Assumption of risk can be raised as a defense in a product liability suit.
a. True
b. False
Answer: A
Business Law
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- Pam states, on her application to Quality Insurance, Inc. for a life insurance policy, that she has not been hospitalized briefly. One year later, Pam dies from a cause unrelated to the earlier hospitalization. Quality denies payment. If Pam's beneficiary sues Quality, the beneficiary will
- Tom buys a house and obtains from Union Insurance Company a fire insurance policy on the property. If fire destroys the house, to collect payment under the policy, Tom's insurable interest
- Kirby is an executive with DigiCom, Inc. Because his death would cause a financial loss to the firm, it insures his life. Later, he resigns to work for a competitor, E-Tech Corporation. Six months later, Kirby dies. Regarding payment for the loss, DigiCom can
- Ollie applied to ProRata Insurance Company for a fire insurance policy for his warehouse. To obtain a lower premium, he misrepresents the age of the property. The policy is granted. After the ware is destroyed by fire, ProRata learns the true facts. ProRata can
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- Myra gives Noel the impression that Opal is Myra's agent, when in fact she is not. Noel deals with Opal as Myra's agent. Regarding any agency relationship, Myra
- Estimable Finance Company hires Flotilda, who holds herself out as possessing special accounting skills, to act as its agent. As an agent, Flotilda must use the degree of skill or care expected of
- Gifford, a salesperson at Hubris Electronics store, tells Irma, a customer, "Buy your home theatre system here, and I'll set it up for less than what Hubris would charge." Irma buys the system, Gifford sets it up, and Irma pays Gifford, who keeps the money. Gifford has breached the duty of
- Sympatico Symphonic Instruments, Inc., and Rudy wish to enter into an agency relationship for the purpose of buying musical instruments for Sympatico's inventory. This relationship requires
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- Stetson asks Toni, a real estate broker, to sell his land. Toni learns that Rancho Grande LLC is willing to pay a high price for the land. Instead, however, Stetson sells the land to United Cattle Corporation. Toni sues Stetson. Toni will
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- NY Cupcakes, Inc. (NYC), tells Milena, whose business is purchasing for others, to select and buy $2,000 worth of fresh fruit as directed, keeping an account for the expense in NYC's name. NYC and Milena
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- Shirley borrows $100,000 from Ridgetop Credit Union to buy a home, which secures the loan. Three years into the term, she stops making payments on it. Ridgetop repossesses and auctions off the property to Toby. The sale proceeds are not enough to cover the unpaid amount of the loan. In most states, Ridgetop can ask a court for
- Duke borrows $150,000 from Community Bank to buy a home. If he fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan. This is
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