BUS 263 EXAM 2 VERIFIED STUDY GUIDE.
Personal Property - Answers - Items that you own that are moveable like cars, clothes,
or furniture
Real Property - Answers - Land and things attached to the land such as a house or
building. Like a house or land
Product Liability - Answers - a product defect causes injury or property damage to
consumers, users, or bystanders
Strict liability - Answers - liability is without regard to fault, foreseeability, standard of
care, or causation
Negligence - Answers - the failure to exercise the degree of care that a reasonable
person would have done under those circumstances
Privity of contract - Answers - the relationship that exists between the parties to a
contract. Only the parties to a contract can enforce that contract
Proximate Cause - Answers - must show that "but for" the defendant's action, the injury
wouldn't have occured
Risk Utility - Answers - to determine whether the risk of harm outweighs its use to the
user and to the public
Consumer-expectation test - Answers - does the product fail to perform in the manner
that would reasonably be expected by an ordinary consumer
Content of warnings - Answers - do the warnings adequately alert consumers to the
product's risks. Did the warning give us enough information to use the product safely.
Obvious risks - Answers - there is no reason to warn about risks that are obvious such
as a knife or a book of matches
Preemption - Answers - Government regulations take precedence over claims for
product liability, Examples include medical devices that have undergone extensive
approval process cannot be guilty of product misuse.
Assumption of risks - Answers - a defense where the plaintiff knew and appreciated the
danger created by the product or its defect and voluntarily went forward. Example;
failure to follow a product recall or follow instructions
Product Missuse - Answers - when a product is used for a purpose other than the one it
was intended for, only recognized if the use was unforeseeable, ex; sniffing lighter fluid
Personal Property - Answers - Items that you own that are moveable like cars, clothes,
or furniture
Real Property - Answers - Land and things attached to the land such as a house or
building. Like a house or land
Product Liability - Answers - a product defect causes injury or property damage to
consumers, users, or bystanders
Strict liability - Answers - liability is without regard to fault, foreseeability, standard of
care, or causation
Negligence - Answers - the failure to exercise the degree of care that a reasonable
person would have done under those circumstances
Privity of contract - Answers - the relationship that exists between the parties to a
contract. Only the parties to a contract can enforce that contract
Proximate Cause - Answers - must show that "but for" the defendant's action, the injury
wouldn't have occured
Risk Utility - Answers - to determine whether the risk of harm outweighs its use to the
user and to the public
Consumer-expectation test - Answers - does the product fail to perform in the manner
that would reasonably be expected by an ordinary consumer
Content of warnings - Answers - do the warnings adequately alert consumers to the
product's risks. Did the warning give us enough information to use the product safely.
Obvious risks - Answers - there is no reason to warn about risks that are obvious such
as a knife or a book of matches
Preemption - Answers - Government regulations take precedence over claims for
product liability, Examples include medical devices that have undergone extensive
approval process cannot be guilty of product misuse.
Assumption of risks - Answers - a defense where the plaintiff knew and appreciated the
danger created by the product or its defect and voluntarily went forward. Example;
failure to follow a product recall or follow instructions
Product Missuse - Answers - when a product is used for a purpose other than the one it
was intended for, only recognized if the use was unforeseeable, ex; sniffing lighter fluid
