Chapter 3: Business Torts and Crimes

If the TF-300 fans that they manufacture are put onto the market, Mark's company may be liable for injuries if the fans are unreasonably dangerous and the problem with then fans stems from:

- a manufacturing defect. - a design defect. - a failure to warn not to hit the reverse switch while the fan is moving. Strict liability for dangerous products can held can arise from manufacturing defects, design defects and for failures to warn of dangers of the product.

_____ refers to a set of software instructions that produces abnormal or unexpected behavior in a computer.

A rogue program A rogue program is a set of software instructions that produces abnormal or unexpected behavior in a computer. Rogue programs have such colorful names as viruses, bacteria, worms, Trojan horses, and time bombs. Review the section "Business Crimes" in Chapter 3.

To recover for a tort based on negligence, which of the following is not required to be shown by the plaintiff (the injured party)?

An intention on the part of the tortfeasor to cause the consequences of the act To recover for a tort based on negligence, the injured party does not need to show an intention on the part of the tortfeasor to cause the consequences of the act. Review the section "Torts" in Chapter 3.

If Mark's company enters into the contract to sell the TF-300 fans that they manufacture to Rooms-to-Go and a purchaser is injured by the fan, under strict liability, which would be liable for the injuries?

Both Mark's company and Rooms-to-Go. If the product is unreasonably dangerous, anyone in the chain of distribution, including manufacturers, distributors and retailers can be held strictly liable for the damages.

If Mark's company enters into the contract to sell the TF-300 fans that they manufacture to Rooms-to-Go and a purchaser is injured by the fan, under strict liability, and a person who did not purchase the fan is injured by debris coming off of the fan while at a friend's house. Decide.

Both Rooms-to-Go and Mark's company would be liable. In a products liability case based on strict liability (or negligence), liability does not depend on privity of contract. Thus, the injured party does not have to be the buyer of the product.

The _____, enacted by Congress, prohibits the payment of bribes to foreign officials and politicians in order to get or keep business and mandates record-keeping requirements for companies.

Foreign Corrupt Practices Act (FCPA) The Foreign Corrupt Practices Act (FCPA) is a federal law prohibiting corrupt payments to foreign officials and politicians in order to get or keep business. The anti-bribery section applies to any U.S. person or business who bribes a foreign official and to foreign persons who act in the U.S. in furtherance of such a bribe. Review the section "Business Crimes" in Chapter 3.

John McDaniel established a restaurant to provide fast food services. He called the restaurant McDaniel's and began using a logo of two yellow semi-circles to market his restaurant. If sued for trademark infringement, which of the following factors would a court not consider when determining whether John's company infringed another's trademark?

John's costs related to the designing of his mark. Courts will find trademark infringement and halt imitation of another's trademark if the imitation is likely to cause confusion, mistake or deception among customers. Factors that commonly indicate a likelihood of confusion include the similarity of the marks and products represented by the marks. However, the court will not consider John's costs related to the designing of his mark. Review the section "Torts" in Chapter 3.

Which one of the following is the best argument that Kowalski's Grocery is not liable for Maria's injury?

Kowalski's posted the "Employee's Only No Admittance" sign, therefore Maria was trespassing in the stockroom. It is clear from the dialog that the boxes are stacked in a hazardous manner. Choice "c" is a possible answer, but a better answer is that Maria was a trespasser in an area clearly marked as "off limits" to customers, and therefore Kowalski's only duty to her was to avoid willfully and wantonly injuring her. Choice "d" is a possible answer, but a better answer is that Maria was a trespasser in an area clearly marked as "off limits" to customers, and therefore Kowalski's only duty to her was to avoid willfully and wantonly injuring her.

James worked as an accountant at Ashton Information Inc. He often took network cables and stationery items from the office for personal use. James has committed which of the following crimes?

Larceny In the given scenario, James committed larceny. Larceny is taking the property of another without the consent of the person in possession, with the intent of depriving the possessor of the property. Whenever someone takes any business property, whether inventory, tools, or even office supplies, larceny occurs. Review the section "Business Crimes" in Chapter 3.

What duty is owed to Maria while she is in the Kowalski's (before entering the stock room)?

Since she is a business invitee, there is a duty to warn her about any dangers that the store knew of or should have known about. When retailers and other companies that explicitly or implicitly invite persons to come onto their premises, the people become business invites, and the owners owe a duty of care to warn of any known dangers or any dangers about which the owners should have known of.

Once Maria enters the stock room, which of the following what is Kowalski's best defense for Maria injuries?

That she assumed the risk of injury. The attractive nuisance doctrine gives liability to landowners when children are attracted to the landowner's property by some object, where the child may otherwise been liable for trespassing. A superseding cause is an unforeseeable event that breaks the causal connection between a wrongful act and an injury. Dram shop acts hold bars and bartenders liable for injuries to a person who became intoxicated while drinking at a bar

After being fired from his job with a federal government agency, Allan intentionally sent several thousand emails, from addresses not his own, to his former director's e-mail address. This caused delays in the use of the email system and required his former boss to purge all emails, including valuable business emails. What law has Allen violated?

The Computer Fraud and Abuse Act Under the federal Computer Fraud and Abuse Act, it is a crime to access a computer used by or for the U.S. Government and to affect the use of the computer or intentionally cause damage. Review the section "Business Crimes" in Chapter 3.

Thomson owns an electronic goods store called The Hi-Tech Store. The store is a source for computers, video games, laptops, televisions, digital cameras, MP3 players, and mobile phones. Thomson's store sales grew at a rate of 30 percent last year. A group of boys took note of the store's growth and robbed the store. Which of the following is true with regard to the scenario?

The boys have committed larceny. The boys who robbed Thomson's store have committed larceny. Larceny is taking the property of another without the consent of the person in possession, with the intent of depriving the possessor of the property. Review the section "Business Crimes" in Chapter 3.

If Mark decides to put the TF-300 fans that his company manufactures on the market, and the fans are considered to be an unreasonable dangerous product. Assume that Mark insisted on putting a label on the remote control stating "Do not put into reverse mode while the fan is spinning." If someone were then injured by the fan because they put the fan in reverse while it was spinning, which defense would Mark's company likely use?

The company would likely use the assumption of risk defense. Although it might not successful, by warning of the known misuse of the product, Marks company would likely argue that by doing what was warned against, that the injured party that they assumed the risk of putting the fan in reverse while the fan was spinning.

Tommy, age 10, regularly accesses a website targeting children to play math games and watch cartoons. Over the past year, the website has collected personal information on Tommy, such as his name, age and address. Under the Children's Online Privacy Protection Act (COPPA), what rights do Tommy's parents have regarding information collected by the website?

Tommy's parents have the right to access names, ages and addresses of all other children that have been collected by the website.

Is there a chance that Vinny will be liable for the tort of battery?

Yes, because Maria told him not to touch her and he then did. A person can commit a tortuous battery while working for another. This may give the employer liability as well, but the person committing the battery still retains liability as well. A person help an injured person acting in good faith may be shielded from liability, but once Maria states that she does not want help, this can become an unwanted touching which caused injury, and is therefore a battery. If Maria were found to be a trespasser, Vinny might have been able to restrain her to keep her from trespassing, but that is not how the touching occurred here.

Larry often used the laptop provided by his office to download movies, in violation of his company's policy on computer usage. Larry also allowed his friends outside of work to use his business laptop. This is an example of:

computer trespass. The given scenario is an example of computer trespass. Computer trespass means unauthorized use of or access to a computer. Review the section "Business Crimes" in Chapter 3.

Fraudulent conversion of another's property by someone in lawful possession of the property with the intent to defraud the owner of the property is called:

embezzlement Fraudulent conversion of another's property by someone in lawful possession of the property with the intent to defraud the owner of the property is called embezzlement. Conversion means handling the property inconsistently with the arrangement by which the defendant has possession of it. Review the section "Business Crimes" in Chapter 3.

An unauthorized outsider who gains access to a business's computer system is called a(n):

hacker An unauthorized outsider who gains access to a business's computer system is called a hacker. Review the section "Business Crimes" in Chapter 3. 3-2 - Business Crimes

Olson Food, Inc. is a milk powder manufacturing company located in New Jersey. The firm's products are well-known across the state. An employee of Olson Food, who was recently fired, spread fake news about the company to several reporters. He claimed that research showed that the milk powder manufactured by Olson Food consisted of an ingredient that could cause cancer. This caused serious damage to Olson Food, and the company lost a large number of customers. This is an example of:

injurious falsehood. The given scenario is an example of injurious falsehood. When a person makes false statements of fact that degrade the quality of another's goods or services, the tort of injurious falsehood occurs. Some courts call this tort commercial disparagement or trade libel. Review the section "Torts" in Chapter 3.

The tort of _____ occurs when a business relationship has been formed and a third party, in some way, intentionally causes one party to end the relationship.

interference with a contract The tort interference with a contract or economic advantage occurs when a business relationship has been formed and a third party intentionally causes one party to end the relationship. If injured, the other party to the business relationship may have a cause of action against the third party causing the breakup. Review the section "Torts" in Chapter 3.

M.K. Manufacturers, a toy manufacturing firm, manufactured and sold a range of toys that used metallic paint, which is proven to be harmful to children. However, there is insufficient proof of negligence against the firm. In this scenario, a group of parents who want to sue M.K. Manufacturers for damages are most likely to claim:

strict liability. In the context of business torts, courts expanded a doctrine called strict liability because of the difficulty in proving negligence in such torts. This doctrine makes entities in the chain of manufacture of a product—manufacturer, wholesaler, or retailer—liable without proof of negligence. Review the section "Torts" in Chapter 3.

If Mark decides to put the TF-300 fans that his company manufactures on the market, and the fans are considered to be an unreasonable dangerous product, the party who was injured would not need to prove:

the defendant must have acted with intent to cause harm If the TF-300 fans are considered to be an unreasonably dangerous product, the company would be held to a strict liability standard. This does not require that an injured party show that there was intent to cause the harm.

A _____ is a private or civil wrong or injury for which there may be an action for damages.

tort A tort is a private or civil wrong or injury for which there may be an action for damages. A tort may be intentional or it may be caused by negligence. Review the section "Torts" in Chapter 3.

Linda is a nurse at George County Community Hospital. She placed a patient in a secluded room in the psychiatric unit, without following the required protocols. The patient was locked in the room and was not free to leave. In the given scenario, Linda is a:

tortfeasor. The given scenario is an example of false imprisonment, which is considered a tort. Linda is the tortfeasor in this scenario. The person who causes injury is called a tortfeasor. Review the section "Torts" in Chapter 3.

A _____ is a word, name, symbol, device, or any combination thereof adopted and used to identify and distinguish one's goods from another's goods and to indicate the source of the goods.

trademark A trademark is a word, name, symbol, device, or any combination thereof adopted and used to identify and distinguish one's goods from another's goods and to indicate the source of the goods. Review the section "Torts" in Chapter 3.

Percy invaded the property of Splendid Inflatable Boats Inc., a boat manufacturing company, without permission, to steal aluminum sheets from the company's manufacturing plant. This is an example of a(n):

trespass. Assault, battery, false imprisonment, and trespass are examples of intentional torts. The given scenario is an example of trespass which is invading someone's property without permission. Review the section "Torts" in Chapter 3.