Business Law Quiz 2
SPF Sunscreen Corporation and Tanner agree to resolve their dispute through arbitration. The arbitrator's decision is called
An Award
Arbitration that is mandated by a court is often binding on the parties.
False
Fraud occurs only when there is justifiable reliance on a true statement.
False
Some risks are obvious but, with respect to the duty of care required to establish negligence, a warning is always necessary.
False
A court's review of an arbitrator's award may be restricted.
True
A manufacturer's duty of care extends to the inspection and testing of components used in the final product.
True
An action in strict product liability requires that the product be in a defective condition when the defendant sells it.
True
An individual's privacy is invaded if his or her likeness is used for commercial purposes without permission.
True
Bona fide competitive behavior is a permissible interference with a contractual relationship even if it results in a breaking of the contract.
True
Small claims courts are inferior trial courts.
True
State supreme courts generally deny most appeals.
True
The role of the courts is to interpret and apply the laws
True
The taking of electronic records and data can form the basis of a conversion claim.
True
The use of evidence outside the pleadings distinguishes the motion for summary judgment from the motion for judgment on the pleadings.
True
Tort law provides remedies for acts that cause the destruction of or damage to property.
True
Mediocrité, Inc., makes and sells goods that are substandard. Nancy, who has never bought or used a Mediocrité item, files a suit against the firm, alleging that its products are defective. The company's best ground for dismissal of the suit is that Nancy does not have
standing
The case of Max v. National Credit Co. is heard in a trial court. The case of O! Boy! Ice Cream Co. v. Pecan Corp. is heard in an appellate court. The difference between a trial and an appellate court is whether
a trial is being held.
SmartTalk, Inc., makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, the company may be liable in product liability for any of the following except
an ineffective marketing plan.
After a dinner at Rosario's Italian Eatery, Stephanie believes that she was overcharged and shoves Thom, the waiter. Thom sues Stephanie, alleging that the shove was a battery. Stephanie is liable
if the shove was offensive.
Suki files a suit against Travis. If this suit is like most cases, it will be
settled before a trial.
