Cengage Advantage Books Business Law Text and Exercises 6th Edition by Roger LeRoy Miller - Test Bank

Cengage Advantage Books Business Law Text and Exercises 6th Edition by Roger LeRoy Miller – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 5

 

 

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. A tort is the only type of wrong that exists in the law.

 

answer:         F                               PAGE:        60                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

2. Through tort law, society compensates those who suffer injuries as a result of others’ wrongful conduct.

 

answer:         t                               PAGE:        60                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         F                               PAGE:        62                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

4. Tortfeasor is the term for a person who commits a tort.

 

answer:         T                               PAGE:        62                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

5. Consent is a defense to an allegation of assault, but not battery.

 

answer:         f                               PAGE:        62                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

6. Defense of others is a defense to an allegation of battery, but not assault.

 

answer:         f                               PAGE:        62                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         T                               PAGE:        63                             TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

8. Wrongfully hurting a person’s good reputation is defamation.

 

ANSWER:         T                               PAGE:        63                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

9. 9. The public disclosure of private facts about a person is not an invasion of privacy.

 

answer:         F                               PAGE:        64                             TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

10. The use of a person’s likeness for commercial purposes without permission is appropriation.

 

ANSWER:         T                               PAGE:        64                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

11. Fraud occurs only in reliance on a statement of opinion.

 

answer:         F                               PAGE:        64                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

12. Any valid contract can form the potential basis for an action based on wrongful in­terference with a contractual relationship.

 

answer:         t                               PAGE:        65                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

13. Torts related to abusive litigation include disparagement of property.

 

answer:         F                               PAGE:        65                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

14. If it can be shown that a trespass to land was warranted, a complete defense exists.

 

ANSWER:         T                               PAGE:        66                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

15. Competitive behavior is wrongful interference if it results in the breaking of a contract.

 

answer:         F                               PAGE:        66                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

16. Unlawfully taking personal property is disparagement of property.

 

ANSWER:         F                               PAGE:        67                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

17. A failure to return personal property is conversion even if the rightful owner consented to the initial taking.

 

answer:         T                               PAGE:        67                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

18. Disparagement of property includes slander of quality.

 

answer:         T                               PAGE:        67                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

19. Publishing false information about another’s product is conversion.

 

ANSWER:         F                               PAGE:        67                             TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

20. To determine whether a duty of care has been breached, a judge asks how he or she would have acted in the same circumstances.

 

answer:         F                               PAGE:        68                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

21. Under the theory of negligence, the duty of care requires an intentional act.

 

answer:         F                               PAGE:        68                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

22. To avoid liability for negligence, a business owner must protect its pa­trons against all risks.

 

answer:         F                               PAGE:        68                             TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

23. Some risks are obvious but, with respect to the duty of care required to establish negligence, a warning is always necessary.

 

ANSWER:         F                               PAGE:        68                             TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

24. Negligence can be established even if the actor’s conduct did not create a risk.

 

answer:         F                               PAGE:        68                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

25. Under the theory of negligence, the duty of care requires a careless act.

 

answer:         F                               PAGE:        68                             TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

26. If no harm results from an allegedly negligent act, there is no liability.

 

answer:         t                               PAGE:        69                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

27. For purposes of establishing negligence, causation in fact exists if an in­jury would have occurred even without the defendant’s act.

 

answer:         F                               PAGE:        69                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

28. Proximate cause exists when the connection between an act and an in­jury is strong enough to justify imposing liability.

 

answer:         T                               PAGE:        69                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

29. Harm must be foreseeable to be considered the proximate cause of an injury in negligence.

 

answer:         T                               PAGE:        70                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

30. Self-defense is a defense to negligence.

 

answer:         f                               PAGE:        70                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

31. An assumption of risk defense does not require that a risk be voluntarily assumed.

 

answer:         f                               PAGE:        70                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

32. Under the doctrine of comparative negligence, both the plaintiff’s and the defendant’s negligence are taken into consideration.

 

answer:         t                               PAGE:        70                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

33. The extreme risk of an activity is a defense against imposing strict liability.

 

ANSWER:         F                               PAGE:        71                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Critical Thinking

 

34. Under the doctrine of strict liability, liability is imposed strictly according to fault.

 

answer:         F                               PAGE:        71                             TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

35. An Internet service provider cannot be held liable for disseminating others’ defamatory remarks.

 

ANSWER:         T                               PAGE:        71                             TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

 

MULTIPLE-CHOICE questions

 

1. Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury

 

1. if Ike intended to push Joan.
2. only if Ike did not intend to break Joan’s arm.
3. only if Ike had a bad motive for pushing Joan.
4. only if Ike intended to break Joan’s arm.

 

ANSWER:         A                               PAGE:        62                             TYPE:         =

                  NAT: AACSB Reflective                                AICPA Legal

 

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

 

1. assault and battery.
2. assault but not battery.
3. battery but not assault.
4. neither assault nor battery.

 

ANSWER:         A                               PAGE:        62                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

3. Jaqy distributes a handbill among her neighbors accusing one of them—Ked—of being a convicted sex offender. The statement is defamatory if

 

1. a neighbor repeats it.
2. Ked suffers emotional distress.
3. the statement is true.
4. the statement is false.

 

ANSWER:         D                               PAGE:        63                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

4. Dotty tells her Excel Company coworkers that Fiona, Excel’s office manager, is stealing from their employer. The statement is defamatory if

 

1. a coworker believes it.
2. Fiona feels as if she were falsely imprisoned.
3. the statement is true.
4. the statement is false.

 

ANSWER:         D                               PAGE:        63                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

5. Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen’s statement is defamatory if

 

1. a third party hears it.
2. Hu has not been caught.
3. the statement is puffery.
4. the statement is true.

 

ANSWER:         A                               PAGE:        63                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

6. Liz trespasses on Mega Corporation’s property. Through the use of rea­sonable force, Mega’s security guard Ned detains Liz until the police ar­rive. Mega is liable for

 

1. assault.
2. battery.
3. false imprisonment.
4. none of the choices.

 

answer:         D                               PAGE:        63                             TYPE:         +

                  NAT: AACSB Reflective                                AICPA Legal

 

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

 

1. a corporate officer.
2. a non-employee.
3. a private individual.
4. a public figure.

 

ANSWER:         D                               PAGE:        64                             TYPE:         =

                  NAT: AACSB Analytic                                    AICPA Legal

8. Obie accuses Portia, a broker with QT Financial Services, of fraudulently inducing him to invest in Riske Development Company, whose stock price declines in value. The reliance that gives rise to liability for fraud requires

 

1. a subjective statement.
2. misrepresentation of a fact knowing that it is false.
3. puffery.
4. seller’s talk.

 

answer:         B                               PAGE:        64                             TYPE:         N

                  NAT: AACSB Analytic                                    AICPA Legal

 

9. 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

 

1. fraud if the statement is the truth.
2. fraud if Jim believes that this statement is not true.
3. fraud if Jim is stating his opinion, not the facts.
4. not fraud.

 

ANSWER:         D                               PAGE:        64                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

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

 

1. emotion.
2. fact.
3. illusion.
4. opinion.

 

answer:         B                               PAGE:        64                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

11. 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

 

1. a bargaining relationship.
2. a business relationship.
3. a contractual relationship.
4. a customer relationship.

 

answer:         B                               PAGE:        65                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

12. Oak Valley Mall contains two video game stores, Pirates Pick and Game Quest. Pirates’s manager Ryan stands in the mall near Game Quest’s entrance to divert customers to his store. Game Quest’s manager Sara asks Ryan to leave. He refuses. Ryan has committed

 

1. conversion.
2. no tort.
3. trespass to land.
4. wrongful interference with a business relationship.

 

answer:         D                               PAGE:        65                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

13. OK Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize OK instead of Purity. This is

 

1. appropriation.
2. conversion.
3. wrongful interference with a contractual relationship.
4. none of the choices.

 

answer:         D                               PAGE:        66                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

14. Joy invites Ken into her apartment. Ken commits trespass to land if he

 

1. enters the apartment with fraudulent intent.
2. harms the apartment in any way.
3. makes disparaging remarks about Joy to others.
4. refuses to leave when Joy asks him to go.

 

ANSWER:         D                               PAGE:        66                             TYPE:         =

                  NAT: AACSB Reflective                                AICPA Legal

 

15. Bella owns a farm in Colorado. Doyle drives his sport utility vehicle off a highway and onto Bella’s land. Doyle commits trespass if he

 

1. does not have Bella’s permission to drive on the property.
2. drives onto the property for recreational purposes.
3. harms the property in a material way.
4. harms the property in any way.

 

ANSWER:         A                               PAGE:        66                             TYPE:         =

                  NAT: AACSB Reflective                                AICPA Legal

 

16. As a joke, Jem takes Kyla’s business law textbook and hides it so that Kyla cannot find it during the week before the exam. Jem may have committed

 

1. appropriation.
2. conversion.
3. disparagement of property.
4. trespass to personal property.

 

ANSWER:         D                               PAGE:        67                             TYPE:         =

                  NAT: AACSB Reflective                                AICPA Legal

 

17. In newspaper ads, Lo-Price Autos falsely accuses My-T Value Vehicles, a competitor, of selling stolen cars. My-T’s sales decrease. Lo-Price has most likely committed

 

1. slander of quality.
2. slander of title.
3. wrongful interference with a business relationship.
4. none of the choices.

 

answer:         B                               PAGE:        67                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

18. Lizzie, a clerk at a Movies Unlimited store, takes a DVD player from the store without permission. Lizzie is liable for

 

1. appropriation.
2. benefiting an employee.
3. conversion.
4. wrongful interference with a business relationship.

 

ANSWER:         C                               PAGE:        67                             TYPE:         +

                  NAT: AACSB Reflective                                AICPA Legal

 

19. Levon leaves his truck at MakeRight Vehicle Shop for repair. When Levon refuses to pay for the work, MakeRight refuses to give him possession of the truck. MakeRight has committed

 

1. malicious prosecution.
2. no tort.
3. trespass to personal property.
4. wrongful interference with a contractual relationship.

 

answer:         C                               PAGE:        67                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Critical Thinking

 

20. 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

 

1. a blameless person.

b          a faultless person.

1. a holistic person.
2. a reasonable person.

 

answer:         D                               PAGE:        68                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

21. Cook’s Pantry Appliances, a retail store, must use reasonable care on its premises to warn its patrons of

 

1. all risks.
2. hidden risks.
3. obvious risks.
4. no risks.

 

answer:         B                               PAGE:        68                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

22. Kelly is injured when she slips and falls on Layla’s sidewalk. To determine whether Layla owed a duty of care to Kelly, Layla is subject to the standard of

 

1. a realistic person.
2. a reasonable person.
3. a recognizable person.
4. a reliable person.

 

ANSWER:         B                               PAGE:        68                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

23. 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

 

1. abuse of process.
2. battery.
3. false imprisonment.
4. negligence.

 

ANSWER:         D                               PAGE:        68                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

24. A Rhode Island state statute requires machinery in industrial plants to include automatic shut-off switches accessible to each employee working on the machine. Steel Company’s equipment does not have the switches. Trudy, a Steel employee, suffers an injury that an accessible shut-off switch would have prevented. Trudy’s best theory for recovery is

 

1. assault.
2. assumption of risk.
3. invasion of privacy.
4. negligence.

 

answer:         D                               PAGE:        68                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

25. Leon files a suit against Moira, a medical doctor, alleging negligence. As a physician, Moira is held to the standard of

 

1. a blameless individual.

b          a faultless ordinary person.

1. a reliable professional.
2. a reasonable physician.

 

answer:         D                               PAGE:        69                             TYPE:         +

                  NAT: AACSB Reflective                                AICPA Legal

 

26. Caleb is driving a car in which Duffy is a passenger when an accident occurs. Caleb and Duffy are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dufy on a negligence theory because

 

1. both parties were emotionally rattled.
2. Caleb did not apparently intend to cause an accident.
3. Duffy must have been comparatively negligent.
4. Duffy was not injured.

 

ANSWER:         D                               PAGE:        69                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

27. Nico is a passenger in a car driven by Owen, whose reckless driving causes an accident, injuring himself. Nico, uninjured, accompanies Owen to Parkside Hospital in an ambulance. The ambulance is hit by a car driven by Quin, injuring Nico. Nico files a suit against Owen, alleging negligence. The element most likely to be a question for the court to decide is

 

1. causation in fact.
2. proximate cause.
3. the duty of care.
4. the injury requirement.

 

answer:         B                               PAGE:        69                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

28. Sam, an engineer, supervises the construction of a new bridge. When the bridge col­lapses due to faulty construction, Sam is sued by those injured in the collapse. As a professional, Sam is held to the same standard of care as

 

1. ordinary persons.
2. other engineers.
3. other professionals, including doctors, dentists, and lawyers.
4. those injured in the collapse of the bridge.

 

answer:         B                               PAGE:        69                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

29. Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Speedy are liable to

 

1. all those who were injured.
2. only those who were uninsured.
3. only those whose injuries could have been reasonably foreseen.
4. only those whose vehicles were closest to Ralph’s van.

 

ANSWER:         C                               PAGE:        70                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

30. Liu enters Mountain Triathlon, an athletic competition in which Liu has never competed. Regarding the risk of injury, Liu assumes the risks

 

1. attributable to the Triathlon in any way.
2. different from the risks normally associated with the Triathlon.
3. greater than the risks normally associated with the Triathlon.
4. normally associated with the Triathlon.

 

answer:         D                               PAGE:        70                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

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

 

1. attributable to the Decathlon in any way.
2. different from the risks normally associated with the Decathlon.
3. greater than the risks normally associated with the Decathlon.
4. normally associated with the Decathlon.

 

ANSWER:         D                               PAGE:        70                             TYPE:         +

                  NAT: AACSB Reflective                                AICPA Legal

32. Reaching for a bottle of soda from a display in a Bargain Mart store, Cody slips in a puddle of spilled soda and falls, suffering an injury. Bargain Mart’s employees are not aware of the spilled soda until Cody falls. In a suit against Bargain Mart, Cody will most likely

 

1. lose, because Bargain Mart’s employees were not aware of the spill.
2. lose, because Cody should have exercised more care.
3. win, because Bargain Mart can recover from the soda bottler.
4. win, because the spilled soda was foreseeable.

 

ANSWER:         D                               PAGE:        70                             TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

33. 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

 

1. $0.
2. $250,000.
3. $400,000.
4. $500,000.

 

answer:         C                               PAGE:        70                             TYPE:         =

                  NAT: AACSB Reflective                                AICPA Legal

 

34. Jean is playing a computer game on a bad disk that melts in her drive, 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

 

1. cyber torts.
2. intentional torts.
3. product liability.
4. unintentional torts.

 

answer:         C                               PAGE:        71                             TYPE:         N

                  NAT: AACSB Analytic                                    AICPA Critical Thinking

 

35. 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 is

 

1. Oakley.
2. Pierre.
3. Roominate.
4. SocNet.

 

ANSWER:         A                               PAGE:        71                             TYPE:         N

                  NAT: AACSB Technology                              AICPA Legal

 

 

ESSAY questions

 

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?

 

ANSWER:         Quik could file an action against Retail Outlets based on wrongful interference with a contractual relationship. The elements that Quik must prove are (1) a valid, enforceable contract between two parties; (2) the knowledge of a third party that this contract exists; and (3) the third party’s intentionally causing the breach of the contract for the pur­pose of advancing the interest of the third party. For a successful tort ac­tion, there must also be damages caused by the third party’s act. Facts that satisfy all of these elements are set out in the problem. There was a valid, enforceable contract between Precise and Quik. Retail Outlets knew of this contract, Retail Outlets intentionally interfered with this contract, causing its breach, for the purpose of advancing its own interest (undercutting the profit of its competitor). Quik suffered lost profits as a result of Retail Outlets’ act.

 

PAGE:  65                                                                    type:               N

                  NAT: AACSB Reflective                                AICPA Decision Modeling

 

2. After two years of research and an investment of a substantial amount of money, 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 when it was in development. What legal re­course does CC have against National?

 

ANSWER:         In terms of legal recourse against National, CC might base a civil suit on charges of conversion and trespass to personal property. Conversion is any act depriving an owner of personal property without that owner’s permission and without just cause. Conversion is the civil side of crimes related to theft. When conversion occurs, trespass to per­sonal property usually occurs as well. If the initial taking of the property was unlaw­ful, there is trespass; retention of that property is conversion. CC might have a claim for wrong­ful interference with a contractual re­la­tionship for inducing the CC employee to break his or her employment contract with CC by selling company secrets.

 

PAGES: 65 & 67                                                                                    type:         =

                  NAT: AACSB Reflective                                AICPA Decision Modeling