Legal, Ethical and Social Aspects of Business- Chapter 9

John Harley was on his way home when an assailant stopped his car and threatened to physically harm him if he ever saw him drive on that street again. John can sue the assailant to recover damages for ________. A. Disparagement B. Both battery and assault C. libel D. Battery E. Assault

Assault This was a threat of physical harm.

Elise was injured when her Proper Pour coffee pot spontaneously shattered. Elise may pursue a products liability claim against Proper Pour under all of the theories of liability listed below, except A. negligence B. warranty C. strict liability D. Assumption of the risk

Assumption of the risk In a products liability case, the injured party may pursue a legal remedy against the seller under one of three theories of liability: (1) negligence, (2) warranty, or (3) strict liability. In the above scenario, Elise can pursue her products liability claim under any of these three theories. Assumption of risk is a defense the seller might be able to use in response to a products liability claim and is not a theory of liability.

Harvey was at his college reunion where he noticed Raymond, his former roommate. Harvey and Raymond did not get along well at the reunion. Offended by something Raymond mentioned, Harvey punched him in the face which broke his jaw. Harvey is liable for ________. A. Disparagement B. Battery C. Assault D. Breach of a duty of care E. Assault and battery

Battery

The obligation people owe each other not to cause any unreasonable harm or risk of harm is termed as ________. A. res ipsa loquiter B. Good Samaritan Law C. Negligence D. Duty of care E. libel

Duty of care One of the required elements of a negligence claim

Because there is no general duty to act or assist others, a store is not liable if, after washing a floor, it fails to notify the public of the slippery condition and someone is injured. Stores give such notification as a convenience to customers but not because of a legal duty.

False

Jay is an electronics store owner. He sees Doreen place several store items in her purse and walk toward the exit without paying. Jay detains and questions Doreen for 2 hours then calls the police. Jay was within his rights as a merchant to detain Doreen and cannot be held liable for the tort of false imprisonment.

False

Jessica was caught shoplifting at a department store both by employees who witnessed the act and by cameras in the store. The store's management may hold her as long as it takes to get her to confess.

False

Oliver is a retailer who sells outdoor equipment and gear. Oliver is unaware that one of the insect repellent brands he sells can cause a dangerous allegoric reaction, particularly in children. Because Oliver did not actually know that the repellent was dangerous, a court could not impose strict liability on Oliver.

False

Violations of safety statutes are sometimes referred to as negligence by default.

False

When Ford runs a commercial stating that Fords are better than Chevrolets and that "you'll be happier if you buy a Ford," Ford is committing trade libel.

False

A failure to act can never be considered a tort, even if it causes a loss to or injury to another party.

False A tort is a civil wrong where one party has acted or, in some cases, failed to act, and that action or inaction causes a loss to be suffered by another party. The law provides a remedy for one who has suffered an injury by compelling the wrongdoer to pay compensation to the injured party.

Employees of print media organizations are afforded a qualified protection from defamation liability so long as they have acted in good faith and without malice.

False Employees of media organizations (e.g., television, radio, periodicals) are afforded a qualified protection from defamation liability. So long as the media have acted in good faith, without malice, and without a reckless disregard for the truth, the media is protected from liability through privilege as a defense for unintentional mistakes of fact in their reporting.

In the absence of a manufacturing or design defect, the mere failure to warn cannot render a product unreasonably dangerous.

False Failure to warn may render a product unreasonably dangerous even in the absence of any manufacturing or design defects. One common category of inadequate-warning cases involves prescription drugs, but the theory of unreasonable danger applies to all products that carry some danger in use (such as a lawn mower or snow thrower).

Strict liability applies to services, but not products.

False It applies to products NOT SERVICES

Negligence is a result of a person's willful intent to cause harm to another person or property.

False Negligence describes an accidental event that caused harm to another party and is done without willful intent. An intentional tort is one in which the tortfeasor was willful in bringing about a particular event that caused harm to another party.

A seller of a defective product cannot be held strictly liable if it can be proved that he or she took all possible care in the preparation and sale of the product.

False The doctrine of strict liability applies regardless of fault or any showing of duty of care. See p. 307

To prove a defamation claim, plaintiff must prove that the defendant's statement was A. unkind B. opinion-based C. Provably false D. factual and true

Provably false

________ cause is a point along a chain of events caused by a negligent party after which this party is no longer legally responsible for the consequences of his or her actions. A. Proximate B. Illegal C. Immediate D. Zone of no return

Proximate

__________________refers to monetary damages that are awarded to punish a defendant who either intentionally or recklessly injured the plaintiff. A. Reliance damages B. Punitive damages C. Compensatory damages D. Consequential damages E. Nominal damages

Punitive damages Page 302- damages awarded to punish the defendant for intentional or reckless behavior

A person cannot liable for negligence if he or she has no duty owed to the plaintiff.

True

If a plaintiff is injured, the damages recoverable depend on out -of -pocket economic losses and the effect the injury has on the plaintiff's life or profession.

True

In general, there is no duty to act or rescue another. However, if a party chooses to renders assistance, they assume a duty to proceed with reasonable care and must not leave the injured party in a worse position.

True

Inducing someone to break a contract with a third party is tortious conduct.

True

Res ipsa loquitur creates a presumption that the defendant was negligent by the nature of the circumstances.

True

Salena is walking her 6-month-old baby in a stroller. Marlon, a stranger, looks into the stroller and says, "Wow, that's one ugly baby." Salena is furious and sues Marlon for intentional infliction of emotional distress. Salena will likely lose.

True

Allan owns two brown bears that he keeps in a locked cage on his property, which is located in a remote area. He cannot be held liable if the bears harm an individual because he has taken the proper precautions to keep potential visitors safe.

True Allan can be held liable for any injury caused by the bears, even he takes proper precautions to prevent harm. Strict liability torts, in which a tortfeasor may be held liable for an act regardless of intent or willfulness, apply primarily in cases of defective products and abnormally dangerous activities (such as major construction demolition). Owning a wild animal or even some breeds of dogs can result in strict liability should the animal harm an individual, regardless of the precautions taken by the animal's owner.

A homeowner is liable for negligence per se, when there is a safety statute requiring homeowners to keep the sidewalk in front of their homes in good repair, and he or she fails to repair a damaged sidewalk, and a pedestrian who trips on the sidewalk is injured.

True The homeowner owes a duty of care and is liable for injuries based on breach of that duty

A lawyer who fails to file a document with the court on time, causing the client's case to be dismissed may be liable for negligence known as legal malpractice.

True This is a negligence claim for breach of duty as defined by industry.

Which of the following is true of product liability? A. If a seller has not made a specific representation about the product, the buyer is not protected by warranty. B. Retailers do not have a duty to warn consumers of potential dangers caused by a product they sell. C. Warranty laws impose liability even in the absence of negligence. D. Companies are liable for manufacturing defects but not design defects.

Warranty laws impose liability even in the absence of negligence.

According to the doctrine of strict liability, which of the following parties is strictly liable for injuries caused by a defective product? A. all parties in the chain of commerce B. only the parties directly involved in the sale of the product to the customer C. all parties providing services related to the product D. Parties realizing the risk involved E. only the manufacturers of the products

all parties in the chain of commerce page 307

Chain of ___________________________refers to all manufacturers, distributors, wholesalers, retailers, lessors, and subcomponent manufacturers involved in a transaction A. commerce or distribution B. reaction C. events D. responsibility

commerce or distribution