BUS 311 Week 5 Quiz Chapter 031

1. A breach of warranty lawsuit is based upon tort law.

BT: Knowledge

PO: 1

True False

1. 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

1. 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

1. Manufacturers and sellers have a duty to advise purchasers and users of dangers inherent in a product.

BT: Knowledge

PO: 2

True False

1. 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

1. 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

1. 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

1. 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

1. 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

1. 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

1. 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

1. Advertising of drugs is legal, so long as detailed information about the drug being advertised is not disclosed.

BT: Knowledge

PO: 6

True False

1. 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

1. Federal law allows advertising of cigarettes and other tobacco products on the television and radio.

BT: Knowledge

PO: 8

True False

1. 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

PO: 9

True False

1. The liability of a manufacturer or seller for injury to purchasers, users, and third parties is known as:

A. purchase liability.

B. customer care liability.

C. consumer liability.

D. product liability.

1. All of the following are the elements that a plaintiff must prove in order to be successful in establishing the defendant's negligence in a product liability lawsuit EXCEPT:

A. warranty.

B. breach.

C. duty.

D. damages.

1. In a product liability lawsuit, ____ is/are often difficult to prove because the plaintiff usually needs the opinions of expert witnesses who can evaluate whether the defendant negligently manufactured or sold the product.

A. damages

B. duty

C. breach

D. proximate cause

1. All of the following are the characteristics that become the bases of product liability claims against manufacturers and sellers, EXCEPT:

A. product flaw.

B. failure to warn.

C. guarantee.

D. design defect.

1. A fault in a product that creates a hazardous condition that causes injury is a:

A. malfunction.

B. design defect.

C. product flaw.

D. proximate cause.

1. In a product liability case, the most obvious target of an injured party is the:

A. manufacturer.

B. licensor.

C. purchaser.

D. dealer.

1. The ones who are particularly vulnerable when the product manufacturer is insolvent or is a corporation that has been dissolved or is unreachable are the:

A. designers.

B. managers.

C. purchasers.

D. retailers.

1. Under traditional tort law, the injured party must prove that the manufacturer was _____ in producing a product.

A. unauthorized

B. negligent

C. advertent

D. ignorant

1. Liability without the necessity of proving fault is a:

A. tortuous liability.

B. strict liability.

C. business liability.

D. vicarious liability.

1. In some states, strict liability applies only to products that:

A. are inherently dangerous.

B. have design defects.

C. have product flaws.

D. are degenerated.

1. Despite the advent of strict liability, there is considerable activity to curb abuses of the system in various state legislatures with a view toward:

A. manufacture reform.

B. liability reform.

C. tort reform.

D. product reform.

1. The federal and state governments enact numerous statutes and rules to reduce unreasonable risk of injury and death associated with:

A. safety products.

B. manufacturer products.

C. retailer products.

D. consumer products.

1. To promote safety for consumers and users of products, some of the _____ are in effect.

A. constitutional laws

B. state statutes

C. federal statutes

D. legal reforms

1. The Food and Drug Administration (FDA) requires that all drugs sold be thoroughly tested to ensure that they are both safe and effective. The pharmaceutical companies subject drugs to _____ of testing.

A. two phases

B. four phases

C. five phases

D. six phases

1. During the testing of drugs, the Phase in which a small number of people are tested to determine safety and dosage, and to identify side effects that result from taking the drug, is:

A. Phase I.

B. Phase II.

C. Phase III.

D. Phase IV.

1. During the testing of drugs, the Phase in which the safety and effectiveness of the drug are evaluated in trials involving a great number of people is:

A. Phase I.

B. Phase IV.

C. Phase II.

D. Phase III.

1. For a drug to be approved, it is estimated that it costs a pharmaceutical company approximately:

A. $400 million.

B. $500 million.

C. $600 million.

D. $700 million.

1. A pharmaceutical company earns most of its profits from the drug only at the time during which the drug is effective and it is:

A. patented.

B. registered as a trade mark.

C. licensed as a copyright.

D. reasonably priced.

1. After the patent expires, other companies may produce alternative versions of the drug, referred to as:

A. embargoes.

B. placebos.

C. generics.

D. superfunds.

1. Hazardous household cleaners and substances are consumer products that have restrictions imposed on them that are regulated by the:

A. Food and Drug Administration Commission.

B. Consumer Product Safety Commission.

C. Federal Administrative Commission.

D. Federal Trade Commission.

1. Consumer products with restrictions imposed on them include the following, EXCEPT:

A. services.

B. paint.

C. children's toys.

D. radiation-emitting products.

1. In a Master Settlement Agreement, the companies agree not to engage in:

A. advertising strategies.

B. consumer product safety strategies.

C. federal administrative strategies

D. producing strategies.

1. Numerous federal and state statutes strictly regulate cigarettes and other tobacco products. Federal law disallows _____ of these products on television and radio.

A. usage

B. selling

C. advertising

D. licensing

1. In 1997, the major cigarette manufacturers in the United States entered into a contract, which was referred to as the:

A. Vicarious Liability Agreement.

B. Master Settlement Agreement.

C. Consumer Product Safety Agreement.

D. Federal Administrative Agreement.

1. The federal agency responsible for the safety of automobiles sold in the United States is the:

A. Food and Drug Administration Commission.

B. Consumer Product Safety Commission.

C. Federal Administrative Commission.

D. National Highway Traffic Safety Administration.