Business Its Legal Ethical and Global Environment 9th Edition by Marianne M. Jennings Test Bank

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Business Its Legal Ethical and Global Environment 9th Edition by Marianne M. Jennings Test Bank

Description

CHAPTER 9BUSINESS TORTS

TRUE/FALSE

1. A tort is a private wrong carrying criminal penalties.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: tort

2. Slander is oral defamation.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: slander

3. A false statement that impeaches someones honesty is defamatory.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

4. Non-public figures need not prove publication in their suits for defamation.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: defamation

5. Only libel requires proof of publication.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: libel

6. Public figures must prove malice to establish a case of defamation against a newspaper.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

7. In most states, letters of reference are exempt from liability for defamation.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: libel

8. Car dealers are crooked is an example of actionable defamation.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: defamation

9. Members of Congress enjoy an absolute privilege for their speech while on the floor.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

10. The media have a qualified privilege in defamation cases.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

11. Testimony in a court room is not privileged for purposes of defamation actions.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: privacy

12. The tort of contract interference requires knowledge of an existing contract between two parties.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: interference

13. Contract interference is remedied by a suit for breach of contract.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: interference

14. Only twenty-seven states have qualified privilege statutes that protect those with a moral oblilgation to speak.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: qualified privileges

15. The tort of false imprisonment requires proof of some actual injury.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: false imprisonment

16. The shopkeepers privilege is a defense to false imprisonment if the detention is reasonable.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: false imprisonment

17. Malice is a required element in all defamation cases.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: defamation

18. Newspapers have an absolute privilege with respect to defamation suits.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: defamation

19. The case involving Robert Gadams illustrates that there can be legal liability for the content of letters of recommendation.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: letters of recommendation

20. Some damages other than emotional damages must be established for the tort of intentional infliction of emotional distress.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: emotional distress

21. The disclosure of private but true facts is not an invasion of privacy.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: privacy

22. Negligence is available as a tort remedy only when the breach of duty is a statutory violation.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: negligence

23. For public figures the media has a qualified privilege.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: qualified privilege

24. Invasion of privacy is a tort of negligence.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: privacy

25. All states provide some form of immunity for people who stop and help but make mistakes in offering their assistance.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: immunity

26. Asking a buyer to break their existing contract with another supplier is tortious interference.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: interference

27. To establish the tort of false imprisonment, there must have been some physical harm.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: false imprisonment

28. There are three invasion of privacy torts.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: privacy

29. The use of someones voice for commercial purposes without their permission is appropriation.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: appropriation

30. The use of someones photo for commercial purposes without their permission is appropriation.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: appropriation

31. The use of someones photo for commercial purposes without their permission is invasion of privacy.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: privacy

32. A newspaper photographer entering a delivery room and taking a picture of Julia Roberts delivering her twins has invaded her privacy.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: privacy

33. A newspaper running a picture of Julia Roberts twins has invaded her privacy.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: privacy

34. Speeding is a breach of duty for negligence purposes.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: negligence

35. The failure to follow industry code is a breach of duty.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: negligence

36. Running a red light is a breach of duty for negligence purposes.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: negligence

37. Driving with brakes in need of replacement is not a breach of duty.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: negligence

38. A breach of duty can still be established for negligence cases even when the defendant has complied with the law.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: duty

39. Proximate cause is the same thing as causation.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: proximate cause

40. The purpose of causation is to tie the breach of duty to the resulting injury.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: causation

41. Contributory negligence, if established, is a complete defense to negligence.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: contributory negligence

42. Comparative negligence, if established, is a complete defense to negligence.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: comparative negligence

43. Assumption of risk is a complete defense to negligence.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: assumption risk

44. The Palsgraf case expanded the notion of causation.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: Palsgraf

45. Negligence in the air is the standard of liability the Palsgraf case established.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: negligence

46. Businesses are never liable for criminal activity on their premises.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: negligence

47. Assumption of risk is not a defense unless there was full information prior to the risk being assumed.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: assumption risk

48. Comparative negligence reduces the plaintiffs recovery.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defenses

49. The reasonable and prudent person standard is not used for establishing contributory negligence.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: defenses

50. Proximate cause need not be established in negligence cases.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: negligence

51. Comparative negligence and contributory negligence are the same thing.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: defenses

52. Contributory negligence is a complete defense to negligence.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defenses

53. Few states follow the doctrine of contributory negligence.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: contributory negligence

54. Employer privilege statutes are those that provide employers with defenses to defamation suits when they have shared information on former employees with prospective employers.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: privilege

55. Employer privilege statutes apply even when there is intentional misrepresentation.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: privilege

56. The duty of a reasonable person extends beyond statutory duties.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: duty

57. To establish assumption of risk, the defendant must show that the plaintiff was aware of the risk and accepted it voluntarily.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: assumption risk

58. When skiing, those participating assume the risk of poorly marked trails.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: assumption risk

59. Writing a glowing letter of recommendation for someone in your organization who was accused of misconduct without mention of the charges can result in liability.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: privilege

60. The bystander effect is an exception to contributory negligence liability.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: bystander effect

61. HIPAA is a federal law for medical privacy.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: privacy

62. The Health Insurance Portability and Accountability Act applies to all health providers, plans, facilities and clearing houses.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: privacy

63. Britney Spears is an example of a public figure for purposes of proving malice.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

64. Opinion commentary is not defamation.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

65. The employer privilege statutes provide employers with some defenses for candor in references.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

66. The reasonable person standard is the standard of duty for purposes of establishing negligence.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: duty

67. A witness in a high profile criminal trial is a public figure.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

68. Posting false information about a person to an Internet blog would be publication.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

69. Opinion and analysis of a persons conduct are not defamation if the underlying facts are correct.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: defamation

70. A screensaver program that uses the likeness of a person is commercial appropriation.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: commercial appropriation

71. Posting false information in a chat room is not sufficient to establish defamation.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: defamation

72. Defamation cannot exist in cyberspace because there is no evidence that someone heard or understood the statements.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: defamation

MULTIPLE CHOICE

1. Which of the following statements would qualify for a defamation action (assuming the statement is false)?
a. All corporate types are selfish.
b. Accountants will sign off on anything.
c. He pled guilty to a violation of campaign contribution laws.
d. All of the above qualify for a defamation action.

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: defamation

2. How many people must have heard or read a statement for there to be publication for purposes of defamation?
a. one
b. at least two
c. there must be widespread community knowledge
d. it must be heard simultaneously by at least two people

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: defamation

3. Which of the following would not be classified as libel?
a. a newspaper article with untrue statements
b. a letter with untrue statements sent to only one person
c. a true statement
d. a speech at a Veterans Day parade

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: libel

4. Public figures:
a. can never have an action in defamation.
b. lose their defamation action rights if the remark or information is part of a story.
c. can seek a retraction, but can never recover damages for defamation.
d. must establish malice in order to recover damages for defamation.

ANS: D PTS: 1 NAT: AACSB: Analytic
TOP: defamation

5. Contract interference:
a. requires involvement by more than one third party.
b. requires proof of intent to interfere.
c. is a federal crime.
d. requires proof of misappropriation.

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: interference

6. Galley, Inc. has a contract for operating the kitchen at the Palm Crest Hotel in Miami, Florida. Mealco has approached Palm Crests director of operations and stated, Look, sign with us. Well take care of whatever damages you owe Galley. Mealcos statements:
a. are defamatory.
b. constitute the tort of contract interference.
c. constitute the tort of negligence.
d. none of the above

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: interference

7. Galley, Inc. has a contract for operating the kitchen at the Palm Crest Hotel in Miami, Florida. Mealco has approached Palm Crests director of operations and stated, Look, sign with us. Well take care of whatever damages you owe Galley. Suppose Mealco added the following phrase, Galley is going under fast. They havent paid rent in five months and their rent is $15,000 per month. Galley is current on its rent, and its rent is $5000 per month. Mealcos statements:
a. are defamatory.
b. constitute the tort of negligence.
c. are covered under the shopkeepers privilege.
d. none of the above

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: defamation

8. Jane Mitchell, age 16, was shopping at her neighborhood Osco Drug Store. She had been looking at magazines as she waited for a friend. She decided to purchase a Tiger Beat magazine and then wait for her friend outside the store. She paid for the magazine, but as she headed for the door, the store manager used the stores loudspeaker system to announce, You, with the green hair and the maroon Doc Martens on. Yes, you, by the front of the store. I saw you take that magazine. Stop right there. I have a gun pointed at you. The managers actions:
a. are protected by the shopkeepers privilege.
b. constitute defamation.
c. were excessive but will not result in any liability.
d. none of the above

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: shopkeeper

9. A-Plus Linens sent the following notice to John C. Lincoln Hospital: Well pay you. Drop your current linen service and well give you $5 for every 100 pounds of linen you send our way. The notice sent by A-plus:
a. is contract interference.
b. is defamatory.
c. is invasion of privacy.
d. none of the above

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: interference

10. Suppose A-Plus Linens sent the following notice to John C. Lincoln Hospital: On your next call for bids, call us. Well give you a $5 discount for every 100 pounds of linen we clean for you. The notice sent by A-Plus:
a. is contract interference.
b. is defamatory.
c. is invasion of privacy.
d. none of the above

ANS: D PTS: 1 NAT: AACSB: Analytic
TOP: interference

11. If a defendant in a defamation suit holds a qualified privilege:
a. the defendant has a complete defense to the suit.
b. the defendant cannot be sued if he/she retracts the statement.
c. the plaintiff will be required to prove additional elements to recover.
d. the defendant enjoys higher protection than the absolute privilege.

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: defamation

12. The tort of false imprisonment:
a. requires proof of some actual damage to the plaintiff.
b. is also known as the shopkeepers tort.
c. requires proof of emotional distress.
d. no longer exists in states that have adopted the shopkeepers privilege.

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: false imprisonment

13. The tort of intentional infliction of emotional distress:
a. requires proof of some physical harm before there can be recovery.
b. is the same as the tort of false imprisonment.
c. is a property tort.
d. requires proof of conduct that exceeds all bounds of decency.

ANS: D PTS: 1 NAT: AACSB: Analytic
TOP: emotional distress

14. Which of the following is not an element of negligence?
a. duty
b. breach of duty
c. reckless disregard
d. causation

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: negligence

15. Which of the following defenses to negligence serves as a complete bar to recovery?
a. comparative negligence
b. contributory negligence
c. both a and b
d. none of the above

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: negligence defense

16. Troy Nolan, age 17, was in a Games and Stuff store browsing. Troy frequented Games and Stuff but did not always make a purchase. After 45 minutes of looking, Troy picked up his skateboard, put his hand in his pocket, and headed toward the door. The day manager yelled from the back of the store to the cashier at the front of the store, Stop the kid with the skateboard. Hes stolen two games. There were 22 people in the store who heard the statement. Troy had not taken the games. Troy:
a. will be successful in a defamation suit against Tower.
b. has no course of action because of the shopkeepers privilege.
c. has no basis for recovery.
d. could recover only for false imprisonment.

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: defamation

17. Which of the following statements best describes the property protection given a singers voice?
a. No protection is given since it is intangible.
b. No protection is given because many people legitimately sound like famous singers.
c. The voice is given the same protection as the face or likeness.
d. none of the above

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: misappropriation

18. The distinguishing element between intentional torts and negligent torts is:
a. intent.
b. level of damages.
c. causation.
d. All of the above are distinctions.

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: intentional torts

19. Hamburger Hamlets, Inc. is a chain of fast-food restaurants. Its major competitor is Sams Sandwiches, Inc. Sams Sandwiches public relations vice president issued the following statement, We have documented proof that Hamburger Hamlets uses horse meat in its burgers. Which of the following statements is true?
a. Sams is liable for defamation.
b. Sams is liable for public disclosure of private facts.
c. Sams is liable for negligence.
d. Sams has not committed a tort.

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: defamation

20. The statement All used-car dealers are crooks is:
a. defamation because it meets the requirement that the statement reflect on the honesty of the business.
b. defamation because the businesses are sufficiently identified.
c. not defamation.
d. defamation so long as there was publication.

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: defamation

21. Which of the following does not enjoy an absolute privilege to charges of defamation?
a. members of Congress while speaking on the floor
b. witnesses in a court hearing
c. newspaper reporting witness testimony from a trial
d. All of the above carry absolute privileges.

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: defamation

22. The shopkeepers privilege applies:
a. regardless of the amount of time the shopper is detained.
b. even if the shopkeeper made a good-faith mistake.
c. only if a security guard is used by the store.
d. all of the above

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: shopkeeper

23. A local liquor store posts the checks of customers that are returned from the bank. The store manager says the public display of the checks is a good way to deter other bad-check writers. The display of the checks is:
a. an invasion of privacy.
b. defamation.
c. protected by a qualified privilege.
d. none of the above

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: privacy

24. This term is given to witnesses who do nothing while a crime is being committed out of fear, apathy, or a mistaken belief that someone else will help the victim.
a. Watcher effect
b. Stockholm effect
c. Bystander effect
d. Richmond effect

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: bystander effect

25. Punitive damages are:
a. generally not available in tort cases.
b. often awarded in cases of contract interference.
c. only available in negligence actions.
d. none of the above

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: punitive damages

26. Which of the following is not an intentional tort?
a. battery
b. false imprisonment
c. invasion of privacy
d. strict tort liability

ANS: D PTS: 1 NAT: AACSB: Analytic
TOP: types of torts

27. In Van Horn v. Watson, the court concluded that in California the Good Samaritan laws:
a. do not exist.
b. apply to anyone helping another injured person.
c. apply to anyone offering medical care in good faith at the scene of a medical emergency.
d. apply to anyone offering medical care to another person.

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: Good Samaritan laws

28. Proximate cause:
a. is the same as causation.
b. need not be proved in every negligence case.
c. was established in the Palsgraf case.
d. is no longer an element of negligence.

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: causation

29. The But for test:
a. is the test for causation.
b. is the test for proximate cause.
c. has been eliminated as the causation test in negligence cases.
d. none of the above

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: causation

30. ____ states provide a qualified privilege for letters of recommendation.
a. All
b. No
c. A few
d. Nearly all

ANS: D PTS: 1 NAT: AACSB: Analytic
TOP: letters of recommendation

31. Which of the following constitutes a defamatory statement (assuming the statements are untrue)?
a. I dont think youll be happy with their work.
b. He was dismissed for embezzlement from his last job.
c. I dont care for him at all.
d. All people from Kentucky are stupid.

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: defamation

32. A retail store:
a. has no duty to protect customers from criminal conduct by third parties.
b. owes its customers duties as licensees.
c. owes its customers duties as invitees.
d. need not protect its customers against problems it has knowledge of.

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: shopkeeper privilege

33. James Keller was an employee at Radical Boards, Inc. Radical Boards is a surf and skateboard shop that also sells clothing. While employed there, Radical Boards principal shareholder discovered that Keller had created peep holes in the shops dressing rooms. When confronted with the peep holes, Keller denied every using them and indicated that they were there to prevent shoplifting. The shop manager was told to fire Keller. Shortly after Keller left, a 16-year-old and her mother filed suit because the teen learned, through conversations with Keller, that he had seen her in the dressing room while she was trying on swimming suits. Keller was able to describe her not-generally-seen birthmarks to her. Radical Boards:
a. cannot be held liable to the teen and her mother because it did engage in the conduct.
b. could be held liable under a theory of negligent failure to supervise.
c. is no longer liable because it terminated Keller.
d. has not committed any tort because watching customers in dressing rooms in part of a merchants right.
e. none of the above

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: negligence

34. Keller has applied for a position at a summer camp for girls, ages 14-18. The camp director had called Radical Boards manager and asked for a reference on Keller.
a. Radical Board has no liability if it simply verifies Kellers employment there.
b. Radical Board has liability for its failure to prosecute Keller.
c. Radical Board has no liability for the actions of employees beyond their job description.
d. Radical Board enjoys a privilege against defamation if it discloses the peep hole story.
e. none of the above

ANS: D PTS: 1 NAT: AACSB: Analytic
TOP: defamation

35. With reference to #s 33 and 34, suppose that Radical Boards manager simply verifies employment for the camp director. During Kellers first month at the camp, he is able to gain access to the girls at night and sexually assaults 3 of them. The girls parents have brought suit against the camp as well as Radical Boards. The camp:
a. is not liable for the criminal conduct of employees that was not authorized.
b. might be liable for negligent hiring.
c. has no liability for conduct of employees after hours.
d. both a and d
e. none of the above

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: privilege

36. With reference to #s 33, 34, and 35, Radical Boards:
a. has no liability to the girls or their parents.
b. enjoys an employer privilege and immunity against such litigation.
c. might be held liable for the negligent failure to disclose Kellers history.
d. has no liability for the subsequent acts of terminated employees.
e. none of the above

ANS: C PTS: 1 NAT: AACSB: Analytic
TOP: defamation

37. Which of the following is/are HIPAA requirements?
a. No computer use for health care information transmittal.
b. Patient right of access to records.
c. Use only of postcards for communication.
d. a, b and c

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: privacy

38. Which of the following is prohibited under HIPAA?
a. Patients right to restrict disclosure and discussion of a hospital stay.
b. A computer screen in a doctors office turned toward the waiting room.
c. Calling a patient at work who has requested no calls there.
d. all of the above

ANS: D PTS: 1 NAT: AACSB: Analytic
TOP: privacy

39. On a radio talk show, the host said, That no-good felon, O.J. Simpson. Mr. Simpson has never been convicted of a felony.
a. The talk show host has defamed Mr. Simpson.
b. Because most people believe Mr. Simpson to be a murderer, there is no defamation.
c. The talk show host enjoys the media qualified privilege.
d. both a and c

ANS: D PTS: 1 NAT: AACSB: Analytic
TOP: defamation

40. Which of the following have an absolute privilege against defamation for their speech?
a. a senator while speaking on the floor of the Senate
b. a newspaper
c. neither a nor b
d. both a and b

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: defamation

41. Whistle-blowers may have some statutory protection by receiving a(n):
a. qualified privilege.
b. absolute privilege.
c. absolute immunity.
d. unqualified privilege.

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: qualified privileges

42. The Arizona Daily Desert View carried a story on a recent E-Coli problem in a Phoenix fast food restaurant. The story included a history of Arizona E-Coli incidents and indicated that the Saguaro Grill had an E-Coli problem in 1999 that resulted in the hospitalization of seven customers. Suppose that the restaurant that had the E-Coli outbreak in 1999 was Saguaro Buffet, not the Saguaro Grill. The Arizona Daily Desert View:
a. is liable to the Saguaro Grill for libel.
b. is liable to the Saguaro Grill for defamation.
c. is liable to the Saguaro Grill for invasion of privacy.
d. none of the above.

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: defamation

43. Representative Pete Stark said the following in a speech on the floor of the U.S. House of Representatives, Youre going to spend it to blow up innocent people if we can get enough kids to grow old enough for you to send to Iraq to get their heads blown off for the presidents amusement. Representative Stark:
a. is protected from defamation liability because of the privilege for elected officials.
b. is liable to the president for defamation because the statement was not related to government issues.
c. is not liable for defamation because of the public figure privilege.
d. both a and c

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: defamation

44. In an opinion column published in wallstreetbuzz.com, a columnist wrote, James Jackson, CEO of Blain Investments, now posting an $8 billion write-down, has robbed shareholders blind through his accounting slights of hand. Jackson insists that he has scruples. I dont know about that but if he does have scruples you can bet they belong to somebody else. The columnist:
a. has committed the tort of libel.
b. is protected from defamation liability under the opinion/analysis quasi-privilege.
c. cannot be protected from defamation liability by the opinion/analysis privilege if the statement was published.
d. none of the above

ANS: B PTS: 1 NAT: AACSB: Analytic
TOP: defamation

45. John Reisen posted the following message in a chat room, MIC Corporation will have to restate its earnings for the past 3 years. Its CEO will resign in disgrace because he is responsible. The message is false and MIC Corporations shares lose 45% of their value before the company can stop the rumor.
a. Reisen has committed the tort of defamation.
b. Reisen has not committed the tort of defamation because there is no publication.
c. Reisen has not committed defamation because there are no damages to the company, only the shareholders.
d. both b and c
e. none of the above

ANS: A PTS: 1 NAT: AACSB: Analytic
TOP: defamation

ESSAY

1. Rex Crim is an International Harvester dealer from Henderson, Texas. At the request and expense of International Harvester, Crim traveled to Phoenix, Arizona, for purposes of the demonstration of a new vehicle called the International Scout, designed to compete against the Jeep. Crim went to the proving grounds in the desert around Phoenix and spent a day watching the vehicle demonstrations. Crim and other dealers drove the vehicles and much dust resulted from their driving. A few weeks later Crim became ill with flu-like symptoms. He was finally diagnosed as having coccidioidomycosis or Valley Fever. Valley Fever is a disease well known to Arizona residents and most have had it if they have lived there over ten years. Newcomers are particularly vulnerable to the disease since the exposure to dust seems to build up immunity among the residents.

Crim became quite ill and brought suit against International Harvester for its failure to warn him about the Valley Fever phenomenon before he came out to the testing grounds. Was International Harvester responsible for warning Crim? Is there negligence in the failure of International Harvester to warn Crim?

ANS:
In Crim v. International Harvester Co., 646 F.2d 161 (5th Cir. 1981), the court held IH was liable since it had peculiar knowledge and Crim did not. IH did not exercise reasonable care in discovering the danger and then warning of that danger.

PTS: 1 NAT: AACSB: Analytic | AACSB: Reflective Thinking
TOP: negligence

2. Kirk Daly, a 36-year-old attorney, was killed when his Buick Opel collided with some metal fence on the Harbor Freeway in Los Angeles. He was traveling at a speed between 50 and 70 mph. After the collision, the car spun and the drivers door flew open. Daly was ejected from the car and sustained fatal head injuries. Had the door stayed closed, his injuries would have been relatively minor. Daly was not wearing his seat belt. Discuss the negligence theory for recovery in the suit Dalys widow has brought against General Motors, the makers of the Buick Opel. Also discuss any defenses General Motors might have.

ANS:
In Daly v. General Motors, 575 P.2d 1162 (Cal. 1978) the California court allowed the seat belt issue to be introduced as a comparative negligence defense to the suit.

PTS: 1 NAT: AACSB: Analytic | AACSB: Reflective Thinking
TOP: comparative negligence

3. Cynthia Fromm and Delores Rankin left after their fall semester finals for a four-day skiing trip in Northern Arizona. During their return drive, they hit a severe snowstorm and were having difficulty with directions. They took a wrong turn onto a road that is closed during the winter months and is not plowed. The winter barricades for the road were not yet in place. Fromm and Rankin were soon stuck in the snow. They remained in their vehicle for 11 days until they were rescued by snowmobilers. Both had severe frostbite. Fromm lost both feet. Rankin lost all of her toes. Both filed suit against the state of Arizona for its failure to put up barricades in a timely fashion. Should the state be held liable?

ANS:
In the trial, the state of Arizona was held only partially liable because of the negligence of the women.

PTS: 1 NAT: AACSB: Analytic | AACSB: Reflective Thinking
TOP: contributory negligence

4. Discuss why whistle-blowers should receive some kind of protection from defamation claims.

ANS:
Assuming the information publicized is true, a whistle-blower is attmepting to make the correct ethical and legal decisions. The person then can receive a qualified privilege which will protect them for defamation lawsuits from the target of the publicized information. Since the privilege is qualified, the persons statements should be verfied as true and limited in scope to receive it..

PTS: 1 NAT: AACSB: Analytic TOP: qualified privileges

5. First Fidelity Insurance received a call from Second Fifth Bank regarding Margaret Gessner, a former Fidelity employee. Gessner had been fired for embezzlement. Can First Fidelity disclose such information? Must First Fidelity disclose it?

ANS:
Students should discuss the issues of defamation as well as negligence if Fidelity fails to reveal the information to a potential employer, particularly a bank.

PTS: 1 NAT: AACSB: Analytic TOP: defamation | negligence

6. Discuss why there may be liability for writers of letters of recommendation that fail to include relevant employment-related information

ANS:
From fear of defamation- and other lawsuits, many employers have been willing to only provide verification of employment and dates of employment. The omission of important information may lead to the hiring of an employee that causes legal problems for the employer and endangers others. The case involving Robert Gadams held school districts liable for not including complaints against Gadams for sexual harm he caused in its letters of recommendation. By not notifiying potential future employers about it, it put other children at risk; from that risk creation comes the legal liability.

PTS: 1 NAT: AACSB: Analytic | AACSB: Reflective Thinking
TOP: letters of recommendation

7. Three boys were leaving Wal-Mart when they were stopped by plain clothes security officers. One officer said, Those shirts that you have on were stolen. One boy said, You cant be serious. The officer responded, Yes, I am. Come with me. The boys then went with the officers to a side door and into an office. The boys parents have filed suit against Wal-Mart. Discuss what their suit might be for and what defenses Wal-Mart has.

ANS:
False imprisonment and defamation; Wal-Marts defense: shopkeepers privilege

The issue is whether Wal-Mart acted reasonably in its detention and confrontation of the boys. How loud? Where were customers? Etc.

PTS: 1 NAT: AACSB: Analytic | AACSB: Reflective Thinking
TOP: shopkeeper privilege

8. Anne Argent runs a Water n Ice store located near a thrift store in a strip mall that has only Anns store and the thrift store as tenants. The remaining stores in the strip mall are vacant. Annes customers are largely junior high and high school students who ride their bikes to her store from the neighborhoods surrounding the strip mall. They park their bikes outside Annes store while they are inside buying drinks, ice cream, and candy. In the past 10 months, 12 bikes have been stolen from outside Annes store. Discuss any liability Anne might have and why.

ANS:
Students should discuss that landowners are not generally responsible for insuring customers against the criminal conduct of third parties. However, when the landowner becomes aware of high levels of criminal activity, it has a duty to warn and even a duty to provide protection. Anne has reached a point where warnings and alternative storage mechanisms are needed because of the ongoing and regular nature of the crime. Once you know, the obligation of protection kicks in.

PTS: 1 NAT: AACSB: Analytic | AACSB: Reflective Thinking
TOP: duty

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