Exam 2 Business Law CKCK

reasonable person standard

The standard of behavior expected of a hypothetical "reasonable person." The standard against which negligence is measured and that must be observed to avoid liability for negligence.

torts

A civil wrong not arising from a breach of contract. A breach of a legal duty that proximately causes harm or injury to another.

transferred intent

A legal principle under which a person who intends to harm one individual, but unintentionally harms a different individual, can be liable to the second victim for an intentional tort.

probable cause

A reason to be able to enter private property or search private property.

crime

A wrong against society proclaimed in a statute and punishable by society through fines and/or imprisonment—or, in some cases, death.

intentional tort

A wrongful act knowingly committed.

defamation

Any published or publicly spoken false statement that causes injury to another's good name, reputation, or character.

computer crime

Any violation of criminal law that involves knowledge of computer technology for its perpetration, investigation, or prosecution.

assault

Any word or action intended to make another person fearful of immediate physical harm; a reasonably believable threat.

trade secret

Information or a process that gives a business an advantage over competitors who do not know the information or process.

privilege

In tort law, the ability to act contrary to another person's right without that person's having legal redress for such acts. Privilege may be raised as a defense to defamation.

identity theft

The act of stealing another's identifying information—such as a name, date of birth, or Social Security number—and using that information to access the victim's financial resources.

privity of contract

The relationship that exists between the promisor and the promisee of a contract.

damages

1. a sum of money claimed or awarded in compensation for a loss or an injury. OR 2. inflict physical harm on (something) so as to impair its value, usefulness, or normal function.

indictment

A charge by a grand jury that a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial should be held.

actual malice

A condition that exists when a person makes a statement with either knowledge of its falsity or reckless disregard for the truth. In a defamation suit, a statement made about a public figure normally must be made with actual malice for liability to be incurred.

cyber crime

A crime that occurs online, in the virtual community of the Internet, as opposed to the physical world.

felonies

A crime—such as arson, murder, rape, or robbery—that carries the most severe sanctions, usually ranging from one year in a state or federal prison to the forfeiture of one's life.

assumption of risk

A defense against negligence that can be used when the plaintiff was aware of a danger and voluntarily assumed the risk of injury from that danger.

product misuse

A defense against product liability that may be raised when the plaintiff used a product in a manner not intended by the manufacturer. If the misuse is reasonably foreseeable, the seller will not escape liability unless measures were taken to guard against the harm that could result from the misuse.

trademark

A distinctive mark, motto, device, or implement that a manufacturer stamps, prints, or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the common law or through registration), the owner is entitled to its exclusive use.

information

A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a law officer, such as a magistrate.

patent

A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention for a limited time period.

grand jury

A group of citizens called to decide, after hearing the state's evidence, whether a reasonable basis (probable cause) exists for believing that a crime has been committed and whether a trial ought to be held.

actus reus

A guilty (prohibited) act. The commission of a prohibited act and the intent to commit a crime are the two essential elements required for criminal liability.

misdemeanors

A lesser crime than a felony, punishable by a fine or imprisonment for up to one year in other than a state or federal penitentiary.

collective mark

A mark used by members of a cooperative, association, or other organization to certify the region, materials, mode of manufacture, quality, or accuracy of the specific goods or services. Examples of collective marks include the labor union marks found on tags of certain products and the credits of movies, which indicate the various associations and organizations that participated in the making of the movies.

certification mark

A mark used by one or more persons, other than the owner, to certify the region, materials, mode of manufacture, quality, or accuracy of the owner's goods or services. Examples of certification marks include the "Good Housekeeping Seal of Approval" and "UL Tested."

service mark

A mark used in the sale or the advertising of services, such as to distinguish the services of one person from the services of others. Titles, character names, and other distinctive features of radio and television programs may be registered as service marks.

compensatory damages

A money award equivalent to the actual value of injuries or damages sustained by the aggrieved party.

hacker

A person who uses one computer to break into another.

puffery

A salesperson's exaggerated claims concerning the quality of goods offered for sale. Such claims involve opinions rather than facts and are not considered to be legally binding promises or warranties.

double jeopardy

A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.

dram shop acts

A state statute that imposes liability on the owners of bars and taverns, as well as those who serve alcoholic drinks to the public, for injuries resulting from accidents caused by intoxicated persons when the sellers or servers of alcoholic drinks contributed to the intoxication.

Good Samaritan statutes

A state statute that provides that persons who rescue or provide emergency services to others in peril—unless they do so recklessly, thus causing further harm—cannot be sued for negligence.

trade name

A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law, if the name is the same as the firm's trademark).

contributory negligence

A theory in tort law under which a complaining party's own negligence contributed to or caused his or her injuries. Contributory negligence is an absolute bar to recovery in a minority of jurisdictions.

comparative negligence

A theory in tort law under which the liability for injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party) on the basis of each person's proportionate negligence.

market-share liability

A theory under which liability is shared among all firms that manufactured and distributed a particular product during a certain period of time. This theory of liability is used only when the specific source of the harmful product is unidentifiable.

worm

A type of malware that is designed to copy itself from one computer to another without human interaction. A worm can copy itself automatically and can replicate in great volume and with great speed.

virus

A type of malware that is transmitted between computers and attempts to do deliberate damage to systems and data.

causation in fact

An act or omission without ("but for") which an event would not have occurred.

disparagement of property

An economically injurious false statement made about another's product or property. A general term for torts that are more specifically referred to as slander of quality or slander of title.

public figures

An individual in the public limelight. Public figures include government officials and politicians, movie stars, well-known businesspersons, and generally anybody who becomes known to the public because of his or her position or activities.

superseding cause

An intervening force or event that breaks the connection between a wrongful act and an injury to another; in negligence law, a defense to liability.

fraudulent misrepresentation (fraud)

Any misrepresentation, either by misstatement or omission of a material fact, knowingly made with the intention of deceiving another and on which a reasonable person would and does rely to his or her detriment.

statutes of repose

Basically, a statute of limitations that is not dependent on the happening of a cause of action. Statutes of repose generally begin to run at an earlier date and run for a longer period of time than statutes of limitations.

Bensing Company manufactures generic drugs for the treatment of heart disease. A federal law requires generic drug makers to use labels that are identical to the labels on brand-name versions of the drugs. Hunter Rothfus purchased Bensing's generic drugs in Ohio and wants to sue Bensing for defective labeling based on its failure to comply with Ohio state common law (rather than the federal labeling requirements). What defense might Bensing assert to avoid liability under state law? (See Defenses to Product Liability.)

Bensing can assert the defense of preemption. An injured party may not be able to sue the manufacturer of defective products that are subject to comprehensive federal regulatory schemes. If the federal government has a comprehensive regulatory scheme (such as it does with medical devices and vaccines), then it is assumed that the rules were designed to ensure a product's safety, and the federal rules will preempt any state regulations. Therefore, Bensing could not be held liable to Rothfus under state law if it complied with the federal druglabeling requirements.

mens rea

Criminal intent. The commission of a prohibited act and the intent to commit a crime are the two essential elements required for criminal liability.

actionable

Capable of serving as the basis of a lawsuit.

slander

Defamation in oral form.

libel

Defamation in writing or in some other form (such as a digital recording) having the quality of permanence.

money laundering

Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise—in effect, "laundering" the "dirty money."

cyber fraud

Fraud that involves the online theft of credit-card information, banking details, and other information for criminal use.

self-incrimination

Giving testimony in a trial or other legal proceeding that could expose the person testifying to criminal prosecution.

Business Case Problem with Sample Answer—Product Liability. While driving on Interstate 40 in North Carolina, Carroll Jett became distracted by a texting system in the cab of his tractor-trailer truck. He smashed into several vehicles that were slowed or stopped in front of him, injuring Barbara and Michael Durkee and others. The injured motorists filed a suit in a federal district court against Geologic Solutions, Inc., the maker of the texting system, alleging product liability. Was the accident caused by Jett's inattention or the texting device? Should a manufacturer be required to design a product that is incapable of distracting a driver? Discuss.

Here, the accident was caused by Jett's inattention, not by the texting device in the cab of his truck. In a product liability case based on a design defect, the plaintiff has to prove that the product was defective at the time it left the hands of the seller or lessor. The plaintiff must also show that this defective condition made it "unreasonably dangerous" to the user or consumer. If the product was delivered in a safe condition and subsequent mishandling made it harmful to the user, the seller or lessor normally is not liable. To successfully assert a design defect, a plaintiff has to show that a reasonable alternative design was available and that the defendant failed to use it. The plaintiffs could contend that the defendant manufacturer of the texting device owed them a duty of care because injuries to vehicle drivers and passengers, and others on the roads, were reasonably foreseeable due to the product's design, which required the driver to divert his eyes from the road to view an incoming text from the dispatcher, and permitted the receipt of texts while the vehicle was moving. But manufacturers are not required to design a product incapable of distracting a driver. The duty owed by a manufacturer to the user or consumer of a product does not require guarding against hazards that are commonly known or obvious or protecting against injuries that result from a user's careless conduct. That is what happened here. In the actual case on which this problem is based, the court reached the same conclusion, based on the reasoning stated above, and an intermediate appellate court affirmed the judgment.

general damages

In a tort case, an amount awarded to compensate individuals for the nonmonetary aspects of the harm suffered, such as pain and suffering; not available to companies.

special damages

In a tort case, an amount awarded to compensate the plaintiff for quantifiable monetary losses, such as medical expenses, property damage, and lost wages and benefits (now and in the future).

necessity

In criminal law, a defense against liability. Under Section 3.02 of the Model Penal Code, this defense is justifiable if "the harm or evil sought to be avoided" by a given action "is greater than that sought to be prevented by the law defining the offense charged." In real property law, a way of creating an easement when one party must have the easement in order to have access to his or her property.

entrapment

In criminal law, a defense in which the defendant claims that he or she was induced by a public official—usually an undercover agent or police officer—to commit a crime that he or she would otherwise not have committed.

petty offenses

In criminal law, the least serious kind of criminal offense, such as a traffic or building-code violation.

exclusionary rule

In criminal procedure, a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth, Fifth, and Sixth Amendments, as well as any evidence derived from illegally obtained evidence, will not be admissible in court.

unreasonably dangerous product

In product liability, a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it.

license

In the context of intellectual property, a contract permitting the use of a trademark, copyright, patent, or trade secret for certain purposes. In the context of real property, a revocable right or privilege of a person to come on another person's land.

malware

Malicious software programs designed to disrupt or harm a computer, network, smartphone, or other device.

proximate cause*

Legal cause; exists when the connection between an act and an injury is strong enough to justify imposing liability. *Important

strict liability

Liability regardless of fault. In tort law, strict liability may be imposed on defendants in cases involving abnormally dangerous activities, dangerous animals, or defective products.

punitive damages

Money damages that may be awarded to a plaintiff to punish the defendant and deter future similar conduct.

Business Case Problem with Sample Answer—Negligence. At the Weatherford Hotel in Flagstaff, Arizona, in Room 59, a balcony extends across thirty inches of the room's only window, leaving a twelve-inch gap with a three-story drop to the concrete below. A sign prohibits smoking in the room but invites guests to "step out onto the balcony" to smoke. Toni Lucario was a guest in Room 59 when she climbed out of the window and fell to her death. Patrick McMurtry, her estate's personal representative, filed a suit against the Weatherford. Did the hotel breach a duty of care to Lucario? What might the Weatherford assert in its defense? E

Negligence requires proof that the defendant owed a duty of care to the plaintiff, the defendant breached that duty, the defendant's breach caused the plaintiff's injury, and the plaintiff suffered a legally recognizable injury. With respect to the duty of care, a business owner has a duty to use reasonable care to protect business invitees. This duty includes an obligation to discover and correct or warn of unreasonably dangerous conditions that the owner of the premises should reasonably foresee might endanger an invitee. Some risks are so obvious that an owner need not warn of them. But even if a risk is obvious, a business owner may not be excused from the duty to protect its customers from foreseeable harm. Because Lucario was the Weatherford's business invitee, the hotel owed her a duty of reasonable care to make its premises safe for her use. The balcony ran nearly the entire width of the window in Lucario's room. She could have reasonably believed that the window was a means of access to the balcony. The window/balcony configuration was dangerous, however, because the window opened wide enough for an adult to climb out, but the twelve-inch gap between one side of the window and the balcony was unprotected. This unprotected gap opened to a drop of more than three stories to a concrete surface below. Should the hotel have anticipated the potential harm to a guest who opened the window in Room 59 and attempted to access the balcony? The hotel encouraged guests to "step out onto the balcony" to smoke. The dangerous condition of the window/balcony configuration could have been remedied at a minimal cost. These circumstances could be perceived as creating an "unreasonably dangerous" condition. And it could be concluded that the hotel created or knew of the condition and failed to take reasonable steps to warn of it or correct it. Of course, the Weatherford might argue that the window/balcony configuration was so obvious that the hotel was not liable for Lucario's fall. In the actual case on which this problem is based, the court concluded that the Weatherford did not breach its duty of care to Lucario. On McMurtry's appeal—Lucario's estate's personal representative—a state intermediate appellate court held that this conclusion was in error, vacated the lower court's judgment in favor of the hotel on this issue, and remanded the case.

white-collar crime

Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.

Business Case Problem with Sample Answer—Patents. The U.S. Patent and Trademark Office (PTO) denied Raymond Gianelli's application for a patent for a "Rowing Machine"—an exercise machine on which a user pulls on handles to perform a rowing motion against a selected resistance. The PTO considered the device obvious in light of a previously patented "Chest Press Apparatus for Exercising Regions of the Upper Body"—an exercise machine on which a user pushes on handles to overcome a selected resistance. On what ground might this result be reversed on appeal?

One ground on which the denial of the patent application in this problem could be reversed on appeal is that the design of Raymond Gianelli's "Rowing Machine" is not obvious in light of the design of the "Chest Press Apparatus for Exercising Regions of the Upper Body." To obtain a patent, an applicant must demonstrate to the satisfaction of the U.S. Patent and Trademark Office (PTO) that the invention, discovery, process, or design is novel, useful, and not obvious in light of current technology. In this problem, the PTO denied Gianelli's application for a patent for his "Rowing Machine"—an exercise machine on which a user pulls on handles to perform a rowing motion against a selected resistance. The PTO considered the device obvious in light of a patented "Chest Press Apparatus for Exercising Regions of the Upper Body"—a chest press exercise machine on which a user pushes on handles to overcome a selected resistance. But it can be easily argued that it is notobvious to modify a machine with handles designed to be pushed into one with handles designed to be pulled. In fact, anyone who has used exercise machines knows that a way to cause injury is to use a machine in a manner not intended by the manufacturer. In the actual case on which this problem is based, the U.S. Court of Appeals for the Federal Circuit reversed the PTO's denial of Gianelli's application for a patent, based on the reasoning stated above

tortfeasor

One who commits a tort.

licensee

One who receives a license to use, or enter onto, another's property.

phishing

Online fraud in which criminals pretend to be legitimate companies by using e-mails or malicious websites that trick individuals and companies into providing useful information, such as bank account numbers, Social Security numbers, and credit-card numbers.

slander of quality

The publication of false information about another's product, alleging that it is not what its seller claims; also called trade libel.

Jana leaves her truck's motor running while she enters a Kwik-Pik Store. The truck's transmission engages, and the vehicle crashes into a gas pump, starting a fire that spreads to a warehouse on the next block. The warehouse collapses, causing its billboard to fall and injure Lou, a bystander. Can Lou recover from Jana? Why or why not?

Probably. To recover on the basis of negligence, the injured party as a plaintiff must show that the truck's owner owed the plaintiff a duty of care, that the owner breached that duty, that the plaintiff was injured, and that the breach caused the injury. In this situation, the owner's actions breached the duty of reasonable care. The billboard falling on the plaintiff was the direct cause of the injury, not the plaintiff's own negligence. Thus, liability turns on whether the plaintiff can connect the breach of duty to the injury. This involves the test of proximate cause—the question of foreseeability. The consequences to the injured party must have been a foreseeable result of the owner's carelessness.

malpractice

Professional misconduct or the failure to exercise the requisite degree of skill as a professional. Negligence—the failure to exercise due care—on the part of a professional, such as a physician or an attorney, is commonly referred to as malpractice.

intellectual property

Property resulting from intellectual, creative processes. Patents, trademarks, and copyrights are examples of intellectual property

botnets

Short for robot network—a group of computers that run an application controlled and manipulated only by the software source. Usually, the term is reserved for computers that have been infected by malicious robot software.

trade libel

The publication of false information about another's product, alleging that it is not what its seller claims; also referred to as slander of quality.

tolled

Temporary suspension of the running of a prescribed period (such as a statute of limitations). For instance, a statute of limitations may be tolled until the party suffering an injury has discovered it or should have discovered it.

robbery

The act of forcefully and unlawfully taking personal property of any value from another; force or intimidation is usually necessary for an act of theft to be considered a robbery.

A water pipe bursts, flooding a Metal Fabrication Company utility room and tripping the circuit breakers on a panel in the room. Metal Fabrication contacts Nouri, a licensed electrician with five years' experience, to check the damage and turn the breakers back on. Without testing for short circuits, which Nouri knows that he should do, he tries to switch on a breaker. He is electrocuted, and his wife sues Metal Fabrication for damages, alleging negligence. What might the firm successfully claim in defense?

The company might defend against the electrician's wife's claim by asserting that the electrician should have known of the risk and, therefore, the company had no duty to warn. According to the problem, the danger is common knowledge in the electrician's field and should have been apparent to this electrician, given his years of training and experience. In other words, the company most likely had no need to warn the electrician of the risk. The firm could also raise comparative negligence. Both parties' negligence, if any, could be weighed and the liability distributed proportionately. The defendant could also assert assumption of risk, claiming that the electrician voluntarily entered into a dangerous situation, knowing the risk involved.

duty of care

The duty of all persons, as established by tort law, to exercise a reasonable amount of care in their dealings with others. Failure to exercise due care, which is normally determined by the "reasonable person standard," constitutes the tort of negligence.

trespass to land

The entry onto, above, or below the surface of land owned by another without the owner's permission or legal authorization.

copyright

The exclusive right of authors to publish, print, or sell an intellectual production for a statutory period of time. A copyright has the same monopolistic nature as a patent or trademark, but it differs in that it applies exclusively to works of art, literature, and other works of authorship, including computer programs.

negligence

The failure to exercise the standard of care that a reasonable person would exercise in similar circumstances.

embezzlement

The fraudulent appropriation of money or other property by a person to whom the money or property has been entrusted.

forgery

The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.

trade dress

The image and overall appearance of a product—for example, the distinctive decor, menu, layout, and style of service of a particular restaurant. Basically, trade dress is subject to the same protection as trademarks.

product liability

The legal liability of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods.

arson

The malicious burning of another's dwelling. Some statutes have expanded arson to include any real property, regardless of ownership, and the destruction of property by other means—for example, by explosion.

plea bargaining

The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case, subject to court approval; usually involves the defendant's pleading guilty to a lesser offense and receiving a lighter sentence.

slander of title

The publication of a statement that falsely denies or casts doubt on another's legal ownership of property, causing financial loss to that property's owner.

beyond a reasonable doubt

The standard used to determine the guilt or innocence of a person criminally charged. To be guilty of a crime, one must be proved guilty "beyond and to the exclusion of every reasonable doubt." A reasonable doubt is one that would cause a prudent person to hesitate before acting in matters important to him or her.

burglary

The unlawful entry into a building with the intent to commit a felony. Some state statutes have expanded burglary to include the intent to commit any crime.

trespass to personal property

The unlawful taking or harming of another's personal property; interference with another's right to the exclusive possession of his or her personal property.

battery

The unprivileged, intentional touching of another.

larceny

The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit, depending on the property's value.

conversion

The wrongful taking, using, or retaining possession of personal property that belongs to another.

business invitees

Those people, such as customers or clients, who are invited onto business premises by the owner of those premises for business purposes.

duress

Unlawful pressure brought to bear on a person, causing the person to perform an act that he or she would not otherwise perform (or refrain from doing something that he or she would otherwise do).

dilution

With respect to trademarks, a doctrine under which distinctive or famous trademarks are protected from certain unauthorized uses regardless of a showing of competition or a likelihood of confusion. Congress created a federal cause of action for dilution in 1995 with the passage of the Federal Trademark Dilution Act.

Roslyn, a food buyer for Organic Cornucopia Food Company, decides to go into business for herself as Roslyn's Kitchen. She contacts Organic's suppliers, offering to buy their entire harvest for the next year. She also contacts Organic's customers, offering to sell her products at prices lower than Organic's prices. Has Roslyn violated any of the intellectual property rights discussed in this chapter?

Yes. Roslyn has committed theft of trade secrets. Lists of suppliers and customers cannot be patented, copyrighted, or trademarked, but the information they contain is protected against appropriation by others as trade secrets. Most likely, Roslyn signed a contract agreeing not to use this information outside her employment by Organic. But even without such a contract, Organic could make a convincing case against its ex-employee for a theft of trade secrets.

Without permission, Ben downloads consumer credit files from a computer belonging to Consumer Credit Agency. He then sells the data to Dawn. Has Ben committed a crime? If so, what is it?

Yes. The Counterfeit Access Device and Computer Fraud and Abuse Act provides that a person who accesses a computer online, without permission, to obtain classified data—such as consumer credit files in a credit agency's database—is subject to criminal prosecution. The crime has two elements: accessing the computer without permission and taking data. It is a felony if done for private financial gain. Penalties include fines and imprisonment for up to twenty years. The victim of the theft can also bring a civil suit against the criminal to obtain damages and other relief.

Business Case Problem with Sample Answer—White-Collar Crime. Matthew Simpson and others created and operated a series of corporate entities to defraud telecommunications companies, creditors, credit reporting agencies, and others. Through these entities, Simpson and his confederates used routing codes and spoofing services to make long-distance calls appear to be local. They stole other firms' network capacity and diverted payments to themselves. They leased goods and services without paying for them. To hide their association with their corporate entities and with each other, they used false identities, addresses, and credit histories, and issued false bills, invoices, financial statements, and credit references. Did these acts constitute mail and wire fraud? Discuss.

Yes. The acts committed by Matthew Simpson and the others constituted wire and mail fraud. Federal law makes it a crime to devise any scheme that uses the U.S. mail, commercial carriers (such as FedEx or UPS), or wire (such as telegraph, telephone, television, the Internet, or e-mail) with the intent to defraud the public. Here, as stated in the facts, Simpson and his cohorts created and operated a series of corporate entities to defraud telecommunications companies, creditors, credit reporting agencies, and others. Through these entities, Simpson and the others used routing codes and spoofing services to make long distance calls appear to be local. They stole other firms' network capacity and diverted payments to themselves. They leased goods and services without paying for them. And they assumed false identities, addresses, and credit histories, and issued false bills, invoices, financial statements, and credit references, in order to hide their association with their entities and with each other. Through the use of this "scheme," the perpetrators defrauded telecommunications companies and other members of the public in order to gain goods and services for themselves. They used wire services—the Internet and, presumably, phones and other qualifying services—to further the scheme. In the actual case on which this problem is based, a federal district court convicted Simpson of participating in a wire and mail fraud conspiracy (and other crimes). On appeal, the U.S. Court of Appeals for the Fifth Circuit affirmed the conviction.

lobal Products develops, patents, and markets software. World Copies, Inc., sells Global's software without the maker's permission. Is this patent infringement? If so, how might Global save the cost of suing World for infringement and at the same time profit from World's sales?

Yes. This is patent infringement. A software maker in this situation might best protect its product, save litigation costs, and profit from its patent by the use of a license. In the context of this problem, a license would grant permission to sell a patented item.

Rim Corporation makes tire rims that it sells to Superior Vehicles, Inc., which installs them on cars. One set of rims is defective, which an inspection would reveal. Superior does not inspect the rims. The car with the defective rims is sold to Town Auto Sales, which sells the car to Uri. Soon, the car is in an accident caused by the defective rims, and Uri is injured. Is Superior Vehicles liable? Explain your answer. (See Strict Product Liability.)

Yes. Those who make, sell, or lease goods are liable for the harm or damages caused by those goods to a consumer, user, or bystander. Thus, Superior Vehicles, which installed defective rims on the vehicle, is liable for the injuries proximately caused to the buyer (Uri). A manufacturer is liable for its failure to exercise due care to any person who sustains an injury proximately caused by a negligently made (defective) product. By not inspecting and testing the rims and tires it had installed, Superior Vehicles failed to exercise due care.

Dana takes her roommate's credit card without permission, intending to charge expenses that she incurs on a vacation. Her first stop is a gas station, where she uses the card to pay for gas. With respect to the gas station, has she committed a crime? If so, what is it?

Yes. With respect to the gas station, she has obtained goods by false pretenses. She might also be charged with larceny and forgery, and most states have special statutes covering illegal use of credit cards.

self-defense

he legally recognized privilege to protect one's self or property against injury by another. The privilege of self-defense protects only acts that are reasonably necessary to protect one's self or property.

search warrant

warrant given by a judge to be able to search someones property.