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1

Which best describes assumption of the risk in a negligence case?


The plaintiff was involved in an abnormally dangerous activity.
The plaintiff is more at fault than the defendant in causing the accident.
The plaintiff knowingly and willingly subjected herself to a risky activity.
The defendant gave advance warning to the plaintiff that an injury would occur.

2
In order to recover in a products liability case based on strict liability, the plaintiff must prove that the
product had ad defect that was caused by the defendant
ffected the value of the product
the defendant was aware of
made the product unreasonably dangerous
Correct
3
George, Jerry, and Harry are passengers on a flight from Chicago to New York. They injure their legs
when theirs eatbelts do not fasten during takeoff. The airline is sued by all three together for injuries
caused and the airline is found to be negligent and is directed by the court to pay damages to the
injured parties. Which of the following parties is entitled to recover maximum damages?
George, a retired professor who gets a pension of $50,000 a year
*Jerry, a professional football player who earns $2 million a year
All the men recover the same amount of damages, irrespective of their income or profession
Harry, a chartered accountant who earns $200,000 a year
Correct
4
Assuming that statutory requirements have been met, what is protected under merchant protection
statutes?
*Merchants are protected from false imprisonment claims of persons detained on suspicion of
shoplifting.
Merchants are protected from product disparagement claims of their competitors.
Merchants are protected from the intentional torts of their customers.
Merchants are protected from negligence claims on their business premises

5
How does product disparagement differ from defamation of a nonpublic figure?
Malicious intent is required for the defamation case, but not in the disparagement case
Publication to a third party is required in the defamation case, but not in the disparagement case
Malicious intent is required for a disparagement case, but is not required in the defamation case
Publication to a third party is required in the disparagement case, but not in the defamation case
Correct
6
Dorothy purchases a chair that was made by Woode Designs, Inc. While making the chair, the legs were
not fixed properly to the base. When Dorothy sits on the chair, it breaks and she is injured. In a strict
liability lawsuit, which of the following can Dorothy cite as a defect in the chair?
*Defect in manufacture
Failure to provide adequate instructions
Failure to warn
Defect in design
7
John Harley was on his way home when an assailant stopped his car and threatened to physically harm
him if he
ever saw him drive on that street again. John can sue the assailant to recover damages for
libel
assault
battery
disparagement
Correct
8
Which of the statements below best describes the concept of Enterprise Risk Management?
An approach that capitalizes on human intervention as processed through real change leaders
Management of a single function of an organization that, upon implementation and testing, is then
processed entity wide
A process affected by an entitys leaders, management, and other personnel that is designed to identify
potential events that may affect the entity, and to manage risk
*People, systems, and processes working together across the organizations to systematically thin about
and manage a wide range of risks that could impede achieving organizational objectives/opportunity
9
Which of the following is a key element of successful Enterprise Risk Management?
Strong investment strategies
Legal counsel
Nondisclosure agreements
*Management commitment
Correct
10
Which of the following is the best statement of the test applied in determining if a defendants actions
were the proximate cause of the plaintiffs injuries?
Was it foreseeable that the defendant was the cause of the plaintiffs injuries given the nature of those
injuries?
Was the injury foreseeable to the plaintiff prior to the injurys occurrence?
*Was it foreseeable that the defendants conduct would lead to the kind of injury that the plaintiff
suffered?
Was it foreseeable to the plaintiff that the defendant would engage in this conduct?
11
According to the doctrine of ________, the plaintiff is not required to prove that the defendant
breached a duty of care.
contributive negligence
*strict liability
assumption of risk
comparative negligence
12
A plaintiff wants to sue a defendant under the tort theory of negligence for his injuries, but the plaintiff
knows he was partially at fault for his own injuries. Which of the following is true?
*A state whose law applies contributory negligence will not allow the plaintiff to recover if the plaintiff
has any fault for his injuries
The plaintiff will have to elect whether to sue under comparative or contributory negligence.
If the plaintiff's fault is only 5 percent, his recovery will be the same under either pure or partial
comparative negligence.
Because the plaintiff is partly at fault, he will not be able to recover under either comparative or
contributory negligence.
13
Making false statements about a competitors products, services, property, or business reputation could
make a company liable for
*disparagement
tort of appropriation
misappropriation of the right to publicity
intentional misrepresentation
Correct
14
Mary was getting a ride home in Johns new car. On the way, a malfunctioning brake caused an accident
and both Mary and John were injured. Which of the following statements is true of this situation?
Mary can file a strict liability lawsuit against John.
Mary can file a negligence lawsuit against the dealership that sold John his car.
John can file a negligence lawsuit against the dealership from which he bought the car.
*Mary can recover damages for her injury under a theory of strict liability against the manufacturer of
Johns car.
15
Barties, Inc. sells watercolors and pastels that are marketed as safe for use by children. However,
several accounts of lead poisoning were reported in children who used the products. An investigation
revealed that the company was knowingly manufacturing colors that contained toxic amounts of the
heavy metal. Which of the following torts has Barties, Inc. committed?
Disparagement
*Intentional misrepresentation
Assault
Professional malpractice
Correct
16
Diane bought an action figure for her son David from Terrences Toy Shop. The packaging did not
mention that the toy contained small detachable parts. David accidentally swallowed and choked on one
of the detachable parts and had to be taken to the hospital. On which of the following product liability
charges can Diane sue Terrences Toy Shop for damages?
Misrepresentation
*Negligence
Fraud
Nuisance
Correct
20
Select the option which best completes this statement: Enterprise Risk Management is most effective
when it is a(n) _________ process.
informal
one-time
*ongoing
Static
Correct
19
Which of the following is a defect in manufacture?
Failure to properly design the product
Failure to include adequate instructions for the product
*Failure to properly test the product
Failure to properly package the product
18
The failure to design an automobile that will properly protect the occupants from a persons body
striking something inside their automobile is known as the
failure to design doctrine
quality control doctrine
*crashworthiness doctrine
defective design doctrine