Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
True/False Questions
1) The tort of intimidation always requires proof that the defendant used a threat to cause
a third party to act in a way that hurt the plaintiff.
a. True
b. False
2) Jerome worked for Kerasic Corp. He left that job, however, when he received the
promise of better pay from Goldshlager Inc. Goldshlager may be liable to Kerasic as long
as, among other things, Goldshlager should have known that Jerome had a contract of
employment with Kerasic.
a. True
b. False
3) It is easier to prove the tort of indirect inducement to breach of contract than it is to
prove the tort of direct inducement to breach of contract.
a. True
b. False
4) The tort of conspiracy always requires proof that the conspirators committed a crime.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
5) Salvatore and Carolyn conducted lengthy negotiations that led to her purchase of his
business. At the start of those negotiations, Salvatore made a number of statements
regarding the business's profitability. Those statements were accurate when they were
made. However, before the sale was finalized, the facts changed such that the earlier
statements were no longer true. Salvatore knew of that change, but he intentionally did
not provide Carolyn with the updated truthful information and allowed Carolyn to think
that the previous, now untrue information, was the true information. Consequently, he
may be held liable to her under the tort of deceit.
a. True
b. False
6) Sarah made several statements to John. Because he acted in reliance upon those
statements, John suffered a loss. Assuming that the other elements of the tort are
established, Sarah may be held liable for deceit as long as John proves that she carelessly
failed to realize that her statements were false.
a. True
b. False
7) A person cannot be held liable for occupiers' liability unless he or she owned the
premises upon which the plaintiff was injured.
a. True
b. False
8) Jessica was injured while trespassing on Zach's land. Under the modified common law
rules, a court will use the standard of common humanity in determining whether or not
Zach exercised sufficient care with respect to a Jessica.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
a. True
b. False
9) Joel was injured while walking on Maureen's property. Under the statutory rules, it
will generally be necessary for a court to determine Joel's precise status as a visitor before
choosing the appropriate standard of care.
a. True
b. False
10) An action for the tort of nuisance can succeed only if the plaintiff and the defendant
occupied neighbouring pieces of land.
a. True
b. False
11) Suki used her property in a way that interfered with the ability of her neighbour,
Dick, to enjoy his property. If that interference is sufficiently severe, Suki may be held
liable even if her actions in interfering with her neighbour’s ability to enjoy his property
were not unreasonable.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
12) The defence of statutory authority applies only if a nuisance was the inevitable result
of the defendant's performance of a statutorily authorized activity.
a. True
b. False
13) Mohana visited Ian's home. She was injured when his pet wolverine escaped from its
cage and bit her while she sat in his kitchen. Under the traditional approach to the tort of
Rylands v Fletcher, Ian may be held liable to Mohana.
a. True
b. False
14) During recent proceedings, a member of Parliament stood in the House of Commons
and made an outrageously defamatory statement about the prime minister. The prime
minister will not be able to successfully sue for the tort of defamation because the
statement in question is protected by the defence of absolute privilege.
a. True
b. False
15) Casey published an untrue, unfounded, and unfavourable statement about Acme
Corp, but not about any of its employees. He nevertheless may be held liable if the
statement would tend to make reasonable people have a lower opinion of the corporation.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
Multiple Choice Questions
1) Emily was involved in a business dispute with Jacob. During a private conversation
with Jacob, Emily threatened to spread a rumour that he was having an affair with her
unless he agreed to sign a certain document. She knew that that rumour was entirely
untrue, but she also knew that Jacob was afraid of upsetting his wife, who is very jealous.
On the basis of those facts alone, which of the following statements is TRUE?
a. Emily is liable to Jacob for the tort of nuisance.
b. Emily is liable to Jacob for the tort of interference with contractual relations.
c. Emily is liable to Jacob for the tort of defamation.
d. Emily is liable to Jacob for the tort of deceit.
e. Emily is not liable to Jacob.
2) Because Katelyn has a disability, she receives daily care from her neighbour,
Savannah. Savannah provides that care out of the goodness of her heart. She does not
have an agreement of any sort with Katelyn. Caleb held a grudge against Katelyn as a
result of a business dispute. He wanted to find some way of hurting her. He therefore told
Savannah that he would burn her house down if she continued to care for Katelyn.
Caleb's plan backfired. Savannah told Katelyn of the threat, and together they reported
Caleb to the police. He was convicted of a crime. Katelyn, however, also wants to sue
him for the tort of intimidation. The claim in intimidation will fail because
a. Caleb cannot be subject to both criminal prosecution and tort liability for the same act.
b. the intimidation was unsuccessful in that Katelyn did not give into the threat
c. Caleb did not threaten Emily directly.
d. Caleb was motivated by a desire to hurt Emily, rather than by a desire to benefit
himself.
e. Caleb cannot be sued for intimidation because he did not act on behalf of the
government.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
3) To succeed in a claim for intimidation, the plaintiff must prove that
a. the defendant actually committed an unlawful act against either the plaintiff or a third
party.
b. the defendant gained a benefit as a result of their actions.
c. the defendant's intimidation caused the threatened party to act in a certain way.
d. the defendant threatened to commit a crime.
e. the defendant acted on behalf of the government.
4) Juan entered into a contract with Makayla, under which he promised to add a solarium
on to her house for $25 000. After starting the project, he threatened to abandon the job
unless she agreed to pay him an additional $5000. Makayla did not agree to pay the
additional $5000. Juan did not finish the work. Makayla wants to sue Juan for the tort of
intimidation. Which of the following statements is TRUE?
a. That claim will probably fail because Makayla did not give into the intimidation.
Makayla should sue for breach of contract.
b. If that claim is successful, Makayla will actually receive damages in both tort and
contract.
c. That claim will probably fail because the tort of intimidation is recognized in England
but not in Canada.
d. If that claim is successful, Makayla will probably receive an injunction that would
force Juan to complete the job in exchange for the additional price.
e. The tort of intimidation has an unusually short limitation period.
5) Connor and Sierra operated competing garages. Most of the work at Sierra's garage
was performed by Vanessa, who was an excellent mechanic. One evening, Connor saw
Vanessa at a bowling alley. He waited for the right moment and then dropped a bowling
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
ball on her hand. Vanessa suffered a severe and permanent injury that will prevent her
from working as a mechanic. Sierra wants to sue Connor for the tort of interference with
economic relations. To succeed in that action, Sierra must prove that
a. she paid Vanessa a higher salary than Connor was willing to pay Vanessa for the same
work.
b. Connor intended to hurt Sierra's business.
c. Connor knew the full details of Vanessa's employment contract with Sierra.
d. Connor intended to persuade Vanessa to work for him.
e. Connor's actions were taken with the intent to cause injury to Sierra, the actions were
unlawful, and that the Sierra actually suffered loss as a result of those unlawful actions.
6) Which of the following statements is TRUE with respect to the tort of interference
with contractual relations?
a. Liability will never be imposed unless the defendant was a party to the contract in
question.
b. Liability will never be imposed unless the defendant intended to hurt the plaintiff.
c. Liability will never be imposed unless the defendant also committed a crime.
d. If the defendant is held liable for the tort, they will always be held liable for breach of
contract as well.
e. Liability will never be imposed unless the defendant's actions actually caused a breach
of contract.
7) Miguel and Caitlin own competing computer software companies. The success of
Caitlin's business was due largely to the work of her chief designer, Mia. During a recent
party, Miguel asked Mia if she was happy working for Caitlin. Mia answered, "It's okay, I
guess." Miguel then spent the next hour explaining to Mia how she would earn a great
deal more money, and how she would be involved in much more interesting projects, if
she worked for him instead. Which of the following statements is most likely TRUE?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
a. Because he knows of the employment contract between Caitlin and Mia, Miguel can be
liable for the tort of interference with contractual relations if he unsuccessfully attempted
to persuade Mia to leave her job with Caitlin.
b. If Mia does leave her job with Caitlin and begins to work for Connor, Caitlin will
certainly be entitled to receive damages from Connor.
c. Connor cannot be held liable to Caitlin for the tort of interference with contractual
relations if the court is satisfied that he provided Mia with information about his
organization, but did not actually persuade her to leave her job with Caitlin and break her
contract of employment with Caitlin.
d. Connor cannot be held liable to Caitlin for the tort of interference with contractual
relations unless he committed some other tort, such as intimidation, against Mia.
e. Because he knew that Mia worked for Caitlin, he automatically will be liable for
punitive damages if the court finds that a tort has been committed.
8) Alpha Inc, Beta Inc, and Gamma Inc all produced and sold widgets. Alpha and Beta
entered into an agreement that lasted for two years. Under that agreement, Alpha agreed
to sell widgets only in the western provinces and Beta agreed to sell widgets only in the
eastern provinces. The parties also agreed, for the two-year period, to sell their widgets
for a price that was below their own costs. That agreement violated the Competition Act.
As a result of the performance of that agreement, Gamma suffered enormous financial
losses. Which of the following statements is TRUE?
a. Alpha and Beta have committed the tort of interference with contractual relations.
b. Alpha and Beta have committed the tort of conspiracy only if the primary intention of
their agreement was to hurt Gamma.
c. Alpha and Beta have committed the tort of intimidation.
d. Alpha and Beta may be held liable for the tort of conspiracy as long as they should
have known that their agreement would cause Gamma to suffer a loss.
e. The tort of conspiracy cannot be committed without intimidation.
9) Which of the following statements is TRUE with respect to the tort of conspiracy?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
a. The plaintiff is always entitled to punitive damages.
b. Liability can be imposed upon individuals but not on organizations.
c. The tort is harder to prove if the defendants conspired to commit a lawful act than if
they conspired to commit an unlawful act because in the former case proof is required
that the defendants primary purpose was to harm the plaintiff.
d. The defendants will be held liable only if the conspiracy caused someone to break a
contract with the plaintiff.
e. The tort requires at least two plaintiffs.
10) Brandon intended to start a new company. He issued a public statement regarding the
proposed business venture. That document contained a false statement to the effect that
Brandon had received government authorization to use nuclear power for his venture. In
fact, authorization had not yet been granted and, indeed, was eventually refused. After
reading Brandon's public statement, Abigail invested in the company. She later lost her
investment when the company folded. She then sued Brandon for the tort of deceit.
Which of the following statements is TRUE?
a. Brandon may be held liable even if he honestly believed that he had received
government authorization to use nuclear power.
b. Brandon may be held liable if a reasonable person would have relied upon his
statement, even if Abigail did not do so when she made her investment.
c. Even if Brandon is held liable, Abigail will not necessarily receive damages
representing the value that her investment would have had if Brandon's statement had
been correct, but she is entitled to be put in the same position she would have been in had
the defendant not deceived her.
d. Brandon may be held liable even if he did not intend to deceive Abigail, as long as he
did in fact deceive her.
e. The tort of deceit usually causes a court to award an injunction.
11) Dylan committed the tort of deceit against Hilary. He tricked her into investing $5000
in his business. If his statement had been true, her investment would now be worth
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
$8000. However, because his statement was untrue, her investment has fallen in value to
$4000. How much will Hilary probably receive in compensatory damages?
a. $5000
b. $4000
c. $8000
d. $1000
e. $3000
12) Alejandro and Chloe were involved in negotiations for the purchase and sale of her
business. She may be held liable for the tort of deceit if
a. she made a prediction about the profitability of the business that was based on income
tax returns that she knew contained false information and she communicated that false
information in the tax returns to Alejandro deceitfully saying it was true and thus formed
a good basis for her prediction.
b. she offered an opinion about the profitability of the business that was based on
information that he provided to her.
c. she refused to make a prediction about the profitability of the business even though she
had sufficient information with which to do so.
d. she provided accurate information to his lawyer, which the lawyer misinterpreted
before advising Alejandro on the sale.
e. she misled Alejandro, even if she did not intend to do so by making an innocent
mistake about some of the information concerning the business.
13) Jasmine operated a small chalet in a mountain region. Isaiah rented one of her rooms
for the night. Under the traditional common law rules regarding the tort of occupiers'
liability, he would best be classified as
a. a trespasser.
b. an invitee.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
c. a licencee.
d. a contractual entrant.
e. a covenantor.
14) Generally speaking, there are three sets of rules for the tort of occupiers' liability: the
traditional common law rules, the judicially modified common law rules, and the
statutory rules. The concept of common humanity is relevant if the plaintiff is
a. a trespasser under the traditional common law rules.
b. a trespasser under the modified common law rules.
c. a trespasser under the statutory rules.
d. either an invitee or a licencee under the traditional common law rules.
e. either an invitee or a licencee under the statutory rules.
15) Dakota sued Mariah for the tort of occupiers' liability in a jurisdiction that still used
the traditional common law rules (as opposed to the judicially modified common law
rules). The court held that Mariah was required to protect Dakota from unusual dangers
that Mariah should have known about. It therefore is most likely that Dakota was
classified as a
a. trespasser.
b. licencee.
c. invitee.
d. contractual entrant.
e. co-occupier.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
16) Generally speaking, there are three sets of rules for the tort of occupiers' liability: the
traditional common law rules, the judicially modified common law rules, and the
statutory rules. Which of the following statements is TRUE?
a. Under the traditional common law rules, an occupier was merely required to refrain
from intentionally or recklessly injuring a licencee.
b. Under the judicially modified common law rules, an occupier must protect both
licencees and invitees from unusual dangers.
c. Under the traditional common law rules, a licencee was a person who had permission
to be on the premises and whose presence on the premises furthered the occupier's
economic interests.
d. Under the statutory rules, there is no need to classify a visitor when determining the
precise content of an occupier's duty of care.
e. No duty of care is owed to a trespasser under the new statutory rules.
17) The rules that apply under occupiers' liability statutes are different from the
traditional common law rules in a number of ways. Which of the following statements is
TRUE?
a. A person who rents a property may be considered to be an occupier under the statutory
rules but not under the traditional common law rules.
b. A landlord could be held liable for premises occupied exclusively by a tenant under the
traditional common law rules but not under the statutory rules.
c. An occupier may be held liable for the activities of a third party on the property under
the statutory rules, but generally not under the traditional common law rules.
d. The reason for the plaintiff's presence on the occupier's premises is relevant under the
traditional common law rules but not under the statutory rules.
e. The new statutory rules are the same in every province because the relevant statute was
enacted by Parliament.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
18) Ethan lives next door to Destiny. Which of the following activities might be
considered a non-intrusive nuisance?
a. Ethan consistently plays loud music at night.
b. Ethan operates a pig farm that creates a foul odour.
c. Ethan sells drugs out of his house and thereby attracts criminals to the neighbourhood.
d. Ethan operates a metal press that causes Destiny's house to vibrate.
e. Ethan operates a chemical business that causes poisonous substances to seep
underground into his neighbours' properties.
19) Isaac lives next door to Gabrielle. He operates a gun shop and firing range on his
property. Gabrielle complains that Isaac's business creates a nuisance. In deciding
whether or not Isaac's use of his own land is unreasonable, a court would be most
influenced by which of the following factors?
a. the profitability of Isaac's business
b. the time of day when the firing range is open for business
c. the fact that bullets from the firing range occasionally shoot across Gabrielle's land
d. the number of employees that work for Isaac's business
e. the fact that Isaac has a criminal record
20) The Northwest Utility Co (NUC) received statutory permission from the government
to lay electrical cables under residential properties. Ariana suffered severe injuries when
she struck a buried cable while gardening. If Ariana sues for the tort of nuisance, NUC
will be able to avoid liability on the basis of the defence of statutory authority
a. only if a nuisance was the inevitable result of performing the statutorily authorized
activity.
b. as long as a nuisance was the probable result of performing the statutorily authorized
activity.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
c. as long as a nuisance was a reasonably foreseeable result of performing the statutorily
authorized activity.
d. as long as it did not intentionally create a nuisance when performing the statutorily
authorized activity.
e. only if Ariana knew of the statute when she was injured.
21) Bryce consistently commits the tort of nuisance against Aaliyah. She wants an
injunction to stop him from doing so. Which of the following statements is TRUE?
a. Aaliyah has an absolute right to an injunction if Bryce's nuisance causes physical
damage to her property.
b. Aaliyah cannot receive both an injunction and compensatory damages.
c. An injunction is never available with respect to a nuisance.
d. A court will grant an injunction only if Bryce's nuisance is intrusive.
e. A court may grant an injunction, but is a discretionary remedy
22) Faith lives next door to Alphonse. He has sued her for committing the tort of
nuisance. Which of the following statements is TRUE?
a. Alphonse's claim will fail if Faith proves that he consented to her activities in that he
did not merely fail to complain but he encouraged the activities.
b. Faith cannot be held liable unless she actually caused something to touch Alphonse's
property.
c. Because nuisance is a strict liability tort, the law is concerned with Faith's motivation
for acting as she did
d. The claim in nuisance will probably be successful if Faith decorated her house in a
way that detrimentally affected the market value of Alphonse's property.
e. Nuisance is a strict liability tort to which there are no defences.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
23) Rex has sued Regina for the tort of Rylands v Fletcher. To succeed in that claim, he
will be required to prove that
a. Regina acted either carelessly or intentionally.
b. he was injured while visiting Regina's property.
c. the injury that he suffered was an inevitable result of the manner in which Regina used
her property.
d. he occupied his property before Regina began to use her property in a dangerous
manner.
e. he suffered some injury or loss from an escape of something from the defendant’s land
which escape resulted from the non-natural use of the land by the defendant.
24) Winona has sued Ramon for the tort of Rylands v Fletcher. The court will impose
liability if
a. Winona consented to the manner in which Ramon used his property.
b. Winona's injury was the inevitable result of the fact that Ramon performed a statutorily
authorized activity.
c. Winona's injury was caused by a malicious act by a third party that Ramon could not
have prevented.
d. Winona's injury was caused by a force of nature that Ramon could not have prevented.
e. Winona was injured even though Ramon used all reasonable care.
25) Cornelius recklessly stored a large box of fireworks on his residential property. The
fireworks ignited when he carelessly threw a cigarette on them. Some of the fireworks
shot off his property and struck a neighbouring house, which belonged to Cherilyn.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
Cherilyn's house was badly damaged by fire. Although she could not, of course, recover
compensation more than once for the same loss, she would probably be able to
successfully sue Cornelius in tort for
a. Rylands v Fletcher and occupiers' liability and nuisance.
b. Rylands v Fletcher and occupiers' liability but not nuisance.
c. Rylands v Fletcher and nuisance but not occupiers' liability.
d. Rylands v Fletcher but not nuisance or occupiers' liability.
e. nuisance but not Rylands v Fletcher or occupiers' liability.
26) Brad made a false and unflattering statement about Concettina. He has been sued for
defamation. That action can succeed only if the court is satisfied that
a. Brad knew that his statement was false.
b. Brad made his statement without first carefully checking the facts.
c. Brad's false statement mentioned Concettina by name.
d. Brad knew Concettina's identity.
e. Concettina is still alive when the statement is made.
27) Which of the following statements is TRUE with respect to the tort of defamation?
a. If the plaintiff applies in a timely manner, a court will automatically grant an injunction
to prevent the defendant from making a statement that may be defamatory.
b. The court may award compensatory damages but not punitive damages.
c. The requirement of publication is satisfied if the defendant communicates a false and
unflattering statement to the plaintiff, as long as the plaintiff suffers a loss as a result.
d. Because the tort of defamation is concerned with the protection of reputations, liability
may be imposed for a false statement that was made about a person, but not for a false
statement that was made about a group of people.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
e. The tort of defamation may be committed every time that the defamatory statement is
repeated.
28) Which of the following is the name of a defence to the tort of defamation?
a. honesty
b. due diligence
c. pseudo justification
d. qualified comment
e. public interest responsible journalism
29) Which of the following statements is TRUE?
a. Because they are actionable per se, neither the tort of deceit nor the tort of conspiracy
require proof that the plaintiff actually suffered a loss.
b. The torts of intimidation and conspiracy have one thing in common: they both always
require proof that the defendant committed an unlawful act in addition to committing the
tort.
c. Liability under Rylands v Fletcher requires proof that the defendant was careless but
not that he intentionally committed a wrong.
d. "Slander" refers to defamatory words that are written and "libel" refers to defamatory
words that are spoken.
e. A person may be liable for a tort as a result of making a harmful and false statement
about the plaintiff's business, rather than about the plaintiff.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
30) Which of the following statements is TRUE?
a. The tort of injurious falsehood always requires proof that the defendant made a false
statement about the quality of the plaintiff's products.
b. Liability for the tort of deceit may arise only if the defendant made a statement to the
plaintiff.
c. If the plaintiff cannot sue for the tort of private nuisance, then it also will be impossible
to sue for the tort of public nuisance.
d. The defence of absolute privilege does not apply if the defendant maliciously made a
defamatory statement.
e. Liability may be imposed under both the tort of intimidation and the tort of interference
with contractual relations even if the defendant's primary purpose was to benefit itself,
rather than hurt the plaintiff.
31) The Business Club of Edmonton (BCE) is a voluntary organization of businesses in
Alberta's capital city. Until recently, Gino's Pizza was one of its members. Gino left the
BCE, however, after the BCE advised its other members to not do business with Gino's
until Gino issued a formal apology for employing a convicted murderer who had been
released on parole. Although the BCE's organizing rules (or "constitution") entitled the
organization to impose various sanctions on its members for various reasons, its actions
in this case did not fall within the terms of that constitution. Gino's pizza suffered
economic loss as a result of the BCE's decision. Which of the following statements is
TRUE with respect to Gino's action against the BCE for unlawful interference with
economic relations?
a. BCE cannot be held liable unless its actions constituted a crime.
b. BCE cannot be held liable for a purely economic loss.
c. Gino must prove that BCE acted for a malicious purpose.
d. Gino must prove that BCE conspired with another party.
e. BCE may be held liable even if it did not commit a crime.
