The ability to compare production costs among countries in an effort to determine where to locate production is significantly hampered by all of the following EXCEPT ________.
A) the number of ways the same product can be made
B) restrictions on the international flow of data
C) the ways that laws may be enforced
D) future costs from exchange rate changes
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Which of the following was primarily responsible for establishing the euro?
A) Lisbon Treaty
B) Treaty of Maastricht
C) European Finance Act
D) Single European Act
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The punitive damages system has been criticized because ________.
a) punitive damages awards are governed neither by statute nor clear constitutional guidelines
b) the juries are not free to address punitive damages as they see fit
c) the legal standard for imposing punitive damages is lower than that for compensatory damages
d) punitive damages are bound by many constitutional limits
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Most products liability cases are filed in ________.
a) district courts
b) state courts
c) magistrates' court
d) the Supreme Court
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The products liability system has been criticized on equity, distributive, and efficiency grounds. The equity arguments often express a belief that ________.
a) state-of-the-art design should not be an acceptable defense in cases governed
by strict liability
b) damages awarded for pain and suffering should ideally be guided by legal standards
c) the awards in many cases are insufficient and should be made significantly
larger to compensate for actual losses
d) cases should be decided on the basis of fault and negligence
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Under which of the following situations are courts most likely to assess comparative damages for cases?
a) when the producer is unable to compensate for the damage caused
b) when the consumer cannot prove that the damage occurred
c) when both the producer and consumer are from different states
d) when both the producer and the consumer are responsible for the injury
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Which of the following is true with regard to strict liability?
a) The rationale for strict liability is to insure the manufacturers against unfair competition.
b) Under strict liability the concept of fault is irrelevant and negligence is not required.
c) A defense that a firm used state-of-the-art design is likely to prevail when a standard of strict liability is applied.
d) Strict liability does not apply to manufacturing defects.
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________ refers to a liability rule that permits the state to take a home for a public purpose and requires the state to compensate the owner for its objectively assessed value.
a) Entitlement domain
b) Eminent domain
c) Punitive damage
d) Compensatory damage
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In the United States and in other countries, the ________ is the principal institution which guides producers and consumers in most product safety decisions.
a) licensing system
b) warranty system
c) institution of liability
d) institution of regulation
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Specific performance is a form of relief provided by courts for cases in which ________.
a) there is more than one party responsible for the injury received
b) firms are unable to pay damages because they have filed for bankruptcy
c) the government is implicated in the plaintiff's lawsuit
d) it is difficult to determine the actual damages incurred as a consequence of a breach
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