Chapters 13 & 15 Examination

True/False
Indicate whether the sentence or statement is true or false.

____	1.	A plaintiff can succeed in a suit for negligence against a manufacturer even if the plaintiff did not buy the defective good from the manufacturer.

____	2.	A manufacturer’s duty of care does not extend to the inspection and testing of products bought to incorporate in the final product.

____	3.	A contractor who makes improvements to real property, but who is not paid for the work, may place a mechanic’s lien on the property.

____	4.	A writ of attachment is a court order to seize a debtor’s property before the entry of a final judgment in a creditor’s lawsuit against the debtor.

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.

____	5.	Abnormally dangerous activities that could result in liability under the doctrine of strict liability include
a.	keeping a lion at a zoo only.	
b.	storing household cleaners in one’s garage only.	
c.	using dynamite on one’s land only.	
d.	all of the above.	

____	6.	Ace Earth Movers, Inc., uses dynamite to prepare land for highway projects. Strict liability is imposed on this activity because
a.	Ace is a corporation.	
b.	the activity is inherently negligent.	
c.	the activity is of a dangerous nature.	
d.	the government pays for highway construction.	

____	7.	AAN Appliances, Inc., makes portable heaters. To satisfy its liability for injuries to consumers harmed by defective AAN heaters, AAN can pass the costs on to
a.	consumers in the form of higher prices.	
b.	other manufacturers of heaters on a theory of market share liability.	
c.	suppliers in the form of “reverse kickbacks.”	
d.	the government in the form of direct payments.	

Fact Pattern 15-1
Ruth hires Standard Carpenters, Inc., to build a fence around her property. When the fence is finished, Ruth does not pay Standard Carpenters for the work.

____	8.	Refer to Fact Pattern 15-1. To collect the debt, Standard Carpenters may place on Ruth’s property
a.	a judicial lien.	
b.	a mechanic’s lien.	
c.	an artisan’s lien.	
d.	an innkeeper’s lien.	

____	9.	Mark is a trustee for a federal bankruptcy court. Mark’s duties include
a.	collecting a debtor’s property.	
b.	establishing an order of priority for the payment of unsecured creditors.	
c.	submitting to an examination under oath by the creditors.	
d.	all of the above.	

____	10.	Jack files a bankruptcy petition under Chapter 7. Among his debts are alimony owed to Kay, his ex-wife, and money borrowed from Loans, Inc., to pay taxes. Debts most likely to be discharged include claims for
a.	alimony only.	
b.	money borrowed to pay taxes only.	
c.	alimony and money borrowed to pay taxes.	
d.	none of the above.	

Chapters 13 & 15 Examination
Answer Section

TRUE/FALSE

	1.	ANS:	T	REF:	300	OBJ:	TYPE: +

	2.	ANS:	F	REF:	300	OBJ:	TYPE: N

	3.	ANS:	T	REF:	337	OBJ:	TYPE: =

	4.	ANS:	T	REF:	339	OBJ:	TYPE: +

MULTIPLE CHOICE

	5.	ANS:	C	REF:	299	OBJ:	TYPE: N

	6.	ANS:	C	REF:	299	OBJ:	TYPE: =

	7.	ANS:	A	REF:	302	OBJ:	TYPE: =

	8.	ANS:	B	REF:	337	OBJ:	TYPE: +

	9.	ANS:	A	REF:	352	OBJ:	TYPE: =

	10.	ANS:	D	REF:	355	OBJ:	TYPE: =