Legal Environment Of Business

Cato is driving a car in which Diego is a passenger when an accident occurs. Diego is not injured. In Diego's tort action against Cato for negligence, Cato can most likely assert as a successful defense that

Diego was not injured

A business cannot use puffery without liability for fraudulent misrepresentation.

False

A choice-of-law clause permits a party to choose which nation's law to apply to a dispute arising under an international contract.

False

A defendant cannot be liable for negligence unless he or she intended to harm the plaintiff.

False

A key advantage of the corporate form is the unlimited liability of its owners

False

A person who is injured by a defective product can bring a negligence suit only if he or she was the one who purchased the product.

False

A person who wrongfully hurts another's good name or reputation orally may be liable for libel.

False

Agency relationships come about by voluntary consent and agreement of the parties-consideration is required, and the agreement must be in writing.

False

In a sole proprietorship, the owner is not the business.

False

The manufacturer of a product may incur liability when a defect causes injury to a user but not when the defect causes property damage to a bystander.

False

Bram knows that the pipes in his building leak, but he tells Cass, a potential buyer, that there are no leaks. On this assurance, Cass buys the building. On learning the truth, she may sue Bram for

Fraudulent misrepresentation

A constitution is a primary source of law

True

A truck driver who drives a company truck on a regular basis is most likely an employee.

True

An employer can avoid liability for sexual harassment by taking prompt remedial action.

True

Anticipatory repudiation of a contract is treated as a present, material breach in order to give the non-breaching party an opportunity to seek a similar deal elsewhere.

True

Any time one party's allegedly wrongful conduct causes injury to another, an action may arise under the law of torts.

True

Arbitration differs from other forms of alternative dispute resolution in that a third party hearing a dispute makes a decision for the parties.

True

Certain business processes are patentable.

True

Embezzlement is a white-collar crime

True

Analytics LLC processes misinterpreted data furnished by Botch Services to propose a marketing plan for Clientele Inc. Analytics and Clientele are both ignorant of the mistaken data. Their contract can be rescinded on the basis of

a bilateral mistake

Beth participates in an investigation into possible violations of Title VII of the Civil Rights Act at ChemCo Inc., where she is an employee. As a result, the employer demotes her. Beth can file

a retaliation claim.

"Calvin Klein" as applied to clothing is a

a trademark.

An injunction is

an order to do or to refrain from doing a certain act.

A company's ethical code of conduct is not

law

The supreme law of the United States is

the U.S. Constitution.

A court's subject-matter jurisdiction may be limited by all of the following excep

the prior experience of the court in deciding similar disputes.

After a dinner at Rosa's Restaurant, So believes that he was overcharged and shoves Tell, the waiter, who is injured when he falls. Tell sues So, alleging that the shove was a battery. So is liable if

the shove was offensive.

Ocean Inc., a seafood distributor, agrees to buy from Pai, a commercial fisher, any "overstock" of fish that he catches in excess of the legal limit. This agreement is most likely

void

A manufacturer or seller has a duty to warn about a risk that is obvious or commonly known.

False

A person who enters into a risky situation, knowing the risk involved, can nevertheless recover for a resulting injury or harm for reasons of public policy.

False

Agency relationships cannot exist outside an employment, so agency law has a narrower reach than employment law.

False

An employer can require employees to participate in such religious activity as weekly prayer meetings with other employees.

False

An employer may fire a worker for reasons that violate a fundamental public policy if that policy is clearly expressed in statutory law.

False

An offer that can be accepted simply by a promise to perform does not create a binding contract.

False

Any breach of contract effectively excuses both parties from performing.

False

Any court can exercise jurisdiction over any person.

False

In a tort action, a business firm always recovers punitive damages equivalent to the actual value of damage sustained.

False

One of the purposes of criminal law is to compensate the victims.

False

A business firm has a duty to exercise reasonable care to protect its business invitees.

True

A corporation needs to be careful about whom it hires because a firm may be liable for the misconduct of its employees committed in the scope of their employment ..

True

A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.

True

A defective product is an unreasonably dangerous product when it is dangerous beyond the expectation of the ordinary consumer.

True

A federal court will apply federal law in a case involving a federal question

True

A federal court will apply federal law in a case involving a federal question.

True

A law is best understood after reading the case law that explains how the courts interpret the law.

True

A plaintiff who sues on the basis of disparate-treatment discrimination in hiring must make out a prima facie case of illegal discrimination, and will win in the absence of a legally acceptable employer defense.

True

A product will be considered defective when the omission of reasonable warnings renders the product not reasonably safe.

True

A seller who introduces into commerce an unreasonably dangerous product may be subject to a tort action for strict liability.

True

An act intended to make another person fearful of an immediate physical harm is an assault if the threat is reasonably believable.

True

An economically injurious falsehood about a business's product can support a tort action for disparagement of property. Example: Buddy's Burgers falsely advertises that Slimy Sliders burgers have worms in them.

True

In some situations, the courts find an agency relationship where there is no formal agreement.

True

The types of product defects that have traditionally been recognized in product liability law include products that are dangerous beyond the expectation of the ordinary consumer.

True

Under the principles of agency law, any legal sale of goods by a salesperson in a store to a customer can be binding on the owner of the store.

True

A trial court's capacity to directly observe witnesses' gestures, demeanor, and other nonverbal behavior supports the decision of an appellate court to

defer to the trial court's findings on questions of fact.

Luc, a vehicle dealer, offers to sell Mel a truck and trailer, which Luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, Mel confronts Luc, who says he was not trying to fool Mel—he was only trying to make a sale. This is

fraudulent misrepresentation.

Baby Things Inc. makes and sells a crib to Cara. Baby Things fails to exercise "due care" to make the crib safe, and Cara's child Dua is injured as a result. Baby Things is most likely liable for

negligence

Buddy's Burgers advertises so effectively that the regular customers of its competitor Slimy's Sliders patronize Buddy's instead of Slimy's. This is

none of the choices.

Rena asks Sully, "Do you want to pay me to repair your forklift?" This is

not an offer, because the terms are not definite.

A truck with defective brakes runs off the street and crashes into Lima's home, damaging the property and injuring her. In a successful tort action against the truck's owner for gross negligence, Lima may be awarded punitive damages to

punish the defendant and deter others from similar wrongdoing.

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

still liable on the bid