The Legal Environment of Business, 8e (Kubasek)
Chapter 11 The Law of Torts
1) Which of the following is true of tort law?
A) It is considered a national law.
B) It is considered a state law.
C) It is considered a federal law.
D) It is considered an international law.
2) Tort law discourages private retaliation.
3) What are the goals of tort law?
4) The amount of compensatory damages awarded is sufficient to cover ________.
A) all injuries caused by the tort, including compensation for pain and suffering
B) all injuries caused by the tort, excluding compensation for pain and suffering
C) injuries due to pain and suffering
D) all legal fees associated with the litigation
5) The amount of nominal damages awarded is ________.
A) sufficient to cover all of the plaintiff’s expenses
B) sufficient to allow the plaintiff to seek punitive damages
C) based on the severity of the wrongful conduct
D) determined by the defendant’s wealth
6) Which of the following types of damages seeks to put the victim in the position he or she
would have been in had the tort never taken place?
A) compensatory
B) nominal
C) punitive
D) statutory
7) Which of the following types of damages is awarded when a plaintiff is unable to prove
damages that would necessitate compensation?
A) residual
B) nominal
C) punitive
D) statutory
8) Which of the following damages are considered by legal scholars to be especially useful in
deterring manufacturers from making unsafe products?
A) punitive
B) compensatory
C) statutory
D) nominal
9) The purpose of compensatory damages is to ________.
A) put the victim in the position he or she would have been in had the tort never taken place
B) recognize that the plaintiff has been wronged
C) punish the defendant
D) evaluate the extent of damages caused by the defendant in order to deliver a suitable prison
sentence
10) Which of the following statements is true about punitive damages?
A) They can be awarded in a case where no nominal or compensatory damages are awarded.
B) They are designed to put the victim in the position he or she would have been in had the tort
never taken place.
C) The Supreme Court has defined the maximum punitive damages that can be awarded as a
ratio of compensatory to punitive damages awarded.
D) They are considered by some to be unconstitutional on the ground that they violate
defendants’ due process rights.
11) Advocates of tort reform have tried to get the courts to strike down punitive damages as
unconstitutional on the ground that ________.
A) punitive damages violate defendants’ due process rights
B) the risk of incurring punitive damages rarely convinces manufacturers to produce safe
products
C) the principles of a free market economy are violated by punitive damages
D) punitive damages are against the adversarial system of litigation
12) Compensatory damages do not cover ________.
A) medical bills
B) lost wages
C) attorneys’ fees
D) compensation for pain and suffering
13) Which of the following statements is true about nominal damages?
A) They cover medical bills and lost wages.
B) They allow the plaintiff to seek punitive damages.
C) They are awarded if the plaintiff is able to prove damages that necessitate compensation.
D) They are determined by the severity of the wrongful conduct and the wealth of the defendant.
14) Punitive damages are awarded ________.
A) to allow the victim to seek compensatory damages
B) to put the victim in the position he or she would have been in had the tort never taken place
C) to recognize that the plaintiff has been wronged
D) when the act of the defendant is flagrant, unconscionable, or egregious
15) Which of the following statements is true about the Common Sense Legal Reform Act?
A) It sought to limit punitive damages in all tort cases.
B) It allowed punitive damages only when the plaintiff could convincingly prove that the harm
suffered was caused by actual malice.
C) It limited punitive damages to $1 million or five times the economic harm incurred by the
plaintiff, whichever was greater.
D) It imposed limits on medical malpractice litigation in state and federal courts by capping
awards and attorney fees.
16) Which of the following statements is true about the Class Action Fairness Act?
A) It was designed to transfer the jurisdiction in class action tort suits from federal courts to state
courts.
B) It favored the plaintiffs of class action suits as federal courts usually give larger awards than
state courts in these suits.
C) It sharply reduced the number of class action suits filed in and removed to the federal courts.
D) It gave federal courts jurisdiction over class action cases in which there are at least 100 class
action members.
17) The Missouri state law limits the punitive damages that can be awarded if the state of
Missouri is the plaintiff requesting the award of punitive damages.
18) President Clinton vetoed the Common Sense Legal Reform Act.
19) The Class Action Fairness Act was designed to transfer jurisdiction in large, multistate class
action tort suits from state courts to federal courts.
20) Explain how the U.S. Supreme Court determines whether a punitive damages award is so
excessive as to violate the due process. How did it clarify this in the State Farm v. Campbell
case?
21) Why should the public figure privilege be extended to defamatory statements published over
the Internet?
22) Which of the following is not a recognized classification of torts?
A) intentional
B) negligent
C) strict liability
D) contemplated
23) Which of the following is a recognized classification of torts?
A) misdemeanor
B) felony
C) strict liability
D) contributory liability
24) ________ torts are those wherein the defendant took some purposeful action that he or she
knew, or should have known, would harm the plaintiff.
A) Negligent
B) Reckless
C) Intentional
D) Strict liability
25) ________ torts involve carelessness on the part of the defendant.
A) Comparative liability
B) Intentional
C) Negligent
D) Strict liability
26) Which of the following is an incorrect statement regarding classifications of torts?
A) There are three classifications of torts: intentional, negligent, and strict liability.
B) The primary distinguishing feature among the three classifications of torts is the degree of
criminality associated with the wrongful conduct.
C) Defenses for the various categories of torts differ.
D) The types of damages for the various categories of torts differ.
27) A(n) ________ tort is a civil wrong that involves taking action that is so inherently
dangerous under the circumstances of its performance that no amount of due care can make it
safe.
A) intentional
B) statutory
C) strict liability
D) negligent
28) Which of the following is the primary distinguishing feature among the three classifications
of torts?
A) the extent of harm that the wrongful conduct has caused
B) the amount of damages claimed by the plaintiff
C) the complexity of the wrongful conduct
D) the degree of willfulness of the wrongful conduct
29) There are three classifications of torts: intentional, presumptive, and strict liability.
30) Intentional torts are those where the defendant took some negligent action that failed to
satisfy the duty of care he or she owed to the plaintiff.
31) Negligent torts involve carelessness on the part of the plaintiff.
32) An assault is the intentional placing of another in fear or apprehension of an immediate,
offensive bodily contact.
33) If defamation is published in a permanent form—for example, in a piece of writing or on
television—the tort is called slander.
34) Distinguish between assault and battery.
35) Explain what is meant by slander per se.
36) Describe the two primary types of defenses to a defamation action.
37) An intentional tort is one in which the defendant is involved in a(n) ________.
A) careless action that can harm the plaintiff
B) purposeful action that can harm the plaintiff
C) action that is so inherently dangerous that no amount of due care can make it safe
D) civil wrong that fails to meet the standard of care that a reasonable person would meet
38) A(n) ________ refers to the intentional placing of a person in fear or apprehension of an
immediate, offensive bodily contact.
A) assault
B) slander
C) appropriation
D) libel
39) Which of the following statements is true about assault and battery?
A) If the plaintiff is aware that the defendant is incapable of carrying out a threat, it is not an
assault.
B) Defense of a third person is permitted even if there is no socially recognized duty to defend
that person.
C) A threat to commit harm in a week is considered as an assault.
D) Accidentally bumping into someone on a crowded street is considered a battery.
40) Which of the following statements is true of defamation?
A) If the defamation is published in a permanent form, the tort is called slander.
B) To recover damages in a case of libel, the plaintiff must demonstrate an actual monetary loss
resulting from the defamatory statement.
C) A statement that is merely one of opinion and not a statement of a fact is not considered to be
defamatory.
D) A plaintiff must prove special damages if the statements constitute slander per se.
41) Absolute privilege against a defamation action ________.
A) exists in the pressroom of a major newspaper
B) is given on the House and Senate floors during congressional debate
C) is provided within the confines of one’s own private property
D) exists at one’s place of employment
42) Which of the following statements is true about defenses to defamation?
A) A person having absolute privilege can be sued for defamation if the statement is false.
B) A conditional privilege does not protect a defendant against any false statements.
C) If the plaintiff is a public figure, the plaintiff will have to prove that the defamation was made
with malice.
D) Politicians are not subject to conditional privilege.
43) Jim is the leader of an anti-nepotism group. Mark, a former member of Jim’s group, claims
that Jim was involved in shoplifting. Which of the following statements is true about this
scenario?
A) Jim has to prove that Mark made the defamatory statement in malice to recover for
defamation.
B) Mark is protected by an absolute privilege as Jim is a public figure.
C) Mark is not protected by public figure privilege.
D) Jim does not have to prove that the defamatory statements are false to recover for defamation.
44) Which of the following is an example of false light?
A) The defendant publishes Mabel’s medical records in the local newspaper without her consent.
B) The defendant publishes Mabel’s picture alongside an article about the evils of gambling,
even though Mabel has never gambled in her life.
C) The defendant uses a picture of Mabel in an advertisement for baked goods without paying
her or obtaining her consent to use her picture.
D) The defendant invades Mabel’s privacy by taking photographs of her inside her house.
45) George writes an article about the evils of gambling and includes an untitled photograph of
Paul in the article. Paul has never gambled in his life. He is an active member of a charitable
organization and is well-known in his town. Which of the following statements is true about this
scenario?
A) Paul can recover damages for defamation as he is a public figure for a limited purpose.
B) Paul can recover damages for defamation only if he proves that the defamation was made
with malice.
C) Paul can claim damages on the grounds of invasion of privacy.
D) Paul can claim damages on the grounds of false light.
46) Martin is a security guard in a clothing store. He suspects Emma, a customer, of shoplifting.
He locks Emma in a room and does not allow her to leave the store until he has searched through
her belongings and interrogated all the witnesses. If Emma is entirely innocent of any
wrongdoing, and assuming that the state in which this occurred does not recognize the
shopkeepers’ privilege, which of the following torts has Martin committed?
A) trespass to realty
B) conversion
C) false imprisonment
D) disparagement
47) ________ is a tort that consists of encroaching on the solitude, seclusion, or personal affairs
of someone who has the right to expect freedom from interference.
A) Public disclosure of private facts
B) Invasion of privacy
C) False light
D) Appropriation
48) Scorpio, Inc. responds to bomb threats by installing security cameras in its office, even in the
toilets. It does not inform its employees about the security cameras. One of its employees decides
to file a lawsuit against Scorpio. Which of the following torts has Scorpio committed in this
scenario?
A) slander
B) invasion of privacy
C) false light
D) trespass to realty
49) Which of the following statements is true of false imprisonment?
A) The confinement of a person should be done by moral force alone.
B) It involves using a person’s name or likeness for commercial gain without the person’s
permission.
C) It involves taking actions that would lead observers to make false assumptions about the
person.
D) It is the intentional restraint of a person against that person’s will and without justification.
50) Which of the following refers to the tort of intentional interference with a contract?
A) amending a license agreement without consulting the other party to the contract
B) claiming to a third party that a contract exists despite knowing that no contract has been
negotiated
C) enticing a third party to breach a valid contract with the plaintiff
D) disclosing the terms of a confidential contract without obtaining the other party’s permission