Business Law Exam 3 Ch. 12, 13, 15 - Flashcards

question

The basic purpose of tort law is to punish criminal wrongdoers.

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False

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Intended to compensate the plaintiff for quantifiable monetary losses, such as medical expenses.

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Special Damages

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Intended to compensate individuals (but not companies) for the nonmonetary aspects of the harm suffered from a tort, such as pain and suffering.

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General Damages

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Intended to compensate or reimburse a plaintiff for actual losses.

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Compensatory Damages

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Awarded in tort cases to punish the wrongdoer and to deter others from similar wrongdoing.

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Punitive Damages

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Intentional torts & unintentional torts

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There are two broad classications of torts:

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Because an intentional tort requires intent, a harmful motive is required.

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False

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A person who commits a tort is known as a:

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Tortfeasor

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Any intentional and unexcused threat of immediate harmful or offensive contact.

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Assault

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An unexcused and harmful or offensive physical contact intentionally performed.

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Battery

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Stiles is much stronger than Ben and threatens to beat Ben, then punches him in the face, and knocks out a tooth. Ben will probably bring a lawsuit against Stiles

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For assault and battery because there was both a threat and a harmful action.

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Which of the following has nothing to do with false imprisonment?

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You are made fearful of unwanted and possibly harmful contact with another person.

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Hank may be able to sue his neighbor Larson for __________ if Larson sends Hank a text message telling him that his wife was killed in a car accident even though Hank knew that it was untrue

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Infliction of emotional distress

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Which of the following is NOT an element of the tort of wrongful interference with a contractual relationship.

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A third party must unintentionally cause one of the parties to break the contract.

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In our freely competitive economy, businesses have no limits on how they can attract customers.

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False

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Competing via aggressive marketing and advertising strategies is _______ interference with a business relationship.

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usually permissible

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Trespass to land has nothing to do with obtaining permission for use of that land.

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False

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Trespass to land requires that a person _______ on the land.

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remains

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For trespass to land occur you have to _____ onto, above, or below the land surface owned by another.

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enter

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A real property owner must______ that a person is a trespasser.

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establish

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A guest in your home is typically____ a trespasser.

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not

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You are given permission to use Alvie's land for a one-day four-wheeled drive event. Your own truck breaks down during the event so you leave it on Alvie's property. Most likely you have committed

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trespass to land.

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When you borrow a friend's tablet device and refuse to give it back, you have committed trespass to land.

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False

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Which of the following acts normally do NOT constitute a conversion?

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Temporarily borrowing a friend's textbook and then returning it.

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Occurs when economically injurious falsehoods are made about another's product or property.

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Disparagement of Property

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Publishing false information about another's legal ownership of property that results in financial loss to the property's owner.

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Slander of Title

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The difference between intentional torts and torts involving negligence is that, in torts involving negligence, the tortfeaser does NOT wish to bring about the consequence of the act, nor does she or he believe that they will occur.

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True

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Cooktop, Inc., manufactures cooktops on which Juarez burns his fingers. Has Cooktop, Inc. unreasonably violated its standard duty of care?

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No, because stoves get hot and some people get burned when they are careless.

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The reasonable person standard concerns itself with how a particular person would act and not with how an ordinarily prudent person should act.

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False

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Those who enter retail premises are called business

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invitees

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Storeowners must warn business invitees of ______ risks.

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foreseeable

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A landowner has a duty to discover and remove any ________ dangers to customers or other invitees.

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hidden

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When risks are so _______ , owners need not warn of them.

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Obvious

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An attorney's conduct is judged by the reasonable person standard.

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False

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Which of the following questions does a court NOT ask to determine whether the requirement of causation is met?

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Was there intent?

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You accidentally bump into someone on the sidewalk and that person falls, but is unharmed. Nonetheless, that person usually can successfully sue you for damages?

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False

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Negligence _____ may occur if an individual violates a statute providing for a criminal penalty if that violation causes another to be harmed.

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Per se

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_______ statutes exist to protect, as an example, medical personnel who volunteer their services in emergency situations.

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Good Samaritan

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-shop acts imposes liability on bartenders who have served too much alcohol to those who are involved in accidents after leaving the bar.

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Dram

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Assumption of risk does NOT require

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seeking out the riskiest activities.

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An intervening event that acts as a superseding (overriding) cause may relieve the defendant of liability for injuries caused by the intervening event.

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True

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A theory in tort law in which a complaining party's own negligence contributed to or caused his or her injuries.

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Contributory Negligence

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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.

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Comparative Negligence

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Which of the following is needed to prove that there is defamation as is suggested by Shelly and Tony?

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All of these choices are needed.

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What is Mrs. Vogel's best defense against the tort of defamation?

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That her statements about the car dealership are true.

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When Mrs. Vogel walks onto the car lot and her conduct and speech persuades an entering vehicle to back away from Rally's car lot, what is the most likely tort that she is committing?

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Trespass

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What duty is owed to Maria while she is in the Kowalski's (before entering the stock room)?

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Since she is a business invitee, there is a duty to warn her about any dangers that the store knew of or should have known about.

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Once Maria enters the stock room, which of the following is Kowalski's best defense for Maria's injuries?

answer

That she assumed the risk of injury.

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Which one of the following is the best argument that Kowalski's Grocery is not liable for Maria's injury?

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Kowalski's posted the "Employee's Only No Admittance" sign, therefore Maria was trespassing in the stockroom.

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Is there a chance that Vinny will be liable for the tort of battery?

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Yes, because Maria told him not to touch her and he then did.

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The state of Texas has placed caps on noneconomic damages in medical malpractice causes of action. This type of limitation on damages is

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an example of tort reform.

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Mel sent Jasper an e-mail message telling Jasper that his wife had been killed in a car accident, and Mel knew this was untrue. Jasper may be able to sue Mel for

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infliction of emotional distress.

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Mark is a famous syndicated radio personality for TalkRadio. He has a distinctive voice and manner of speaking. MoreTalk hires Gordon, who sounds nearly identical to Mark, to host a competing show. MoreTalk encourages Gordon to imitate Mark as closely as possible while on the air. MoreTalk is most likely to be liable for

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appropriation.

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The members of the City High soccer team have been training with Hanson, a personal trainer who charges by the hour, for several years. Bob, the soccer coach, tells the team members that they must now train with Martin, not Hanson, or they will be kicked off the team. All of Hanson's clients immediately stop training with Hanson. Bob is most likely to have committed

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wrongful interference with a business relationship.

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Doug obtains permission to be on Nathan's land for one day to hold a four-wheeling event. Doug's truck breaks down, and instead of removing it, he leaves it on Nathan's property for several days after the event. Doug has most likely committed

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trespass to land.

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Cory opens a small jewelry store but has difficulty competing with Bling Jewels, a much larger firm. In his newspaper ad, Cory includes the false statement, "Bling Jewels sells stolen diamonds." Bling experiences an immediate decrease in sales. Cory has most likely committed the tort of

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slander of title.

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Austin, Texas has passed a local ordinance that provides all motor vehicles must provide at least three feet of clearance when passing a bicycle. Ted is driving his vehicle and accidentally hits Zoey. His actions of violating the local ordinance and hitting Zoey constitute

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negligence per se

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Andy decides to go skydiving for his 40th birthday. He signs a waiver, boards the plane and prepares for the jump. Everything is going smoothly until just before landing a down draft forces Andy down at a much faster rate into the ground, causing injury to both of his legs. Andy will likely not be able to recover for his injuries under the defense of

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assumption of the risk.

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While Jessica, Ashley, and Bryan are snowboarding, they ignore warning signs indicating that they have left the marked trail and are entering dangerous territory. They become lost, and a rescue effort begins. Climbing the mountain, a snowplow accidentally cuts a nearby town's main electrical cable. Due to the loss of her electric heat, Ethel, an elderly woman, dies of hypothermia. The boarders' negligence in ignoring the warning signs is

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the causation in fact, but not the proximate cause, of Ethel's death.

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The best definition of strict liability is

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liability without fault

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The modern concept of strict liability traces its origins, in part, to what famous English case?

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Rylands v. Fletcher

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Today, the doctrine of strict liability has NOT yet been accepted in America.

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False

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Exon owned a gas station in Virginia that had five underground storage tanks that were not properly maintained. ABC, Inc., buys the property and discovers gasoline contamination of the soil. ABC sues, contending that Exon should be held strictly liable for cleaning up. ABC will prevail.

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False

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What is the one area in the list below in which manufacturers do NOT have to use due care?

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Using adequate test marketing.

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Privity of contract refers to the relationship that exists between the parties to a contract

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True

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Privity of contract is required when a person injured by a defective product sues the manufacturer or seller.

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False

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When a user or customer is injured because of fraudulent misrepresentation, the basis of liability may be the tort of fraud.

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True

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The landmark case in strict product liability was:

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Greenman v Yuba Power Products

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The doctrine of strict product liability does NOT apply to which of the following?

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Advertising agencies

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In a strict product liability lawsuit, the product must be in a defective condition when the defendant sells it.

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True

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In a strict product liability lawsuit, the plaintiff has to show why or in what manner the product became defective.

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False

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Because many products cannot be made 100 percent safe for all uses, sellers are only liable for products that are

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Unreasonably dangerous

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Jake buys and uses a large broom. The handle breaks while in use but does not harm Jake. Therefore, he can sue under the doctrine of strict product liability and win:

answer

he cannot sue because he did not incur physical harm

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Jake's son unscrews the broom handle and uses it to load gunpowder into a small cannon. The broom handle breaks and injures the boy. Why can't Jake sue the broom manufacturer?

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Because the broom handle was substantially changed from its initial purpose

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When a manufacturer argues that it engaged in reasonable quality control efforts, that argument will act as a sufficient defense in a strict product liability lawsuit.

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False

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occurs when courts look at the risk of harm from a product as designed compared to the utility to the user and to the public.

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Risk- utility analysis

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Gunter installs a large glass door in his house and then runs into it, breaking his nose. Gunter sues the manufacturer because he was not warned about the possibility of such an injury. Will Gunter prevail in his lawsuit?

answer

because everyone knows that glass doors can be run into and therefore the manufacturer does not have to provide such a warning.

question

Haslo, Inc. manufactures outdoor games for children ages 10 to 12. Any warnings placed on the games should be bright, bold, and presented on simple labels.

answer

True

question

There is no______ to warn about risks that are commonly known.

answer

duty

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A seller must warn those who purchase its product of the harm that can result from the__________ misuse of the product.

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foreseeable

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Courts apply a __________ test to determine if the warnings adequately alert consumers to the product's risks.

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reasonableness

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Market share liability is a theory used to require that an injury was caused by a specific defendant.

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False

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The doctrine of strict product liability applies to suppliers of component parts.

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True

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One good defense against strict product liability is that

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the goods were altered after they were sold

question

Halogenics, Inc., manufactures a medical device that is heavily regulated by the government and has to undergo a rigorous pre-market approval process. Halogenics can use the following defense if it is sued:

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Preemption

question

Sometimes the defense of assumption of risk may work in a product liability action.

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True

question

Monsanto sends out registered letters, e-mails, and places ads in local newspapers where it sold a defective weed killer. Huntington knows of the recall but ignores it, applies the weed killer to his crops, and suffers damages. Which defense can Monsanto use at trial?

answer

Assumption of risk

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Product misuse obviously occurs when a product is used for a purpose other than what it was intended for. The courts recognize this defense in almost all lawsuits today.

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False

question

When the defense of comparative negligence is successful at trial, it completely absolves the defendant of liability.

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False

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Why can't you sue the manufacturer when a sharp knife cuts you?

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Because there is a commonly known danger of cutting oneself when using a knife.

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Individuals who frequently buy and consume supersized portions of food will not succeed in lawsuits against the manufacturers if they become overweight.

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True

question

Statutes of repose often allow for unlimited liability for manufacturers of defective products, no matter how far in the past

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False

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In product liability suits, statutes of limitations normally are set by

answer

state law.

question

If Mark decides to put the TF-300 fans that his company manufactures on the market, and the fans are considered to be an unreasonably dangerous product, the party who was injured would not need to prove:

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the defendant must have acted with intent to cause harm.

question

If Mark's company enters into the contract to sell the TF-300 fans that they manufacture to Rooms-to-Go and a purchaser is injured by the fan, under strict liability, which would be liable for the injuries?

answer

Both Mark's company and Rooms-to-Go.

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If Mark's company enters into the contract to sell the TF-300 fans that they manufacture to Rooms-to-Go and a purchaser is injured by the fan, under strict liability, and a person who did not purchase the fan is injured by debris coming off of the fan while at a friend's house. Decide:

answer

Both Rooms-to-Go and Mark's company would be liable.

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If the TF-300 fans that they manufacture are put onto the market, Mark's company may be liable for injuries if the fans are unreasonably dangerous and the problem with the fans stems from:

answer

All of these choices are correct.

question

Assume Mark decides to put the TF-300 fans that his company manufactures on the market, and the fans are considered to be an unreasonably dangerous product. Assume that Mark insisted on putting a label on the remote control stating "Do not put into reverse mode while the fan is spinning." If someone were then injured by the fan because they put the fan in reverse while it was spinning, which defense would Mark's company likely use?

answer

The company would likely use the assumption of risk defense.

question

Glen is a dairy farmer who owns 500 milk cows. His fences are in poor repair, and his cows are often found eating the grass on Hank's land. Hank believes that Glen is responsible for damages to Hank's land on a theory of strict liability. The court will most likely find that Glen is

answer

none of the other choices are correct.

question

Exxon owned a gasoline station in Virginia that it used for years. The station had five underground gasoline storage tanks that were not properly maintained. The property was sold to AFA, which discovered gasoline contamination of the soil. AFA filed a lawsuit in Virginia state court contending that Exxon should be held strictly liable for the cost of cleaning up the property. The court most likely found that Exxon was

answer

not liable, because gasoline storage is not an abnormally dangerous activity

question

Martha is walking from her office building to her car in a torrential downpour with an umbrella manufactured by Umbrellas USA, Inc. She is struck by lightening, and files suit claiming the manufacturer failed to include a warning. A court would likely find that

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there is no duty to warn about risks that are obvious or commonly known, such as the risk of lightening occurring during a rainstorm.

question

David's family purchased a trampoline in 2000. They sold the trampoline at a garage sale in 2010 to Zac's family. In 2012, Zac's son is injury while jumping on the trampoline when it collapses. If they sue the trampoline manufacturer in 2013, their lawsuit will likely be dismissed based on the

answer

statute of repose

question

Harvey is driving while intoxicated in his new truck when his tire blows out. He loses control of the truck and crashes into a tree causing injury to himself and to his vehicle. The tire is determined to be defective. Which of the following defenses would be the most viable to be raised by the tire manufacturer in a product liability cause of action?

answer

Comparative negligence

question

In 2003, Congress enacted the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act, which effectively eliminated unsolicited emails.

answer

False

question

Which of the following activities is NOT prohibited by the CAN-SPAM Act?

answer

Sending junk mail via the USPS

question

Because the federal CAN-SPAM Act only applied to e-mails originating in the United States, Congress enacted the

answer

U.S Safe Web Act

question

Because you are suspected of sending out bulk unsolicited e-mail advertisements, your Internet service provider is asked by the FTC to supply information on what you do in foreign jurisdictions. Will you succeed in a lawsuit against your Internet service provider for illegally providing such information to the FTC?

answer

No, because the U.S. Safe Web Act provides immunity to the ISP from liability for such action.

question

Loss of ____ occurs when another party uses a domain name similar to yours.

answer

goodwill

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The act of registering a domain name that is the same as, or confusingly similar to, the trademark of another and then offering to sell that domain name back to the trademark owner.

answer

Cybersquatting

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The act of buying domain names that are similar to well-know domains, except for slight misspellings.

answer

Typosquatting

question

Which of the following does NOT have to be true for the Anticybersquatting Consumer Protection Act to apply.

answer

The domain name is in another language

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Which one of the following is NOT a reason why lawsuits against cybersquatters are difficult to pursue?

answer

Most cybersquatters have limited mastery of English

question

Using another's trademark in a meta tag will normally constitute trademark infringement.

answer

True

question

Similar to trademark infringement, a claim of trademark dilution in the online world requires proof that consumers will likely be confused by a connection between the unauthorized use and the mark.

answer

False

question

Alchin pays for and downloads a new exercise app on his smartphone. He believes that because he paid for it, he can legally make copies and sell them to his friends at the gym. He is wrong because:

answer

he only obtained a license to use, not ownership of the app.

question

There are only criminal penalties for copyright violations of online materials if the copies are made purely for financial gain.

answer

False

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The was passed to give significant protection to owners of copyrights in digital information

answer

Digital Millennium Copyright Act

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A network that can be used by persons located (distributed) around the country or the globe to share computer files.

answer

Distributed Network

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The sharing of resources (such as files, hard drives, and processing styles) among multiple computers without necessarily requiring a central network server.

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Peer-to-peer (P2P) Networking

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The delivery to users of on-demand services from third-party servers over a network. Cloud computing is a delivery model.

answer

Cloud Computing

question

One of the major reasons that music labels have suffered declines in their revenues and profits is that:

answer

most stored music files are shared for free

question

Illegal file sharing of movies will cause sales of DVDs and Blu-Ray discs to decline

answer

True

question

Social media posts that contain _______ typically infringe the intellectual property of others.

answer

trademark images and copyrighted materials

question

Why would social media posts be included in discovery and litigation?

answer

They may establish a person's intent or what he or she knew at a particular time.

question

The Electronic Communications Privacy Act does NOT prohibit which one of the following:

answer

The sending out of multiple e-mails.

question

The business-extension exception to the Electronic Communications Privacy Act permits employers to monitor employees' personal communications.

answer

False

question

Which act prevents cellphone companies and social media networks from divulging private communications to certain entities and individuals?

answer

The Stored Communications Act.

question

Cyber torts include online defamation.

answer

True

question

Posting negative comments about other individuals on your social media is protected speech.

answer

False

question

One of the major problems in pursuing an online defamation claim is that:

answer

discovering the identity of the person who posted the defamation is often extremely difficult

question

Hobbs owns a small Internet service provider and is sued by Allison because someone who pays Hobbs a monthly fee posted a defamatory statement about Allison. Will Allison prevail in court?

answer

No, because the Communications Decency Act treats Internet service providers differently from print publishers.

question

Which agency investigates consumer complaints of privacy violations?

answer

The Federal Trade Commission

question

What factors would be a court likely consider if Anna and Caleb choose the domain name wizardforhire.com?

answer

All of these choices are correct.

question

If the company in California had trademark protection on the name Wizard, could there still be a violation even if there was no confusion about which company was which?

answer

Yes, because not only would you have to worry about trademark infringement, you also have to worry about trademark dilution

question

Assume that the California company owned the domain name Wizard.com. Claeb changes the name of his company to magicforhire.com. However, to get more traffic to his website, Caleb registers the domain name wizzard.com, which is a common misspelling of the domain name. Caleb may be accused of:

answer

typosquatting.

question

Would the company be allowed to monitor the emails of his employees?

answer

Probably, the ECPA specifically permits employers to monitor employees' communications in the ordinary course of business.

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If the company wants to monitor the employees' emails, does it have give notice to them?

answer

No, but it would be a good idea because notice generally eliminates the expectation of privacy.

question

Would Gary have a good case for wrongful termination in this scenario?

answer

Probably not, since there is no expectation of privacy when an email is sent from the company servers.

question

Would monitoring web surfing of employees be treated differently than monitoring of emails?

answer

Not usually.

question

Can the company use the candidates' social media websites to determine who they wish to hire?

answer

In most states, yes, as only as they only use publicly available material.

question

Could the company require that the candidates divulge their passwords so that they can see what is on parts of the websites that are not publicly available?

answer

Yes in most states.

question

If the candidates were already working for the company, would the company be allowed to monitor their email communications that were during work made through their social media accounts?

answer

Yes, if the interceptions were made in the ordinary course of business.

question

Sally registers the domain name thedallascowboys.com before the NLF football team is able to do so, with the title of her web site called The Dallas Cowboys, a nightclub in Austin, Texas. Sally's use of the domain name and the name of her bar is

answer

trademark dilution.

question

Sean is researching federal law to determine if there are civil or criminal penalties associated with the circumvention of the encryption software on a DVD. He should find the

answer

Digital Millennium Copy Right Act.

question

Ben has consulted with an attorney regarding his employer having reviewed his personal communications at work. Be would have a viable claim for a violation of the Electronic Communications Privacy Act for which of the following actions?

answer

Accessing Ben's private Facebook page by guessing his password.

question

Unobtainium Venture Capital, a new venture capital start-up, wants to create a place for employees to communicate and share files, but wants to minimize its potential risk to competitors by protecting its trade secrets that the shared data may contain. UVC should utilize

answer

an internal social network

question

Lily developed a blog and relays rumors and gossip she hears in her hometown. She should be concerned about

answer

online defamation.

question

Jennifer has filed a privacy complaint against Google. The federal agency to conduct an investigation by consumer complaints is the

answer

FTC

Business Law Exam 3 Ch. 12, 13, 15 – Flashcards

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