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1. “Big Red” is a popular car. The dash board is covered with little steel studs. In an accident, Betty, sitting next to her boyfriend and not wearing a seat belt, smashes her face on the dash board. The steel studs make the injuries worse. Her boyfriend is at fault in the accident. Betty sues the maker of “Big Red” for injuries. She is likely to:

a. win; the manufacturer did not exercise reasonable care to prevent foreseeable dangers

b. win; car producers are held strictly liable for injuries suffered by accident victims

c. lose; assumption of the risk in being in a car

d. lose; assumption of risk by not wearing a seat belt

e. lose; auto makers are not responsible for injuries incurred in accidents that are the fault of a driver

2. Risk-utility balancing refers to the fact that:

a. some products cannot be made completely safe

b. all products can be made safe if manufacturers are willing to spend enough money

c. some products are inherently dangerous and should be banned from the market

d. consumers will always manage to hurt themselves by improperly using products

e. manufacturers must disclose all risks to using their product before putting it on the market

3. Liability based on ______________ may be imposed on a manufacturer if a causal connection can be established between the failure of the manufacturer to exercise reasonable care and an injury suffered by a consumer.

a. stare decisis

b. intentional tort

c. negligence

d. neglect

e. failure to inform

4. The ___________________ is primarily concerned with harms suffered by buyers and other persons who use defective products.

a. law of stock protection

b. law of product liability

c. law of seller liability

d. law of commercial liability

e. law of malpractice liability

5. Fraud, misrepresentation, fraudulent misrepresentation and deceit are all examples of torts caused by:

a. deliberate deception

b. accidental deception

c. intentional battery

d. premeditated harm

e. tax evasion

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91885004

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