Business Law Exam 2
Which of the following statements is correct regarding the differences between contract, tort, and criminal law?
Criminal law is prosecuted by the government.
If Gloria threw a rock that hit Merle, she is liable for an intentional tort of battery only if she intended to injure or harm Merle.
False
In an advertisement, FreshAir, Inc. stated that its air freshener lasted for 3 hours while the competitor's Smell Sweet lasted for only 36 minutes. In fact, Smell Sweet freshens the air for more than 2 hours. FreshAir has not violated the Lanham Act because the First Amendment's guarantee of freedom of speech applies.
False
Lori works for Big Corporation. The existing contract between Lori and Big Corporation can be terminated at will by either party. Richard, the owner of a small store, offers to pay Lori much more money if she will leave Big Corporation and work for his store. When Lori starts to work for Richard, Big Corporation correctly claims Richard is liable for tortious interference with a contract.
False
For the defendant to be liable in a negligence case, it must be proven that the defendant's conduct actually caused the injury. This is referred to as
factual cause.
Anders suffered a shock when his electric radio dropped into the bathtub while he was taking a bath. Anders argued that he did not realize it was dangerous to operate an electric radio near his bathtub. If he sues the radio manufacturer for damages, which claim is he most likely to make?
failure to warn
Palsgraf v. Long Island Railroad addressed the issue of furnishing alcohol to minors.
False
Rachel works for the Internal Revenue Service and keeps some personal information on her computer at work. There has been suspicion that Rachel has not been keeping tax return information confidential. The Fourth Amendment to the Constitution, prohibiting unreasonable searches and seizures, protects Rachel from having the government review the personal information she has on her computer.
False
Spam is illegal per se.
False
The European Union (EU) does not view privacy as a fundamental right of its citizens, and the EU's policies toward privacy are limited.
False
The First Amendment guarantee of freedom of speech is an absolute right.
False
The doctrine of contributory negligence is followed in most states.
False
The federal government has preempted the field of online privacy, so states may not pass their own online privacy statutes.
False
There are four elements to a defamation case, and the plaintiff in any kind of lawsuit must prove one of the four elements to prevail.
False
Tort issues are firmly ingrained in law and do not change.
False
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.
False
At its inception, the Communications Decency Act of 1996 created broad immunity for internet service providers (ISPs) and websites.
True
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.
True
In 2018, the European Union (EU) implemented the European General Data Protection Regulation (GDPR).
True
In a strict liability case, the defendant is only liable if the product is defective when it leaves his hands.
True
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.
True
In strict liability, the injured person need not prove that the defendant's conduct was unreasonable.
True
Jorgeson Co., on its website, promised the company would not give a customer's personal information to third parties without the customer's consent, but then gave out such information anyway. This practice violates Section 5 of the FTC Act.
True
Kenneth was exposed to radiation on his job in an environmental cleanup. In a lawsuit against his employer, the court must decide the full extent of both present and future damages rather than allowing Kenneth to return to court years later if medical problems develop at that time.
True
Most states recognize some form of comparative negligence.
True
Public officials can win a defamation case only by proving the defendant's actual malice.
True
Punitive damages are intended to punish the defendant for conduct that is extreme and outrageous.
True
Res ipsa loquitur shifts the burden of proof from the plaintiff to the defendant.
True
Silas asks his friend Shelby to come to his property to go fishing at his pond. If he fails to warn her that the pier has a rotten spot and she falls through and is injured, Silas would be held liable in most states.
True
The Electronic Communications Privacy Act (ECPA) of 1986 is a federal statute that regulates email.
True
The Foreign Intelligence Surveillance Act (FISA) requires government agencies to delete irrelevant and personally identifying data before providing it to other agencies.
True
The duty of care that each of us must follow is to behave as a reasonable person.
True
The internet of things gathers, sends, and receives data.
True
The internet was started in the 1960s as a project to link military contractors and universities. The World Wide Web was created as a subnetwork of the internet.
True
The single recovery principle requires a court to settle a matter once and for all by awarding a lump sum for past and future expenses.
True
The tort of public disclosure of private facts prohibits the unjustifiable revelation of truthful, but secret, information.
True
Under the Electronic Communications Privacy Act (ECPA), any intended recipient has the right to disclose the content of an email.
True
When you shop online, most retailers collect personal information about you.
True
Edith becomes ill at work, but her boss insists that she finish mopping the shop floor and cleaning the cabinets before she is allowed to leave. He physically prevents her from leaving the premises by watching over her until her work is finished. What tort has occurred?
false imprisonment
Written defamation is _____; oral defamation is _______.
libel; slander
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
violates the Lanham Act.
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
will not be able to establish a justification.
Annette drove through an intersection without looking and hit Vincent's car that he had driven into the intersection without obeying a stop sign. Annette sued Vincent. The jury found that Annette's fault contributed 20 percent to the collision and determined that her total loss was $100,000. Under comparative negligence, the jury should award Annette
$80,000.
Which of the following acts resulting in injury would be negligence per se?
A retailer sold glue containing benzene to a 14-year-old boy in violation of state law.
Which of the following statements about torts is correct?
A tortious act may also be a criminal act.
Adam decided to play a practical joke on Linda, a coworker. 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?
Adam committed an assault and a battery.
What is a principal factor in the risk-utility test?
All of these are correct: value of product, gravity of danger, likelihood danger will occur.
Shortly after Brian started to work at Trevit, Inc., a coworker, Ann, began asking him out. Brian said no. Nevertheless, Ann persisted. One day Ann playfully but intentionally touched Brian "below the belt." Which statement is correct?
Ann committed the tort of battery.
John was driving home one night in a terrible snow storm when his car stalled. He managed to push the car onto a small shopping center's parking lot. The next day about noon he came to get the car and it had been towed away by the owner of the parking lot. The owner explained she had to remove the car to clean the snow off her lot and told John where the car had been towed. Which statement is correct?
Even though John left his car in the parking lot under emergency conditions, he still committed a trespass on the owner's property.
A defendant set off fireworks at a fully licensed Fourth of July show. The result of the activity caused harm to the plaintiff. In order for the plaintiff to win a case of negligence, he or she need only prove that it was foreseeable that the defendant's conduct might cause harm.
False
A landowner's highest duty is owed to licensees.
False
After Jan's boyfriend broke up with her, she posted sexually explicit pictures of him on her Facebook page and wrote about how he was a terrible boyfriend. Jan's actions are protected by the First Amendment to the Constitution.
False
Ahmi was a witness in a lawsuit. When asked why he fired Rana, Ahmi replied, "Rana was fired for willful misconduct." Indeed, Rana had not engaged in any misconduct. Rana will be able to successfully sue Ahmi for defamation based on what Ahmi said in court.
False
Don was driving his truck when a board fell out of the truck bed and onto the road. Alice, who was driving closely behind Don's truck, tried to avoid the board, swerved, and struck a telephone pole, causing her severe injuries. Which of the following is correct?
In a comparative negligence state, the actions of Don and Alice will be weighed to determine liability.
Kelley went ice skating on a neighbor's pond, but she fell through a thin area into icy waters. Kelley did not have permission to be on the property, and the neighbor did not even know that she was there. Is the neighbor liable for Kelley's injuries?
It may depend on Kelley's age.
Which of the following is true about res ipsa loquitur?
It shifts the burden of proof from plaintiff to the defendant.
Jim told his manager, Lana, that a coworker, 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, she fired her.
Jim is not liable to Diane for defamation.
Evaluate the following scenarios and determine which one represents Micha's highest liability?
Juanita is a customer having a latte in the coffee shop Micha owns and operates.
Kyle was eating clam chowder soup in a restaurant when a very small piece of bone lodged in his throat. Fortunately, he was able to remove the bone with his fingers. However, he was upset by the incident and sued the restaurant for negligence. What is the most likely result in this case?
Kyle will not collect any damages since he did not sustain any harm.
One morning, Miles accidentally dropped a thumbtack on the chair of the office manager where he worked. The office manager sat on the tack and, two days later, was hospitalized with an infection caused by the tack. Which of the following is correct?
Miles's actions were negligent.
Soledad tells Marco that she believes he was cheating on a biology exam and calls him a "cheater" to his face. She did not tell anyone else about her suspicions. Marco did not, in fact, cheat on the exam. Has defamation occurred?
No, because no one else received the defamatory message besides Marco.
Tipton Company makes a deal with Patton Company to purchase 100 canvas tarps. Patton's competitor, QC Industries, tells Tipton Company executives that Patton's goods are shoddy and Tipton cancels the contract with Patton. What will likely occur?
Patton will sue QC Industries for tortious interference with a contract.
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 will be able to detain the customer for suspicion of shoplifting.
True
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.
True
As it applies to landowners, which of the following statements regarding liability to a licensee is correct?
The landowner is liable to a licensee for injuries caused by hidden dangers only.
A tort is a violation of a duty imposed by the civil law.
True
A witness testifying in a court or legislature may never be sued for defamation.
True
Which of the following statements regarding the Foreign Intelligence Surveillance Act (FISA) is true?
To spy on people located in the United States who are communicating abroad, the government must obtain permission from a secret Foreign Intelligence Surveillance Court.
A defendant engaging in an ultra-hazardous activity is almost always liable for any harm that results.
True
Adam decided to play a practical joke on Linda, a coworker. 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. Did Adam commit the tort of intentional infliction of emotional distress?
Yes, as his conduct was intentional.
Which of the following guarantees that a witness testifying in a court or legislature may never be sued for defamation?
absolute privilege
Spam, officially known as unsolicited commercial email or unsolicited bulk email,
accounts for about 55 percent of all email traffic.
A customer in a restaurant would be considered ________ to whom the restaurant owner owes a duty ________.
an invitee; of reasonable care.
Negligence concerns harm that
arises by accident.
Don was standing in a cafeteria line holding a plate. Tim was upset with Don. Tim turned Don around and grabbed the plate out of Don's hand. Tim then held the plate up and threatened to break it over Don's head. Tim has committed
both an assault and a battery.
The idea behind punitive damages is that
certain behavior is so unacceptable that society must make an example of it.
Runyon was ready to sign a two-year agreement with Barnett Corp. to become Barnett's sales representative for a three-state area. LaPrise, who wants to be the representative for that area, threatens Runyon with bodily harm if he takes the position. Runyon decides his physical well-being is more important to him than the job, so he does not accept the position. LaPrise
committed tortious interference with a prospective advantage.
If the defendant successfully proves __________, no matter how slight the plaintiff's negligence, the plaintiff will be denied any recovery of damages.
contributory negligence
Taking or using someone's personal property without consent is referred to as
conversion.
You make an online purchase of a hooded sweatshirt with the logo of the Dallas Cowboys. The next time you log on, your screen has a banner ad for Dallas Cowboy hats and shirts. This banner ad is most likely the result of
data mining.
The elements in a defamation case are:
defamatory statement; falsity; communication; and injury.
The test of "foreseeability" is generally used to determine the existence of which element of a negligence case?
duty of due care
In a negligence case, the plaintiff must establish
duty of due care, breach, factual cause, proximate cause, and damages.
Bob, a weak swimmer, ignored warning signs in a recreational swimming area and went into deep water. He soon grew tired and realized that he could not make it back to shore. Seeing Kelly, he cried out for help. Kelly, however, ignored the pleas. Bob was finally saved by Dorothy but suffered brain damage from being submerged during the ordeal. Bob now sues Kelly for negligence for failing to try to save him. Bob will
lose because Kelly had no legal duty to rescue him.
Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he was intending to put onto Marsha's pickup truck. The exploding tire injured Marsha and frightened a neighborhood dog, which ran down the street and knocked Phillip down, injuring his knee. Phillip sued the mechanic. In applying the Palsgraf v. Long Island Railroad decision to this case, Phillip would
lose because, although the mechanic's conduct was negligent toward Marsha, it was not a wrong in relation to Phillip, who was far away. The mechanic could not have foreseen injury to Phillip and therefore had no duty to him.
The ruling in the landmark case of New York Times v. Sullivan was that a public official can win a defamation case
only by proving the defendant's actual malice.
Which of the following is NOT a core principle of the Fair Information Practices (FIPS)?
privacy/refusal
A plaintiff sues in negligence but has no proof of factual cause and foreseeable type of harm. Which of the following is most likely to help the plaintiff?
res ipsa loquitur
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,
she will need to show that the magazine either knew the story was false or acted with reckless disregard of the facts.
A branch of tort law that imposes a much higher level of liability when harm results from ultrahazardous acts or defective products is referred to as
strict liability.
Under a state law, a dog owner is absolutely liable to any person who is injured by the dog. This is an example of
strict liability.
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
trespass.
The Electronic Communications Privacy Act includes
the Wiretap Act and the Stored Communications Act.
If a court applies res ipsa loquitur
the defendant has the burden of proving they are not liable.
An intentional tort involves conduct in which
the defendant intended a certain physical act that ends up injuring someone.
In awarding punitive damages, a court considers all of the following EXCEPT
the financial condition of the plaintiff.
Tommie, a six-year-old child, was seriously injured when he stuck a fork into an electrical outlet at a restaurant. His parents sued the restaurant where the incident occurred, claiming it should have had child protective guards on the outlets even though no law required the restaurant to do so. Whether the restaurant is liable will be dependent upon whether
the incident was reasonably foreseeable.
Wayne worked in an office. He had no criminal record, had never had a complaint made against him about his work or his conduct, and had been a faithful employee for nearly 20 years. One day, Wayne followed his supervisor to his home and fatally shot him. The estate of the supervisor sued the company, claiming it should have been aware of Wayne's growing frustration with work. The company's best defense will be that
there was no way to foresee that the incident would happen.
Which of the following is the general goal of compensatory damages?
to restore the plaintiff to the position he or she was in before the injury
