Indicate whether each of the following statements is true or false by writing T or F in the answer column.
1. Both breach of warranty and product liability lawsuits are based on tort law rather than contract law. 1. ___________
2. The four elements of a product liability lawsuit are duty, breach, proximate cause, and damages. 2. ___________
3. A design defect is a hazardous condition that exists throughout an entire product line. 3. ___________
4. An alteration that a buyer makes in a product is known as a product l aw. 4. ___________
5. Manufacturers and retailers have a duty to warn users of dangerous or hazardous characteristics of products. 5. ___________
6. Only manufacturers can be held liable in product liability lawsuits. 6. ___________
7. The manufacturer is in a better position than the user of a product to prevent injuries because the company has the opportunity to design safe products. 7. ___________
8. One consequence of strict liability is that companies are sometimes hesitant to introduce new or innovative products because of the fear of liability lawsuits. 8. ___________
9. In Phase II of the drug- testing process, the effectiveness of the drug is measured by comparing subjects who receive the drug to those who receive a placebo. 9. ___________
10. It is perfectly safe to purchase prescription drugs over the Internet. 10. ___________
11. Advertising of drugs is legal, so long as detailed information about the drug being advertised is disclosed. 11. ___________
12. The Consumer Product Safety Commission regularly conducts tests of consumer products sold in the United States. 12. ___________
13. Under the terms of the Master Settlement Agreement, cigarette packages must contain a warning from the surgeon general regarding the dangers of smoking. 13. ___________
14. The National Highway Traffic Safety Administration has the responsibility of controlling automobile emissions. 14. ___________