Title: Liability, Negligence and Fraud
Course: Demo 1

Q: Negligence, or carelessness, can be claimed if:
- the manufacturer fails to warn the consumer of risks.
- the design of the product is flawed, creating risk.
- a product does not meet legal standards.
A: the manufacturer fails to warn the consumer of risks.; the design of the product is flawed, creating risk.; a product does not meet legal standards.

Q: In cases of strict liability:
- a manufacturer’s responsibility ends when it delivers its product to a reseller.
- a manufacturer’s responsibility ends if a product becomes defective after it is sold.
- the law provides some form of constant protection to consumers.
A: the law provides some form of constant protection to consumers.

Q: Many products contain a warning that reads, “Choking hazard, small parts, not for use by children under three-years old.” Such warnings are focused on avoiding cases of:
- warranty.
- strict liability.
- negligence.
A: negligence.

Q: Most medicine packaging includes a warning that reads, "Do not operate heavy machinery while using this medication." Such warnings are focused on avoiding cases of:
- warranty.
- strict liability.
- negligence.
A: negligence.

Q: Negligence per se occurs specifically in cases where:
- the manufacturer fails to warn the consumer of risks.
- the design of the product is flawed, creating risk.
- a product does not meet legal standards.
A: a product does not meet legal standards.

Q: Which of the following must be proven in a case of negligence between a manufacturer and a consumer?
- The manufacturer owes the consumer a duty of care.
- The manufacturer breached the duty of care.
- The consumer’s action caused the injury.
A: The manufacturer owes the consumer a duty of care.; The manufacturer breached the duty of care.

Q: Strict liability:
- encourages companies to anticipate and prevent dangerous product uses.
- requires proof of negligence on the part of the manufacturer or seller.
- acknowledges that some products are inherently dangerous.
A: acknowledges that some products are inherently dangerous.

Q: The idea that some products are inherently dangerous is acknowledged by the:
- legal concept of negligence
- implied warranty of merchantability
- legal concept of strict liability
A: legal concept of strict liability

Q: If the wholesaler and retailer both exercise due care, which of the following parties can be held liable in a negligence suit about a defective product?
- the wholesaler
- the retailer
- the manufacturer
A: the manufacturer

Q: In a strict liability suit against a manufacturer, which of the following parties can be held liable?
- The wholesaler regardless of whether she is negligent
- The retailer regardless of whether she is negligent
- Neither of these parties
A: The wholesaler regardless of whether she is negligent; The retailer regardless of whether she is negligent