Legal Environment of Business Mid Term

The employees of Eco Engineering Inc. share company-related resources among multiple computers without requiring a central network server. This is

peer-to-peer (P2P) networking.

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

true

An online retailer can track a user's web activities with cookies without violating the person's right to privacy.

true

Company codes of conduct outline company policies on particular issues and how employees are expected to act.

true

For fraud to be the basis of liability in a product liability suit, the misrepresentation must have been intentional.

true

Holding defendants strictly liable for manufacturing defects encourages greater investment in product safety.

true

In entering personal information to a banking site online, a person may have a reasonable expectation of privacy.

true

Intent can be transferred when an individual intends to harm one individual but unintentionally harms another.

true

Manufacturers are commonly held liable when their negligence causes users of their products to be injured.

true

The need to protect intellectual property is recognized in the U.S. Constitution.

true

When religious practices work against public policy, the government can act.

true

Stare decisis is best defined as

a doctrine under which judges follow established precedents.

The classification of law that concerns the rights and duties that exist between persons and between citizens and their government is

civil law.

An award of grossly excessive punitive damages is normally available in a suit involving gross negligence.

false

Cybersquatting occurs when the owner of a trademark registers the mark as a domain name but does not use it for that purpose.

false

Decision makers need to consider what they can and will do before they consider what they should do.

false

Equal protection means that the government must treat all individuals the same.

false

For cause in fact to become a relevant issue in a product liability suit, a plaintiff must first establish proximate cause.

false

A deposition can be used to impeach a party or witness who changes his or her testimony at trial.

true

Federico and Gwen are involved in a court proceeding to enforce a right. This is

an action

Ordering a party to perform what was promised is

an equitable remedy

Fit Corporation makes running shoes. Gaby, a marathoner, files a product liability suit against Fit, alleging a design defect. In deciding whether to hold the company liable, the court may consider an alternative design's

advantages and disadvantages.

Information that may be protected as trade secrets includes

all

Primary sources of law include

case law

Rue obtains permission from Saga Company to use the firm's game app on Rue's mobile devices. But Rue does not obtain ownership rights in the app. This is

license

Petro Ltd. files a suit in a state court against Quality Gas. Before the trial, Petro requests from Quality relevant information stored electronically. In contrast to traditional discovery, this request can legitimately reveal

metadata

Bedding Plus Inc. makes a pillow that Comfort Stuff sells to Demi. Bedding fails to exercise "due care," and Demi is injured by toxic material used as fill in the pillow. Comfort Stuff is most likely liable for

negligence

Making a business decision based on its projected financial outcome and then arguing that the decision is ethical is

rationalizing the decision.

Cultivator Inc. designs and makes tractors, balers, and other farm equipment. In a product liability suit based on negligence, Cultivator could be liable for failing to exercise due care with respect to all of the following except

the growth of the equipment's sales.

Adhering to utilitarian ethics in making a business decision is likely to result in an action that is considered morally correct if it produces the greatest good for

the most people.

A statute enacted by the Wyoming state legislature to regulate trucking affects interstate commerce. In evaluating this statute, the courts will weigh the burden that it imposes on interstate commerce against

the states interest in regulating the matter

Interactive Entertainment Corporation markets its products online. Through the use of cookies, Interactive Entertainment and other online marketers can

track individuals' Web browsing activities.

Intentional physical contact with another is not a battery unless the contact is unexcused, harmful, or offensive.

true

Liability for injuries based on proportionate negligence is allowed by most states.

true

Parties to international business transactions should include certain clauses, including arbitration clauses, in their contracts to avoid added complexity in related legal proceedings.

true

Because of the loss of significant amounts of revenue as a result of unauthorized digital downloads, file-sharing has created problems for

all of the choices.

Utah enacts a statute to ban advertising in "bad taste." Most likely, a court would hold this statute to be

an unconstitutional restriction of speech.

Congress enacts the Ad Restriction Act (ARA) to limit advertising in certain circumstances. The ARA will be considered valid if it directly advances a substantial government interest

and goes no further than necessary to achieve its objective.

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.

Sound Financials Corporation sends daily e-mail ads to its previous customers and those who have opted to receive the notices. The state in which the company is physically located has enacted an antispam law. Under federal law

the application of the state's law to Sound's ads is preempted.

Jared claims that a Kentucky state statute infringes on his "substantive due process" rights. This claim focuses on

the content of the statute.

Carly files a complaint against Delivery Corporation, charging that she has not been paid and wants to recover the unpaid amount, plus interest. The complaint and a summons will most likely be served on

the corporation's registered agent.

Ovid wants to file a suit against Petra. For a court to hear the case,

the court must have jurisdiction.

To successfully apply the concept of corporate social responsibility, the key factor is

the relation of a social activity to a corporate business activity.

Dian enters a car race, knowing that there is a risk of being injured in a crash. Dian assumes

the risk of being injured in a crash.

United Inc., a U.S. film production company, files a suit against Video Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the U.S. and Mexico are signatories of the TRIPS agreement, under which United is entitled to

the same rights and protection under Mexican law as Video.

A federal form of government is one in which the national government shares sovereign power with

the states

Under the U.S. Constitution, the federal government has the power to regulate commercial activities among the states. This grant implies that the regulation of such activities is not within the authority of

the states

CallTalk Corporation, a phone-time seller, uses its mark "calltalk" as its domain name. Later, Converse Inc. uses the domain name "callltalk" (a deliberate misspelling of "calltalk") without CallTalk's authorization, to sell sexually explicit phone conversations. This is

trademark dilution

Brewed Beans Inc. makes and sells "CoCoCafe," a chocolate-flavored coffee. Darkroast Inc. later markets a similar drink under the name "KoKoKafe." This is most likely

trademark infringement.

The Fraud Reduction and Data Analytics Act to prevent, detect, and respond to fraud in federal programs institutionalizes

ethical rights and duties

Anyone can circumvent encryption software or other technological antipiracy protection without penalty.

false

Certain business processes are copyrightable.

false

Conduct that is legal is ethically unquestionable.

false

In a case based on diversity of citizenship, a federal court will apply to the dispute the law of all of the jurisdictions of the parties.

false

Nonverbal expression of belief is not a constitutionally protected form of expression.

false

On appeal of a court's grant or denial of a motion for summary judgment, the appellate court must defer to the trial court's ruling on the issue.

false

Once a law is passed to codify an ethical requirement, the ethical aspect of the action is no longer important.

false

Once a manufacturer's trademark is established, another manufacturer may use it without permission.

false

Only Congress may pass a law in conflict with the Constitution.

false

Only the United States Supreme Court exercises the power of judicial review.

false

Pro se representation refers to the attorneys that parties hire to represent them in court.

false

Testimony by a party in court in support of a statement made by someone else who testified is referred to as gainsay evidence.

false

The commerce clause has had no greater impact on business than any other provision in the Constitution.

false

When profit maximization is the goal, a company does not benefit from ethical behavior.

false

When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.

false

Levon files a suit against Manufacturing Corporation. The defendant believes that even if the plaintiff's statement of the facts is true, according to the law the defendant is not liable. Manufacturing Corporation should

file a motion to dismiss

Payback Inc. discovers that defamatory statements about its policies are being posted in an online forum. Q Web Inc., the Internet service provider whose users are posting the messages, refuses to reveal the users' identities. To obtain those identities, Payback should initially

file a suit against the anonymous users.

Hobbes, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jules, a resident of Kentucky. Jules files a suit against Hobbes in Indiana. Regarding this suit, Indiana has

in rem jurisdiction.

When adopting duty-based ethics, corporations often demonstrate the duties they owe

in their mission statements and strategic plans.

Duty-based ethical standards are most likely to derive from

philosophical reasoning.

The National Association of Manufacturers (NAM) announces a new industry code of ethics. The effectiveness of this code will be determined by

the commitment of NAM's members to enforcing the code.

Ruby invents a new type of pillow and obtains a patent for it. Sleep-Time Inc. believes that Ruby's pillow infringes on one of Sleep-Time's previously patented products. Sleep-Time must file a challenge to Ruby's patent within

9 months

Bright n' Clean Company makes shampoo and other hair care products. Cub is injured by the use of a Bright n' Clean product and sues the company for product liability based on negligence. To win, Cub must show that

Bright n' Clean failed to use due care in making the product.

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.

Once a manufacturer's trademark is established, another manufacturer may use it without permission.

False

Grain Farm Inc. files a suit against Harvest Services. Before the court can exercise jurisdiction over Harvest, the court must have proof that

Harvest was notified of the suit.

Motor Corporation (MC) makes cars and trucks. National Sales Company sells all MC vehicles. Open Road Inc. leases only the cars. Under product liability laws, liability for injuries or damage caused by an MC vehicle may be imposed on

MC, National Sales, or Open Road.

Mai is struck and injured when the brakes fail on Novi's all-terrain vehicle (ATV), which is damaged in the collision. Off-Road Inc. sold the ATV to Novi. Under product liability laws, Off-Road could be liable to

Mai and Novi.

Rev Motor Company buys plugs and points from Sparkplugs Inc. and puts them in Rev vehicles without changing their composition. If the parts are defective, strictly liable for any damage caused by the defects may be

Rev and Sparkplugs.

A precedent is

a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles.

Grain Mill Company brings a suit against Milled Grain Company under the Anticybersquatting Consumer Protection Act, alleging that Milled Grain is profiting from a domain name that is confusingly similar to Grain Mill's trademark. If Grain Mill is successful, recovery may include

actual damages and profits in any amount.

Loni files a civil suit against Meme's Bridal Shop, seeking to recover the amount of a refund for an undelivered wedding dress. To succeed, the plaintiff must prove her case

by a preponderance of the evidence.

Primary sources of law include

case law.

In a suit by Climate Action Now (CAN) against DeForest Inc., CAN serves a written request for the defendant to admit the truth of matters relating to the trial. DeForest's admission in response

conclusively establishes the matter for trial.

Outlet Sales Store unknowingly buys goods that were stolen from Quality Products Inc. Most likely, Outlet Sales can be ordered to return the goods or pay their true owner for their value in a suit for

conversion

A statute is a secondary source of law.

false

An appellate court will not challenge a trial court's finding of fact, even if the finding is clearly erroneous.

false

Any court can exercise jurisdiction over any person.

false

The term moral minimum is best defined as the highest degree of ethical behavior expected of a firm.

false

Jill and Kane, with their attorneys, meet to try to resolve a dispute. A neutral third party works with both sides and proposes a solution, but does not make a decision resolving the matter. This is

mediation

Prognosis Inc. owns a brain-computer interface that enables physicians to diagnose and treat some diseases quickly and accurately. Federal copyright protection extends to

the parts of the app that can be read by computers

A motion for summary judgment can assert that the plaintiff failed to state a claim for which the court can grant relief

true

Controlling precedents are binding authorities.

true

Corporate social responsibility may increase a business's reputation or goodwill.

true

Works that are copyrightable include product packaging.

true

The doctrine of strict liability applies to sellers of goods, including wholesalers.

truue

Russ registers a domain name—sweetfriedpotatos.com—that is a misspelling of a popular brand—sweetfriedpotatoes.com. This is

typosquatting

A cost-benefit analysis is part of

utilitarianism.

Because litigating a complaint can be costly, and there is a backlog of cases in many courts, a businessperson is likely to attempt to resolve a dispute

with a method of alternative dispute resolution.

Ichiro is injured in a two-car accident and sues Heather, the driver of the other vehicle, alleging negligence. Heather claims that Ichiro was driving more carelessly than she was. Comparative negligence may reduce Ichiro's recovery

even if Ichiro was only slightly at fault.

Ove files a suit against Po, claiming that the defendant failed to pay for goods shipped in response to an alleged e-mail order. Po denies the charge. If the e-mail order exists, it is

evidence

A citation is a regulation enacted by a city or county legislative body.

false

A default judgment is a judgment entered by a court in a case in which neither party prevails.

false

A false statement made with actual malice can constitute defamation, unless the statement is about a public figure.

false

A federal statute applies only to those states that agree to apply it within their borders.

false

A licensor who allows a licensee to use a trademark as part of the licensee's company name must also permit the licensee to use the mark on its products.

false

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

false

A request for admission can lengthen a trial because the parties have to take the time to prove facts on which they may already agree.

false

An overemphasis on long-run profit maximization is a common reason for ethical problems that occur in business.

false

An unusual or fanciful trade name is not protected under trademark law.

false

The law does not prohibit the creation or shipment of counterfeit labels unless they are attached to products.

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

The study of business law does not involve an ethical dimension.

false

Under the Madrid Protocol, the fees and procedures for trademark registration vary significantly among individual countries.

false

Under the doctrine of strict liability, a defendant's liability depends on privity of contract.

false

Sea Coast Café uses the trademark of Tacos del Mar without permission. This use of the mark is actionable as trademark infringement

if consumers are confused.

Hal posts online secretly recorded videos of Ida and includes her name, address, phone number, and Facebook page. Most likely, Ida could bring a successful tort action against Hal for

invasion of privacy

In Beta Roasters suit against Coffee Stand, alleging trademark infringement, the court issues a judgment in the defendant's favor. The case is appealed. The appellate court will hear

none of the evidence

Common law rules develop from

principles underlying judges' decisions in actual controversies.

Pharma Corporation expresses opinions on political issues through its financial contributions to political action committees and other groups. Under the First Amendment, Pharma's "expression" is most likely

protected

Ethical issues that a business manager is not likely to encounter include

protocols for company meetings.

Underscoring the importance of ethics is that the law is not always easy to interpret or apply because laws

represent the people's will, which changes.

Rock Quarry Inc. and Serene Vineyards agree to resolve a dispute in arbitration. The arbitrator meets with the quarry's representative to discuss the matter without the vineyard's representative being present. If this substantially prejudices the grape grower's rights, a court will most likely

set aside any award

Rock Quarry Inc. and Serene Vineyards agree to resolve a dispute in arbitration. The arbitrator meets with the quarry's representative to discuss the matter without the vineyard's representative being present. If this substantially prejudices the grape grower's rights, a court will most likely

set aside any award.

Steel Mill Inc. makes steel forms of substandard quality. Tower Building Company has never bought or used a Steel Mill form, but files a suit against the firm, alleging that its products are defective. The defendant's best ground for dismissal of the suit is that the plaintiff does not have

standing to sue.

Felice is injured when a can of Ground-Up explodes into flames. Herbicides Inc. manufactured the Ground-Up. Under product liability laws, Felice's options include

suing herbicides inc.

EquiMeds Company and GenDrugs Inc. make and distribute prescription drugs. In a product-liability suit against both parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties

supplied the particular product that caused the injury.

The utilitarian theory of ethics does not require

the acquiring of the means of production by workers.

A mandatory arbitration clause in an employment contract may not be enforced if

the arbitration rules and procedures are unfair to one of the parties.