LAW 3220 FINAL EXAM Toussaint (Ch
2,7,10,14) Questions With Well
Elaborated Solutions| Graded A+|
7 Conditions of Fraud - ANSWER -1. Misstatement of important material or fact
2. Scienter or intent to defraud
3. Person knows or has reason to to know statement being made is false
4. Recipient of false info justifiability relies on the info and makes a decision to
enter into the deal
5. Privity between the parties
6. Proximate Cause
7. Damages
Interference with Contractual Relations - ANSWER -Breaking the contract
benefits a 3rd party
5 conditions of contractual interference (3rd party) - ANSWER -1. Existence of a
contractual relationship
2. 3rd party knows about the contract
3. 3rd party intentionally interferes with the contractual relationship
4. Absence of justification for the interference
5. Damages because of the interference
Interference with Prospect Advantage - ANSWER -one party makes it
difficult/impossible for another party to continue in some/all business dealings
(predatory behavior not merely competitive)
Product liability involves what two types of law - ANSWER -contract and
statutory
Privity of Contract Requirement - ANSWER -a contractual relationship with the
manufacturer was needed
, Strict Liability Under Contract - ANSWER -- Implied Warranty of safety and of
merchantability
- Express Warranty at law (whether the manufacturer wants warranty or not)
3 elements to product liability - ANSWER -1) product departing from intended
design
2) foreseeable risk of harm could be reduced or avoided by alternative design
3) harm could have been reduced by reasonable instructions or warnings
Failure to warn - ANSWER -failure by manufacturers to warn of dangers in using
a product
Unknown Hazards & Examples - ANSWER -dangers not known at the time of
products manufacture (not learned for many years / testing)
examples: asbestos, IUD's
Joint and Several Liability - ANSWER -any of the defendant (manufactures) may
be held responsible for a certain amount or all of the damages
Defenses in Product Liability - ANSWER -- product misuse or abuse
- assumption of risk (alc, tobacco)
- sophisticated user defense / bulk supplier doctrine
ultrahazardous activity - ANSWER -abnormally dangerous activity, common law
rules developed about uncommon activities where utmost care is needed
Contract Law - ANSWER -provides mechanism to deal with others
Freedom of Contract - ANSWER -there are responsibilities to those who create
binding relationships
Common Law - ANSWER -judge-made law, each state differs, there is
uniformity about general contract principles that run throughout most state's laws
Lex Mercatoria - ANSWER -The Law Merchant
2,7,10,14) Questions With Well
Elaborated Solutions| Graded A+|
7 Conditions of Fraud - ANSWER -1. Misstatement of important material or fact
2. Scienter or intent to defraud
3. Person knows or has reason to to know statement being made is false
4. Recipient of false info justifiability relies on the info and makes a decision to
enter into the deal
5. Privity between the parties
6. Proximate Cause
7. Damages
Interference with Contractual Relations - ANSWER -Breaking the contract
benefits a 3rd party
5 conditions of contractual interference (3rd party) - ANSWER -1. Existence of a
contractual relationship
2. 3rd party knows about the contract
3. 3rd party intentionally interferes with the contractual relationship
4. Absence of justification for the interference
5. Damages because of the interference
Interference with Prospect Advantage - ANSWER -one party makes it
difficult/impossible for another party to continue in some/all business dealings
(predatory behavior not merely competitive)
Product liability involves what two types of law - ANSWER -contract and
statutory
Privity of Contract Requirement - ANSWER -a contractual relationship with the
manufacturer was needed
, Strict Liability Under Contract - ANSWER -- Implied Warranty of safety and of
merchantability
- Express Warranty at law (whether the manufacturer wants warranty or not)
3 elements to product liability - ANSWER -1) product departing from intended
design
2) foreseeable risk of harm could be reduced or avoided by alternative design
3) harm could have been reduced by reasonable instructions or warnings
Failure to warn - ANSWER -failure by manufacturers to warn of dangers in using
a product
Unknown Hazards & Examples - ANSWER -dangers not known at the time of
products manufacture (not learned for many years / testing)
examples: asbestos, IUD's
Joint and Several Liability - ANSWER -any of the defendant (manufactures) may
be held responsible for a certain amount or all of the damages
Defenses in Product Liability - ANSWER -- product misuse or abuse
- assumption of risk (alc, tobacco)
- sophisticated user defense / bulk supplier doctrine
ultrahazardous activity - ANSWER -abnormally dangerous activity, common law
rules developed about uncommon activities where utmost care is needed
Contract Law - ANSWER -provides mechanism to deal with others
Freedom of Contract - ANSWER -there are responsibilities to those who create
binding relationships
Common Law - ANSWER -judge-made law, each state differs, there is
uniformity about general contract principles that run throughout most state's laws
Lex Mercatoria - ANSWER -The Law Merchant
