product safety.
·       c.)
It arose as consumers had much less direct contact with manufacturers than in the past.
·       d.)
It is less necessary now than in the pre-industrial era.
Carmen purchased a new lawnmower but she found it difficult to push it over her uneven lawn. She removed one of the mower's safety guards so that it would travel more smoothly over the ground. Five weeks later, Carmen mowed the lawn and hit a bump that overturned the mower, and she suffered an injury from the blade. Carmen sues the manufacturer for negligence, arguing that the lawnmower had a defective design that left operators exposed to injury in the case of overturning.
How strong is the negligence case against the product manufacturer?
·       a.)
Strong, because Carmen has privity of contract with the manufacturer.
·       b.)
Weak, because five weeks have passed since Carmen purchased the mower, so proximate cause is unclear.
·       c.)
Weak, because Carmen modified a safety feature of the mower prior to her accident.
·       d.)
Strong, because an accident which overturns the mower is a foreseeable hazard that the manufacturer should have anticipated.
A 55-year-old woman begins a prescription medication for heart disease, and accidentally overdoses because the medication interacts with a common, over the counter drug the woman also takes on a regular basis. When the woman was given her prescription, it came with a federally-mandated 10-page list of instructions and warnings, which included a warning not to mix the prescription medication with the over-the-counter drug. The woman sues the prescription drug maker for negligence.
How strong is the negligence case against the product manufacturer?
·       a.)
Weak, because the manufacturer can argue that the woman had contributory negligence that contributed to the damages.
·       b.)
Weak, because the manufacturer included a warning about the potential danger of mixing the drugs.
·       c.)
Strong, because the woman had privity of contract with the manufacturer.
·       d.)
Strong, because the prescription drug has a defective design that makes it unsafe, since it interacts with other drugs.
A laundry detergent company releases new, single use laundry detergent pods that are brightly colored, wrapped in plastic, and look like small candies. After several children ingest these laundry pods and require hospital care as a result, the parents sue for negligence, alleging that the product is defective.
How strong is the negligence case against the product manufacturer?
·       a.)
Strong, because the detergent company should be manufacturing laundry detergent that is safe for ingestion.
·       b.)
Weak, because the dangers of ingesting laundry detergent are obvious.
·       c.)
Weak, because proximate cause is difficult to establish.
·       d.)
Strong, because the detergent pods are designed in a way that make them unreasonably unsafe.
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A manufacturer of an electrically operated muscle relaxer that sends pulses of electrical current to the muscles sold this machine through Great Buy, a local retail distributor. Sherry purchased one of these machines but did not read the instruction booklet before her first use. The instruction booklet had appropriate warnings about the danger of having the intensity control up too high and counseled users to start out with the intensity on the lowest setting. Unfortunately, Sherry started the machine with the intensity turned up to its highest setting, causing violent convulsions of her arms and shoulders. Sherry suffered consequent injuries to her shoulder joints from the incident.
How strong of a case does Sherry have against the manufacturer for strict product liability?
·       a.)
Strong, because the machine clearly arrived in a defective condition if it was capable of injuring Sherry in such a manner.
·       b.)
Weak, because Sherry neglected to read the instruction booklet that would have warned her against using the machine with the intensity up too high.
·       c.)
Weak, because it will be difficult for Sherry to prove that the manufacturer engaged in negligent behavior.
·       d.)
Strong, because Great Buy is engaged in the business of selling and is therefore subject to Section 402A of the Restatement of Torts (Second).
A cologne manufacturer sold an alcohol-based cologne for men with a warning limited to the potential for the cologne to catch fire if poured onto a source of ignition. John purchased the cologne, applied it to his skin, and then immediately lit a cigarette. The cigarette ignited the cologne on his skin, resulting in significant burn injuries to his neck and shoulders.
How strong of a case does John have against the manufacturer for strict product liability?
·       a.)
Weak, because John assumed the risk of injury when he selected an alcohol-based cologne versus an oil-based one.
·       b.)
Strong, but only if John can prove that the container of cologne he purchased was defective because that particular bottle was more inflammable than normal.
·       c.)
Weak, because the company's warning was adequate to caution consumers about the dangers posed by exposing the cologne to any heat source.
·       d.)
Strong, because the company's warning did not include the potential to start a fire on the consumer’s skin from a cigarette, and it would be foreseeable that a consumer would light a cigarette after applying the cologne to his skin.
Mark purchased a treadmill sold by a large department store and manufactured by a third party. While Mark was using the treadmill, his 12-month-old infant crawled by and caught his hand in the rear part of the treadmill, causing injury to the infant's hand and arm. There were no warnings of this potential for injury in any of the treadmill's instructions.
How strong of a case does Mark have against the department store for strict product liability?
·       a.)
Strong, but only if Mark can prove that the treadmill is less safe in normal use than other treadmills on the market.
·       b.)
Strong, because the treadmill was unreasonably dangerous in normal use, and there was a failure to warn of the danger to infants who might be near the treadmill during operation.
·       c.)
Weak, because Section 402A of the Restatement of Torts (Second) limits liability to manufacturers, and not stores.
·       d.)
Weak, because the presence of infants and young children near the treadmill during operation is not a foreseeable risk.
Jose sued an auto manufacturer exclusively for strict product liability when a defect in his purchased automobile's electrical lines caused a fire, leading to a total loss of the vehicle. Jose did not suffer any personal injuries as a result of the incident. The auto manufacturer defended the claim of strict product liability on the basis that there were no personal injuries and the defect in the product only resulted in economic loss to Jose.
How does Jose's claim stand up to the manufacturer's defense?
·       a.)
Jose is likely to lose, because economic loss relating only to the product itself, as opposed to personal injuries, is not typically recoverable under strict product liability.
·       b.)
Jose is likely to lose, unless he can provide a reasonable alternative design to the product that would have prevented the fire.
·       c.)
Jose is likely to win, because economic loss is recoverable under strict product liability if a product is defective.
·       d.)
Jose is likely to win, because there is no indication that he was aware of the defect in the automobile's electrical lines and elected to drive it anyway.
A scaffold manufacturer was sued for strict product liability by Joe who, while working on a construction project, had his scaffold collapse and cause severe back injuries. The manufacturer defended on the basis of assumption of risk and was able to prove that Joe knew that the scaffold was mis-rigged and decided to use it despite this known fact.
How strong is the manufacturer's defense against Joe's claim?
·       a.)
Strong, because the risk of the manufacturer's scaffolding does not outweigh its utility.
·       b.)
Weak, because assumption of risk is rarely accepted as a defense to strict products liability claims, even if Joe knew the scaffold was mis-rigged and elected to use it anyway.
·       c.)
Weak, because the use of an improperly rigged scaffold is foreseeable and the manufacturer should have warned against it.
·       d.)
Strong, as Joe was quite aware that the scaffold was mis-rigged with a potential to collapse as a result and decided to use the mis-rigged scaffold with this knowledge.
A motorcycle manufacturer was sued by Jeff for strict product liability for serious leg injuries he incurred in a low speed motorcycle crash. The theory of recovery was that the product was defective for failure to have leg protection devices installed, making the product unreasonably dangerous. The manufacturer defended on the basis of assumption of risk, in that the danger of a motorcycle crash is obvious and foreseeable to the ordinary consumer, so Jeff assumed the risk of such a crash.
How strong is the manufacturer's defense against Jeff's claim?
·       a.)
Weak, because assumption of risk is not a recognized defense to strict products liability claims.
·       b.)
Strong, because Jeff suffered no economic loss from his injury.
·       c.)
Strong, because the dangers of a motorcycle crash are obvious to the ordinary consumer, and Jeff knew that there was no leg protection, making his legs vulnerable to injury.
·       d.)
Weak, because the utility of a motorcycle vastly outweighs its risks.