MGMT 311 COMPLETE REVIEW 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉strict liability (nature os the case). Answer: the legal responsibility
for damage or injury even if you are not negligent
◉product liability. Answer: the legal liability of manufacturers,
sellers, and lessors of goods to consumers, users, and bystanders for
injuries or damages that are caused by the goods
◉abnormally dangerous activities. Answer: - involve a high degree
of risk of serious harm and are not matters of common usage
- even if reasonable care is taken by the defendant, they still have
responsibility to compensate those who were harmed bc of the risk
involved
◉abnormally dangerous actives include what?. Answer: - keeping
wild animals
- dangerous domesticated pets
◉2 applications to strict liability. Answer: 1. abnormally dangerous
activities
,2. product liability
◉product liability is a matter of social policy & based on these 2
factors. Answer: 1. manufacturer can bare the cost of injury bc it can
increase the price of its products
2. manufacturer is making profit from its products and should bare
the cost of injury as an operating expense
◉product liability based on 2 theories. Answer: 1. negligence
2. misrepresentation
◉negligence under product liability. Answer: manufacturer owes
due care to safely produce and distribute the product
◉due care must be exercised in what 6 areas. Answer: 1. designing
the product
2. selecting the materials
3. production process
4. assembly & testing
5. warning labels
6. inspecting/testing any purchased components of the product
, ◉privity of contract. Answer: the relationship that exists between
the promisor and the promisee of a contract
◉t/f: product liability doesn't require privity of contract. Answer: t
◉the plaintiff must have what to prove the defendant was negligent
in product liability?. Answer: - cause in fact
- proximate cause
◉liability of misrepresentation (fraud). Answer: - injury was a result
of sellers/manufacturers fraudulent misrepresentation
- must be material of fact
- seller intended to be misleading
◉strict liability. Answer: the legal responsibility for damage or
injury even if you are not negligent or privity of contract isn't
involved
◉strict liability is a matter of _________. Answer: public policy
◉public policy rests on what 3 assumptions?. Answer: 1. consumers
should be protected against unsafe products
2. manu should not escape liability bc there is no privity of contract
QUESTIONS WITH SOLUTIONS GRADED A+
◉strict liability (nature os the case). Answer: the legal responsibility
for damage or injury even if you are not negligent
◉product liability. Answer: the legal liability of manufacturers,
sellers, and lessors of goods to consumers, users, and bystanders for
injuries or damages that are caused by the goods
◉abnormally dangerous activities. Answer: - involve a high degree
of risk of serious harm and are not matters of common usage
- even if reasonable care is taken by the defendant, they still have
responsibility to compensate those who were harmed bc of the risk
involved
◉abnormally dangerous actives include what?. Answer: - keeping
wild animals
- dangerous domesticated pets
◉2 applications to strict liability. Answer: 1. abnormally dangerous
activities
,2. product liability
◉product liability is a matter of social policy & based on these 2
factors. Answer: 1. manufacturer can bare the cost of injury bc it can
increase the price of its products
2. manufacturer is making profit from its products and should bare
the cost of injury as an operating expense
◉product liability based on 2 theories. Answer: 1. negligence
2. misrepresentation
◉negligence under product liability. Answer: manufacturer owes
due care to safely produce and distribute the product
◉due care must be exercised in what 6 areas. Answer: 1. designing
the product
2. selecting the materials
3. production process
4. assembly & testing
5. warning labels
6. inspecting/testing any purchased components of the product
, ◉privity of contract. Answer: the relationship that exists between
the promisor and the promisee of a contract
◉t/f: product liability doesn't require privity of contract. Answer: t
◉the plaintiff must have what to prove the defendant was negligent
in product liability?. Answer: - cause in fact
- proximate cause
◉liability of misrepresentation (fraud). Answer: - injury was a result
of sellers/manufacturers fraudulent misrepresentation
- must be material of fact
- seller intended to be misleading
◉strict liability. Answer: the legal responsibility for damage or
injury even if you are not negligent or privity of contract isn't
involved
◉strict liability is a matter of _________. Answer: public policy
◉public policy rests on what 3 assumptions?. Answer: 1. consumers
should be protected against unsafe products
2. manu should not escape liability bc there is no privity of contract
