The Legal Environment Today Business In Its Ethical Regulatory E-Commerce and Global Setting 7th Edition by Roger LeRoy Miller - Test Bank

The Legal Environment Today Business In Its Ethical Regulatory E-Commerce and Global Setting 7th Edition by Roger LeRoy Miller – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 5

 

 

Torts, Cyber Torts,

and Strict Liability

 

 

 

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

 

answer:         T                               PAGE:        113                           TYPE:         =

                  NAT: AACSB Analytic                                    AICPA Legal

 

2. The purpose of tort law is to provide remedies when various protected interests have been invaded.

 

answer:         t                               PAGE:        113                           TYPE:         N

                  NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         T                               PAGE:        117                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

4. Self-defense is a defense to an allegation of assault or battery.

 

answer:         T                               PAGE:        117                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

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

 

answer:         F                               PAGE:        117                           TYPE:         N

                  NAT: AACSB Analytic                                    AICPA Legal

 

6. A party cannot recover damages for severe emotional distress absent a show­ing of physical injury.

 

answer:         f                               PAGE:        118                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         T                               PAGE:        118                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

8. Defamation is one person’s use of another’s name without permission.

 

ANSWER:         F                               PAGE:        119                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

9. 9. The public disclosure of private facts about a person is not an invasion of privacy if it is done without the person’s knowledge or consent.

 

answer:         F                               PAGE:        123                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

10. The use by one person of another paerson’s likelness without permission and for the benefit of the user constitutes the tort of appropriation.

 

ANSWER:         T                               PAGE:        123                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         F                               PAGE:        124                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         t                               PAGE:        125                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

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

 

ANSWER:         T                               PAGE:        127                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

ANSWER:         T                               PAGE:        127                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

15. Good intention is a complete defense to conversion.

 

answer:         F                               PAGE:        128                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         T                               PAGE:        128                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

17. Disparagement of property is another term for slander of quality.

 

answer:         T                               PAGE:        128                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

ANSWER:         F                               PAGE:        128                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

19. If an actor’s conduct creates no risk, there is no negligence.

 

answer:         T                               PAGE:        129                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         t                               PAGE:        129                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

21. 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:        130                           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:        130                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

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

 

answer:         F                               PAGE:        131                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         T                               PAGE:        131                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         T                               PAGE:        131                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

26. Self-defense is a defense to negligence.

 

answer:         f                               PAGE:        132                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

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

 

answer:         f                               PAGE:        133                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

28. Only a foreseeable intervening event can break the connection between a wrongful act and an injury to another.

 

ANSWER:         F                               PAGE:        135                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

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

 

answer:         t                               PAGE:        135                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

30. The doctrine of negligence per se applies if an event causing harm does not normally occur in the absence of negligence.

 

answer:         T                               PAGE:        136                           TYPE:         +

NAT: AACSB Analytic                                    AICPA Legal

 

31. Under the “danger invites rescue” doctrine, a person who tries to rescue another individual from harm is liable for any injuries to the individual.

 

answer:         F                               PAGE:        136                           TYPE:         N

NAT: AACSB Reflective                                AICPA Legal

 

32. Under a dram shop act, liability can be imposed without proof of negligence.

 

answer:         T                               PAGE:        137                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

33. The extreme risk of an activity is a primary basis for imposing strict liability.

 

ANSWER:         T                               PAGE:        137                           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:        137                           TYPE:         N

NAT: AACSB Analytic                                    AICPA Legal

 

35. An Internet service provider cannot be held liable for disseminating defamatory remarks under any circumstances.

 

ANSWER:         F                               PAGE:        138                           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:        117                           TYPE:         N

                  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:        117                           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 only if

 

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

 

ANSWER:         D                               PAGE:        119                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

4. Dru is an Excel Company employee. He says that Fiona, Excel’s office manager, is stealing from their employer. The statement—which is false—is defamatory

 

1. if a coworker overhears it.
2. only if Fiona hears it.
3. whether or not anyone hears it.
4. under no circumstances.

 

ANSWER:         A                               PAGE:        121                           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

 

1. if Glen makes the statement via the Internet.
2. if Glen makes the statement in a private note directly to Hu.
3. if Glen makes the statement orally to Hu when no one else is around.
4. under no circumstances.

 

ANSWER:         A                               PAGE:        121                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

6. 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:        122                           TYPE:         N

                  NAT: AACSB Analytic                                    AICPA Legal

 

7. 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:        124                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

8. Lew angrily accuses Mandy, a broker with New Financial Services, of fraudulently inducing him to invest in Open Pit Oil Company, whose wells are dry. The reliance that gives rise to liability for fraud is normally based on a statement of

 

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

 

answer:         B                               PAGE:        124                           TYPE:         N

                  NAT: AACSB Analytic                                    AICPA Legal

 

9. 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:        124                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

10. 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:        126                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

11. 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:        126                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

12. 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 and battery.
2. false imprisonment.
3. intentional infliction of emotional distress.
4. none of the choices.

 

answer:         D                               PAGE:        127                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

13. 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:        127                           TYPE:         +

                  NAT: AACSB Reflective                                AICPA Legal

 

14. 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:        127                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

15. 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. intentional infliction of emotional distress.
4. trespass to personal property.

 

ANSWER:         D                               PAGE:        127                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

16. Dian, a clerk at an Entertainment Unlimited store, takes a DVD player from the store without permission. Dian is liable for

 

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

 

ANSWER:         C                               PAGE:        128                           TYPE:         N

                  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:        128                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

18. 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 reliable person.
2. a reasonable person.

 

answer:         D                               PAGE:        130                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

19. 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:        130                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

20. 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:        130                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

21. 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:        130                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

22. 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:        131                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

23. 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:        131                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

24. 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:        131                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

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

 

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

 

ANSWER:         D                               PAGE:        132                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

26. 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:        133                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

27. 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:        133                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

28. Nico is a passenger in a car driven by Owen, whose negligence 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, whose best defense is

 

1. assumption of risk.
2. contributory negligence.
3. negligence per se.
4. superseding cause.

 

answer:         D                               PAGE:        135                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

29. 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:        135                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

30. George has a badly infected right foot. Herb, George’s physician, prescribes amputation. George agrees. During the operation, Herb amputates the left foot. In George’s suit against Herb, George’s best theory for recovery is

 

1. assumption of risk.
2. negligence per se.
3. res ipsa loquitur.
4. strict liability.

 

answer:         C                               PAGE:        135                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Critical Thinking

 

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

 

1. assumption of risk.
2. negligence per se.
3. res ipsa loquitur.
4. strict liability.

 

answer:         B                               PAGE:        136                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

32. 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. Key, a patron, is injured. Jack’s has committed

 

1. a dram shop act.
2. contributory negligence.
3. negligence per se.
4. res ipsa loquitur.

 

ANSWER:         C                               PAGE:        136                           TYPE:         N

                  NAT: AACSB Reflective                                AICPA Legal

 

33. Drake pushes Evon into the path of an oncoming car driven by Flip. Gina tries to rescue Evon. Drake is liable for any injuries to

 

1. Evon and Flip but not Gina.
2. Evon and Gina but not Flip.
3. Evon, Flip, and Gina.
4. none of the parties.

 

answer:         C                               PAGE:        136                           TYPE:         N

                  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:        137                           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:        138                           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.

 

PAGES: 125–126                                                                                  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: 125–126 & 128                                                                       type:         N

                  NAT: AACSB Reflective                                AICPA Decision Modeling