Business Law Exam 3 Ch. 12, 13, 15

The basic purpose of tort law is to punish criminal wrongdoers.
Special Damages
Intended to compensate the plaintiff for quantifiable monetary losses, such as medical expenses.
General Damages
Intended to compensate individuals (but not companies) for the nonmonetary aspects of the harm suffered from a tort, such as pain and suffering.
Compensatory Damages
Intended to compensate or reimburse a plaintiff for actual losses.
Punitive Damages
Awarded in tort cases to punish the wrongdoer and to deter others from similar wrongdoing.
There are two broad classications of torts:
Intentional torts & unintentional torts
Because an intentional tort requires intent, a harmful motive is required.
A person who commits a tort is known as a:
Any intentional and unexcused threat of immediate harmful or offensive contact.
An unexcused and harmful or offensive physical contact intentionally performed.
For assault and battery because there was both a threat and a harmful action.
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
You are made fearful of unwanted and possibly harmful contact with another person.
Which of the following has nothing to do with false imprisonment?
Infliction of emotional distress
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
A third party must unintentionally cause one of the parties to break the contract.
Which of the following is NOT an element of the tort of wrongful interference with a contractual relationship.
In our freely competitive economy, businesses have no limits on how they can attract customers.
usually permissible
Competing via aggressive marketing and advertising strategies is _______ interference with a business relationship.
Trespass to land has nothing to do with obtaining permission for use of that land.
Trespass to land requires that a person _______ on the land.
For trespass to land occur you have to _____ onto, above, or below the land surface owned by another.
A real property owner must______ that a person is a trespasser.
A guest in your home is typically____ a trespasser.
trespass to land.
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
When you borrow a friend’s tablet device and refuse to give it back, you have committed trespass to land.
Temporarily borrowing a friend’s textbook and then returning it.
Which of the following acts normally do NOT constitute a conversion?
Disparagement of Property
Occurs when economically injurious falsehoods are made about another’s product or property.
Slander of Title
Publishing false information about another’s legal ownership of property that results in financial loss to the property’s owner.
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.
No, because stoves get hot and some people get burned when they are careless.
Cooktop, Inc., manufactures cooktops on which Juarez burns his fingers. Has Cooktop, Inc. unreasonably violated its standard duty of care?
The reasonable person standard concerns itself with how a particular person would act and not with how an ordinarily prudent person should act.
Those who enter retail premises are called business
Storeowners must warn business invitees of ______ risks.
A landowner has a duty to discover and remove any ________ dangers to customers or other invitees.
When risks are so _______ , owners need not warn of them.
An attorney’s conduct is judged by the reasonable person standard.
Was there intent?
Which of the following questions does a court NOT ask to determine whether the requirement of causation is met?
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?
Per se
Negligence _____ may occur if an individual violates a statute providing for a criminal penalty if that violation causes another to be harmed.
Good Samaritan
_______ statutes exist to protect, as an example, medical personnel who volunteer their services in emergency situations.
-shop acts imposes liability on bartenders who have served too much alcohol to those who are involved in accidents after leaving the bar.
seeking out the riskiest activities.
Assumption of risk does NOT require
An intervening event that acts as a superseding (overriding) cause may relieve the defendant of liability for injuries caused by the intervening event.
Contributory Negligence
A theory in tort law in which a complaining party’s own negligence contributed to or caused his or her injuries.
Comparative Negligence
A theory in tort law under which the liability for injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party), on the basis of each person’s proportionate negligence.
All of these choices are needed.
Which of the following is needed to prove that there is defamation as is suggested by Shelly and Tony?
That her statements about the car dealership are true.
What is Mrs. Vogel’s best defense against the tort of defamation?
When Mrs. Vogel walks onto the car lot and her conduct and speech persuades an entering vehicle to back away from Rally’s car lot, what is the most likely tort that she is committing?
Since she is a business invitee, there is a duty to warn her about any dangers that the store knew of or should have known about.
What duty is owed to Maria while she is in the Kowalski’s (before entering the stock room)?
That she assumed the risk of injury.
Once Maria enters the stock room, which of the following is Kowalski’s best defense for Maria’s injuries?
Kowalski’s posted the “Employee’s Only No Admittance” sign, therefore Maria was trespassing in the stockroom.
Which one of the following is the best argument that Kowalski’s Grocery is not liable for Maria’s injury?
Yes, because Maria told him not to touch her and he then did.
Is there a chance that Vinny will be liable for the tort of battery?
an example of tort reform.
The state of Texas has placed caps on noneconomic damages in medical malpractice causes of action. This type of limitation on damages is
infliction of emotional distress.
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
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
wrongful interference with a business relationship.
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
trespass to land.
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
slander of title.
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
negligence per se
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
assumption of the risk.
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
the causation in fact, but not the proximate cause, of Ethel’s death.
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 signs is
liability without fault
The best definition of strict liability is
Rylands v. Fletcher
The modern concept of strict liability traces its origins, in part, to what famous English case?
Today, the doctrine of strict liability has NOT yet been accepted in America.
Exon owned a gas station in Virginia that had five underground storage tanks that were not properly maintained. ABC, Inc., buys the property and discovers gasoline contamination of the soil. ABC sues, contending that Exon should be held strictly liable for cleaning up. ABC will prevail.
Using adequate test marketing.
What is the one area in the list below in which manufacturers do NOT have to use due care?
Privity of contract refers to the relationship that exists between the parties to a contract
Privity of contract is required when a person injured by a defective product sues the manufacturer or seller.
When a user or customer is injured because of fraudulent misrepresentation, the basis of liability may be the tort of fraud.
Greenman v Yuba Power Products
The landmark case in strict product liability was:
Advertising agencies
The doctrine of strict product liability does NOT apply to which of the following?
In a strict product liability lawsuit, the product must be in a defective condition when the defendant sells it.
In a strict product liability lawsuit, the plaintiff has to show why or in what manner the product became defective.
Unreasonably dangerous
Because many products cannot be made 100 percent safe for all uses, sellers are only liable for products that are
he cannot sue because he did not incur physical harm
Jake buys and uses a large broom. The handle breaks while in use but does not harm Jake. Therefore, he can sue under the doctrine of strict product liability and win:
Because the broom handle was substantially changed from its initial purpose
Jake’s son unscrews the broom handle and uses it to load gunpowder into a small cannon. The broom handle breaks and injures the boy. Why can’t Jake sue the broom manufacturer?
When a manufacturer argues that it engaged in reasonable quality control efforts, that argument will act as a sufficient defense in a strict product liability lawsuit.
Risk- utility analysis
occurs when courts look at the risk of harm from a product as designed compared to the utility to the user and to the public.
because everyone knows that glass doors can be run into and therefore the manufacturer does not have to provide such a warning.
Gunter installs a large glass door in his house and then runs into it, breaking his nose. Gunter sues the manufacturer because he was not warned about the possibility of such an injury. Will Gunter prevail in his lawsuit?
Haslo, Inc. manufactures outdoor games for children ages 10 to 12. Any warnings placed on the games should be bright, bold, and presented on simple labels.
There is no______ to warn about risks that are commonly known.
A seller must warn those who purchase its product of the harm that can result from the__________ misuse of the product.
Courts apply a __________ test to determine if the warnings adequately alert consumers to the product’s risks.
Market share liability is a theory used to require that an injury was caused by a specific defendant.
The doctrine of strict product liability applies to suppliers of component parts.
the goods were altered after they were sold
One good defense against strict product liability is that
Halogenics, Inc., manufactures a medical device that is heavily regulated by the government and has to undergo a rigorous pre-market approval process. Halogenics can use the following defense if it is sued:
Sometimes the defense of assumption of risk may work in a product liability action.
Assumption of risk
Monsanto sends out registered letters, e-mails, and places ads in local newspapers where it sold a defective weed killer. Huntington knows of the recall but ignores it, applies the weed killer to his crops, and suffers damages. Which defense can Monsanto use at trial?
Product misuse obviously occurs when a product is used for a purpose other than what it was intended for. The courts recognize this defense in almost all lawsuits today.
When the defense of comparative negligence is successful at trial, it completely absolves the defendant of liability.
Because there is a commonly known danger of cutting oneself when using a knife.
Why can’t you sue the manufacturer when a sharp knife cuts you?
Individuals who frequently buy and consume supersized portions of food will not succeed in lawsuits against the manufacturers if they become overweight.
Statutes of repose often allow for unlimited liability for manufacturers of defective products, no matter how far in the past
state law.
In product liability suits, statutes of limitations normally are set by
the defendant must have acted with intent to cause harm.
If Mark decides to put the TF-300 fans that his company manufactures on the market, and the fans are considered to be an unreasonably dangerous product, the party who was injured would not need to prove:
Both Mark’s company and Rooms-to-Go.
If Mark’s company enters into the contract to sell the TF-300 fans that they manufacture to Rooms-to-Go and a purchaser is injured by the fan, under strict liability, which would be liable for the injuries?
Both Rooms-to-Go and Mark’s company would be liable.
If Mark’s company enters into the contract to sell the TF-300 fans that they manufacture to Rooms-to-Go and a purchaser is injured by the fan, under strict liability, and a person who did not purchase the fan is injured by debris coming off of the fan while at a friend’s house. Decide:
All of these choices are correct.
If the TF-300 fans that they manufacture are put onto the market, Mark’s company may be liable for injuries if the fans are unreasonably dangerous and the problem with the fans stems from:
The company would likely use the assumption of risk defense.
Assume Mark decides to put the TF-300 fans that his company manufactures on the market, and the fans are considered to be an unreasonably dangerous product. Assume that Mark insisted on putting a label on the remote control stating “Do not put into reverse mode while the fan is spinning.” If someone were then injured by the fan because they put the fan in reverse while it was spinning, which defense would Mark’s company likely use?
none of the other choices are correct.
Glen is a dairy farmer who owns 500 milk cows. His fences are in poor repair, and his cows are often found eating the grass on Hank’s land. Hank believes that Glen is responsible for damages to Hank’s land on a theory of strict liability. The court will most likely find that Glen is
not liable, because gasoline storage is not an abnormally dangerous activity
Exxon owned a gasoline station in Virginia that it used for years. The station had five underground gasoline storage tanks that were not properly maintained. The property was sold to AFA, which discovered gasoline contamination of the soil. AFA filed a lawsuit in Virginia state court contending that Exxon should be held strictly liable for the cost of cleaning up the property. The court most likely found that Exxon was
there is no duty to warn about risks that are obvious or commonly known, such as the risk of lightening occurring during a rainstorm.
Martha is walking from her office building to her car in a torrential downpour with an umbrella manufactured by Umbrellas USA, Inc. She is struck by lightening, and files suit claiming the manufacturer failed to include a warning. A court would likely find that
statute of repose
David’s family purchased a trampoline in 2000. They sold the trampoline at a garage sale in 2010 to Zac’s family. In 2012, Zac’s son is injury while jumping on the trampoline when it collapses. If they sue the trampoline manufacturer in 2013, their lawsuit will likely be dismissed based on the
Comparative negligence
Harvey is driving while intoxicated in his new truck when his tire blows out. He loses control of the truck and crashes into a tree causing injury to himself and to his vehicle. The tire is determined to be defective. Which of the following defenses would be the most viable to be raised by the tire manufacturer in a product liability cause of action?
In 2003, Congress enacted the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act, which effectively eliminated unsolicited emails.
Sending junk mail via the USPS
Which of the following activities is NOT prohibited by the CAN-SPAM Act?
U.S Safe Web Act
Because the federal CAN-SPAM Act only applied to e-mails originating in the United States, Congress enacted the
No, because the U.S. Safe Web Act provides immunity to the ISP from liability for such action.
Because you are suspected of sending out bulk unsolicited e-mail advertisements, your Internet service provider is asked by the FTC to supply information on what you do in foreign jurisdictions. Will you succeed in a lawsuit against your Internet service provider for illegally providing such information to the FTC?
Loss of ____ occurs when another party uses a domain name similar to yours.
The act of registering a domain name that is the same as, or confusingly similar to, the trademark of another and then offering to sell that domain name back to the trademark owner.
The act of buying domain names that are similar to well-know domains, except for slight misspellings.
The domain name is in another language
Which of the following does NOT have to be true for the Anticybersquatting Consumer Protection Act to apply.
Most cybersquatters have limited mastery of English
Which one of the following is NOT a reason why lawsuits against cybersquatters are difficult to pursue?
Using another’s trademark in a meta tag will normally constitute trademark infringement.
Similar to trademark infringement, a claim of trademark dilution in the online world requires proof that consumers will likely be confused by a connection between the unauthorized use and the mark.
he only obtained a license to use, not ownership of the app.
Alchin pays for and downloads a new exercise app on his smartphone. He believes that because he paid for it, he can legally make copies and sell them to his friends at the gym. He is wrong because:
There are only criminal penalties for copyright violations of online materials if the copies are made purely for financial gain.
Digital Millennium Copyright Act
The was passed to give significant protection to owners of copyrights in digital information
Distributed Network
A network that can be used by persons located (distributed) around the country or the globe to share computer files.
Peer-to-peer (P2P) Networking
The sharing of resources (such as files, hard drives, and processing styles) among multiple computers without necessarily requiring a central network server.
Cloud Computing
The delivery to users of on-demand services from third-party servers over a network. Cloud computing is a delivery model.
most stored music files are shared for free
One of the major reasons that music labels have suffered declines in their revenues and profits is that:
Illegal file sharing of movies will cause sales of DVDs and Blu-Ray discs to decline
trademark images and copyrighted materials
Social media posts that contain _______ typically infringe the intellectual property of others.
They may establish a person’s intent or what he or she knew at a particular time.
Why would social media posts be included in discovery and litigation?
The sending out of multiple e-mails.
The Electronic Communications Privacy Act does NOT prohibit which one of the following:
The business-extension exception to the Electronic Communications Privacy Act permits employers to monitor employees’ personal communications.
The Stored Communications Act.
Which act prevents cellphone companies and social media networks from divulging private communications to certain entities and individuals?
Cyber torts include online defamation.
Posting negative comments about other individuals on your social media is protected speech.
discovering the identity of the person who posted the defamation is often extremely difficult
One of the major problems in pursuing an online defamation claim is that:
No, because the Communications Decency Act treats Internet service providers differently from print publishers.
Hobbs owns a small Internet service provider and is sued by Allison because someone who pays Hobbs a monthly fee posted a defamatory statement about Allison. Will Allison prevail in court?
The Federal Trade Commission
Which agency investigates consumer complaints of privacy violations?
All of these choices are correct.
What factors would be a court likely consider if Anna and Caleb choose the domain name
Yes, because not only would you have to worry about trademark infringement, you also have to worry about trademark dilution
If the company in California had trademark protection on the name Wizard, could there still be a violation even if there was no confusion about which company was which?
Assume that the California company owned the domain name Claeb changes the name of his company to However, to get more traffic to his website, Caleb registers the domain name, which is a common misspelling of the domain name. Caleb may be accused of:
Probably, the ECPA specifically permits employers to monitor employees’ communications in the ordinary course of business.
Would the company be allowed to monitor the emails of his employees?
No, but it would be a good idea because notice generally eliminates the expectation of privacy.
If the company wants to monitor the employees’ emails, does it have give notice to them?
Probably not, since there is no expectation of privacy when an email is sent from the company servers.
Would Gary have a good case for wrongful termination in this scenario?
Not usually.
Would monitoring web surfing of employees be treated differently than monitoring of emails?
In most states, yes, as only as they only use publicly available material.
Can the company use the candidates’ social media websites to determine who they wish to hire?
Yes in most states.
Could the company require that the candidates divulge their passwords so that they can see what is on parts of the websites that are not publicly available?
Yes, if the interceptions were made in the ordinary course of business.
If the candidates were already working for the company, would the company be allowed to monitor their email communications that were during work made through their social media accounts?
trademark dilution.
Sally registers the domain name before the NLF football team is able to do so, with the title of her web site called The Dallas Cowboys, a nightclub in Austin, Texas. Sally’s use of the domain name and the name of her bar is
Digital Millennium Copy Right Act.
Sean is researching federal law to determine if there are civil or criminal penalties associated with the circumvention of the encryption software on a DVD. He should find the
Accessing Ben’s private Facebook page by guessing his password.
Ben has consulted with an attorney regarding his employer having reviewed his personal communications at work. Be would have a viable claim for a violation of the Electronic Communications Privacy Act for which of the following actions?
an internal social network
Unobtainium Venture Capital, a new venture capital start-up, wants to create a place for employees to communicate and share files, but wants to minimize its potential risk to competitors by protecting its trade secrets that the shared data may contain. UVC should utilize
online defamation.
Lily developed a blog and relays rumors and gossip she hears in her hometown. She should be concerned about
Jennifer has filed a privacy complaint against Google. The federal agency to conduct an investigation by consumer complaints is the