Ch. 8 Bank: Business Torts
When skiing, those participating assume the risk of poorly marked trails.
False
Employer privilege statutes are those that provide employers with defenses to defamation suits when they have shared information on former employees with prospective employers.
True
Few states follow the doctrine of contributory negligence.
True
HIPAA is a federal law for medical privacy.
True
HIPAA is a federal privacy law that concerns medical information.
True
In most states, letters of reference are exempt from liability for defamation.
True
Justin Beiber is an example of a public figure for purposes of proving malice.
True
Landowners owe duties to people who enter their property.
True
Members of Congress enjoy an absolute privilege for their speech while on the floor.
True
Opinion and analysis of a person's conduct are not defamation if the underlying facts are correct.
True
Posting false information about a person to an Internet blog would be publication.
True
Public figures must prove malice to establish a case of defamation against a newspaper.
True
Slander is oral defamation.
True
Speeding is a breach of duty for negligence purposes.
True
The Burnett v. National Enquirer, Inc.case is a famous one involving defamation.
True
The employer privilege statutes provide employers with some defenses for candor in references.
True
The failure to follow industry code is a breach of duty.
True
The media have a qualified privilege in defamation cases.
True
The purpose of causation is to tie the breach of duty to the resulting injury.
True
The shopkeeper's privilege is a defense to false imprisonment if the detention is reasonable.
True
The tort of contract interference requires knowledge of an existing contract between two parties.
True
The use of someone's photo for commercial purposes without their permission is invasion of privacy.
True
The use of someone's voice for commercial purposes without their permission is appropriation.
True
There are three invasion of privacy torts.
True
To establish assumption of risk, the defendant must show that the plaintiff was aware of the risk and accepted it voluntarily.
True
Writing a glowing letter of recommendation for someone in your organization who was accused of misconduct without mention of the charges can result in liability.
True
A dentist makes a mistake while she is working on a patient. reasonable_____ standard. a. person b. dentist c. physician d. citizen
B
A witness testifying at trial about the trial has a(n) _____ privilege. a. qualified b. absolute c. temporary d. spousal
B
Giving an unfavorable review of a product in a magazine is called product disparagement, a type of defamation.
False
Invasion of privacy is a tort of negligence.
False
Malice is a required element in all defamation cases.
False
Negligence is available as a tort remedy only when the breach of duty is a statutory violation.
False
Newspapers have an absolute privilege with respect to defamation suits.
False
Non-public figures need not prove publication in their suits for defamation.
False
Only libel requires proof of publication.
False
Posting false information in a chat room is not sufficient to establish defamation.
False
Proximate cause is the same thing as causation.
False
Proximate cause need not be established in negligence cases.
False
Some damages other than emotional damages must be established for the tort of intentional infliction of emotional distress.
False
Testimony in a court room is not privileged for purposes of defamation actions.
False
The Health Insurance Portability and Accountability Act only applies to the collection, use, and distribution of medical information by physicians..
False
The Palsgraf case expanded the notion of causation.
False
A witness in a high profile criminal trial is a public figure.
True
Asking a buyer to break their existing contract with another supplier is tortious interference.
True
Assumption of risk is a complete defense to negligence.
True
Assumption of risk is not a defense unless there was full information prior to the risk being assumed
True
Assumption of the risk requires knowledge of the risk and voluntarily doing it.
True
Contributory negligence is a complete defense to negligence.
True
Contributory negligence, if established, is a complete defense to negligence.
True
The Supreme Court recently ruled that in cases with substantial compensatory damages, punitive damages that do not exceed a 3:1 ratio are acceptable.
False
The disclosure of private but true facts is not an invasion of privacy.
False
The reasonable and prudent person standard is not used for establishing contributory negligence.
False
The tort of contract interference does not require proof of intent to interfere with the contract.
False
The tort of false imprisonment requires proof of some actual injury.
False
To establish the tort of false imprisonment, there must have been some physical harm.
False
Tort reform acts are quickly erasing the differences among states in tort recovery practices.
False
A local liquor store posts the checks of customers that are returned from the bank. The store manager says the public display of the checks is a good way to deter other bad-check writers. The display of the checks is: a. an invasion of privacy. b. defamation. c. protected by a qualified privilege. d. none of the above
A
A-Plus Linens sent the following notice to John C. Lincoln Hospital: "We'll pay you. Drop your current linen service and we'll give you $5 for every 100 pounds of linen you send our way." The notice sent by A-plus: a. is contract interference. b. is defamatory. c. is invasion of privacy. d. none of the above
A
Galley, Inc. has a contract for operating the kitchen at the Palm Crest Hotel in Miami, Florida. Mealco has approached Palm Crest's director of operations and stated, "Look, sign with us. We'll take care of whatever damages you owe Galley." Suppose Mealco added the following phrase, "Galley is going under fast. They haven't paid rent in five months and their rent is $15,000 per month." Galley is current on its rent, and its rent is $5000 per month. Mealco's statements: a. are defamatory. b. constitute the tort of negligence. c. are covered under the shopkeeper's privilege. d. none of the above
A
Hamburger Hamlets, Inc. is a chain of fast-food restaurants. Its major competitor is Sam's Sandwiches, Inc. Sam's Sandwiches' public relations vice president issued the following (false) statement, "We have documented proof that Hamburger Hamlets uses horse meat in its burgers." Which of the following statements is true? a. Sam's is liable for defamation. b. Sam's is liable for public disclosure of private facts. c. Sam's is liable for negligence. d. Sam's has not committed a tort.
A
How many people must have heard or read a statement for there to be publication for purposes of defamation? a. one b. at least two c. there must be widespread community knowledge d. it must be heard simultaneously by at least two people
A
John Reisen posted the following message in a chat room, " MIC Corporation will have to restate its earnings for the past 3 years. Its CEO will resign in disgrace because he is responsible." The message is false and MIC Corporation's shares lose 45% of their value before the company can stop the rumor. a. Reisen has committed the tort of defamation. b. Reisen has not committed the tort of defamation because there is no publication. c. Reisen has not committed defamation because there are no damages to the company, only the shareholders. d. both b and c e. none of the above
A
Representative Pete Stark said the following in a speech on the floor of the U.S. House of Representatives, "You're going to spend it to blow up innocent people if we can get enough kids to grow old enough for you to send to Iraq to get their heads blown off for the president's amusement." Representative Stark: a. is protected from defamation liability because of the privilege for elected officials. b. is liable to the president for defamation because the statement was not related to government issues. c. is not liable for defamation because of the public figure privilege. d. both a and c
A
The "But for" test: a. is the test for causation. b. is the test for proximate cause. c. has been eliminated as the causation test in negligence cases. d. none of the above
A
The Arizona Daily Desert View carried a story on a recent E-Coli problem in a Phoenix fast food restaurant. The story included a history of Arizona E-Coli incidents and indicated that the Saguaro Grill had an E-Coli problem in 1999 that resulted in the hospitalization of seven customers. Suppose that the restaurant that had the E-Coli outbreak in 1999 was Saguaro Buffet, not the Saguaro Grill. The Arizona Daily Desert View: a. is liable to the Saguaro Grill for libel. b. is liable to the Saguaro Grill for defamation. c. is liable to the Saguaro Grill for invasion of privacy. d. none of the above.
A
The distinguishing element between intentional torts and negligent torts is: a. intent. b. level of damages. c. causation. d. All of the above are distinctions.
A
Troy Nolan, age 17, was in a Games and Stuff store browsing. Troy frequented Games and Stuff but did not always make a purchase. After 45 minutes of looking, Troy picked up his skateboard, put his hand in his pocket, and headed toward the door. The day manager yelled from the back of the store to the cashier at the front of the store, "Stop the kid with the skateboard. He's stolen two games." There were 22 people in the store who heard the statement. Troy had not taken the games. Troy: a. will be successful in a defamation suit against Tower. b. has no course of action because of the shopkeeper's privilege. c. has no basis for recovery. d. could recover only for false imprisonment.
A
When compensatory damages are substantial, the United States Supreme Court ruled that punitive damages are allowable if the ratio of punitive damages to compensatory damages is: a. 1:1. b. 2:1. c. 3:1. d. 1:2.
A
Contract interference: a. requires involvement by more than one third party. b. requires proof of intent to interfere. c. is a federal crime. d. requires proof of misappropriation.
B
Galley, Inc. has a contract for operating the kitchen at the Palm Crest Hotel in Miami, Florida. Mealco has approached Palm Crest's director of operations and stated, "Look, sign with us. We'll take care of whatever damages you owe Galley." Mealco's statements: a. are defamatory. b. constitute the tort of contract interference. c. constitute the tort of negligence. d. none of the above
B
In an opinion column published in wallstreetbuzz.com, a columnist wrote, "James Jackson, CEO of Blain Investments, now posting an $8 billion write-down, has robbed shareholders blind through his accounting slights of hand. Jackson insists that he has scruples. I don't know about that but if he does have scruples you can bet they belong to somebody else." The columnist: a. has committed the tort of libel. b. is protected from defamation liability under the opinion/analysis quasi-privilege. c. cannot be protected from defamation liability by the opinion/analysis privilege if the statement was published. d. none of the above
B
James Keller was an employee at Radical Boards, Inc. Radical Boards is a surf and skateboard shop that also sells clothing. While employed there, Radical Board's principal shareholder discovered that Keller had created peep holes in the shop's dressing rooms. When confronted with the peep holes, Keller denied every using them and indicated that they were there to prevent shoplifting. The shop manager was told to fire Keller. Shortly after Keller left, a 16-year-old and her mother filed suit because the teen learned, through conversations with Keller, that he had seen her in the dressing room while she was trying on swimming suits. Keller was able to describe her not-generally-seen birthmarks to her. Radical Boards: a. cannot be held liable to the teen and her mother because it did engage in the conduct. b. could be held liable under a theory of negligent failure to supervise. c. is no longer liable because it terminated Keller. d. has not committed any tort because watching customers in dressing rooms in part of a merchant's right. e. none of the above
B
Jane Mitchell, age 16, was shopping at her neighborhood Osco Drug Store. She had been looking at magazines as she waited for a friend. She decided to purchase a Tiger Beat magazine and then wait for her friend outside the store. She paid for the magazine, but as she headed for the door, the store manager used the store's loudspeaker system to announce, "You, with the green hair and the maroon Doc Marten's on. Yes, you, by the front of the store. I saw you take that magazine. Stop right there. I have a gun pointed at you." The manager's actions: a. are protected by the shopkeeper's privilege. b. constitute defamation. c. were excessive but will not result in any liability. d. none of the above
B
Punitive damages are: a. generally not available in tort cases. b. often awarded in cases of contract interference. c. only available in negligence actions. d. none of the above
B
The landmark case for proximate cause is: a. Burnett b. Palsgraf c. Pichardo d. Midler
B
The shopkeeper's privilege applies: a. regardless of the amount of time the shopper is detained. b. even if the shopkeeper made a good-faith mistake. c. only if a security guard is used by the store. d. only if it turns out that the customer has stolen something.
B
The tort of false imprisonment: a. requires proof of some actual damage to the plaintiff. b. is also known as the "shopkeeper's tort." c. requires proof of emotional distress. d. no longer exists in states that have adopted the shopkeeper's privilege.
B
Which of the following constitutes a defamatory statement (assuming the statements are untrue)? a. "I don't think you'll be happy with their work." b. "He was dismissed for embezzlement from his last job." c. "I don't care for him at all." d. "All people from Kentucky are stupid."
B
Which of the following defenses to negligence serves as a complete bar to recovery? a. comparative negligence b. contributory negligence c. both a and b d. none of the above
B
With reference to #s 33 and 34, suppose that Radical Board's manager simply verifies employment for the camp director. During Keller's first month at the camp, he is able to gain access to the girls at night and sexually assaults 3 of them. The girls' parents have brought suit against the camp as well as Radical Boards. The camp: a. is not liable for the criminal conduct of employees that was not authorized. b. might be liable for negligent hiring. c. has no liability for conduct of employees after hours. d. both a and d e. none of the above
B
A tort with very few or no defenses is a _____ tort. a. private b. one-sided c. strict liability d. policy or procedural
C
If a defendant in a defamation suit holds a qualified privilege: a. the defendant has a complete defense to the suit. b. the defendant cannot be sued if he/she retracts the statement. c. the plaintiff will be required to prove additional elements to recover. d. the defendant enjoys higher protection than the absolute privilege.
C
In torts, kicking another person would be considered: a. negligence. b. strict liability. c. an intentional tort. d. allowable.
C
Proximate cause: a. is the same as causation. b. need not be proved in every negligence case. c. was established in the Palsgraf case. d. is no longer an element of negligence.
C
Punching someone in the face is a: a. tort. b. crime. c. tort and a crime. d. either a tort or a crime, and the victim must select which to pursue.
C
Which of the following does not enjoy an absolute privilege to charges of defamation? a. members of Congress while speaking on the floor b. witnesses in a court hearing c. newspaper reporting witness testimony from a trial d. All of the above carry absolute privileges.
C
Which of the following is not an element of negligence? a. duty b. breach of duty c. reckless disregard d. causation
C
Which of the following statements best describes the property protection given a singer's voice? a. No protection is given since it is intangible. b. No protection is given because many people legitimately sound like famous singers. c. The voice is given the same protection as the face or likeness. d. none of the above
C
Which of the following statements would qualify for a defamation action (assuming the statement is false)? a. "All corporate types are selfish." b. "Accountants will sign off on anything." c. "Jones pled guilty to a violation of campaign contribution laws." d. All of the above qualify for a defamation action.
C
Which of the following would not be classified as libel? a. a newspaper article with untrue statements about a politician b. a letter with untrue statements about the school principal sent to only one person c. a billboard advertisement that has derogatory, but true statements about a local business d. an anti-war speech at a Veteran's Day parade
C
Which of these would not be considered as damages for defamation? a. Lost business b. Harmed reputation c. Hurt feelings d. Decreased business
C
With reference to #s 33, 34, and 35, Radical Boards: a. has no liability to the girls or their parents. b. enjoys an employer privilege and immunity against such litigation. c. might be held liable for the negligent failure to disclose Keller's history. d. has no liability for the subsequent acts of terminated employees. e. none of the above
C
Keller has applied for a position at a summer camp for girls, ages 14-18. The camp director had called Radical Board's manager and asked for a reference on Keller. a. Radical Board has no liability if it simply verifies Keller's employment there. b. Radical Board has liability for its failure to prosecute Keller. c. Radical Board has no liability for the actions of employees beyond their job description. d. Radical Board enjoys a privilege against defamation if it discloses the peep hole story. e. none of the above
D
Public figures: a. can never have an action in defamation. b. lose their defamation action rights if the remark or information is part of a true story. c. can seek a retraction, but can never recover damages for defamation. d. must establish malice in order to recover damages for defamation.
D
The Arizona Daily Desert View carried a story on a recent E-Coli problem in a Phoenix fast food restaurant. The story included a history of Arizona E-Coli incidents and indicated that the Saguaro Grill had an E-Coli problem in 1999 that resulted in the hospitalization of seven customers. The owner of the Saguaro Grill called the newspaper and complained because the newspaper was rehashing an incident from nearly 10 years ago that damaged its reputation. The Arizona Daily Desert View: a. is liable to the Saguaro Grill for libel. b. is liable to the Saguaro Grill for defamation. c. is liable to the Saguaro Grill for invasion of privacy. d. none of the above
D
The tort of intentional infliction of emotional distress: a. requires proof of some physical harm before there can be recovery. b. is the same as the tort of false imprisonment. c. is a property tort. d. requires proof of conduct that exceeds all bounds of decency.
D
Which of the following is not a breach of duty for purposes of establishing negligence? a. driving with defective brakes b. driving without one's glasses as required on your license c. driving while intoxicated d. All of the above are breaches of duty.
D
Which of the following is not an intentional tort? a. battery b. false imprisonment c. invasion of privacy d. negligence
D
Which of the following is prohibited under HIPAA? a. Patients' right to restrict disclosure and discussion of a hospital stay. b. A computer screen in a doctor's office turned toward the waiting room. c. Calling a patient at work who has requested no calls there. d. all of the above
D
"Car dealers are crooked" is an example of actionable defamation.
False
"Negligence in the air" is the standard of liability the Palsgraf case established.
False
A landowner who sets traps on his property to injure or kill anyone entering his property does not violate any landowner duty.
False
A newspaper running a picture of Julia Roberts' twins has invaded her privacy.
False
A radio broadcast would be considered slander because it is spoken.
False
A tort is a private wrong carrying criminal penalties.
False
Absolute privilege is a federal protection while qualified privilege is a state protection.
False
Businesses are never liable for criminal activity on their premises.
False
Comparative negligence, if established, is a complete defense to negligence.
False
Contract interference is remedied by a suit for breach of contract.
False
Crimes and torts are mutually exclusive: whichever is sought, the other is prohibited.
False
Defamation cannot occur online because there is no evidence that someone heard or understood the statements.
False
Driving with brakes in need of replacement is not a breach of duty.
False
A breach of duty can still be established for negligence cases even when the defendant has complied with the law.
True
A false statement that impeaches someone's honesty is defamatory.
True
A newspaper photographer entering a delivery room and taking a picture of Julia Roberts delivering her twins has invaded her privacy.
True
A screensaver program that uses the likeness of a person is commercial appropriation.
True
