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Home » Business Law » Page 118

Business Law

Q: To avoid liability for negligence, a business owner must protect its patrons against all risks.

Q: Under the theory of negligence, the duty of care requires a careless act.

Q: To determine whether a duty of care has been breached, a judge asks how a reasonable person would have acted in the same circumstances.

Q: Failure to live up to a standard of care may be an act or an omission.

Q: Disparagement of property is another term for slander of quality.

Q: A failure to return personal property is disparagement of property even if the rightful owner consented to the initial taking.

Q: Wrongfully taking personal property without the owner's permission is conversion.

Q: If it can be shown that a trespass to land was warranted, a complete defense exists.

Q: The courts consider legitimate competitive behavior permissible only if it does not result in the breaking of a contract.

Q: Any lawful contract can potentially form the basis for an action based on wrongful interference with a contractual relationship.

Q: Fraud occurs only when there is reliance on a statement of opinion.

Q: The use of a person's likeness for commercial purposes without permission is appropriation.

Q: The public disclosure of private facts about a person is an invasion of privacy.

Q: Statements made by in judicial proceedings are NOT privileged communications and may be the basis for defamation.

Q: Defamation is one person's use of another's name without permission.

Q: A party cannot recover damages for severe emotional distress absent a showing of physical injury.

Q: Defense of others is a defense to an allegation of battery, but not assault.

Q: Self-defense is a defense to an allegation of both assault and battery.

Q: For a tort to be considered intentional, the tortfeasor must have an evil or harmful motive.

Q: To commit an intentional tort, one person must intend to harm a certain person.

Q: Class-action lawsuits are suits in which a number of persons join together to bring an action.

Q: Very few states have limited the amount of damages that can be awarded in tort cases.

Q: Through tort law, society compensates those who suffer injuries as a result of others' wrongful conduct.

Q: False imprisonment occurs when a person restrains another intentionally and without justification.

Q: After two years of research and the investment of considerable funds, Coast-to-Coast Company (CC) develops a new product that it hopes will produce substantial profits. CC learns that a competitor, National Sales, Inc., has made and begun to sell a nearly identical product. CC learns from a reliable source that National paid a CC employee to obtain the plans for CC's product while it was in development. What legal recourse does CC have against National?

Q: Precise Engineering Corporation has a contract with Quik Mart Stores to provide customized software for Quik's inventory control system. Retail Outlets, Inc., Quik's competitor, induces Sam, a Precise subcontractor who is writing code for the Quik software, to delay delivery of the code for one week. As a result, Precise's delivery of the software is delayed, and Quik sustains $500,000 in lost profits. On what ground could Quik recover damages from Retail Outlets?

Q: Oakley posts a defamatory remark about Pierre in "Roominate," an online social network maintained by SocNet, Inc., an Internet service provider. Most likely to be held liable for the remark will be a. Oakley. b. Pierre. c. Roominate. d. SocNet.

Q: Jean is playing a video game on a defective disk that melts in her game player, starting a fire that injures her hands. Jean files a suit against K-Tech, Inc., the game's manufacturer. K-Tech is held liable under the doctrine of strict liability. A significant application of this doctrine is in the area of a. cyber torts. b. intentional torts. c. product liability. d. unintentional torts.

Q: An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Keely, a patron, is injured. Jack's has committed a. abuse of process. b. battery. c. false imprisonment. d. negligence.

Q: George has a badly infected right foot. Herb, George's physician, prescribes amputation. George agrees. During the operation, Herb amputates the left foot. In George's suit against Herb, George's best theory for recovery is a. assumption of risk. b. negligence per se. c. res ipsa loquitur. d. strict liability.

Q: A Rhode Island state statute requires machinery in industrial plants to include automatic shut-off switches accessible to each employee working on the machine. Steel Company's equipment does not have the switches. Trudy, a Steel employee, suffers an injury that an accessible shut-off switch would have prevented. Trudy's best theory for recovery is a. assault. b. assumption of risk. c. invasion of privacy. d. negligence.

Q: Frank slips and falls on Guy's Harbor Tour Boat and is injured. Frank files a suit against Guy's for $500,000. If Frank is 20 percent at fault and Guy's is 80 percent, under the "50 percent rule" comparative negligence principles, Frank would recover a. $0. b. $250,000. c. $400,000. d. $500,000.

Q: Liu enters Mountain Triathlon, an athletic competition in which Liu has never competed. Regarding the risk of injury, Liu assumes the risks a. attributable to the triathlon in any way. b. different from the risks normally associated with the triathlon. c. greater than the risks normally associated with the triathlon. d. normally associated with the triathlon.

Q: Richard is an avid baseball fan and attends baseball games whenever he can. Richard considers himself an expert on all things, including risks, related to baseball. One day a ball flies into the stands, hits Richard in the head and seriously injures him. Richard can probably successfully win a case against the sports stadium based on a. negligence. b. breach of duty of care. c. defamation. d. none of the choices.

Q: Duffy is a passenger in a car that Caleb is driving when an accident occurs. Both Caleb and Duffy are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dufy on a negligence theory because a. both parties were emotionally rattled. b. Caleb apparently did not intend to cause an accident. c. Duffy must have been comparatively negligent. d. Duffy was not injured.

Q: Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Speedy are liable to a. all those who were injured. b. only those who were uninsured. c. only those whose injuries could have been reasonably foreseen. d. only those whose vehicles were closest to Ralph's van.

Q: Nico is a passenger in a car driven by Owen, whose reckless driving causes an accident, injuring himself. Nico, uninjured, accompanies Owen to Parkside Hospital in an ambulance. The ambulance is hit by a car driven by Quin, and Nico is injured. Nico files a suit against Owen, alleging negligence. The element most likely to be a question for the court to decide is a. causation in fact. b. proximate cause. c. the duty of care. d. the injury requirement.

Q: Cook's Pantry Appliances, a retail store, must use reasonable care on its premises to warn its patrons of a. all risks. b. hidden risks. c. obvious risks. d. no risks.

Q: Kelly is injured when she slips and falls on Layla's sidewalk. To determine whether Layla owed a duty of care to Kelly, Layla is subject to the standard of a. a realistic person. b. a reasonable person. c. a recognizable person. d. a reliable person.

Q: Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as a. a blameless person. b a faultless person. c. a holistic person. d. a reasonable person.

Q: In newspaper ads, Lo-Price Autos falsely accuses Hi-Value Vehicles, a competitor, of selling stolen cars. Hi-Value's sales decrease. Lo-Price has most likely committed a. slander of quality. b. slander of title. c. wrongful interference with a business relationship. d. none of the choices.

Q: Lizzie, a clerk at a Movies Unlimited store, takes a DVD player from the store without permission. Lizzie is liable for a. appropriation. b. benefiting an employee. c. conversion. d. wrongful interference with a business relationship.

Q: As a joke, Jem takes Kyla's business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem may have committed a. appropriation. b. conversion. c. disparagement of property. d. trespass to personal property.

Q: Susan takes her car to Ken's repair shop and asks him to fix the car's brakes. Ken completes the work and sends Susan a bill for $100. Susan refuses to pay so Ken refuses to return Susan's car. Susan can probably successfully sue Ken for a. battery. b. conversion. c. trespass to property. d. none of the choices.

Q: Manuel is walking past Thomas's house when he hears a smoke alarm going off. He also hears a child calling for help and sees smoke coming from a window. Manuel rushes into Thomas's house, finds the child and brings it outside. If Thomas sues Manuel for trespass to land, Manuel's defense will probably be a. assisting someone in danger. b. consent. c. self-defense. d. the reasonable person defense.

Q: Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and onto Bella's land. Doyle commits trespass if he a. does not have Bella's permission to drive on the property. b. drives onto the property for recreational purposes. c. harms the property in a material way. d. harms the property in any way.

Q: OK Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize OK instead of Purity. This is a. appropriation. b. conversion. c. wrongful interference with a contractual relationship. d. no tort.

Q: Kai files a suit against Lana based on one of Lana's statements that Kai alleges is fraudulent. To give rise to fraud, the statement must be one of a. emotion. b. fact. c. illusion. d. opinion.

Q: Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody Pastries, Inc., as she attempts to make sales to food stores. Dom solicits each of Flora's customers. Dom is most likely liable for wrongful interference with a a. bargaining relationship. b. business relationship. c. contractual relationship. d. customer relationship.

Q: Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator is the "best one ever made." This is a. fraud if the statement is the truth. b. fraud if Jim believes that this statement is not true. c. fraud if Jim is stating his opinion, not the facts. d. not fraud.

Q: Obie accuses Portia, a broker with QT Financial Services, of fraudulently inducing him to invest in Risky Development Company, whose stock price declines in value. The reliance that gives rise to liability for fraud requires a. a subjective statement. b. misrepresentation of a fact knowing that it is false. c. puffery. d. seller's talk.

Q: Barbara is selling her car. She knows that the brakes do not work. When a potential buyer asks Barbara if there are any problems with the car, Barbara assures the buyer that there are no problems. The buyer purchases the car based on the assurance that there is nothing wrong with it. The buyer may be able to sue Barbara for a. assault. b. defamation. c. fraudulent misrepresentation. d. appropriation.

Q: Jane develops a new color of lipstick. To market her lipstick, Jane uses a computer design program to show a famous model using Jane's lipstick. Jane does not ask the model's permission. The model can sue Jane for a. battery. b. fraudulent misrepresentation. c. defamation. d. appropriation.

Q: Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen's statement is NOT defamatory if a. only Hu hears it. b. a third party hears it. c. the statement is published. d. the statement is a lie.

Q: Jackie distributes a handbill throughout her neighborhood accusing her neighbor Ked of being a convicted sex offender. The statement is defamatory if a. a neighbor repeats it. b. Ked suffers emotional distress. c. the statement is true. d. the statement is false.

Q: Roger wants Andy to work late on a project. He tells Andy that the morally correct thing to do is to stay late at the office and work on the project. Andy feels obligated to stay and work late due to the moral pressure from Roger. Andy stays late at the office, even though he does not want to. Andy can sue Roger for a. false imprisonment. b. battery. c. defamation. d. no tort.

Q: Liz trespasses on Mega Corporation's property. Through the use of reasonable force, Mega's security guard Ned detains Liz until the police arrive. Mega is liable for a. assault. b. battery. c. false imprisonment. d. none of the choices.

Q: Discount Mart, Inc., files a suit in a state court against Elements Computer Corporation, alleging that Elements breached a contract to sell 500 notebook computers to Discount. During the course of the suit, Discount files a motion for judgment on the pleadings, Elements files a motion for a directed verdict, and both parties file motions for summary judgment. When and for what purpose are each of these motions made?

Q: Norwest Trucking Corporation files a suit in a state court against Bob's Service Company (BSC), and wins. BSC appeals the court's decision, asserting that the evidence presented at trial to support Norwest's claim was so scanty that no reasonable jury could have found for the plaintiff. Therefore, argues BSC, the appellate court should reverse the trial court's decision. Is the appellate court likely to reverse the trial court's findings with respect to the facts? If not, why not? What are an appellate court's options after reviewing a case?

Q: To resolve a dispute, Amy in Boston and Chris in Denver utilize E-Solution, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts a. not at all. b. until the ODR service has issued a decision. c. with respect to any dispute arising between them. d. with respect to this dispute only.

Q: Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may a. monitor any arbitration until it concludes. b. order an arbitrator to rule in a particular way. c. order a party to bring the dispute to court. d. order a party to submit to arbitration.

Q: Bean Vendors, Inc., and Java Bistros Corporation dispute a term in their contract. If Bean and Java resolve their dispute by having a neutral third party render a binding decision, they will have used the method of a. arbitration. b. conciliation. c. intervention. d. mediation.

Q: Bean Vendors, Inc., and Java Bistros Corporation dispute a term in their contract. If Bean and Java have a long-standing business relationship that they would like to continue, they may prefer to settle their dispute through mediation because a. the case will be heard by a mini-jury. b. the dispute will eventually go to trial. c. the process is not adversarial. d. the resolution of the dispute will be decided an expert.

Q: Bean Vendors, Inc., and Java Bistros Corporation dispute a term in their contract. The least expensive method of resolving the dispute between Bean and Java may be a. arbitration because the case will be heard by a mini-jury. b. litigation because each party will pay its own legal fees. c. mediation because the dispute will be resolved by a non-expert. d. negotiation because no third parties are needed.

Q: In Kettle Cafe's suit against Food Services, Inc., the court issues a judgment in Kettle's favor. The judgment can be appealed to an appropriate court of appeals by a. either party. b. Kettle only. c. Food Service only. d. neither party.

Q: Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a verdict. The case is appealed to an appellate court. After its review of Kelly v. Lewis, the appellate court upholds the lower court's verdict. The appellate court has a. affirmed the case. b. reversed the case. c. remanded the case. d. reversed and remanded the case.

Q: During the trial phase of Fuel Corporation's suit against Gas Stations, Inc., their attorneys engage in voir dire. This is a. an assessment of the validity of the arguments for both parties. b. a determination of the issues to be argued before the court. c. the trial. d. the selection of jurors.

Q: Solar Power, Inc., files a suit against Thunder Bay Utility Company and seeks to examine electronic documents in Thunder's possession. A legitimate reason for this examination is that the documents contain a. evidence about the case. b. private information about Thunder's operations. c. public information about energy generation. d. irrelevant data that can be eliminated from consideration.

Q: iTablets, Inc., files a suit against Andromeda Pads Corporation. Suri is a witness for iTablets. Kevin is a witness for Andromeda. iTablets may direct interrogatories to a. Andromeda. b. Suri. c. Kevin. d. the judge.

Q: Lyn files a suit against Karl. Karl denies Lyn's charges and sets forth his own claim that Lyn breached their contract and owes Karl money for the breach. Karl's claim is a. a contrary charge. b. a counterclaim. c. a counterpoint. d. a cross complaint.

Q: Jason files a suit against Maybelline. If Maybelline fails to respond, Jason a. must appeal the case to a different court. b. must refile the suit in the same court. c. will be awarded the remedy sought. d. will have a default judgment entered against him.

Q: To initiate a lawsuit, Darla files a complaint against E-Sales Company, which responds with an answer. Together, the complaint and answer are a. a motion to dismiss. b. a summons. c. a writ of certiorari. d. the pleadings.

Q: Uma wants to initiate a suit against Valley Vacation Tours by filing a complaint. The complaint should include a. an explanation to refute any defense the defendant might assert. b. a motion for summary judgment. c. a motion to dismiss. d. a statement of the facts necessary to show Uma is entitled to relief.

Q: Ben files a suit in a federal district court against Cathy. Cathy loses the suit, appeals to the U.S. Court of Appeals for the Second Circuit, and loses again. Cathy asks the United States Supreme Court to hear the case. The Court agrees to hear the case. This means that a. at least four justices approve of hearing the case. b. Cathy's petition does not raise a possibility of an important constitutional question. c. the amount in controversy in Cathy's suit is greater than $100,000. d. the Court feels that the lower courts' judgments were erroneous.

Q: The Arizona Supreme Court rules against Jennifer in a case against Kut Rate Stores, Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of a. appeal. b. certiorari. c. jurisdiction. d. summons.

Q: Drummond wants to make a federal case out of his dispute with Elena. Federal cases originate in a. federal courts of appeals. b. federal district courts. c. state trial courts. d. the United States Supreme Court.

Q: Martha brings a suit against SafeCars, Inc. claiming that she was injured during a car crash due to defects in the car she had purchased from SafeCars. There is no evidence that Martha was injured in the accident, but the trial court awards her $1 million in damages. SafeCars appeals the decision. The appellate court will most likely a. not modify the trial court's finding of fact because appellate courts are forbidden to look at questions of fact. b. modify the trial court's finding of fact because the finding was clearly erroneous. c. modify the trial court's finding of fact because the award amount was more than $25,000. d. modify the trial court's finding of fact because the award amount was less than $5 million.

Q: Kit loses her suit against Lou in a Minnesota state trial court. Kit appeals to the state court of appeals and loses again. Kit would appeal next to a. a U.S. district court. b. the Minnesota Supreme Court. c. the United States Supreme Court. d. the U.S. Court of Appeals for the Eighth Circuit.

Q: Carol files a suit against Andy in a state trial court and loses. Carol a. cannot take her case any higher in the court system. b. can insist that the United States Supreme Court hear her case. c. can plead her case before an appellate court. d. can plead her case before a small claims court.

Q: Elinor sells Cathy a horse for $2,000. When Elinor goes to the bank to deposit Cathy's check, the check bounces. Elinor is furious and files suit against Cathy. Elinor probably filed her suit in a. a small claims court. b. a domestic relations court. c. a municipal court. d. a probate court.

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