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Managers and the Legal Environment
Quiz 10: Product-Liability
Path 4
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Question 41
Multiple Choice
A court might consider a product to be unreasonably dangerous if:
Question 42
Multiple Choice
In 1963,the state of __________ became the first state to adopt the __________ theory,after the state supreme court decided the Greenman v.Yuba Power Products case.
Question 43
Essay
Glade recently went to see an ophthalmologist for severe glaucoma.The doctor stated that Glade's vision was in danger and prescribed Seerite made by Drugco.Seerite was the newest and most promising treatment for glaucoma that exists.The product literature stated,"When used as directed,Seerite is 100% safe and effective for glaucoma." After reading this literature,Glade put it in the trash.Glade's examination of the pamphlet had overlooked a small statement on the back that read "Warning: In 2% of the population this product may produce uncontrollable weight gain." Three weeks after using Seerite,Glade had gained 50 pounds and continued to gain weight rapidly.Glade has stopped using Seerite but cannot lose the weight,which has created a separate health risk.Is Seerite a defectively designed drug? What defenses would be available to Drugco against this claim? Is there any other theory under strict product liability law that Glade may use to recover against Drugco? Discuss fully.
Question 44
Multiple Choice
Perhaps the most significant and controversial of the defenses to product liability is the preemption defense,according to which the Supreme Court explained in Mutual Pharmaceutical Co.v.Bartlett the Supremacy Clause makes federal law preemptive.Therefore,state laws:
Question 45
Multiple Choice
A __________ defect occurs when,even though the product is manufactured according to specifications,it is unreasonably dangerous to users.
Question 46
Essay
Explain what a manufacturer of products under contract to the government must show in order to avoid product liability based on the government-contractor defense along with the rationale for the government-contractor defense.
Question 47
Multiple Choice
The FDA requires that manufacturers provide full labeling in __________ for nonprescription drugs sold in the United States mainland.
Question 48
Multiple Choice
Although disclaimers of liability are generally ineffective,parties in the chain of distribution should enter into contracts that _____ for defects caused by other members of the distribution chain.
Question 49
Multiple Choice
A few years ago Bennie purchased some medication through a veterinarian for an aging pet iguana,Scales,who had a skin disease.Scales died a few months after beginning the medication.At the time of the death,Bennie thought that Scales had died of natural causes.Bennie later read in the newspaper that a number of reptilian-type animals had been harmed by the drug Scales ingested.Immediately Bennie talked to Scale's veterinarian who admitted the medication was most likely harmful to Scales,it was manufactured by a number of different manufacturers,and there is no way to determine the exact manufacturer of the medication given to Scales.Which of the following is Bennie's best chance at recovery?
Question 50
Multiple Choice
Courts examining the issue have reached varying results regarding whether computer software is a product subject to state product liability law.In which of the following situations have courts ruled it subject to liability law?