Business Law Today 8th Edition by Miller Test Bank

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Business Law Today 8th Edition by Miller Test Bank

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Chapter 4

Torts and Cyber Torts

N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.

N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank,
= A question included in the previous edition of the Test Bank.

TRUE/FALSE QUESTIONS

1. Tort law provides legal remedies for property damage.

ANSWER: T PAGE: 104 TYPE: +
NAT: AACSB Analytic LOC: AICPA Legal

2. Punitive damages are intended to punish a wrongdoer and deter others.

ANSWER: T PAGE: 105 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

3. A person may commit an intentional tort if he or she acts knowing with substantial certainty that certain consequences will result.

ANSWER: T PAGE: 107 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

4. To commit an intentional tort, a person must act with a harmful motive.

ANSWER: F PAGE: 107 TYPE: +
NAT: AACSB Analytic LOC: AICPA Legal

5. The apprehension that an assault will occur need not be reasonable.

ANSWER: F PAGE: 108 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

6. A battery occurs only if the victim suffers actual physical harm.

ANSWER: F PAGE: 108 TYPE: =
NAT: AACSB Analytic LOC: AICPA Legal

7. False imprisonment is a tort only if the confinement or restraint is justified.

ANSWER: F PAGE: 109 TYPE: =
NAT: AACSB Analytic LOC: AICPA Legal

8. A store manager may delay a suspected shoplifter if the manager has probable cause to justify delaying the suspect.

ANSWER: T PAGE: 109 TYPE: =
NAT: AACSB Analytic LOC: AICPA Legal

9. Slander involves the oral communication of defamatory language.

ANSWER: T PAGE: 109 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

10. Defamation involves wrongfully hurting a persons good reputation.

ANSWER: T PAGE: 109 TYPE: +
NAT: AACSB Analytic LOC: AICPA Legal

11. A written defamatory statement must be communicated to a third party to be actionable.

ANSWER: T PAGE: 110 TYPE: +
NAT: AACSB Analytic LOC: AICPA Legal

12. An unauthorized scan of a bank account cannot be an invasion of privacy.

ANSWER: F PAGE: 113 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

13. An illegal search can be an invasion of privacy.

ANSWER: T PAGE: 113 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

14. Unintentionally causing a party to break a contract may constitute wrong-ful interference with a contractual relationship.

ANSWER: F PAGE: 114 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

15. Puffery is fraud.

ANSWER: F PAGE: 114 TYPE: =
NAT: AACSB Analytic LOC: AICPA Legal

16. Bona fide competitive behavior can constitute wrongful interference with a contractual relationship.

ANSWER: F PAGE: 116 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

17. To commit the tort of trespass to land, a person must harm the land.

ANSWER: F PAGE: 117 TYPE: +
NAT: AACSB Analytic LOC: AICPA Legal

18. An artisans lien is a defense to a charge of trespass to personal property.

ANSWER: T PAGE: 118 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

19. Conversion is wrongfully taking or retaining an individuals personal property and placing it in the service of another.

ANSWER: T PAGE: 118 TYPE: =
NAT: AACSB Analytic LOC: AICPA Legal

20. There is no defense (except innocence) to a charge of conversion.

ANSWER: F PAGE: 118 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

21. Publishing false information about anothers product is trade libel.

ANSWER: T PAGE: 119 TYPE: =
NAT: AACSB Analytic LOC: AICPA Legal

22. An ordinary person standard determines whether allegedly negligent conduct resulted in a breach of a duty of care.

ANSWER: F PAGE: 120 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

23. Business owners have no duty to exercise reasonable care to protect invitees.

ANSWER: F PAGE: 121 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

24. The degree of care to be exercised in a situation can vary with a persons profession or occupation.

ANSWER: T PAGE: 122 TYPE: N
NAT: AACSB Reflective LOC: AICPA Critical Thinking

25. If a person breaches a duty of care and another person suffers an injury, causation is established.

ANSWER: F PAGE: 123 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

26. In theory, causation in fact is limitless.

ANSWER: T PAGE: 123 TYPE: N
NAT: AACSB Analytic LOC: AICPA Critical Thinking

27. A person assumes all risks associated with any activity in which he or she participates.

ANSWER: F PAGE: 123 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

28. An assumption of risk defense does not require knowledge of the risk.

ANSWER: F PAGE: 123 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

29. A superseding cause is an intervening event that imposes liability on a de-fendant for injuries caused by the intervening event.

ANSWER: F PAGE: 125 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

30. The doctrine of res ipsa loquitur applies if an event causing harm does not normally occur in the absence of negligence.

ANSWER: T PAGE: 125 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

31. Negligence per se may occur on the violation of a statute.

ANSWER: T PAGE: 126 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

32. A defendant is strictly liable for the results of his or her acts only if he or she intended those results.

ANSWER: F PAGE: 127 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

33. One of the requirements for a suit based on strict liability is a failure to ex-ercise due care.

ANSWER: F PAGE: 127 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

34. An Internet service provider (ISP) is not normally liable for its users defamatory remarks.

ANSWER: T PAGE: 128 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

35. There are no statutes regulating the use of spam.

ANSWER: F PAGE: 130 TYPE: =
NAT: AACSB Analytic LOC: AICPA Legal

MULTIPLE-CHOICE QUESTIONS

1. Olga believes that Phil is about to hit her. To prevent harmful contact in this situation, Olga may use

a. any force.
b. any force, except force that is likely to cause death.
c. force that is reasonably necessary.
d. no force.

ANSWER: C PAGE: 108 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

2. Louie files a suit against Myra for assault and battery. Myra can raise the defense of property as a defense to the charge of

a. assault only.
b. assault or battery.
c. battery only.
d. neither assault nor battery.

ANSWER: B PAGE: 108 TYPE: +
NAT: AACSB Reflective LOC: AICPA Legal

3. At Sea Food Cafe, Tom believes that he was overcharged and shoves Wally, a waiter. Wally sues Tom, alleging that the shove was a battery. Tom is liable if

a. Sea Food did not overcharge Tom.
b. the shove was offensive.
c. Tom acted out of malice.
d. Wally did not wait on Tom.

ANSWER: B PAGE: 108 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

4. Lon trespasses on Mega Corporations property. Through the use of reason-able force, Megas security guard Ned detains Lon until the police arrive. Mega is liable for

a. assault and battery.
b. false imprisonment.
c. intentional infliction of emotional distress.
d. none of the choices.

ANSWER: D PAGE: 108 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

5. Ron, the manager of Sav-Mart Discount Store, suspects Tina of shoplifting and detains her. Tina sues Ron, alleging that the detention was false imprisonment. Ron is liable if Tina

a. did not actually shoplift.
b. had not shoplifted in the past.
c. had probable cause to leave the premises.
d. was detained for an unreasonably long time.

ANSWER: D PAGE: 109 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

6. Dale hears Ed falsely accuse Flo of stealing from Great Warehouse, Inc., their employer. Eds statement is defamatory

a. because Dale heard it.
b. only if Ed made the statement loudly.
c. only if Eds statement is also published in the Dispatch, a local paper.
d. only if Flo suffers emotional distress.

ANSWER: A PAGE: 110 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

7. Todd files a suit against United Media Corporation for defamation. Actual malice must be shown for recovery of damages if Todd is

a. a corporate officer.
b. a non-citizen.
c. a private individual.
d. a public figure.

ANSWER: D PAGE: 111 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

8. Ultimate Corporation uses, in its radio ads, a recording by Vicky, who owns the rights, without paying for the use. Over time, the song comes to be asso-ciated with Ultimates products. Vicky sues Ultimate. Ultimate is most likely liable to Vicky for

a. appropriation.
b. conversion.
c. wrongful interference with a customary relationship.
d. none of the choices.

ANSWER: A PAGE: 112 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

9. Kelly is an appliance salesperson. Kelly commits fraud if, to make a sale, she

a. discloses the truth.
b. represents as a fact something that she knows is untrue.
c. states an opinion concerning something that she knows nothing about.
d. uses puffery.

ANSWER: B PAGE: 113 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

10. Kai files a suit against Lana based on one of Lanas statements that Kai alleges is fraudulent. To give rise to fraud, the statement must be one of

a. delusion.
b. fact.
c. illusion.
d. opinion.

ANSWER: B PAGE: 113 TYPE: +
NAT: AACSB Reflective LOC: AICPA Legal

11. Acme Computers, a computer store, takes unethical steps to divert the customers of Cyber Goods, an adjacent competing store. Acme may be liable for

a. appropriation.
b. wrongful interference with a business relationship.
c. wrongful interference with a contractual relationship.
d. none of the choices.

ANSWER: B PAGE: 116 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

12. Curt, a dairy goods salesperson, follows Dona, a competitors salesperson, as she visits convenience stores to make sales. Curt solicits each of Donas customers. Curt is likely liable for

a. conversion.
b. trespass to personal property.
c. wrongful interference with a business relationship.
d. wrongful interference with a contractual relationship.

ANSWER: C PAGE: 116 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

13. Polly invites Quinn onto her land. Quinn commits trespass if

a. Polly asks Quinn to leave and Quinn refuses.
b. Quinn enters the property in the evening.
c. Quinn makes disparaging remarks about Polly to third parties.
d. the property is damaged during the visit.

ANSWER: A PAGE: 117 TYPE: +
NAT: AACSB Reflective LOC: AICPA Legal

14. Bill enters onto Cindys property to help Donna, who is in danger. Cindy charges Bill with trespass to land. Bill has

a. a complete defense.
b. a partial defense.
c. a possible defense.
d. no defense.

ANSWER: A PAGE: 117 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

15. Ned leaves his car with OK Car Shop to have it repaired. After the car is fixed, OK keeps it. OK is not liable for trespass to personal property if

a. Ned refuses to pay for the repair.
b. Ned thinks his car is a joke.
c. OK is keeping the car as a joke.
d. OK received payment for the repair.

ANSWER: A PAGE: 118 TYPE: =
NAT: AACSB Reflective LOC: AICPA Legal

16. Ollie, a clerk at PC Computer Store, takes a computer from the store without PCs permission. Ollie is liable for conversion

a. if he damages the computer.
b. if he does not have a good reason for taking the computer.
c. if he fails to prevent a theft of the computer from his possession.
d. under any circumstances.

ANSWER: D PAGE: 118 TYPE: +
NAT: AACSB Reflective LOC: AICPA Legal

17. Axel steals a business law textbook from Bernie. Curt, who does not know that the book is stolen, buys it from Axel. Curt has committed

a. conversion.
b. disparagement of property.
c. no tort.
d. wrongful interference with a business relationship.

ANSWER: A PAGE: 118 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

18. Steve, a television news reporter, knowingly broadcasts an untrue story claiming that Medi-Drugs, Inc., markets a medicine for children that con-tains highly addictive drugs. Steve is liable for

a. slander of quality.
b. slander of title.
c. wrongful interference with a business relationship.
d. none of the choices.

ANSWER: A PAGE: 119 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

19. Jay drops a bowling ball on Kylas foot. Jay is liable for negligence if he acted

a. unrealistically.
b unreasonably.
c. unrecognizably.
d. unreliably.

ANSWER: B PAGE: 120 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

20. To protect its customers and other business invitees, Supreme Retail Corporation must warn them of

a. all dangers.
b. concealed dangers.
c. open dangers.
d. no dangers.

ANSWER: B PAGE: 122 TYPE: +
NAT: AACSB Reflective LOC: AICPA Legal

21. Lola files a suit against Mac, a medical doctor, alleging negligence. As a physician, Mac is held to the standard of

a. an average human being.
b. a reasonable person.
c. a reasonable physician.
d. a typical professional.

ANSWER: C PAGE: 122 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

22. Lana hires Mike, an architect, to design a warehouse. When she reviews Mikes design, Lana is dissatisfied with the look of the new building and sues Mike, alleging negligence. Mike can successfully defend against the suit by proving that

a. he is not familiar with every principle of art.
b. his design is as attractive as an ordinary persons.
c. Lana could not have designed a more attractive building.
d. Lana was not injured in any way.

ANSWER: D PAGE: 122 TYPE: +
NAT: AACSB Reflective LOC: AICPA Legal

23. Kit carelessly bumps into Luke, knocking him to the ground. Kit has committed the tort of negligence

a. only if Luke is injured.
b. only if Luke is not injured.
c. under any circumstances.
d. under no circumstances.

ANSWER: A PAGE: 122 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

24. Pat files a successful suit against Quality Stores based on Qualitys negli-gence. Normally, an award in such a suit consists of

a. comparative damages.
b. compensatory damages.
c. contributory damages.
d. punitive damages.

ANSWER: B PAGE: 122 TYPE: N
NAT: AACSB Analytic LOC: AICPA Legal

25. Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The streetlight falls, smashing through the roof of a house, killing Chris. But for Barts negligence, Chris would not have died. Regarding the death, the crash is the

a. cause in fact.
b intervening cause.
c. proximate cause.
d. superseding cause.

ANSWER: A PAGE: 123 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

26. Dirk is driving a sport utility vehicle in which Elin is a passenger when they are involved in a traffic accident, and Elin is injured. Liability may be imposed on Dirk for Elins injury if Dirks driving is

a. neither the causation in fact nor the proximate cause of the injury.
b. only the causation in fact of the injury.
c. only the proximate cause of the injury.
d. the causation in fact and the proximate cause of the injury.

ANSWER: D PAGE: 123 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

27. Molly shoots Norm with Opals pistol. The proximate cause of Norm being shot is most likely attributable to

a. Molly and Opal.
b. Molly only.
c. Opal only.
d. neither Molly nor Opal.

ANSWER: B PAGE: 123 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

28. Clyde enters the Desert Decathlon, an athletic competition in which Clyde has often competed. Regarding the risk of injury, Clyde assumes the risks

a. attributable to the Decathlon in any way.
b. different from the risks normally associated with the Decathlon.
c. greater than the risks normally associated with the Decathlon.
d. normally associated with the Decathlon.

ANSWER: D PAGE: 123 TYPE: +
NAT: AACSB Reflective LOC: AICPA Legal

29. Eve is injured when she slips and falls in Finest Discount Warehouse. Eve files a suit against Finest for $50,000. Under a pure comparative negli-gence rule, Eve could recover damages from Finest

a. only if Eve and Finest were equally at fault.
b. only if Eve was less at fault than Finest.
c. only if Eve was more at fault than Finest.
d. whether Eve was less, more, or equally at fault.

ANSWER: D PAGE: 125 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

30. A state statute requires machinery in food processing plants to include automatic shut-off switches that are accessible to each employee working on the machine. Fruit Companys (FCs) equipment does not have the switches. Greg, an FC employee, suffers an injury that an accessible shut-off switch would have prevented. Gregs best ground for recovery is that FC committed

a. a dram shop act.
b. a violation of the danger invites rescue doctrine.
c. negligence per se.
d. res ipsa loquitur.

ANSWER: C PAGE: 126 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

31. Amber pushes Brad into the path of an oncoming car driven by Carol. Don tries to rescue Brad, but the car hits both of them. Amber is liable for the injuries of

a. Brad and Don.
b. Brad only.
c. Don only.
d. neither Brad nor Don.

ANSWER: A PAGE: 126 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

32. In an emergency situation, Lori renders aid to Mike, who needs help. Mike would most likely be prohibited from suing Lori for negligence under

a. any circumstances.
b. a Good Samaritan statute.
c. a social host statute.
d. no circumstances.

ANSWER: B PAGE: 126 TYPE: N
NAT: AACSB Reflective LOC: AICPA Legal

33. Eve owns First-Rate Salvage, a demolition company. A demolition by a First-Rate crew injures Glen, a passerby. Under the theory of strict liabil-ity, Eve must pay for Glens injury

a. only if Glens injury was not reasonably foreseeable.
b only if Glens injury was reasonably foreseeable.
c. only if the First-Rate crew was at fault.
d. whether or not the First-Rate crew was at fault.

ANSWER: D PAGE: 127 TYPE: +
NAT: AACSB Reflective LOC: AICPA Legal

34. Gary is standing on a defective stool when it collapses, causing Gary to fall and suffer an injury. Gary files a suit against Interstate Stools, Inc., the manufacturer. A significant application of the doctrine of strict liability is in the area of

a. constitutional law.
b. ethics.
c. negligence.
d. product liability.

ANSWER: D PAGE: 127 TYPE: N
NAT: AACSB Analytic LOC: AICPA Critical Thinking

35. General Construction Company engages in blasting in its operations. This is subject to strict liability because

a. blasting is an abnormally dangerous activity.
b. blasting is a negligent activity.
c. construction can be done without blasting.
d. General is a construction company.

ANSWER: A PAGE: 127 TYPE: N
NAT: AACSB Reflective LOC: AICPA Critical Thinking

ESSAY QUESTIONS

1. Eagle Engineering, Inc., and Fast Code Corporation market competing software products. Eagle launches a series of ads claiming that Fast Code, instead of testing its software before it is marketed, has its customers test the software by using it. Fast Code knows this is not true but begins to lose sales to Eagle. On what grounds could Fast Code sue Eagle for the harm to Fast Codes reputation?

ANSWER: Fast Code could sue Eagle for the harm Eagle is causing to Fast Codes reputation on the ground of defamation. Defamation occurs when a party makes a false statement that injures anothers reputation. In this problem, any defamatory statements likely take the form of libel (defamatory statements in written or printed form). To bring a suit on this ground, Fast Code would have to show that Eagle published false in-formationthat is, that the information was communicated to a third party. If Fast Code is considered a public figure, it will also need to prove that Eagle made its statements with actual malicethat is, with either knowledge of their falsity or a reckless disregard for the truth. Publication of false information about anothers product, alleging that it is not what its seller claims, also constitutes the tort of slander of quality, or trade libel. To bring a suit on this theory successfully, Fast Code would have to show not only that a third person refrained from dealing with it because of the improper publication but also that there were associated damages. Fast Code might also include a claim based on the tort of misrepresentation, or fraud. Misrepresentation leads another to believe in a condition that is different from the one that actually exists. This tort requires several elements: (1) misrepresentation of facts or conditions with knowledge that they are false or with reckless disregard for the truth, (2) intent to induce another to rely on the misrepresentation, (3) justifiable reliance by the deceived party, (4) damages suffered as a result of the reliance, and (5) a causal connection between the misrepresentation and the injury.

PAGES: 109112 TYPE: N
NAT: AACSB Reflective LOC: AICPA Decision Modeling

2. A water pipe bursts, flooding a General Business Company (GBC) utility room and tripping the circuit breakers on a panel in the room. GBC con-tacts Hal, a licensed electrician with ten years of experience, to investigate the damage and turn the breakers on. Hal attempts to turn on one of the breakers without testing for short circuits, which he knows should be done. Hal is electrocuted, and files a suit against GBC for damages, alleging neg-ligence. How might GBC defend itself?

ANSWER: GBC might defend against this claim by asserting the defense of assumption of risk. GBC could claim that it had no duty to warn Hal of a dangerous risk of which he should have been aware. Given the common knowledge of the accepted practices in the field in which Hal practiced his trade and his level of training and experience, a court might agree that there was no need on the part of GBC to warn Hal of this danger, and that Hal voluntarily entered the risky situation, knowing the risk involved. GBC might also raise comparative negligence as a defense. All individuals are expected to exercise a reasonable degree of care in looking out for them-selves. Both parties negligenceif, indeed, GBC was negligent at allcan be computed and the liability distributed accordingly. GBC might also plead assumption of risk, claiming that Hal voluntarily entered into a risky situation, knowing the risk involved.

PAGES: 123 & 125 TYPE: N
NAT: AACSB Reflective LOC: AICPA Decision Modeling

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