Business Law Chapter 6  Jim told his manager, Lana, that a co-worker, Diane, had been

subject Type Homework Help
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subject Words 3207
subject Authors Jeffrey F. Beatty, Susan S. Samuelson

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1. Public officials and public figures receive less protection from defamation than ordinary people.
a.
True
b.
False
2. In a strict liability case, the courts still consider if the defendant acted in a reasonable and prudent manner.
a.
True
b.
False
3. Opinion is generally a valid defense in a defamation lawsuit because it is not meant to be a factual statement.
a.
True
b.
False
4. In order for a plaintiff to win a case involving intentional infliction of emotional distress, she must prove the defendant
acted in an extreme and outrageous manner.
a.
True
b.
False
5. Under Section 230 of the Communications Decency Act, Internet service providers are held responsible for defamatory
postings by their members or users.
a.
True
b.
False
6. Most states recognize some form of comparative negligence.
a.
True
b.
False
7. If Gloria threw a rock which hit Merle, she is liable for an intentional tort of battery only if she intended to injure or
harm Merle.
a.
True
b.
False
8. A sports fan, injured by a hockey puck that flew into the stands during an NHL game, would be subject to the defense
of assumption of the risk in a suit to recover for her injuries.
a.
True
b.
False
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9. Lori works for Big Corporation as an "at will" employee. Richard, owner of a small store, offers to pay Lori much more
money if she will leave Big Corp and work for his store. When Lori starts to work for Richard, Big Corp correctly claims
Richard is liable for tortious interference with a contract.
a.
True
b.
False
10. A salesclerk at Braybon's Department Store observed a customer remove a ring from a display case and put it in her
purse. In most states, Braybon's would be able to detain the customer for suspicion of shoplifting.
a.
True
b.
False
11. A defendant who engages in setting off fireworks at a fully licensed Fourth of July show is liable for harm that results
from the activity only if the plaintiff proves the harm was foreseeable.
a.
True
b.
False
12. Dewayne sold a space heater to Vivian, telling her it would heat a 200-square-foot area, even though he knew it would
effectively heat only about one third of that space. Dewayne is liable for the intentional tort of fraud.
a.
True
b.
False
13. Punitive damages are intended to punish the defendant for conduct that is extreme and outrageous.
a.
True
b.
False
14. The tort of exploitation prohibits someone from peeping through your window or wiretapping your telephone.
a.
True
b.
False
15. While hunting, Roger enters Adele’s property without permission and is injured by falling into a ditch that was
obscured by the underbrush. Under the common law, Adele is liable for Roger’s injuries.
a.
True
b.
False
16. Which of the following statements about torts is correct?
a.
A tortious act is always a criminal act.
b.
A criminal act is always a tortious act.
c.
A tortious act may also be a criminal act.
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d.
All the above are correct.
17. Jim told his manager, Lana, that a co-worker, Diane, had been in prison for theft. Lana checked into the matter and,
when she learned that Diane had served time in prison for theft, fired her.
a.
Jim is liable to Diane for defamation.
b.
Jim is liable to Diane for defamation unless he can show a legitimate reason for having to tell Lana about
Diane's prison history.
c.
Jim is liable to Diane for defamation only if she is a public figure.
d.
Jim is not liable to Diane for defamation.
18. A national magazine published an article about a famous television star. The television personality is upset because
the information contained in the story is not correct. If the actress sues the magazine:
a.
she will need to show that the magazine has a history of being "reckless" with facts on a regular basis.
b.
she will need to show that the magazine either knew the story was false or acted with reckless disregard of the
facts.
c.
she will need to show that the magazine failed to attempt to verify the story by trying to contact her or her
agent before the story was printed.
d.
she will need to show that the magazine could have discovered that the story was false but failed to do so.
19. Theft is to the criminal law as ____ is to the civil law.
a.
stealing
b.
appropriating
c.
conversion
d.
trespass
20. Which of the following elements is not necessary to apply the doctrine of res ipsa loquitur?
a.
An ultra-hazardous activity is involved.
b.
The defendant had exclusive control of the thing that caused the harm.
c.
The harm would normally not have occurred without negligence.
d.
The plaintiff had no role in causing the harm.
21. Wholesome Bread, Inc. advertised that its honey wheat bread had 25% fewer calories than a competing brand, Valley
Grains. In fact Wholesome's bread had the same amount of calories as Valley Grains' bread. Wholesome Bread's conduct:
a.
does not violate the Lanham Act because of the First Amendment freedom of speech.
b.
does not violate the Lanham Act because Wholesome did not act with actual malice.
c.
does not violate the Lanham Act because comparative ads are exempt from the law.
d.
violates the Lanham Act.
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22. Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the office one night, Adam,
wearing a mask, stepped out from behind some bushes. He pointed a handgun made out of licorice at her and demanded
her purse. He then pushed the candy gun to her head and told her if she told anybody he'd kill her. Linda was very scared
during the whole incident. She did not think it was funny when Adam pulled the mask off and took a bite out of the gun as
he gave her the purse back. Which statement is correct?
a.
Adam committed an assault but not a battery.
b.
Adam committed a battery but not an assault.
c.
Adam committed an assault and a battery.
d.
Adam committed neither an assault nor a battery since he used a candy gun and was only playing a joke on
Linda.
23. The intentional tort of battery involves conduct in which:
a.
the defendant intended to harm the plaintiff.
b.
the defendant intended a certain physical act which ends up injuring someone.
c.
injuries are caused to someone because of the defendant’s neglect or oversight.
d.
there is resulting punishment, including prison, for the defendant.
24. Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to promote Trein's products. E-
presto Inc., a competitor of Trein, was interested in having Mia promote its products and knew of her contract with Trein.
E-presto offered Mia a three-year, $5 million contract. Mia left Trein and signed with E-presto. Which statement is
correct?
a.
Trein is liable for tortious interference with a contract.
b.
Mia is liable for tortious interference with a contract.
c.
E-presto is liable for tortious interference with a contract.
d.
Both Mia and E-presto are liable for tortious interference with a contract.
25. Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to promote Trein's products. E-
presto Inc., a competitor of Trein, was interested in having Mia promote its products but knew of her contract with Trein.
E-presto offered Mia a three-year, $5 million contract. Mia left Trein and signed with E-presto. If Trein sues E-presto for
tortious interference with a contract, E-presto:
a.
will be able to establish a justification since E-presto was acting to protect an existing economic interest.
b.
will be able to establish a justification because, in talking to Mia, E-presto was exercising its First Amendment
freedom of speech.
c.
will be able to establish a justification because to decide otherwise would subject Mia to involuntary servitude.
d.
will not be able to establish a justification.
26. What guidelines has the Supreme Court set forth when awarding punitive damages in most cases?
a.
Punitive awards should not exceed compensatory damages by more than a factor of nine.
b.
The Supreme Court has not set any limits for punitive awards.
c.
Punitive awards should not exceed compensatory damages by more than a factor of one hundred.
d.
The Supreme Court has stated that punitive damages are allowed only when there are no compensatory
damages awarded.
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27. A company that makes a commercial with a person who does an excellent, realistic job of pretending to be a famous
movie star could be sued by the real actor for the tort of:
a.
intrusion.
b.
defamation.
c.
commercial exploitation.
d.
none of the above, since public figures are often imitated by other actors.
28. Which of the following is a valid defense to a defamation claim?
a.
The statement was true.
b.
The statement was only an opinion.
c.
The person making the statement made it only to the plaintiff, not to any third parties.
d.
All of the above.
29. Jane tells John that Ann was arrested for stealing a car. The story is entirely false. Ann is not a public figure. Which of
the following torts has Jane committed?
a.
Slander per se
b.
Ordinary Slander
c.
Libel
d.
None of the above
30. Angela sued Tom for battery. Angela was awarded $30,000 for future medical expenses. Five years after the award,
Angela realizes that her medical expenses will far exceed $30,000. Under the single recovery principle:
a.
Angela will be able to submit the additional medical bills to the court for payment.
b.
Tom will have to pay the additional medical bills.
c.
Tom will have a qualified privilege and only have to pay a portion of the additional medical expenses.
d.
Angela will have no recourse against Tom or the court for the medical expenses as long as the original award
was reasonable.
31. Which of the following acts resulting in injury would be negligence per se?
a.
Janet driving 40 mph over the posted speed limit.
b.
Ted keeping explosives in his private, locked garage without complying with state law regulating the storage
of such materials.
c.
A retailer selling glue containing benzene to a 14-year-old boy in violation of state law.
d.
All the above acts are negligence per se.
32. Rodney was employed by Deluxe Discount Store. Rodney's manager directed him to check the prices of dog food at
Huge Savings Store. The manager of Huge Savings Store saw Rodney writing down prices and asked him to leave.
Rodney, fearful that he would be fired by Deluxe, refused to leave. Rodney committed the tort of:
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a.
larceny.
b.
trespass.
c.
misrepresentation.
d.
conversion.
33. The elements in a defamation case are:
a.
defamatory statement; falseness; communication; and injury.
b.
a contract; knowledge of the contract; improper inducement; injury.
c.
false or misleading fact statements; statements in commercial advertising; likelihood of harm.
d.
duty; breach of duty; proximate causation; and damages.
34. Negligence concerns harm that:
a.
is unforeseeable.
b.
arises intentionally.
c.
arises by accident.
d.
is always substantial.
35. A plaintiff sues in negligence but has no direct proof that the defendant behaved unreasonably. Which of the following
is most likely to help the plaintiff?
a.
Res judicata.
b.
Stare decisis.
c.
Res ipsa loquitur.
d.
Mens rea.
36. Howson won a lawsuit against Hardwick for intentionally inflicting emotional distress. The jury awarded Howson
$500,000 in compensatory damages. It also awarded Howson $4 million in punitive damages because Hardwick was quite
wealthy and the jury thought a large amount was necessary for Hardwick to feel the punishing effects of the judgment.
How does the jury’s award fit into the guidelines offered by the U.S. Supreme Court?
a.
The punitive award is excessive because it exceeds the Supreme Court’s suggested ratio of compensatory
damages to punitive damages.
b.
The punitive award is excessive because the Supreme Court has stated that the trial court may not use the
defendant’s wealth as an excuse to award an unreasonably high award.
c.
The punitive award is excessive both because of the ratio of compensatory damages to punitive damages and
because the punitive damage award was based partly on the defendant’s wealth.
d.
The jury award is not excessive based on the Supreme Court’s guidelines.
37. Which of the following statements regarding a negligence case is correct?
a.
A plaintiff must show that the defendant's act was both the factual cause of her injury as well as a foreseeable
injury.
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b.
A plaintiff must show that the defendant's act was the factual cause of her injury even if the injury was not
foreseeable.
c.
A plaintiff must show that the defendant's act created a foreseeable danger even if it was not the factual cause
of her injury.
d.
A plaintiff does not have to show that the defendant's act either created a foreseeable danger or that the act was
the factual cause of her injury.
38. In awarding punitive damages, a court must consider:
a.
the reprehensibility of the defendant's conduct.
b.
the ratio between the harm suffered and the award.
c.
the difference between the punitive award and any civil penalties used in similar cases.
d.
All of the above.
39. Don was standing in a cafeteria line holding a plate. Tim was upset with Don. Tim turned Don around and grabbed the
plate, jerking it out of Don's hand. Tim then held the plate up and threatened to break it over Don's head. Tim has
committed:
a.
a battery, but not an assault.
b.
an assault, but not a battery.
c.
both an assault and a battery.
d.
neither an assault nor a battery.
40. In a negligence case, the plaintiff must establish:
a.
duty, strict liability, causation, and injury.
b.
mens rea, breach, foreseeable harm, and injury.
c.
duty, actus reus, foreseeable harm, and causation.
d.
duty of due care, breach, causation, foreseeable harm, and injury.
41. Wilma’s arm is broken when Paula knocks her down during an argument. If Wilma sues Paula for battery, what
damages is Wilma likely to receive?
42. Tracy is an "at will" employee of Zebra Toy Company. One afternoon she has lunch with a friend who works in
marketing for her company's biggest competitor, Tiger Toys. Over a period of about three months, Tiger Toy
representatives convince Tracy to work with them. Tiger offers a larger base salary with bigger commissions than she had
with Zebra. When Tracy leaves Zebra, it sues Tiger Toys claiming it intentionally interfered with a contractual
relationship. Will Zebra Toy Company be successful?
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43. As assistant manager of a discount department store, you have been asked to review the store's policy concerning
shoplifters. (a) Discuss the legal standard used in most states governing the detention of suspected shoplifters. (b) In
reviewing the store's policy, discuss some of the items that you will consider.
44. List and discuss the elements necessary to establish negligence.
45. A contractor used dynamite to loosen a rocky hillside. The blast from the dynamite caused a house foundation to
crack. The house was located over a half-mile away from the dynamite site. The contractor was careful when using the
dynamite and no allegation of negligence is made. However, the house owner claims the contractor is liable for damage to
the foundation. Is the house owner correct? Explain.

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