Chap031 - Chapter 031 : Product Liability Chapter 031 :...

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Chapter 031 : Product Liability Chapter 031 : Product Liability Student: ___________________________________________________________________________ 1. A breach of warranty lawsuit is based upon tort law. BT: Knowledge PO: 1 True False 2. Many purchasers or users of products, or even third parties, who sustain injury or property loss as a direct result of using the product file a civil lawsuit based not on tort law, but on contract law. BT: Knowledge PO: 1 True False 3. A product flaw is an abnormality or a condition that was not intended and that makes a product more dangerous than it would have been had it been as intended. BT: Knowledge PO: 2 True False 4. Manufacturers and sellers have a duty to advise purchasers and users of dangers inherent in a product. BT: Knowledge PO: 2 True False 5. In a product liability case, retailers, wholesalers, and manufacturers of component parts in the distribution channel cannot be liable for product related injury. BT: Knowledge PO: 3 True False
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6. In case of a strict liability it is often difficult for injured parties to prove negligence and the defenses of manufacturers are often very effective. BT: Knowledge PO: 4 True False 7. A consequence of strict liability is that companies are sometimes hesitant to introduce new or innovative products because of the fear of liability lawsuits. BT: Knowledge PO: 4 True False 8. Unreasonable risk of injury and death associated with consumer products cannot be achieved by governments' providing safety information to the public, or developing voluntary or mandatory standards. BT: Knowledge PO: 5 True False 9. The federal agency responsible for the safety of food and drugs sold in the United States is the Food and Drug Administration. BT: Knowledge PO: 6 True False 10. The process of FDA approval has come under some criticism in recent years, as concerns over the costs and length of time for obtaining approval of prescription drugs have emerged. BT: Knowledge PO: 6 True False 11. A pharmaceutical company earns most of its profits from the drug only during the time that the patent for the drug is effective. BT: Knowledge PO: 6 True False
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12. Advertising of drugs is legal, so long as detailed information about the drug being advertised is not disclosed. BT: Knowledge PO: 6 True False 13. The federal agency responsible for the safety of consumer products sold in the United States is the Consumer Product Safety Commission. BT: Knowledge PO: 7 True False 14. Federal law allows advertising of cigarettes and other tobacco products on the television and radio. BT: Knowledge PO: 8 True False 15. As the NHTSA does not administer to the safety of automobiles, the responsibility of controlling automobile emissions rests with the Environmental Protection Agency. BT: Knowledge
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Chap031 - Chapter 031 : Product Liability Chapter 031 :...

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