Test 3 chs 4 & 6, na - Third Exam of the semester for Business Law PDF

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Third Exam of the semester for Business Law...

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Test 3, Chs 4 & 6 True/False Indicate whether the statement is true or false. ____

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

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

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

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

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

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

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

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

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

____ 10. Disparagement of property is another term for slander of quality. ____ 11. To determine whether a duty of care has been breached, a judge asks how a reasonable person would have acted in the same circumstances. ____ 12. To avoid liability for negligence, a business owner must protect its patrons against all risks. ____ 13. Proximate cause exists when the connection between an act and an injury is strong enough to justify imposing liability. ____ 14. If no harm results from an allegedly negligent act, there is no liability. ____ 15. An assumption of risk defense does not require that a risk be voluntarily assumed. ____ 16. Under the "danger invites rescue" doctrine, a person who tries to rescue another individual from harm is liable for any injuries to that individual. ____ 17. The extreme risk of an activity is a defense against imposing strict liability. ____ 18. Criminal law spells out the duties that exist between persons or between citizens and their governments. ____ 19. A criminal case must be proved beyond a reasonable doubt.

____ 20. The crime of theft requires the taking of property, without regard to whether the perpetrator knew it belonged to another. ____ 21. Larceny relies on fear and force. ____ 22. Counterfeiting is robbery. ____ 23. A bank employee stealing funds from a client is an example of embezzlement. ____ 24. Embezzlement can be committed only by physically taking property from the possession of another. ____ 25. The crime of bribery occurs when the bribe is offered. ____ 26. Divestiture of a business interest is a possible penalty under RICO. ____ 27. Felonies are punishable by imprisonment for more than a year or death. ____ 28. Ordinarily, "ignorance of the law" is a valid defense to criminal liability. ____ 29. There is at least one circumstance in which a person cannot refuse to testify on Fifth Amendment grounds. ____ 30. Under the Fourth Amendment, a general search warrant and a general search through a person's belongings are permitted. ____ 31. Under the exclusionary rule, illegally obtained evidence may not be included in any criminal prosecution. ____ 32. Under the exclusionary rule, all evidence must be included in a criminal prosecution. ____ 33. All persons who are arrested have the constitutional right to remain silent. ____ 34. Identity theft occurs when a wrongdoer steals another's form of identification and uses it to access the victim's financial resources. Multiple Choice Identify the choice that best completes the statement or answers the question. ____

1. The Class Action Fairness Act of 2005 a. shifted jurisdiction over certain class-action lawsuits from the state courts to the federal courts. b. shifted jurisdiction over certain class-action lawsuits from the federal courts to the state courts. c. made forum shopping punishable by large fines. d. limited the amount of damages that could be awarded in a medical malpractice suit.

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2. Louis⎯larger and stronger than Mica⎯threatens to hit Mica before hitting and injuring him. Mica files a suit against Louis for assault and battery. Mica will most likely recover for a. assault and battery. b. assault but not battery. c. battery but not assault.

d. neither assault nor battery. ____

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

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

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

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

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

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

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9. Susan takes her car to Ken's repair shop and asks him to fix the car's brakes. Ken completes the work and sends Susan a bill for $100. Susan refuses to pay so Ken refuses to return Susan's car. Susan can probably successfully sue Ken for a. battery. b. conversion.

c. trespass to property. d. none of the choices. ____ 10. In newspaper ads, Lo-Price Autos falsely accuses Hi-Value Vehicles, a competitor, of selling stolen cars. Hi-Value's sales decrease. Lo-Price has most likely committed a. slander of quality. b. slander of title. c. wrongful interference with a business relationship. d. none of the choices. ____ 11. Bette backs out of City Parking Garage, colliding with Dill's car. Dill may recover $7,500 to cover the cost of the repairs if Bette failed to act as a. a blameless person. b. a faultless person. c. a holistic person. d. a reasonable person. ____ 12. Cook's Pantry Appliances, a retail store, must use reasonable care on its premises to warn its patrons of a. all risks. b. hidden risks. c. obvious risks. d. no risks. ____ 13. Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Speedy are liable to a. all those who were injured. b. only those who were uninsured. c. only those whose injuries could have been reasonably foreseen. d. only those whose vehicles were closest to Ralph's van. ____ 14. Liu enters Mountain Triathlon, an athletic competition in which Liu has never competed. Regarding the risk of injury, Liu assumes the risks a. attributable to the triathlon in any way. b. different from the risks normally associated with the triathlon. c. greater than the risks normally associated with the triathlon. d. normally associated with the triathlon. ____ 15. Frank slips and falls on Guy's Harbor Tour Boat and is injured. Frank files a suit against Guy's for $500,000. If Frank is 20 percent at fault and Guy's is 80 percent, under the "50 percent rule" comparative negligence principles, Frank would recover a. $0. b. $250,000. c. $400,000. d. $500,000. ____ 16. An Iowa state statute requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack's Fun Park fails to maintain its equipment. Keely, a patron, is injured. Jack's has committed a. abuse of process. b. battery. c. false imprisonment. d. negligence.

____ 17. Jean is playing a video game on a defective disk that melts in her game player, starting a fire that injures her hands. Jean files a suit against K-Tech, Inc., the game's manufacturer. K-Tech is held liable under the doctrine of strict liability. A significant application of this doctrine is in the area of a. cyber torts. b. intentional torts. c. product liability. d. unintentional torts. ____ 18. Oakley posts a defamatory remark about Pierre in "Roominate," an online social network maintained by SocNet, Inc., an Internet service provider. Most likely to be held liable for the remark will be a. Oakley. b. Pierre. c. Roominate. d. SocNet. ____ 19. Ludwig receives from Milo a marimba stolen from Nadine. To be criminally liable, Ludwig must know a. Milo. b. Nadine. c. that the marimba is stolen and Ludwig must intend to keep it. d. what a marimba is. ____ 20. William goes to Saddle Up Stables in the middle of the night when no one is around and takes five saddles. William's crime is a. forgery. b. larceny. c. robbery. d. embezzlement. ____ 21. Scott, a State Bank employee, deposits into his account checks that are given to him by bank customers to deposit into their accounts. This is a. embezzlement. b. larceny. c. money laundering. d. no crime. ____ 22. Susan is unhappy with the way her mother has made out her will. Susan has a lawyer draft a new will and then signs her mother's name to it without her mother's consent. Susan has committed a. larceny. b. no crime. c. robbery. d. forgery. ____ 23. Ivan signs Jeb's name, without his authorization, to the back of a check. This is a. no crime. b. forgery. c. larceny. d. robbery. ____ 24. Briana, an employee of Cotillion Bank, is charged with embezzlement, which requires a. fraudulently appropriating another's property. b. obtaining lawful possession of property. c. physically taking property from its owner. d. the use of force or fear.

____ 25. Robert uses the Internet to defraud Prairie Valley Credit Union. He is found guilty of wire fraud. He can be punished by a. imprisonment for not more than one year. b. imprisonment for up to thirty years and fines of up to $1 million. c. fines for not more than $50,000. d. death. ____ 26. Dirk, an employee of Ergonomic Elevators, Inc., pays Ferbie, an employee of Ergonomics' competitor G-Force Risers Company, for a secret G-Force pricing schedule. This is a. an effective marketing strategy. b. commercial bribery. c. creative legal bookkeeping. d. money laundering. ____ 27. Jared is arrested and found guilty of a misdemeanor. His punishment will not include a. imprisonment for six months. b. a fine of $100. c. death. d. imprisonment for six months and a fine of $500. ____ 28. Smitty, driving while intoxicated, causes a car accident that results in the death of Tiffany. Smitty is arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for a. any period of time. b. more than one year. c. more than six months. d. more than ten days. ____ 29. Davis points a gun at Eton, threatening to shoot him if he does not steal from his employer, Freddy's Convenience Store, and give the stolen funds to Davis. Charged with theft, Eton can successfully claim, as a defense a. nothing. b. duress. c. entrapment. d. self-defense. ____ 30. Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute privilege against self-incrimination and a. can be prosecuted only for a crime about which she agreed to testify. b. cannot be prosecuted for any crime. c. cannot refuse to testify on Fifth Amendment grounds. d. can refuse to testify on Fifth Amendment grounds. ____ 31. Justin is charged with a crime. He insists that he should have an opportunity to object to the charges before a "fair, neutral decision maker." No one can be deprived of "life, liberty, or property without due process of law" under the a. Second Amendment. b. Fourth Amendment. c. Fifth Amendment. d. Eighth Amendment. ____ 32. Jackson is accused of a crime. Jackson can refuse to provide information about his allegedly criminal activities

a. b. c. d.

if he suspects the information will be used to prosecute him. if the police do not promise to keep the information confidential. if the information is "fruit of the poisonous tree." under no circumstances.

____ 33. Gina sells "Bulk Up" steroids over the Internet. She is arrested and charged with the sale of a controlled substance. This is cyber crime, which is a. a new category of crime that is not related to older types of crime. b. a crime that occurs the virtual community of the Internet. c. a crime that is less real than the same crime in the physical world. d. no crime. ____ 34. Posing as Platinum Bank, Oswald e-mails Nadia, 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 Oswald promptly sells to Moe. This is a. hacking. b. identity theft. c. cyberterrorism. d. bribery. ____ 35. Via the Internet, Rocky sabotages the computer system of Quik Chik'n Company, a food manufacturer, to alter the levels of ingredients in the company's products so that consumers of the food become ill. Rocky is a a. cyberterrorist. b. botnet. c. virus. d. worm. ____ 36. Patricia commits an act via e-mail against Othman Finance Company, a business in California, where the act is a cyber crime. Patricia resides in New York where the act is not a crime. Prosecution of Patricia in California involves questions of a. jurisdiction. b. "maximum contacts." c. the immunity of Internet service providers. d. encryption. Essay 1. Precise Engineering Corporation has a contract with Quik Mart Stores to provide customized software for Quik's inventory control system. Retail Outlets, Inc., Quik's competitor, induces Sam, a Precise subcontractor who is writing code for the Quik software, to delay delivery of the code for one week. As a result, Precise's delivery of the software is delayed, and Quik sustains $500,000 in lost profits. On what ground could Quik recover damages from Retail Outlets? 2. After two years of research and the investment of considerable funds, Coast-to-Coast Company (CC) develops a new product that it hopes will produce substantial profits. CC learns that a competitor, National Sales, Inc., has made and begun to sell a nearly identical product. CC learns from a reliable source that National paid a CC employee to obtain the plans for CC's product while it was in development. What legal recourse does CC have against National?

3. Sophie is the president of Tasty Foods Corporation, a wholesale grocery company. An inspection by Uri, a government agent, uncovers unsanitary conditions in the company's warehouse caused by Vic, a Tasty Foods employee. Will, a Tasty Foods vice president, assures Uri that the situation will be corrected, but a later inspection finds that the warehouse is still unsanitary. Sophie knows nothing about any of this. Can Tasty Foods be convicted of a crime in these circumstances? Can Sophie be held personally liable? 4. An unknown individual launches a series of attacks against the Web sites of Prime Sales Corporation. The attacks significantly slow the sites, leading to $100 million in damage in terms of lost work time, lost revenue, site repair costs, and other expenses. The attacker does not intend to profit from the onslaught and in fact does not realize any financial benefit from the effects. How is this attack most likely orchestrated? Who is most likely to engage in this act⎯that is, whose habits and limitations are clearly suited to such conduct⎯and why?...