Business Law Mid Term pt. 2

question

The courts award punitive damages in tort cases to punish the wrongdoer and deter other from similar wrongdoing
answer

T
question

A successful defense releases the defendant from liability in a lawsuit for tortious act
answer

T
question

When outrageous conduct consists of speech about a public figure, the First Amendment guarantee of freedom of speech limits emotional distress claims
answer

T
question

A misrepresentation leads another to believe in a condition that is differ from the condition that actually exists
answer

T
question

To win a fraud claim in court, the Plantiff need not prove intentional conduct
answer

F
question

Abuse of process applies to any person using a legal process against another in an improper manner
answer

T
question

Specifically targeting the customers of a customers of a competitor is not a legitimate business practice
answer

F
question

The tort of trespass to land is designed to protect the right of an owner to exclusive possession
answer

T
question

Most states do not allow automobile repair shops to hold a customers car when the customer refuses to pay for repairs already completed
answer

F
question

Failure to live u to a standard of care may be an act or an omission
answer

T
question

The duty to exercise reasonable care requires storeowners to warn business invitees of all risks
answer

F
question

Judges use proximate cause to limit the scope of a defendant liability to potential plaintiffs that might have been harmed by the defendants negligence
answer

T
question

Negligence per se may occur if an individual violates a statue providing for a criminal penalty and the violation causes another to be injured
answer

T
question

Courts apply the assumptions of risk doctrine only in emergency situations
answer

F
question

Under the doctrine of comparative negligence, only the plaintiff negligence is computed and the liability for damages is distributed accordingly
answer

F
question

Texas is a comparative negligence state
answer

T
question

Feo throws a rock intending to hit Chica but misses and hits Chato instead. On the basis of the tort of battery, Chato can sue
answer

Feo
question

Looza intentionally trespass on Merchandise Mart`s property. Through the use of reasonable force, Merchandise Marts security guard detains Looza until the police arrive. Merchandise Mart liable for
answer

none of the choices
question

Arthur Anderson an accountant distributes a handbill to business clients and potential customers accusing a competitor of being a convicted thief. The statement is defamatory if
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the statement is false
question

Llamalips develops a new color of lipstick. To market her lipstick, Llamalips uses a computer design program to show Madonna using Llamalips lipstick. Llamalips does not ask Madonna permission. Madonna can sue Llamalips for
answer

appropriation
question

S.M.H. Brady knows that the brakes on his car do not work, but he tells Doe Eye, a potential buyer that there are no problems with the car. On this assurance, Doe Eye buys the car. On learning the truth she may sue S.M.H Brady for
answer

fraudulent misrepresentation
question

Jenny Lee is an appliance salesperson. To make a sale, she asserts that a certain model of a Kitchen Helper refrigerator is the “best one ever made.” This is
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not fraud
question

Dom, an EZ Bake salesman, follows Flora a saleswoman for Pastries, INC. as she attempts to make sales to food stores. Dom solicits each of Flora customer. Dom is most likely liable for wrongful interference with a
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business relationship
question

Fifi, a clerk at a Games n Gamers store takes a video game player and a selection of new games from the store without permission. Fifi is liable for
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conversation
question

Bette backs out of City Parking Garage, colliding with Dills`s car and thereby causing damage to the vehicle. Dill may recover the cost of repair if Bette failed to act as
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a reasonable person
question

Cook`s Pantry Appliances a retail store, must use reasonable care on its premises to warn its patrons of
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hidden risks
question

Rafi, a van driver for Speedy Uber, causes a multi-vehicle accident on a city street. Rafi and Speedy are liable to
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only those whose injuries could have been reasonable foreseen
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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 liable to Dufy on a negligence theory because
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Duffy was not injured
question

An Iowa state statue requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack Fun Park fails to maintain its equipment. A patron is injured. A Jack has committed
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negligence per se
question

Burly enters Ginormouse Triathlon, an athletic competition in which he has never competed. Regarding the iso of injury, he assumes the risks
answer

Normally associated with the triathlon
question

Tramp Stamp slips and falls on Pearl Harbors Tour Boat,, and is injured. She files a suit against Pearl Harbor for 500,000. If she is 20 percent at faulty and Pearl Harbor is 80 percent, under the “50 percent rule” comparative negligence principles, she would recover
answer

400,000
question

Precision Crafted Tools, Inc. makes tools for consumer and construction professional. While using a precision crafted tool to replace an electrical fixture, Quinn neglects to shut off the power and is electrocuted. Quinn heirs file a suit against Precision Crafted. In a contributory negligence jurisdiction, the plaintiffs could recover
answer

nothing
question

Mary concerned with antibiotics and chemicals in the food supply, started a raise a lamb in the backyard of her suburban home. Mary had a little Lamb but it didn’t stay little and soon Mary had a lot of lamb. She now has fourteen lams that produce a significant amount of sold waste, which attracts insects and smell very bad. There are no town or country ordinances that specifically forbid raising lambs. Her neighbors should challenge her right to engage in this activity based on the tort of
answer

Nuisance
question

Dr. Sawbone accidentally left a scalpel in Rodney Dangerfield during his operation. Besides causing him pain and additional surgery, he just gets no respect. His lawyer will most likely use the special doctrine of _______ when he sues Dr. Sawbone for negligence
answer

Res ipsa loquitur
question

The famous American case that established that a defendant may be liable in negligence only for this damages that are reasonably foreseeable is
answer

Palsgraph V. Long Island Railroad Co.
question

Friz Mohawk is bringing suit in strict liability for personal injuries caused by a defectively designed hair dyer. Which of the following parties can be defendant in this case?
answer

All of above
question

People who keep domestic animals are strictly liable for any harm caused by the animals
answer

T
question

Manufactures must use due care in selecting the material to be used in a product
answer

T
question

A product liability action based on negligence does not require pivity of contract between the injured plaintiff and the defendant manufacturer
answer

T
question

Manufactures must use due care in inspecting and testing any purchased components used in a product
answer

T
question

The law sometimes imposes strict liability as a matter of public policy based in part on the assumption that manufacturers can better bear the costs associated with injuries cause by their products
answer

T
question

Because many products cannot be made entirely safe for all uses, sellers, and lessors are made liable only for products that are unreasonably dangerous
answer

T
question

An action in strict product liability requires that a product be in a defective condition caused by its purchasers
answer

F
question

A manufacturing defect is a departure from a product unit design specifications that results in a products that physically flawed
answer

T
question

To successfully assert a design defect a plaintiff has to show that no reasonable alternative design was available
answer

F
question

There is a city to warn about risks that are obvious or commonly known
answer

F
question

Sellers are required to take precaution against every conceivable misuse of a product
answer

F
question

An injured party may sue only the manufacturer of defective products are subject to comprehensive federal regulatory schemes
answer

F
question

Statues of repose places an outer time limit sue on product liability claims
answer

T
question

Roadbuilders Inc uses dynamite in its operation. Sky-Hi Inc stores explosive in it warehouse. Most likely liable under the doctrine of strict liability for any injury caused by these abnormally dangerous activist wi
answer

Roadbuilders and Sky-Hi
question

Luke is playing a video game on defective disk that melts in his game player, starting a fire that injuries his hands. Luke files a suit against Mystic Maze Inc, the games maker under the doctrine of strict liability. A significant application of this doctrine is in the area of
answer

Product liability
question

Street Bike Inc, makes and sells a bicycle to Theo. Street Bikes fails to exercise “due care” to make the bicycle safe, and Theo is injured as a result. Street Bikes is most likely liable for
answer

Negligence
question

Island Breeze Company designs and makes desk, window, and ceiling fans. In a product liability suit based on negligence, Island Breeze could be liable for violating its duty of care with respites to all of the following except
answer

a consumer unforeseeable misuse of a fan
question

Forest & Field company makes and leases a backhoe to Gravedigger. Due to a defect attributes to Forest & Field negligence. Gravediggers is injured in an accident in which his neighbor Grizela is also hurt. In a product liability suit based on negligence, Forest & Field may be label to
answer

Gravedigger and Grizelda
question

Lipstick, Inc makes cosmetics. Lipstick intentionally mislabels its packages products to conceal a defect. Trusting and relying on the mislabeling, Mikayala buys a Lipstick product and suffers an injury. Lipstick is most liable for
answer

fraud
question

Brazilian Hair Company makes hair products. Trunk Junki discovers that her products is defective because it is falling apart and sues the maker for the product liability based on negligence. To win, Trunk Junki must show that she
answer

suffered an injury caused by the defect
question

Sea & Surf Corporation makes sailboards, which are bought and distributed by Tropical Marketing Company to UV Sports Stores Inc., which sells them to consumer. Wen is injured while using Sea & Surf board that he bought from UV Sports. In a product liability suit based on strict liability, Wen may recover from
answer

Sea & Surf Company, Trpical Marketing, or UV sports
question

ClearCall Corporation makes phones which are sold to consumer by DefDeals sotres. Erna files a product liability suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider
answer

an available alternative design
question

Fleet Feet Corporation makes athletic shoes. A marathoner files a product liability suit against Fleet Feet, alleging a design defect. In deciding whether to hold Fleet Feet liable, the court may consider an alternative design’s
answer

advantages and disadvantages.
question

MedBeat Inc., makes medical devices, including heart pacemakers. Myna Flutter, a heart patient, files a product liability suit against MedBeat, alleging a warning defect with respect to its pacemaker. In deciding whether to hold MedBeat liable, the court may consider whether there is a foreseeable risk of harm posed by the pacemaker and
answer

the omission of a warning renders the pacemaker not reasonably safe.
question

BioChem Corporation, ChemCo Company, and DexLabs Inc. make and distribute toxic chemicals. In a product-liability suit against all of these parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties
answer

supplied the particular product that caused the injury.
question

Fine Motor Company buys gas pedals and other parts from General Mechanix, Inc., and puts them in its vehicles without changing their composition. If the pedals or other parts are defective, strictly liable for any damage caused by the defects are
answer

Fine Motor and General Mechanix.
question

The brakes on a train owned by Rolling Stock Railway Inc. malfunction. The train rolls towards maintenance workers on the tracks. Everyone gets out of the way except Sid, who wants to show off. The train hits Sid, who sues Train Components, Inc., the brakes’ manufacturer. Train Components can raise the defense of
answer

assumption of risk.
question

Garage Magic, Inc., contracts for the sale of a certain number of garage door openers to Home Hardware stores. Ian buys one of openers. The applicable statute of limitations prescribes a period of four years. To bring a product liability claim against Garage Magic, Ian must file a suit within four years of
answer

Ian’s discovery of an injury caused by the opener.
question

Vogel bought a phone made by WiFi Communications, Inc. Three months later, after recharging the battery through a power jack, Vogel picked up the phone only to have it ignite in his hand. Suffering a severe burn, Vogel filed a suit against WiFi, alleging that a design defect in the phone weakened the connection between the power jack and the motherboard, causing the wiring to overheat and creating an unreasonable safety hazard. Could Vogel succeed on his strict product liability claim? Explain.
answer

Yes, Vogel can succeed with his claim if he can meet the requirements. A product is defective in design when the foreseeable risk of harm posed by the product could have been reduced or avoided by the adoption of a reasonable alternative design, and its omission renders the product not reasonably safe. Vogel must show that the phone was defective when WiFi sold it, WiFi was normally engaged in selling that product, the phone was unreasonably dangerous to a user because of its defect, Vogel incurred physical harm by use of the phone, the defect was the proximate cause of the harm, and the phone was not substantially changed from the time that it was sold to the time of the injury.
question

The Prosthetic Legs and Arms Act (PLAA) sets up a no-fault compensation program for persons injured through the use of medical prostheses. The PLAA protects prosthesis makers from liability for unavoidable side effects. When Quint is injured in an auto accident, his physician prescribes and fits him for a certain prosthetic. When Quint suffers injuries from its use, he, files a suit against Replacement Limbs LLC, the maker of the prosthetic, alleging strict product liability. Is there a defense that Replacement Limbs might successfully assert in this case? If so, what is it, and why?
answer

Yes, there is a defense that Replacement Limbs might successfully assert to the allegations in this suit. The defense of preemption can be successfully raised by defendants. This theory basically states that in appropriate cases government regulations preempt plaintiffs’ claims for product liability. An injured party may not be able to sue the manufacturer of defective products that are subject to comprehensive federal regulatory schemes. Medical treatments and devices are subject to extensive government regulation and undergo a rigorous premarket approval process. In this question, the PLAA strikes a balance between paying victims harmed by the covered medical devices and protecting the prosthetic industry from collapsing under the possible costs of tort liability. In exchange for the compensation program, prosthetic makers who comply with the regulatory requirements are immunized from strict product liability.
question

In a criminal case, the state must prove its case by a preponderance of the evidence.
answer

f
question

The penalties imposed on criminal wrongdoers are the same as those applied in civil cases
answer

f
question

One element that generally must exist for a person to be convicted of a crime is the commission of an act prohibited by statute.
answer

t
question

The crime of theft requires only the taking of another person’s property, not the awareness that the property belongs to another.
answer

f
question

Corporate officers and directors who have authority in the subject area may be held criminally liable for the actions of employees under their supervision.
answer

t
question

Falsifying public records or altering a legal document is larceny.
answer

f
question

The crime of bribery occurs when the bribe is offered—it is not required that the bribe be accepted.
answer

t
question

An employer’s failure to remit withholding taxes that were collected from employee wages does not constitute a crime.
answer

f
question

The theft of trade secrets is a civil wrong but not a crime.
answer

f
question

In the event of a RICO violation, the government can seek the divestiture of a defendant’s interest in a business.
answer

T
question

For most crimes, the state must initiate prosecution within a certain number of years after the crime occurs.
answer

T
question

Once immunity is given, a person has an absolute privilege against self- incrimination and can no longer refuse to testify on Fifth Amendment grounds.
answer

T
question

Under the Fourth Amendment, general inspecific searches through a person’s belongings are permissible.
answer

F
question

If a person in custody is to be subjected to interrogation, he or she must first be informed in clear and unequivocal terms that he or she has the right to remain silent.
answer

T
question

In a phishing attack, a perpetrator “fishes” for financial data and from consumers by posing as a legitimate business.
answer

T
question

A company takes a risk when it electronically stores their online credit-card numbers.
answer

T
question

No federal statute specifically addresses cyber crime.
answer

F
question

Doorite arrests Leonida on suspicion of embezzlement. According to the United States Supreme Court in Case 10.3, Miranda v. Arizona, Leonida must be told of certain constitutional rights
answer

prior to any police interrogation.
question

Reno, driving while intoxicated, causes a car accident that results in the death of Santo. Reno is arrested and charged with a felony. A felony is a crime punishable by at least imprisonment for
answer

more than one year.
question

Maura enters a gas station and points a gun at the clerk Nate. She then forces Nate to open the cash register and give her all the money. Maura can be charged with
answer

Robbery
question

Megan reaches into Ned’s pocket and takes his wallet—without his consent and without his awareness. Unlike robbery, picking pockets does not involve
answer

force or fear.
question

Laird is an employee of Motor Parts, an auto parts store. On the orders of his employer, he switches trademarks on parts that come into the store to be sold to consumers. This is most likely
answer

forgery.
question

Eartha receives from Fergie a guitar stolen from Harper. To be criminally liable, Eartha must
answer

know that the guitar is stolen.
question

Kimberly, the owner of Littleton Cinema, trusts Max to manage the theater’s daily cash flow. One night, without Kimberly’s knowledge or consent, Max takes and keeps $1,000 from the receipts. This is most likely
answer

embezzlement.
question

Owen uses the Internet to defraud Prairie Valley Credit Union. He is found guilty of wire fraud. He can be punished by
answer

imprisonment for up to thirty years and fines of up to $1 million.
question

Quiana, an employee of Reservations for Less, Inc., pays Svetlana, an employee of Reservations for Less’ competitor Travel Cheap, Inc., for a secret Reservations for Less pricing schedule. This may be
answer

commercial bribery.
question

Dreyfus points a gun at Eton, threatening to shoot him if he does not steal from his employer, Freddy’s Gas & Shop store, and give the stolen funds to Dreyfus. Charged with theft, Eton can successfully claim, as a defense
answer

duress
question

The Lone Ranger who holds a law enforcement commission, wants to search the offices of Kemo Sabe Corporation. He makes application to Judge Pearl to issue a warrant. Under the Fourth Amendment, no warrant for a search can be issued without
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probable cause.
question

Landon is arrested at a warehouse in Metro Corporate Park. A state prosecutor has obtained from the grand jury a formal charge against Landon for receiving stolen property. This charge is an
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indictment.
question

Ajay sells “Bulk Up” steroids over the Internet. He is arrested and charged with the sale of a controlled substance. This is cyber crime, which is
answer

a crime that occurs in the virtual community of the Internet.
question

Posing as Platinum Bank, Quentin e-mails Rachel, asking her to update her personal banking information through a link in the e-mail. She clicks on the link and types in the data, which Quentin promptly sells to Spence. This is
answer

identity theft.
question

Via the Internet, Porcio sabotages the computer system of Quik Chik’n Company, a fast-food restaurant operator, to alter the ingredients in the company’s recipes and products so that consumers of the foods become ill. Porcio is a
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cyberterrorist.
question

Chaz uses his computer to secretly install software on thousands of personal computers without their owners’ knowledge. The program can reproduce itself and spread from one computer to another via any USB port. This program is a
answer

worm
question

Gem programs software to prompt a computer to continually crash and reboot. Gem intends to install this program on various companies’ computer systems without the companies’ knowledge. The program can reproduce itself, but must be attached to a host file to travel from one computer network to another. This program is a
answer

virus
question

Farouk uses his computer to break into Global Financial Center’s computer. Farouk is a
answer

hacker
question

Leslie commits an act via e-mail against Money Investment Company, a business in New York, where the act is a cyber crime. Leslie resides in Ohio, where the act is not a crime. Prosecution of Leslie in New York involves questions of
answer

jurisdiction
question

Durite, a police office, stops Harry Potted’s car for a traffic offense. While talking to Harry, Durite shines a flashlight into the passenger side of Harry’s car and sees evidence of drug paraphernalia. Which statement is correct:
answer

Durite may search the passenger side of the car and any place else in the car, including the trunk, without Harry’s consent.
question

Leroy Brown, badder than old King Kong (besides tugging on Superman’s cape), was charged with attempted murder. His defense was that he was insane at the time of the act. A jury accepted Leroy’s defense.
answer

Leroy will probably be committed to a mental hospital and when that hospital determines he is no longer a danger to society, he will be released.
question

Bonnie and Clyde agree that they will break into and steal money from the Lonesome Dove Bank on Sunday at 3:00 a.m. Bonnie buys some tools to force open the back door. Before they actually break into the bank, however, the police catch them. Bonnie and Clyde can be charged with which of the following crimes?
answer

conspiracy
question

Pyro, who often sings “Highway to Hell,” burned his own warehouse in order to collect on a fire insurance policy. Pyro has committed:
answer

arson
question

Bubba, the owner of the He Ain’t Here Bar, repeatedly warns his bartenders to check IDs and to be on the lookout for fake IDs. Bartender was caught by police serving alcohol to a minor. Despite his many warnings, under which doctrine would Bubba be held criminally liable?
answer

Vicarious liability
question

Hottie is an undercover police officer. One evening she is posing as a prostitute in a bar. Loser, a salesman who is attending an out-of-state convention, begins talking with Hottie. After about ten minutes, Hottie suggests going to her room for a good time but points out he will need to “donate” $100 to her. Arriving at Hottie’s hotel room, Loser asks if she is a policewoman. Hottie lies and says she is not. When Loser gives her $100, Hottie shows him her identification and arrests him.
answer

Loser appears to have been the victim of entrapment since Hottie was the one who suggested the activity that resulted in Loser’s arrest.
question

Babs sees an e-book reader on the porch of Coco’s house, takes the reader to her home, and tells everyone she owns it. Danno, wielding a knife, forces Easter to give him her smartphone, and runs away with it. Fritz breaks into Ginger’s apartment, takes a laptop, and leaves. Hazel sells Idi an expensive wristwatch for a fraction of its value, admitting that the watch is stolen property but claiming that she is not the thief. Which of these acts are crimes, and what are the differences among them?
answer

Babs has wrongfully taken and carried away the personal property of another with the intent to permanently deprive the owner of that property. This is larceny. Danno has unlawfully and forcibly taken the personal property of an- other. This is robbery. Fritz has broken into and entered a dwelling with the intent to commit a felony. This is burglary. The basic differences: burglary requires breaking and entering a building without the use of force against a person; robbery does not involve any breaking and entering, but force is required; and larceny is the taking of per- sonal property without force and without breaking and entering a building. Generally, because force is used, robbery is considered the most serious of these crimes and carries the most severe penalties. Because larceny involves no force or threat to human life, it carries the least severe penalty of the three. Burglary, because it involves breaking and entering, frequently into people’s homes, carries a lesser penalty than robbery but a greater penalty than larceny. Idi committed the crime of receiving stolen goods. She was aware that the watch was stolen property but she bought it anyway. That Hazel knew the watch was stolen indicates she committed the same crime as Idi—receiving stolen goods—when she initially obtained the watch.
question

Cameron is an accountant in the accounting department of Data Analytics Company. Cameron’s son’s college tuition is due within a week, or he cannot continue taking classes. To meet the due date, Cameron transfers funds from Data Analytics to a fictitious bank account, planning to repay the firm within one month. The transfer is discovered before the firm is repaid, and Cameron is arrested. Explain what crime, or crimes, if any, has Cameron committed?
answer

Cameron committed at least embezzlement. The crime of embezzlement is committed when a person entrusted with another’s funds or property fraudulently appropriates it. That Cameron may have intended to repay the “borrowed” funds is no defense (although an embezzler who returns what has been taken may not be prosecuted because the owner may not wish to take the time to make a complaint, give depositions, and appear in court, or to reveal that the firm failed to have safeguards against embezzlement).Depending on how Cameron engineered the theft, he may have committed other crimes—forgery, larceny, or a computer crime.
question

Explain at least four differences between criminal court cases and civil court cases.
answer

?

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