Legal Environment Final Exam: Mindtap & Quiz Questions

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Chapter 20
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20.1 Deceptive Advertising
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What do consumer protection laws not regulate?
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Secured Transactions
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The Consumer Product Safety Commission (CPSC) determines that a Barbie Jeep is unsafe for children to ride in it. The CPSC has the power to do what?
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Remove all barbie jeeps from the market
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Vague generalities and obvious exaggerations are permissible and are known as?
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Puffery
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Advertising that appears to be based on factual evidence but is not reasonably supported by some evidence will be deemed as what?
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Deceptive
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Some advertisements contain “half truths,” meaning that the presented information is true but incomplete and therefore leads consumers to what?
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False conclusion
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Under FTC Guidelines, Bait-and-switch advertising occurs when what 4 things happen?
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1. Seller refuses to show the advertised item 2. Fails to have a reasonable quantity of item in stock 3. Fails to promise to deliver the advertised item within a reasonable time 4. Discourages employees from selling the item
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Joellen owns a general store and advertises cans of Super Brand tomatoes for 75 cents per can, but she never has any in stock. So when consumers arrive she tells them that the tomatoes have been sold and she cannot get more. She tells customers that she has Extra Brand tomatoes for $1.50 per can and that they are far superior to Super Brand tomatoes. Joellen is engaging in what type of advertising?
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Bait-and-switch
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T/F All ads both online and offline must be truthful and not misleading
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True
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Claims made in an ad must be substantiated meaning that it must provide what to back up claims?
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Evidence
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T/F In an online ad, any disclosures should be placed as close as possible to the claim being qualified or be included within the claim itself
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True
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The Federal Trade Commission receives deceptive advertising complaints from many sources EXCEPT:
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Federal Judges
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Acme Products manufacturers and markets Grow Tall, claiming that the product will make users grow a minimum of six inches taller. The FTC will likely find that the ad is what?
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deceptive and FTC will issue a cease and desist order
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After it determines that an advertisement is deceptive or unfair, the Federal Trade Commission’s first step is to?
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Draft a formal complaint
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After the FTC files a formal complaint, the advertiser may agree either to settle the complaint or to proceed to?
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A hearing conducted by the FTC
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Hady’s Health Services is advertising hair growth miracle cures for baldness and numerous related miracle cures. The FTC has received numerous complaints and will decide to issue a what? Requiring that Hady’s to stop false advertising for ALL its products
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A multiple product order
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Unwanted and unsolicited advertising sent via a fax machine may violate which act?
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Telephone Consumer Protection Act
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The Telephone Consumer Protection Act gives consumers a right to sue for either ____ ($ amount) for each violation of the act or for actual monetary losses.
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$500
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The FTC’s Telemarketing Sales Rules Requires a Telemarketer to provide what 3 items?
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1. Seller’s name 2. Product being sold 3. Disclose all material facts related to the sale
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Geraldo receives mechanized telemarketing calls for the of time-share homes even though he registered on the national “Do Not Call” registry. This registry was established by an amendment to which FTC rule?
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Telemarketing Sales Rule
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20.2 Labeling, packaging, sales, health, and safety
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As a general rule, labels must use what?
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Words that are easily understood by the ordinary consumer
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Which act requires automakers to include the Environmental Protection Agency’s fuel economy estimate?
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The Energy Policy and Conservation Act
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The Fair Packaging and Labeling Act Requires That Food Product Labels Identify what four things?
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1. The product 2. Net quantity of contents 3. The manufacturer 4. packager or distributor
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Dairy Cheese Inc. manufactures a low-cost generic cheese alternative to which it adds filler that is not listed on its label. As such, these actions violate federal requirements for food labeling and these requirements are enforced by which two departments?
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U.S. Food and Drug Administration and U.S. department of Agriculture
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Subsequent to health reforms enacted in 2010, all restaurant chains with ___ (#) or more locations are required to post the caloric content of the foods on their menus.
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20
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A door-to-door salesperson convinces Janelle to buy a vacuum cleaner but the next day she learns that the same item is available at a local discount store for a third of the price. Generally, Janelle has how long to cancel?
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3 Days
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State and federal laws relating to the ability to cancel sales contracts from door-to-door salespersons are called what?
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Cooling off laws
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T/F The FTC Mail or Telephone Order Merchandise Rule does NOT apply to orders placed online via smartphones and tablet devices
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False
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Under the Postal Reorganization Act, if you receive unsolicited merchandise set through the U.S. mails, you can do what with the merchandise?
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keep it, throw it away, or dispose of it in any manner in which you’d like
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The federal legislation/act that currently regulates food and drugs is?
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Federal Food, Drug, and Cosmetic Act of 1938
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What 3 government actions are established by the Federal Food, Drug, and Cosmetic Act?
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1. Food standards 2. Specification of safety levels of potentially hazardous food products 3. Classification of foods and food advertising
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T/F The only action that the government has when there is evidence of tainted foods is to ask the manufacturer to recall the items
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False
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Who is NOT covered by the Food Safety Modernization Act requirement to pay a fee and register with the U.S. Department of Health and Human Services?
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Food advertisers
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What are the 5 authorities of the Consumer Product Safety Commission?
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1. Set “safety standards” for consumer products 2. Ban manufacture & sale of products with an “unreasonable risk” to consumers 3. Remove form market from any products it believes are “hazardous” 4. Require manufacturers to report any products sold or intended to be sold that were proved to be “hazardous” 5. Administer other product safety legislation
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How much time do distributors of consumer products have to notify the Consumer Product Safety Commission when they learn or a product defect that creates a substantial risk to the public?
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Immediately
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20.3 Credit Protection
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Which agency is dedicated to overseeing the practices of banks, mortgage lenders, and credit-card companies?
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Consumer Financial Protection Bureau
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The penalty that will be imposed on a creditor who does not exactly follow the provisions of the Truth-in-Lending Act (TILA) is what?
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Reccission of the credit contract
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Regulation Z governs what?
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Credit provisions associated with installment sales contracts
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Regulation Z applies to any transaction involving an installment sales contract that calls for payment to be made in more than___(#) installments.
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4
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What are the 5 transactions subject to Regulation Z?
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1. Installment loans 2. retail and installment sales 3. car loans 4. home improvement loans 5. real estate loans for less than $25,000
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Dom’s Grill, Inc., borrows $10,000 to finance a new range and the payments will be made monthly over a two-year period. The bank will?
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Need not make any special disclosures
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The Equal Credit Opportunity Act (ECOA) prohibits lenders from denying credit solely on the basis of all of the following EXCEPT what?
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Disability
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T/F When a consumer is denied credit or insurance on the basis of his or her credit report, the consumer does not have to be notified of that fact
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False
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A credit-reporting agency that fails to comply with the Fair Credit Reporting Act is liable for actual damages, plus additional damages not to exceed what $ amount?
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$1,500
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Which act was passed in an effort to combat identity theft?
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The Fair and Accurate Credit Transactions Act
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Harold owes Soundstage Services for services rendered two years ago for which he hasn’t paid. Soundstage’s owner calls Harold at home once a week at four in the morning claiming that he is working for a collection agency and asks when payment will be made. The owner of Soundstage is in violation of what act?
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Fair debt collections practices act
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Ramona discovers that a credit reporting agency shows her having not paid a loan that she paid off last year. She writes to the credit-reporting agency and requests an investigation. The agency must do what?
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Investigate and delete any of Ramona’s errors in her report
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The Fair Debt Collection Practices Act requires a collection agency to include a____ whenever it initially contacts a debtor for payment of a debt or within five days of that initial contact.
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validation notice
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Redcap Dairies sells yogurt to consumers that it knows to be contaminated by a harmful mold. Redcap Dairies would be held responsible under which act?
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Federal Food, Drug, and Cosmetic Act
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Chapter 5 Tort Law and Strict Liability
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5.1 Tort Law and Intentional Torts against Persons
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T/F The basic purpose of tort law is to punish criminal wrongdoers
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False
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What are the two broad classifications of torts?
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Intentional Unintentional
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T/F 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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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 for what?
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Both assault and battery because there was a threat and a harmful action
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What 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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What are the elements of fraudulent misrepresentation in the order (5)
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1. Misrepresentation of material facts w/knowledge of falsity 2. Intent to cause another party to rely on misrepresentation 3. Justifiable reliance 4. Damages suffered 5. Connection between misrepresentation and injury suffered
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5.2 Business Torts and Intentional Torts against Property
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What is NOT an element of the tort of wrongful interference with a contractual relationship?
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A third party must intentionally cause one of the parties to break the contract
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T/F 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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T/F Trespass to land has nothing to do with obtaining permission for use of that land
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False
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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 what?
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Trespass to land
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T/F 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 acts normally do NOT constitutes a conversion?
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Temporarily borrowing a friends textbook then returning it
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5.3 Unintentional Torts (Negligence), Defenses, and Strict Liability
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T/F 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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What are the elements required to succeed in a negligence action in the order in which they are normally considered? (4)
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Duty-Breach-Causation-Damages
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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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T/F 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 what type of risks?
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Forseeable
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T/F A landowner has a duty to discover and remove any HIDDEN dangers to customers or other invitees
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True
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T/F When risks are so obvious, owners need not warn them
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True
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T/F An attorney’s conduct is judged by the REASONABLE PERSON STANDARD
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False, judged by reasonable attorney standard
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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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T/F 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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Assumption of risk does NOT require____
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seeking out the riskiest activities
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T/F 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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What occurs if an individual violates a statute or ordinance and thereby causes the kind of harm that the statute was intended to prevent
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Negligence per se
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What exists to protect, as an example, medical personnel who volunteer their services in emergency situations
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Good Samaritan Stautes
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What 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 shop acts
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Under the doctrine of strict liability, liability for injury is imposed for reasons other than____
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Fault
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T/F James carefully stores toxic waste in his factory. In spite of his care, the toxic waste leaks and harms Francis, his neighbor. James is not liable because the leak was not his fault
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False
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Chapter 5 apply brief hypotheticals
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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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Adam sells audio and video equipment. He tells a customer, Abbey, “This MP3 player is the best one ever made.” Adam’s statement is?
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Puffery
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The state of Texas has placed caps on non-economic damages in medical malpractice causes of action. This type of limitation on damages is an example of what?
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Tort reform
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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 what?
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Negligence per se
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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 what?
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Slander of title
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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 what?
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Appropriation
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Stephanie stands in front of her home with a bullhorn shouting that her new neighbor, Kyle, has just been released from prison for child molestation. Stephanie knows this statement is false. Under what legal theory may Kyle recover damages from Stephanie?
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Slander per se
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Orson takes Harrison’s car without Harrison’s permission and without just cause. Orson has probably committed the tort of conversion unless he can show that Harrison what?
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Does not really own the car
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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 risk
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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 what?
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Wrongful interference with a business relationship
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Ted is running down the sidewalk at a high rate a speed and bumps into Robin, knocking her down. She jumps back up and continues on. In a negligence action, all of the following elements would be met EXCEPT
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Damages
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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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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 sign is what?
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The causation in fact, but not the proximate cause of Ethel’s death
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John becomes seriously ill while vacationing at a remote island resort. Dr. Smith is vacationing at the same resort. Because it is an emergency and no one else is available, the doctor treats John until he can be flown to the mainland. John’s illness is outside of Dr. Smith’s area of expertise, and the treatment he provides causes permanent damage to John. If John sues Dr. Smith, he can defend himself under what?
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Good Samaritan Statutes
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Astor Manufacturing stores hazardous and volatile chemicals in its warehouse. The warehouse has state of the art equipment to make sure the chemicals do not explode. An unexpected earthquake shakes the warehouse, causing the chemicals to explode and injure William, a passer-by on a nearby sidewalk. Astor Manufacturing is what for the injuries?
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Strictly liable
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Quiz Chapter 20 & 5
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Teri borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to which act?
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Truth in lending act
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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 what?
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Appropriation
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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 what?
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Fraudulent Misrepresentation
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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 _____
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reasonable person
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Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is a restauraunt chain with?
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20 or more locations
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Chapter 22 Real Property and Land Use Control
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22.1 The nature of Real Property, Ownership Interests, and Leases
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Unless the statute says otherwise, a landowner has a right to everything existing permanently below the surface of her or his property to?
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The center of the earth
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A 200-year old oak tree located on a piece of property is considered to be what type of property?
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Real property
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Fee simple absolute is a(n)?
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ownership interest in land in which the owner has the greatest possible aggregation of rights and privileges
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Kelsey owns a cottage in which her aunt Matilda lives. Kelsey wants to insure that Matilda can live in the cottage for the remainder of her life, but when Matilda dies, title to the property will return to Kelsey. Kelsey can accomplish this objective by granting Matilda a____
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Life estate
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What are the two types of concurrent ownership types?
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Tenancy in common Joint tenancy
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T/F a life tenant has the duty to keep the property in good repair and pay property taxes
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True
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Concurrent ownership rights can ALSO be held in what 2 ways?
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Community Property Tenancy by the entirety
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T/F In most states, it is presumed that a co-tenancy is a tenancy in common
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True
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What distinguishes a joint in tenancy from a tenancy in common?
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Right of survivorship
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When a joint tenant transfers her or his rights to another without the consent of the other joint tenants, doing so will do what to the joint tenancy?
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Terminate
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T/F Most states allow property to be owned by a married couple as community property
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False
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When an owner of a property is entitled to use, possess, and dispose of all of the property as she or he chooses during his or her lifetime, the form of ownership can be described as what?
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Fee simple
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The main difference between a tenancy in common and a joint tenancy is?
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How the property passes at the death of one of the owners
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Community property is a form of concurrent ownership found in a limited or majority of states?
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Limited
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Ester agrees to lease some property that she owns to the San Juan County Historical Society for a term of one year. The Historical Society’s tenancy is known as?
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Fixed term tenancy (tenancy for years)
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The difference between a profit in gross and profit appurtenant is what?
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one is the right to go and remove things to adjacent land and the other is the right do remove from non adjacent land
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22.2 Transfer of ownership and limitations on the rights of property owners
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Which of the following is typically NOT a way in which real property ownership can be transferred?
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By conjecture
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In mid July, the Murphy’s sell their house to the Schraders. The Murphy’s know that their oil furnace does not work. Do the murphy’s have a duty to disclose the issue?
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Yes
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To be valid, a deed must include what 5 things?
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1. Names of the grantor and the grantee 2. Words indicating intent to convey 3. legally sufficient description of land 4. Grantor’s signature 5. Delivery of deed
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The type of deed that provides the buyer with the GREATEST legal protection is a?
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Warranty deed
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The purpose of a recording statute is to?
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Provide public notice of claims on property
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T/F Adverse possession is a method of voluntarily transferring title to the property from the true owner to the adverse possessor
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False
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What are the Elements of Adverse Possession (4)
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1. Must be actual and exclusive 2. Must be open, visible, and not secretive 3. Must be continuous and peaceable for required amount of time 4. Must be hostile and adverse
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The part of the Constitution that defines when the government may take private property and the conditions under which it may do so is which amendment?
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5th
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When the government uses its power of eminent domain to acquire land owned by a private person or company, what occurs?
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A taking
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T/F When a government takes private property without paying compensation, the landowner is forced to sue the government for compensation
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True
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T/F A restrictive covenant is binding on the party who purchases the property originally, but not on subsequent purchasers
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False
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22.3 Land Use ,Controlling, and Zoning
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What are the 4 ways municipalities generally divide their available land into districts according to the land’s present and potential future use?
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1. Residential 2. Commercial 3. Industrial 4. Conservation District
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T/F The United States Supreme Court has held that zoning is a constitutional exercise of the government’s police powers
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True
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T/F Zoning restrictions are absolute
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False
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A Property Owner Requesting a Variance Must Demonstrate That the Requested Variance has what 3 things?
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1. Necessary for reasonable development 2. Is the least intrusive solution to the problem 3. Will not alter the essential character of the neighborhood
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T/F A person usually cannot buy property with zoning regulations in effect and then argue that a variance is needed for the property to be used for the owner’s intended purpose
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True
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T/F Most variances are granted WITHOUT public hearings
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False
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Sam lives in a subdivision that has deed restrictions that prevents drilling for oil and gas. This type of limitation is known as an____
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Encumberance
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The city of Dallas annexes a 300-acre tract of land that was in the county with no restrictive use and applies rules and regulations that now govern the development and use of the land known as?
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Zoning
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Teagen owns a small cottage in which her elderly aunt Katie lives. Teagen wants to ensure that Katie can live in the cottage for the remainder of her life, but when Katie dies, title to the property will return to Teagen. Teagen can accomplish this objective by granting Katie a?
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Life estate
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Jacob owns a ranch with several lakes on it. In order to make some extra money, he allows Michelle to come on to his land and take fish from his lakes. Michelle pays him a regular amount each year. Michelle’s right is called?
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A profit
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Kristin buys a home in a subdivision. As part of the purchase, she is required to abide by a document which forbid using a home in the subdivision for business purposes. The document consists of?
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Restrictive covenants
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Brad owns a hair salon that he is selling. In that salon are several items, including lobby furniture, barber chairs, wall mirrors in front of each barber chair, razors, scissors, and handheld mirrors. When he sells the hair salon, the following are most likely to be considered fixtures?
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Barber chairs and wall mirrors
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The city of Orlando has offered to purchase Neil’s land to be used for the expansion of a thorough-fare through the city. Neil has rejected the city’s offer, so the city will now proceed with a judicial action to take Neil’s land known as?
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Condemnation
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Max is an architect who designs lots of types of properties, both businesses and homes. Max’s mother moves in with him when her health begins failing. She needs constant attention and so Max is no longer able to leave home to work. His home is in a neighborhood that is zoned residential. Max would like to work from home, and is willing to limit client meetings to one per hour so that the traffic will not affect the neighbors. Max most likely should apply for a?
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Special use permit

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