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Business Law Exam 1B
West's Business Law
134
Law
Undergraduate 4
10/08/2007

Additional Law Flashcards

 


 

Cards

Term
Interference with Business Relationship
Definition
: Interference with a prospective business relationship is also actionable, where:

(1) While no contract or other business relationship presently exists between X and Y, Z knows or has reason to believe that X and Y might enter into a business relationship, by contract or otherwise; and

(2) Z intentionally interferes with X’s attempt to establish a business relationship with Y.
Term
Trespass to Land
Definition
: Entry onto, above, or below the surface of land without the owner’s permission or legal authorization
Term
“Attractive Nuisance”
Definition
A landowner may be liable for injuries to children enticed to enter the property by, e.g., a swimming pool or an abandoned building.
Term
Defense to Trespass
Definition
Trespass may be justified or excused if the trespasser can prove

 Necessity: she was trying to rescue another or save another’s life or property, or

 License: she was invited, and entered before the owner revoked the license.
Term
Trespass to Personal Property:
Definition
Taking or harming another’s personal property, in such a way as to interfere with the other person’s right to exclusive possession of his personal property, without the owner’s permission or legal authorization.
Term
Conversion
Definition
Taking, using, selling, or retaining possession of personal property that belongs to another without the other’s permission or legal authorization.

 Conversion assumes that the purported owner has a superior right of possession.

 Conversion may be excused by necessity.
Term
Disparagement of Quality
Definition
The publication, whether written (trade libel) or oral (slander of quality), of false information about the quality of another’s product or services, proximately causing financial loss to the disparaged party.
Term
Disparagement of Title
Definition
The publication, whether written or oral, of a statement that denies or casts doubt upon another’s legal ownership of any property, resulting in financial loss to the disparaged party.
Term
Online Defamation
Definition
An online message attacking another person or entity in harsh, often personal, and possibly defamatory, terms. Online defamation is difficult to combat because:
Term
Spam
Definition
Bulk, unsolicited e-mail or newsgroup postings – usually an advertisement for the “spammer’s” product or service sent to all users on an e-mailing list or newsgroup.
Term
Negligence
Definition
Failing to exercise the standard of care that a reasonable person would exercise in similar circumstances.
Term
Actionable negligence
Definition
requires that:

(1) the tortfeasor owed the plaintiff a duty of care,

(2) which the tortfeasor breached,

(3) actually causing the plaintiff

(4) a legally recognizable injury.
Term
Duty of Care
Definition
The duty of all persons to exercise reasonable care in their dealings with others.
Term
Reasonable Care
Definition
The degree of care expected of a hypothetical “reasonable person”; not necessarily how a reasonable person would act, rather how a reasonable person should act.
Term
reasonable person
Definition
(1) attentive,
(2) aware of his or her environs,
(3) careful,
(4) conscientious,
(5) even tempered, and
(6) honest.
Term
Duties of Landowners
Definition
Landowners are expected to exercise reasonable care to protect from harm those persons coming onto their property – even trespassers.
Term
Business Invitees
Definition
Retailers and other business that explicitly or implicitly invite persons to come onto their premises are expected to exercise reasonable care toward these business invitees.
Term
Duties of Professionals
Definition
If an individual has knowledge, skill, or expertise superior to that of the ordinary person, the individual is held to that standard of care expected of a reasonable person with the same or similar knowledge, skill, or expertise. Failure to perform up to the standard of a “reasonable professional” can result in the professional being subject to liability for professional malpractice.
Term
Compensatory Damages
Definition
designed to reimburse the plaintiff for the actual value of the plaintiff’s injury or loss, and
Term
Punitive Damages
Definition
designed to punish the tortfeasor for particularly egregious conduct and to deter similar conduct in the future.
Term
Causation in Fact
Definition
An act or omission without which the plaintiff’s injury would not have occurred.
Term
Proximate Cause
Definition
Exists when the connection between an act and an injury is direct enough to impose liability.
Term
foreseeability
Definition
if the consequence of the act or omission or the victim who is harmed by the act or omission is unforeseeable, no proximate cause exists.
Term
Res Ipsa Loquitur
Definition
A doctrine under which negligence may be inferred to have caused an injury or loss if the event resulting in the injury or loss would not occur in the absence of negligence.
Term
Superseding Cause
Definition
The connection between the wrongful act or omission and the injury suffered may be broken by the occurrence of another act or omission, not caused by the alleged tortfeasor nor subject to the alleged tortfeasor’s control, which supersedes the original wrongful act or omission as the cause of plaintiff’s injury or loss.
Term
Assumption of Risk
Definition
A plaintiff who voluntarily enters a risky situation, knowing the risk involved, may not recover from the alleged tortfeasor.
Term
Contributory Negligence:
Definition
No matter how insignificant the plaintiff’s own negligence is when compared to that of the defendant, in a minority of jurisdictions any negligence on the part of the plaintiff that contributed in any way to the injury of which plaintiff complains will bar the plaintiff from recovering damages from defendant.
Term
Comparative Negligence
Definition
More popular today than contributory negligence, a comparative negligence scheme permits plaintiff to recover only for the percentage of his or her injury or loss that was not caused by plaintiff’s own negligence.
Term
“50% Caps
Definition
Some jurisdictions further refuse to permit a negligent plaintiff from recovering any damages if the plaintiff is responsible for more than 50% of his or her own injury or loss.
Term
Negligence Per Se
Definition
An act or omission in violation of a statutory duty or obligation. Negligence per se often arises where the tortfeasor both violates a criminal statute or ordinance and causes injury to another party.
Term
The “Danger Invites Rescue” Doctrine
Definition
In cases where an individual takes foreseeable action to avoid harm or to rescue another from harm, any injury her action causes will be attributable to the original wrongdoer whose fault or negligence caused her to take the defensive action.
Term
“Good Samaritan” Statutes
Definition
Many states have passed legislation preventing those who are aided voluntarily from then suing the person who rendered the assistance.
Term
“Dram Shop” Liability
Definition
Many jurisdictions hold that a business, and in some jurisdictions an individual, that served alcoholic beverages to a person after he or she arrived intoxicated or became intoxicated is liable for any injuries caused by the intoxicated patron or guest.
Term
Strict Liability
Definition
Liability regardless of fault. Among others, defendants whose activities are abnormally dangerous or involve dangerous animals are strictly liable for any harm caused.
Term
Abnormally Dangerous Activities
Definition
Some activities are so inherently dangerous that they give rise to liability without regard to fault
Term
Animals Strict Liability
Definition
A person who keeps a wild animal is strictly liable for any harm the animal inflicts; whereas, the owner of a domestic animal is only strictly liable if she knew or should have known that the animal was dangerous or had the propensity to harm others.
Term
Crime
Definition
A wrong against society, defined in a statute and punishable by fines, imprisonment, or – in rare cases – death.
Term
Felony
Definition
A crime – such as murder, rape, or robbery – that carries the most severe sanction, ranging from one or more year(s) in prison to forfeiture of one’s life.
Term
Misdemeanor
Definition
A lesser crime – such as disorderly conduct, trespass, or petty theft – punishable by a fine or imprisonment for up to one year.
Term
Petty Offense
Definition
: A subset of misdemeanor, comprised of the least serious criminal offenses, such as traffic violations and jaywalking.
Term
Requisites for Criminal Liability
Definition
performed some prohibited act (or failed to perform some legally required act)

(2) with a specified state of mind or intent.

 Absent the requisite mens rea, which varies from crime to crime, there can be no criminal liability, even for what seem to be the most heinous acts.
Term
Burden of Proof
Definition
Because criminal liability carries harsher penalties than civil liability, and because the State has many more resources at its disposal in prosecuting a crime than the typical criminal defendant has at her disposal, the State must prove the alleged criminal’s guilt of the crime beyond a reasonable doubt.
Term
preponderance of the evidence
Definition
that it is more likely than not that the defendant’s acts or omissions caused the civil wrong
Term
CORPORATE CRIMINAL LIABILITY
Definition
(1) an agent or employee of the corporation (a) commits a criminal act within the scope of her employment and (b) the criminal act violates a statute whose purpose is to impose liability on the corporation; or

(2) the crime consists of a failure to perform a specific duty imposed on the corporation by law; or

(3) the crime was authorized, requested, commanded, committed, or recklessly tolerated by a “high managerial agent.”
Term
corporate officer liability
Definition
(1) her own criminal acts, regardless of whether she committed them for her own benefit or the benefit of the corporation, as well as

(2) crimes committed by those under her supervision.
Term
Robbery
Definition
Forcefully and unlawfully taking personal property of any value from another; force or threat of force is typically required for an act of theft to be treated as robbery.
Term
Aggravated Robbery
Definition
robbery with the use of a deadly weapon – is the most serious form of theft.
Term
Burglary
Definition
Unlawful entry into a building with the intent to commit a felony (or, in some states, the intent merely to commit any crime).
Term
Aggravated Burglary
Definition
occurs when a deadly weapon is used or when the building entered is a dwelling.
Term
Larceny
Definition
Wrongfully taking and carrying away another person’s personal property with the intent to permanently deprive the owner of the property.
Term
Arson
Definition
Willfully and maliciously burning a building (and, in some states, personal property) owned by another.
Term
Arson for Profit
Definition
Every state has a special statute that prohibits burning one’s own building or other property in order to collect insurance benefits on the property.
Term
Receiving Stolen Goods
Definition
Not only is theft a crime (e.g., robbery, burglary, larceny), it is also a crime to receive goods one knows or has reason to know are stolen.
Term
Forgery
Definition
Fraudulently making or altering a writing (e.g., a check) in a way that changes the legal rights or obligations of another.
Term
False Pretenses
Definition
: Obtaining goods by deceiving the person from whom they are obtained (e.g., writing a check knowing there are insufficient funds to cover it, buying goods using someone else’s credit card number without authorization).
Term
Embezzlement
Definition
Fraudulent appropriation of money or other property by a person to whom the handling of the money or property has been entrusted.
Term
Mail Fraud
Definition
It is a federal crime to

(1) mail or cause someone to mail something written, printed, or photocopied in furtherance of

(2) a scheme to defraud by false pretenses.
Term
Wire Fraud
Definition
It is also a federal crime to defraud the public through the use of telephone, fax, radio, or television.
Term
Bribery
Definition
Unlawfully offering, giving, receiving, or soliciting money or other thing of value in order to influence a public decision or action or to gain a personal or business advantage.
Term
Bankruptcy Fraud
Definition
Knowingly attempting to evade the effect of rights and responsibilities arising under federal bankruptcy law.
Term
Insider Trading
Definition
The purchase or sale of publicly-traded securities on the basis of information that has not been made available to the public (i.e., inside information) in violation of a duty owed to the company whose stock is being traded.
Term
Theft of Trade Secrets
Definition
The Economic Espionage Act of 1996 makes theft of trade secrets, as well as knowingly buying or possessing another’s trade secrets without the other’s authorization, a federal crime.
Term
Money Laundering
Definition
Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise.
Term
RICO
Definition
It is a federal crime to

(1) use any income obtained from racketeering activity to purchase any interest in an enterprise,

(2) acquire or maintain an interest in an enterprise through racketeering activity,

(3) conduct or participate in the affairs of an enterprise through racketeering activity, or

(4) conspire to do any of the foregoing.
Term
Infancy/Insanity/Lack of Capacity
Definition
Because of youth, mental illness, or lack of mental capacity, the accused was unable to form the requisite mental state.
Term
Involuntary Intoxication
Definition
The accused was forced to ingest, or was unaware that she was ingesting, drugs or alcohol which rendered the accused incapable of forming the requisite mental state or realizing the consequences of her actions.
Term
Mistake
Definition
While it is true that “[i]gnorance of the law is no excuse,” courts have recognized that mistake of law is a valid defense if

(1) the law at issue is not published or otherwise made reasonably known to the public, or

(2) the accused relied upon an official statement of the law that was incorrect.
Term
Consent
Definition
Voluntary agreement to a proposition or an act of another. Consent is a defense to the extent that it cancels the harm that the law is designed to prevent.
Term
Duress
Definition
Unlawful pressure brought to bear on the accused, causing him or her to perform an act that she would not have performed otherwise. A defendant claiming duress must prove that

(1) she or another was threatened with serious bodily harm or death,

(2) the harm threatened was greater than the harm caused by her crime,

(3) the threat was immediate and inescapable, and

(4) she was put into the situation giving rise to the threat through no fault of her own.
Term
Justifiable Use of Force/Self-Defense
Definition
The privilege to take reasonably necessary steps to protect one’s self, another person, or one’s property against injury by a third party.
Term
Necessity
Definition
The accused claims that the criminal act he committed was necessary in order to prevent or avoid a greater wrong.
Term
Entrapment
Definition
The accused claims that she was induced by a public official – typically an undercover officer – to commit a crime that she would not otherwise have committed.

 Entrapment generally requires that the public official both suggest the wrongful act and then induce the accused to commit it. It is not improper for police to set a trap for the unwary, but it is improper to push the accused into the trap if she was not predisposed to committing the crime absent the entrapment.
Term
Statute of Limitations
Definition
Most criminal prosecutions (murder is generally an exception) must be brought within a specified period of years after the crime.
Term
Immunity
Definition
In cases in which the state wishes to obtain information from a person accused of a crime, the state can grant immunity from prosecution or agree to prosecute only for a less serious offense in exchange for that information.
Term
RIGHTS OF THE ACCUSED
Definition
(1) the Fourth Amendment’s protection from unreasonable searches and seizures and requirement that a search or arrest warrant shall issue only upon probable cause;

(2) the Fifth Amendment’s requirement of due process of law, prohibition against double jeopardy (trying the same person twice for the same criminal offense), and prohibition against self-incrimination (requiring a person to act as a witness against herself);

(3) the Sixth Amendment’s guarantees of the rights to speedy trial, trial by jury, public trial, the right to confront witnesses, and counsel (at various stages of criminal proceedings); and

(4) the Eighth Amendment’s prohibitions against excessive bail and fines and cruel and unusual punishment.
Term
The Exclusionary Rule
Definition
Any evidence obtained in violation of the accused’s Fourth, Fifth, or Sixth Amendment rights, as well as any evidence derived from said illegally obtained evidence, is not admissible.
Term
Purpose
Definition
The exclusionary rule’s purpose is to deter police from conducting warrantless searches and following other improper procedure.
Term
Exceptions
Definition
In recent decades, the U.S. Supreme Court has diminished the scope of the exclusionary rule by creating exceptions for, e.g., evidence the police would have inevitably discovered and obtained, and evidence obtained in good faith.
Term
The Miranda Rule
Definition
Subject to certain exceptions, an individual who is arrested must be informed of certain constitutional rights, including her right to remain silent (i.e., not to incriminate herself) and her right to counsel, and any statements she makes to the police prior to being informed of her rights is inadmissible against her.
Term
Arrest
Definition
A suspect’s arrest must be made based upon probable cause – a substantial likelihood that the person has committed or is about to commit a crime. Generally, arrest is pursuant to a warrant, but may be made without a warrant as long as probable cause exists.
Term
Indictment/Information
Definition
Before they may be brought to trial, individuals must be formally charged with one or more specific crime(s).

 Grand Jury Indictment: A grand jury is a group of citizens called to decide, after hearing the state’s evidence, whether probable cause exists for believing that a crime has been committed and whether a trial ought to be held. An indictment is the formal charge issued by the grand jury against one or more person(s).

 Information: A formal accusation or criminal complaint issued by a magistrate or other law officer, without indictment, typically in cases involving lesser crimes.
Term
Trial
Definition
Once a criminal prosecution reaches trial, the state bears the burden of proving beyond a reasonable doubt that the accused is guilty of the crime(s) charged. The accused is not required to testify or to put on any evidence in her defense, although the accused is permitted to do so.
Term
Federal Sentencing Guidelines
Definition
Since 1987, federal judges have been bound by guidelines that determine the range of permissible sentences for a given crime, as well as the weight to be given aggravating factors (e.g., use of a firearm in the commission of the crime) and mitigating factors (e.g., cooperation with the police).
Term
United States v. Booker (2005)
Definition
the U.S. Supreme Court held that the federal sentencing guidelines were unconstitutional because they allowed the trial judge to sentence the defendant based on facts not in evidence.
Term
“Three Strikes” Laws
Definition
Many states and the federal government have enacted “career criminal” statutes (commonly known as “three strikes” laws) that require stiffer sentencing of defendants who have prior felony convictions.
Term
Cyber Theft
Definition
The National Information Infrastructure Protection Act of 1996 makes it illegal to access or to attempt to access a computer online, without authority, in order to obtain classified, restricted, or protected data, such as financial, credit, or medical records, legal, military, or national security files, and other confidential information stored in government or private computers. Examples of cyber theft include:
Term
Financial Crimes
Definition
using computers to fraudulently conduct financial transactions; and
Term
Identity Theft
Definition
stealing another person’s identifying information (e.g., Social Security number, name, date of birth) in order to access the victim’s financial resources.
Term
Cyber Stalking
Definition
The stalking laws enacted by many states require physical proximity to the victim; and, therefore, do not address using the Internet to stalk victims. Consequently, more than three-fourths of all states have enacted new statutes to specifically address cyber stalking. It is also a federal crime to use the wires (and mail) to harass someone.
Term
Stalking
Definition
Harassing or following a person while making a “credible threat” that causes the victim to be in reasonable fear of her safety or the safety of her immediate family.
Term
Hacking
Definition
Gaining access to another’s computer or computerized information without permission.
Term
Cyber Terrorism
Definition
Using a computer to damage, alter, disrupt, or shut down or to threaten to damage, alter, disrupt, or shut down a critical computer system, such as the FAA air traffic control system, the regional power grid, the Federal Reserve check clearing system, or to commit industrial or military espionage going beyond “mere” theft or sabotage going beyond “mere” vandalism.
Term
Vandalism and Destructive Programming
Definition
Intentional destruction of computer hardware or software, including programming of computer viruses.
Term
Computer Fraud and Abuse Act
Definition
subjects a person who accesses or attempts to access a computer online, without authority, to obtain classified, restricted, or protected data – including financial and credit records, medical records, legal files, and other confidential or sensitive data – to criminal prosecution.
Term
applications to crimes committed in cyberspace.
Definition
The federal wire fraud statute, the Economic Espionage Act, RICO, the Electronic Funds Transfer Act, the Anticounterfeiting Consumer Protection Act, and the National Stolen Property Act
Term
Good Title
Definition
Except where disclaimed, sellers warrant that they have good and valid title to the goods being sold and that they may rightfully transfer title to the buyer.
Term
Quiet Possession
Definition
A lessor transfers the rights to possess and use the goods during the lease term, not title to the goods, therefore lessors warrant only that no one has a superior right to possess or use the goods during the lease term.
Term
No Liens
Definition
Except where disclaimed, sellers warrant that the goods they are selling are free of any liens – that is, any encumbrance on the goods to satisfy a debt or protect a claim for payment of a debt (e.g., a security interest on personal property or a mortgage on real property).
Term
No Infringements
Definition
Except where disclaimed, merchant sellers and merchant lessors warrant that the goods delivered are free from any infringement claims by a third party.
Term
Disclaimer
Definition
Any of the foregoing warranties can be disclaimed by specific language in a sales contract.

 To disclaim them in a lease contract, the language must be specific, written, and conspicuous.
Term
Express Warranty
Definition
A seller’s or lessor’s oral or written promise, ancillary to an underlying sales or lease agreement, as to the quality, description, or performance of the goods being sold or leased.
Term
UCC
Definition
express warranties arise when a seller/lessor indicates to the buyer/lessee that the goods

(1) conform to any affirmation or promise of fact about the goods made by the seller/lessor to the buyer/lessee,

(2) conform to any factual description of the goods made, e.g., on a label, packaging, or in a brochure, or

(3) conform to any sample or model of the goods shown to the buyer/lessee prior to purchase/lease.
Term
affirmation, promise, description, sample, or model
Definition
must:

 become part of the basis of the bargain between the seller/lessor and the buyer/lessee; and

 constitute more than a mere statement of opinion or puffery (i.e., “sales talk”).
Term
Implied Warranty
Definition
: A warranty implied or inferred from the nature of the transaction or the relative bargaining positions or circumstances of the parties.
Term
Merchantability
Definition
A warranty, arising in every sale or lease of goods by a merchant, that the goods being sold or leased are, inter alia:

(1) reasonably fit for the general purpose for which they are being sold/leased,
(2) properly packaged and labeled, and
(3) of proper quality.
Term
Fitness for a Particular Purpose
Definition
A warranty, imposed on any seller/lessor who knows that the buyer/lessee is relying on the seller’s/lessor’s skill and judgment to select suitable goods, that the goods being sold or leased are fit for the particular purpose for which the buyer/lessee wishes to use the goods.
Term
The Magnuson-Moss Warranty Act (MMWA)
Definition
modifies UCC warranty rules with respect to consumer transactions. It does not require any seller to give a warranty for goods sold to a consumer; however, if the seller chooses to give an express warranty, and if the value of the goods sold is more than $10 the warranty must be labeled as “full” or “limited.”
Term
Full warranties
Definition
require free repair or replacement of any defective part; and, (2) if the product cannot be repaired within a reasonable time, the consumer must have the choice of either a refund or replacement.
Term
limited warranty
Definition
is any warranty that does not meet all of the requisites for a full warranty. If an express warranty is a limited warranty, that fact must be conspicuously designated.
Term
express warranty
Definition
displaces an inconsistent implied warranty, but not an implied warranty of fitness for a particular purpose;
Term
sample
Definition
takes precedence over an inconsistent general description
Term
technical specifications
Definition
displace an inconsistent sample or general description.
Term
Express Warranty
Definition
Any oral or written express warranty may be disclaimed by a

(1) clear and conspicuous written disclaimer,
(2) which is called to the buyer’s attention
(3) at the time the contract is formed.
Term
Implied Warranty of Fitness
Definition
To disclaim an implied warranty of fitness for a particular purpose, the disclaimer must be (1) written and (2) conspicuous.
Term
Implied Warranty of Merchantability
Definition
The disclaimer does not have to be written; however, (1) it must specifically use the term “merchantability,” and, (2) if it is written, it must be conspicuous.
Term
Waiver by Inspection or Failure to Inspect
Definition
If the buyer/lessee actually examines the goods as fully as desired before entering into the sales or lease contract, or if the buyer/lessee refuses to examine the goods at the seller’s/lessor’s request, there is no implied warranty with respect to defects that a reasonable examination did reveal or would reveal.
Term
Product Liability
Definition
A manufacturer’s, seller’s, or lessor’s liability to consumers, users, and bystanders for physical harm or property damage that is caused by the goods.
Term
Negligence
Definition
: A manufacturer is liable for its failure to exercise due care to any person who sustained an injury proximately caused by the manufacturer’s negligence in

(1) designing the product,

(2) selecting materials (including any component products purchased from another seller that are incorporated into a finished product),

(3) using appropriate production processes,

(4) assembling and testing of the product, and

(5) placing adequate warnings on the product, which inform the user of dangers of which an ordinary person might not be aware.
Term
Misrepresentation
Definition
A manufacturer may also be liable for any misrepresentations made to a consumer or user of its product if the misrepresentation causes the consumer or user to suffer some injury
Term
Strict Liability
Definition
A manufacturer, seller, or lessor of goods will be liable, regardless of intent or the exercise of reasonable care, for any personal injury or property damage to consumers, users, and bystanders caused by the goods it manufactures, sells, or leases if:

(1) the product is defective when the defendant sells it (either to an end-user or to another seller for ultimate resale);

(2) the defendant is normally engaged in the business of selling or otherwise distributing the product in question;

(3) the product is unreasonably dangerous to the user or consumer because of its defective condition;

(4) the plaintiff suffers physical harm to self or property as a result of using or consuming the product;

(5) the defective condition of the product proximately causes the plaintiff’s harm; and

(6) the product had not been substantially changed between the time the defendant sold or otherwise distributed it and the time the plaintiff was injured.
Term
Unreasonably Dangerous Product
Definition
A product so defective as to threaten a consumer’s health and safety either because

(1) the product is dangerous beyond the expectation of the ordinary consumer, or

(2) the manufacturer failed to produce an economically feasible, less dangerous alternative.
Term
Manufacturing Flaw
Definition
The manufacturer failed to exercise due care in the manufacture, assembly, or testing of the product;
Term
Design Defect
Definition
The product, even if manufactured perfectly, is unreasonably dangerous as designed – often because an economically feasible, less dangerous alternative was not available to the manufacturer; and
Term
Inadequate Warning
Definition
The product, even if designed and manufactured perfectly, lacks adequate warnings or instructions for the consumer or other end user.
Term
Manufacturing Defects
Definition
The manufacturer, wholesaler, and retailer are strictly liable “when the product departs from its intended design even though all possible care was exercised in the preparation and marketing of the product.”
Term
Design Defects
Definition
A product is defectively designed if

(1) the defendant or a predecessor in the chain of commercial distribution could have reduced or avoided a foreseeable risk of harm by adopting a reasonable alternative design, and

(2) the failure to adopt the alternative design renders the product “not reasonably safe.”
Term
Warning Defects
Definition
A warning is defective if

(1) the foreseeable risks of harm posed by a product could have been reduced or avoided by providing reasonable warnings or instructions, and

(2) the omission of the warnings or instructions renders the product “not reasonably safe.”
Term
Assumption of Risk
Definition
: The defendant must show that (1) the plaintiff knew and appreciated the risk created by the alleged product defect, and (2) the plaintiff voluntarily assumed the risk, even though it was unreasonable to do so.
Term
Product Misuse
Definition
The defendant must show that (1) the plaintiff was using the product in some way for which it was not designed, and (2) the plaintiff’s misuse was not reasonably foreseeable to the defendant, such that the defendant would be required to safeguard against it.
Term
Comparative Negligence
Definition
The defendant must show that the plaintiff’s own negligence or wrongful acts contributed to her injury. Such a showing may permit the plaintiff to recover only for the percentage of her injury or loss that was not caused by her own negligence or wrongful acts.
Term
Commonly-Known Danger
Definition
The defendant must show that the plaintiff’s injury resulted from a danger so commonly known by the general public that the defendant had no duty to warn plaintiff.
Term
Knowledgeable User:
Definition
If a particular danger is or should be commonly known by particular users of the product, the manufacturer need not warn those particular users.
Term
Statute of Limitations
Definition
A typical statute of limitations requires that an action be brought within a specified period after the plaintiff’s cause of action accrued or within a specified period after the plaintiff discovered or should have discovered her injuries.
Term
Statute of Repose
Definition
Regardless of whether a plaintiff has discovered her injuries, many states also have statutes of repose, which set absolute outer limits on the time within which an action must be brought.
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