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City Slick, Inc. makes cosmetics. City Slick intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Dora buys a City Slick product and suffers an injury. City Slick is most likely liable for​


A) ​product misuse.
B) ​fraud.
C) ​privity.
D) ​puffery.

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

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The doctrine of strict liability can be applied to sellers of goods, but not distributors.​

A) True
B) False

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Grass Green Company makes and sells hedge trimmers, which are designed to be safe if used properly. Hazel buys a Grass Green trimmer and lends it to her neighbor Izak. In his garage, Izak is using the trimmer as a prod to dislodge a box from a high shelf when the trimmer suddenly engages. Startled, Izak drops the trimmer, which swings around and cuts his leg. Izak files a product liability suit against Grass Green, on the ground of negligence. On what basis could the manufacturer prevail?​

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A manufacturer or seller can prevail in ...

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The brakes on Ned's Overland truck malfunction, but he continues to drive it. Unable to slow down, he crashes through a guardrail and careens off the road. In Ned's suit against Overland, the truck maker can raise the defense of​


A) ​commonly known dangers.
B) ​assumption of risk.
C) ​inadequate warning.
D) ​product misuse.

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

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Some states limit the application of strict product liability to situations involving personal injuries.​

A) True
B) False

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Sea & Sail Corporation makes boats and boating supplies. Theresa files a product liability suit against Sea & Sail, alleging a design defect. In deciding whether to hold the boat maker liable, the court may consider an available alternative design based on the design's​


A) ​popularity among industrial designers.
B) ​attractiveness to consumers.
C) ​commonality of use.
D) ​effect on the product.

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

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One defense to product liability is to show that there is no basis for the plaintiff's claim.​

A) True
B) False

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Sail-Away Corporation makes sailboards, which are bought and distributed by Tropic Company to UV Sports Stores, Inc., which sells them to consumers. Wen is injured while using a Sail-Away board that he bought from UV Sports. In a product liability suit based on strict liability, Wen may recover from​


A) ​Sail-Away only.
B) ​Sail-Away, Tropic, or UV Sports.
C) ​UV Sports only.
D) ​none of the choices.

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

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Brandname Parts, Inc., makes and sells parts for the repair of major appliances. Clarice suffers a loss when a defective Brandname part in her freezer fails to keep the contents fresh. A statute restricts the time within which Clarice may file a product liability suit once she has discovered or should have discovered the damage. This is a statute of​


A) ​limitations.
B) ​preemption.
C) ​repose.
D) ​suspension.

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

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Fleet Feet Corporation makes athletic shoes. Gloria, a marathoner, files a product liability suit against Fleet Feet, alleging a design defect. In deciding whether to hold Fleet Feet liable, the court may consider an alternative design's​


A) ​popularity among industrial designers and consumers.
B) ​weight and heft.
C) ​aesthetics.
D) ​advantages and disadvantages.

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

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Global Insulation Company makes and sells fire-retardant building materials. To determine whether the risk of harm from the products as designed outweigh their utility to the users and the public, most courts would engage in​


A) ​a risk-utility analysis.
B) ​a consumer-expectations test.
C) ​a critical, statistical analysis.
D) ​a marketing test.

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

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Level Grade Engineering, Inc., sometimes uses explosives to prepare land for construction projects. Strict liability is imposed on this activity because​


A) ​Level Grade is a corporation.
B) ​the activity is inherently negligent.
C) ​the activity is extremely risky.
D) ​the amount of liability can be added to the costs of construction.

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

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