Chapter 6 - Business Law Test 2

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Tort

the french word for wrong, that one party's allegedly wrongful conduct causes injury to another, an action may arise under the law of ... Society compensates those who have suffered injuries as a result of the wrongful conduct of others.

Wrongs and compensation

two notions serve as the basis of torts.

Tort Law

is designed to compensate those who have suffered a loss or injury due to another person's wrongful act. The basic purpose is to provide remedies for the invasion of various protected interests. Provides remedies for acts that cause physical injury or that interfere with physical security and freedom of movement.

Tort Action

one person or group brings a lawsuit against another person or group to obtain compensation (monetary damages) or other relief for the harm suffered.

Compensatory Damages

intended to compensate or reimburse a plaintiff for actual losses - that is, to make the plaintiff whole and put her or him in the same position that she or he would have been in had the tort not occurred. They are often broken down into special damages and general damages.

Special Damages

compensatory damages, that compensate the plaintiff for quantifiable monetary losses, such as medical expenses, lost wages, and benefits (now and in the future), extra costs, the loss of irreplaceable items, and the costs of repairing or replacing damaged property.

General Damages

compensatory damages, that compensate individuals (NOT COMPANIES) for the nonmonetary aspects of the harm suffered, such as pain and suffering. Physical and emotional pain and suffering, loss of companionship, loss of consortium (losing the emotional and physical benefits of a spousal relationship), disfigurement, loss of reputation, or loss or impairment of mental and physical capacity.

Punitive Damages

to punish the wrongdoer and deter others from similar wrongdoing. Are appropriate only when the defendent's conduct was particularly egregious or reprehensible. Mainly in intentional tort actions and only rarely in negligence lawsuits. They are subject to the limitations imposed by the due process clause of the US constitution.
Appellate court will usually think that this is excessive...

Tort Reform

Doctors have been scared about the amt of Malpractice suits. The Class Action Fairness Act of 2005 was created to shift jurisdiction over large interstate tort and product liability class-action lawsuits from the state courts to the federal courts. the intent was to prevent plaintiffs' attorneys from forum shopping even though the case might have only a tenuous connection to that jurisdiction.

Forum shopping

looking for a state court known to be sympathetic to their clients' cause and predisposed to award large damages in class-action suits

Intentional tort

requires intent (the actor intended the consequences of his or her act or knew with substantial certainty that specific consequences would result from the act).
Assault, battery, false imprisonment, infliction of emotional distress, defamation, invasion of privacy, appropriation, fraudulent misrepresentation, and torts related to misuse of litigation.

Tortfeasor

the one committing the tort must intend to commit an act, the consequences of which interfere with the personal or business interests of another in a way not permitted by law.

Assault

any intentional and unexcused threat of immediate harmful or offensive contact, including words or acts that create in another person a reasonable apprehension of harmful contact. Also, if there is no actual contact with the plaintiff if the defendent's conduct causes a reasonable apprehension of imminent harm in the plaintiff.

Battery

the completion of the act that caused the apprehension, if it results in harm to the plaintiff. the unexcused and harmful or offensive physical contact intentionally performed.

Reasonable person standard

the standard of behavior expected of a hypothetical "reasonable person." the standard against which negligence is measured and that must be observed to avoid liability for negligence

Defenses

reasons why the plaintiff should not obtain damages that justify his or her conduct, including self-defense and defense of others.

False Imprisonment

the intentional confinement or restraint of another person's activities without justification. Interferes with the freedom to move without restraint. Physical barriers, physical restraint, or threats of physical force. Moral pressure does not constitute this. It is essential that the person being restrained not agree to the restraint.
Ex. Businesses holding shoplifters unreasonably

Intentional Infliction of emotional distress

an intentional act that amounts to extreme and outrageous conduct resulting in severe emotional distress to another. To be actionable the act must be extreme and outrageous to the point that it exceeds the bounds of decency accepted by society.
Acts that cause indignity or annoyance alone usually are not sufficient, but repeated annoyances (such as being stalked), coupled with threats, are enough.

Actionable

capable of serving as the ground for a lawsuit

Defamation

of character involves wrongfully hurting a person's good reputation. the law imposes a general duty on all persons to refrain from making false statements of fact about others. Breaching this duty in writing or other permanent form such as a digital recording involves the tort of libel. Breaching this duty orally involves the tort of slander. it also arises when a false statement of fact is made about a person's product, business, or legal ownership rights to property.

Libel

defamation. breaching this duty in writing or other permanent form (such as a digital recording) involves the tort of ...

Slander

defamation. breaching this duty orally involves the tort of ...

Statement of Opinion

are usually not actionable because they are protected in the First Amendment

Statement of Fact

if statement of opinion is said but the statement is false and represents something as a fact, this is violated and actionable.

Publication

the basis of the tort of defamation is the ... of a statement or statements that hold an individual up to contempt, ridicule, or hatred. It means that the defamatory statements are communicated (either intentionally or accidentally) to persons other than the defamed party.

General Damages

Damages for libel.

Slander Per Se

no proof of special damages is required for it to be actionable. 4 types of utterances are considered this:
1. a statement that another has a particular type of disease (historically, leprosy and sexually transmitted diseases, but now also including allegations of mental illness).
2. A statement that another has committed improprieties while engaging in a profession or trade.
3. A statement that another has committed or has been imprisoned for a serious crime.
4. a statement that a person (usually only an unmarried person and sometimes only a women) in unchaste or has engaged in serious sexual misconduct.

Privilege

immunity. In some circumstances, a person will not be liable for defamatory statements because she or he is ...

Absolute Privilege

Qstatements made by attorneys and judges in the courtroom during a trial are this type of privileged speech. So are statements made by governments officials during legislative debate, even if the legislators make such statements maliciously - that is, knowing them to be untrue.

Public Figures

individuals who thrust into the political limelight. Govt officials, movie stars, well-known business people, or anyone who is known to the public. They are considered "fair game," and false and defamatory statements about them that are published in the media will not constitute defamation unless the statements are made with actual malice. These people typically have a public medium for answering disparaging falsehoods about themselves.

Actual Malice

a statement must be made with knowledge of its falsity or a reckless disregard of the truth.

Privacy

a person has the right to solitude and freedom from prying public eyes.

Appropriation of identity

under the common law, using a persons name, picture, or other likeness for commercial purposes without permission is a tortious invasion of privacy.

Intrusion into an individual's affairs or seclusion

invading someone's home or searching someones personal computer without authorization is an invasion of privacy. This tort has been extended to eavesdropping by wiretapping, unauthorized scanning of bank account, compulsory blood testing, and window peeping.

False Light

the publication of information that places a person in a ... is another category of invasion of privacy. This could be a story attributing to someones ideas not held or actions not taken by that person.

Public disclosure of private facts

this type of invasion of privacy occurs when a person publicly discloses private facts about an individual that an ordinary person would find objectionable or embarrassing.

Appropriation

the use of another person's name, likeness, or identifying characteristic, without permission and for the benefit of the user.

Fraudulent Misrepresentation (Fraud)

a false statement of fact or action that deceives and causes harm or injury to another.

Elements of Fraud

1. a misrepresentation of material facts or conditions with knowledge that they are false or with reckless disregard for the truth.
2. an intent to induce another party to rely on the misrepresentation.
3. A justifiable reliance on the misrepresentation by the deceived party.
4. damages suffered as a result of that reliance.
5. a causal connection between the misrepresentation and the injury suffered.

Puffery

seller's talk, a salespersons exaggerated claims considering the quality of goods offered for sale.

Malicious Prosecution

if the party that initiated the lawsuit did so out of malice and without probable cause and ended up losing that suit, the party can be sued for this...

Abuse of process

can apply to any person using a legal process against another in an improper manner or to accomplish a purpose for which the process was not designed.

Business Torts

apply only to wrongful interferences with the business rights of others.

Interference with a contractual relationship

Business tort. a vaild, enforcable contract must exist between two parties. A third party must know that this contract exists. This third party must intentionally induce a party to the contract to breach the contract.

Competitive prices and predatory behavior

Wrongful interference, business tort. actions undertaken with the intention of unlawfully driving competitors completely out of the market.

Trespass to land

occurs any time a person without permission, enters onto, above or below the surface of land that is owned by another; causes anything to enter onto the land; or remains on the land or permits anything to remain on it.

Trespasser

before a person can be a ... the real property owner or other person in actual and exclusive possession of the property, such as a person who is leasing the property must establish that person as a ...

Trespass to Personal Property/Chattels

whenever any individual wrongfully takes or harms the personal property of another or otherwise interferes with the lawful owner's personal property.

Tort of Conversion

whenever a person wrongfully possesses or uses the personal property of another without permission

Disparagement of Property

occurs when economically injurious falsehoods are made about another's product or property rather than about another's reputation

Disagreement of property

a general term for torts that can be more specifically referred to as slander of quality or slander of title

Slander of quality/ Trade libel

the publication of false information about another's product, alleging that it is not what its seller claims

Trade libel

to establish this the plaintiff must prove that the improper publication caused a third person to refrain from dealing with the plaintiff and that the plaintiff substained economic damages (such as loss of profits) as a result

Slander of title

when a publication falsely denies or casts doubt on another's legal ownership of property, resulting in financial loss to the property's owner.

cyber torts

torts committed via the internet. most involve defamation.

Spam

unsolicited "junk emails" that flood virtual mailboxes with advertisements, solicitations, and other messages.

FTC

Undertaking Spam, Spyware, and Fraud Enforcement withe Enforcers Beyond Borders Act... this allows the ... to cooperate and share information with foreign agencies in investigating and prosecuting those involved in spamming, spyware, and various Internet frauds and deceptions.

protected interest

Tort law's basic purpose is provide remedies for the invasion of various:

actual losses

Compensatory damages are intended to compensate or reimburse a plaintiff for:

C

Critics of the current tort law system contend that it:

a. compensates individuals for nonmonetary aspects of the harm suffered.
b. does not deter others from similar wrongdoing.
c. encourages unfounded and trivial lawsuits.
d. allows punitive damages only when the defendant's conduct was particularly reprehensible.

B

An intentional tort requires:

a. a privilege.
b. intent.
c. punitive damages.
d. negligence.

C

A tortfeasor is the one committing:

a. to a harmful plan.
b. an intentional act.
c. an invasion of a protected interest.
d. an intentional infraction.

D

An intentional, unexcused act that creates in another person a reasonable apprehension of immediate harmful or offensive contact is:

a. a criminal imprisonment.
b. a false imprisonment.
c. a battery.
d. an assault.

B

Wrongful interferences with the business rights of others are called:

a. felonious torts.
b. business torts.
c. personal torts.
d. commercial torts.

A

One of two categories of business tort is referred to as:

a. interference with a contractual relationship.
b. interference with business procedures.
c. interference with business.
d. a tortuous interference with business procedures.

C

Whenever a person wrongfully possesses or uses the personal property of another as if the property belonged to her or him, the result is the tort of:

a. perversion.
b. libel.
c. conversion.
d. slander.

B

Trade libel is also known as:

a. slander of conversion.
b. slander of quality.
c. a quantity tort.
d. quantity libel.

D

When a publication falsely denies or casts doubt on another's legal ownership of property, resulting in financial loss to the property's owner, a tort occurs that is referred to as:

a. trade slander.
b. trade libel.
c. quality slander.
d. slander of title.

xxx

The Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM or the Federal CAN-SPAM Act):

a. has done much to curb spam.
b. applied to "commercial electronic mail messages" that are sent to promote a commercial product or service.
c. preempts no state antispam laws except those provisions in state laws that prohibit false and deceptive e-mailing practices.
d. None of these choices.

xxx

The Federal CAN-SPAM Act prohibits the use of:

a. encyclopedia attacks.
b. sending messages to randomly generated e-mail addresses.
c. thesaurus attacks.
d. adding e-mail addresses to Web sites through the use of specialized software.

B

In an attempt to combat spam, the number of states that have enacted laws that prohibit or regulate its use is:

a. twenty-six.
b. thirty-six.
c. eighteen.
d. forty-nine.

Compensatory Damages

reimburse plaintiff for actual losses

Special Damages

Quantifiable losses, such as medical expenses, lost wages, and benefits.

General Damages

non-monetary, such as pain and suffering, reputation.

Punitive Damages

punish the wrongdoer

A

The two notions that serve as the basis of all torts are:

a. compensation and wrongs.
b. competence and wrongs.
c. competition and guilt.
d. justice and liberty.

C

Damages awarded in tort cases to punish the wrongdoer and deter others from similar wrongdoing are called:

a. intentional damages.
b. compensatory damages.
c. punitive damages.
d. exemplary damages.

D

In State Farm Mutual Automobile Insurance Co. v. Campbell , the United States Supreme Court held that, to the extent an award of punitive damages is grossly excessive, it furthers no legitimate purpose and violates:

a. tort requirements.
b. intentional tort requirements.
c. tortfeasor requirements.
d. due process requirements.

C

The completion of the act that caused the apprehension of immediate harmful or offensive conduct is:

a. a false imprisonment.
b. a battery.
c. an assault.
d. an imprisonment.

A

A false imprisonment is defined as the intentional confinement or restraint of another person's activities:

a. without justification.
b. without a conviction of wrongful activity.
c. with proof of wrongful activity.
d. with justification.

D

A defendant who is sued for assault, battery, or both can raise any of the following legally recognized defenses:

a. consent.
b. self-defense.
c. defense of others.
d. All of these choices.

C

One element necessary for wrongful interference with a contractual relationship to exist is that a:

a. business relationship must exist.
b. business tort probable cause must exist.
c. third party must know that a contract exists.
d. publishing of the contract must be done.

A

A person will not be liable for the tort of wrongful interference with a contractual or business relationship if it can be shown that the interference was:

a. permissible.
b. unjustified.
c. impermissible.
d. proper in light of the circumstances.

D

Trespass to land occurs anytime a person, without permission:

a. enters onto, above, or below the surface of land that is owned by another.
b. causes anything to enter on the land.
c. remains on the land or permits anything to remain on it.
d. All of these choices.

B

One who is invited (or allowed to enter) onto the property of another for the licensee's benefit is a:

a. licensor.
b. licensee.
c. trespasser.
d. sub licensee.

A

Trespass to chattels personal property is also called trespass to:

a. personal property.
b. personality.
c. movables.
d. cartels.

D

Torts committed via the Internet are often called:

a. Internet torts.
b. web torts.
c. virtual torts.
d. None of these choices.

C

The term spam is said to come from:

a. a Walt Disney Movie.
b. the U.S. Court of Appeals for the Ninth Circuit.
c. a Monty Python song.
d. the ethical dimensions of the Internet.

C

Bulk, unsolicited e-mail ("junk" e-mail) sent to all of the users on a particular e-mailing list or all of the members of a newsgroup is called:

a. junk.
b. rubbish.
c. spam.
d. cyber trash

A

The basic purpose of tort law is to:
a. provide remedies for the invasion of protected interests.
b. punish criminal wrongdoers.
c. ensure that Congress does not overstep its legal authority.
d. make sure that citizens follow appropriate immigration regulations.

C

2.If Sam threatens Jill with a knife but doesn't, in fact, touch her, Jill may sue for ________ if she honestly believed that Sam could hurt her.
a. battery
b. felony
c. assault
d. misdemeanor

C

If you are a victim of false imprisonment, you are:
a. made fearful of an unwanted contact with another person.
b. touched by another person in an unwanted or offensive way.
c. confined or restrained by another person intentionally and without justification.
d. intentionally bad-mouthed by another person.

B

If you defame someone, you injure:
a. yourself.
b. that person's good reputation.
c. the administrative branch.
d. the judiciary.

D

In order for a statement to be made with actual malice, it must be:
a. unintended.
b. humility.
c. made with knowledge of its absolute truth.
d. made with knowledge of its falsity or with a reckless disregard of the truth.

D

If someone uses a great picture of you to sell peanut butter and fails to get your consent to do this, you may be able to sue for:
a. libel.
b. fraudulent misrepresentation.
c. defamation.
d. appropriation.

B

A legitimate defense to wrongful interference is:
a. malicious intent.
b. bona fide competition.
c. predatory behavior.
d. unjustified interference.

C

Torts committed against property include:
a. defamation.
b. appropriation.
c. conversion.
d. libel.

D

One of the legal difficulties posed by defamatory remarks made online is that:
a. it makes it difficult for Internet service providers (ISPs) to stay in business, because they are held liable for the defamatory remarks made by those using their services.
b. the Internet makes it so easy to locate those who make the defamatory statements that the courts are overburdened with tort lawsuits.
c. defendants in online defamation suits retaliate by spamming the plaintiffs, thus overloading the plaintiffs' Web sites and causing them to suffer further harm.
d. it is difficult to learn the identity of the person who made the defamatory remarks.

B

Which of the following DOES NOT constitute trespass to land?
a. Without permission, you tunnel under your neighbor's land.
b. With permission, you walk across your neighbor's land.
c. Without permission you shoot an arrow across your neighbor's land.
d. Without permission, your neighbor sets up a vegetable stand on your land.

B

Which of the following does not constitute trespass to land?
a. Without permission, you dig a tunnel under your neighbor's land.
b. Without permission, you have a barbecue in your backyard, which sends smoke over your neighbor's land.
c. Without permission, you shoot an arrow across your neighbor's land.
d. Without permission, your neighbor sets up a vegetable stand on your land.

D

Heath opens a small jewelry store but has difficulty competing with Bling Jewels, a much larger firm. In his newspaper ad, Heath includes the false statement, "Bling Jewels sells stolen diamonds." Bling experiences an immediate decrease in sales. Heath has most likely committed the tort of:
a. malice.
b. wrongful interference with a contractual relationship.
c. slander of quality.
d. slander of title.

B

Jon is larger and stronger than Ben. Jon threatens to beat Ben, punches Ben in the face, and knocks out Ben's tooth. Ben may bring a lawsuit against Jon:
a. for assault only.
b. for assault and battery.
c. for battery only.
d. only if Ben can prove Jon's motive.

C

Ivan sells audio and video equipment. He tells a customer, Olivia, "This MP3 player is the best one ever made." Ivan's statement is:
a. appropriation.
b. fact.
c. puffery.
d. fraudulent misrepresentation.

C

Under the common law of Alabama, conversion is "the wrongful exercise of dominion over property" in which the plaintiff has "the immediate right to possession." The Merritts bought an automobile from Bernie Hughes Lincoln Mercury. The Merritts had many problems with the automobile. One problem, damage to the tires, was caused by defective construction. This problem was subject to a rebate program from Ford, which granted the Merritts a refund. The dealer made the claim for the rebate to Ford, and Ford sent the funds to the dealer. When the check arrived, the dealer was to notify the customer. But instead of giving the check to the Merritts, the dealer cashed the check and applied the funds to the amount the Merritts owed on their account for repairs. In the Merritts's action for conversion of the funds, the court most likely found that the dealer was:
a. not liable for conversion, because the dealer did not realize the rebate check had been delivered.
b. not liable for conversion, because the Merritts were not entitled to the rebate check.
c. liable for conversion, because the dealer wrongfully withheld the Merritts's rebate check.
d. liable for conversion, because it was a car dealer.

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