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50 terms

Business Law

The purpose of tort law is to provide remedies when legally protected interests have been invaded. T or F
To commit an intentional tort, one person must intend to harm a certain other person. T or F
An individual's right to privacy includes the exclusive use of his or her likeness. T or F
Normally, fraud occurs only when there is reliance on a statement of truth. T or F
An Internet service provider is generally not liable for publishing a defamatory statement that comes from a third party. T or F
Boris pushes Cordelia. She falls and breaks her arm. Boris is liable for the injury:
a. if he intended to push Cordelia.
b. only if he had a bad motive for pushing Cordelia.
c. only if he intended to break Cordelia's arm.
d. only if he did not intend to break Cordelia's arm.
Jaqy distributes a handbill among her neighbors accusing one of them—Ked—of being a convicted sex offender. The statement is defamatory only if:
a. Ked suffers emotional distress.
b. the statement is true.
c. the statement is false.
d. a neighbor repeats it.
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:
a. fraud if Jim is stating his opinion, not the facts.
b. not fraud.
c. fraud if the statement is the truth.
d. fraud if Jim believes that this statement is not true.
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:
a. Roominate.
b. SocNet.
c. Oakley.
d. Pierre.
From a location in Asia, Basil sends spam to U.S. e-mail addresses touting a variety of deceptive scams in an attempt to dupe unwitting recipients into revealing their bank account and credit card numbers. Under the U.S. Safe Web Act, the Federal Trade Commission can:
a. undertake secret activities to destroy Asian servers.
b. share information with foreign agencies to investigate and prosecute.
c. authorize the scamming of citizens in Asia.
d. do nothing.
T or F: An ordinary person standard determines whether allegedly negligent conduct resulted in a breach of a duty of care.
T or F: A business owner has a duty to use reasonable care to protect its customers against foreseeable risks about which the owner should have known.
T or F: Proximate cause exists when injuries sustained were too remotely connected to an incident to trigger liability.
T or F: A defense available in an action based on a negligence theory is that the plaintiff failed to prove one or more of the required elements.
T or F: Under the doctrine of comparative negligence, both the plaintiff's and the defendant's negligence are taken into consideration.
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:
a. a reasonable person.
b. a blameless person.
c. a reliable person.
d. a faultless person
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:
a. other engineers.
b. other professionals, including doctors, dentists, and lawyers.
c. ordinary persons.
d. those injured in the collapse of the bridge.
Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The streetlight falls, smashing through the roof of a house, killing Chris. But for Bart's negligence, Chris would not have died. Regarding the death, the crash is the:
a. intervening cause.
b. cause in fact.
c. superseding cause.
d. proximate cause.
Ralph, a van driver for Standard Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Standard are liable to:
a. only those whose injuries could have been reasonably foreseen.
b. only those whose vehicles were closest to Rod's van.
c. only those who were uninsured.
d. all those who were injured.
An Illinois state statute requires commercial vehicle drivers to "fully attend to the operation of the vehicle." Jerry, a driver for Crosstown Taxi Company, is driving and talking on his cell phone when his cab collides with Kayla's car, injuring her. Kayla's best theory for recovery against Jerry and Crosstown is:
a. the "danger invites rescue" doctrine.
b. negligence per se.
c. a Good Samaritan statutes.
d. res ipsa loquitur.
T or F: Trademark dilution requires proof that consumers are likely to be confused by the unauthorized use of a mark.
T or F: A generic term is not protected under trademark law unless it acquires a secondary meaning.
T or F: Trade dress has the same legal protection as trademarks.
T or F: Copyright protection is automatic—registration is not required.
T or F: It is possible to copyright an idea.
T or F: Exchanging pirated, copyrighted works with others is not infringement unless money is involved.
The process behind the production of "Numb3rs," a suite of business accounting and inventory software, is protected by:
a. trademark law.
b. patent law.
c. trade secrets law.
d. copyright law.
Diamond Financial Planners employs Elle, Diamond's most productive performer. Elle, however, dissatisfied with the commission structure, quits to work for Feldstar Investments, Inc. Elle takes her list of Diamond clients to induce them to switch to Feldstar. Laws related to trade secrets cover
a. Feldstar's commission structure.
b. Elle's performance methods.
c. Diamond's list of clients.
d. none of these choices.
Felicia invents a new valve to cap undersea oil spills, which she names "Great Catch." She also writes the installation manual to be included with each valve. Felicia could obtain copyright protection for:
a. the name.
b. the "newness" of the valve.
c. the installation manual.
d. the valve.
Sincere Forms, Inc., uses, in its ads, a trademark that is similar, but not identical, to the famous, registered mark of Desired Objects, Inc. Sincere's unauthorized use of the mark constitutes trademark dilution provided
a. Sincere's use is intentional.
b. Sincere and Desired are competitors.
c. Sincere's use lessens the value of Desired's mark.
d. consumers are confused
T or F: Picking pockets is not robbery.
T or F: A person who commits larceny can be sued under tort law.
T or F: A person's intent to return embezzled property is a defense to the crime of embezzlement.
T or F: The purpose of the exclusionary rule is to encourage criminals to provide exclusive evidence of their crimes.
T or F: A stolen credit card is more likely to hurt a consumer than a merchant.
Gail is a "payday" lender charged with filing false claims in bankruptcy proceedings against her debtors. The standard of proof to find a defendant who has been charged with a crime guilty is
a. beyond all doubt.
b. beyond a reasonable doubt.
c. clear and convincing evidence.
d. a preponderance of the evidence.
Rock pushes Sylvia to the ground, grabbing her purse as she falls. The use of force or fear is required for this act to constitute
a. forgery.
b. robbery.
c. larceny.
d. burglary.
Sven receives an MP3 player stolen from Tomas. To be criminally liable, Sven must know
a. the player is stolen.
b. what an MP3 player is.
c. Tomas is the true owner.
d. how to operate an MP3 player.
Cameron manages an illegal gambling operation in his BBQ Bar & Grill. Cameron reports the profits of the gambling operation as income from BBQ's legitimate activities on its tax returns. This is
a. larceny.
b. embezzlement.
c. no crime.
d. money laundering.
Posing as a representative of Global Games Company, Ferris e-mails Evan, a job seeker, asking him to forward personal banking information so that if he is hired, payroll checks can be deposited directly into his account. Evan supplies the data, which Ferris promptly sells to Dixie. This is
a. no crime.
b. vishing.
c. employment fraud.
d. phishing.
T or F: Some promises are not legally binding.
T or F: The intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person.
T or F: A unilateral contract is formed when the one receiving the offer completes the requested act or performance.
T or F: An executed contract is one that has been fully performed.
T or F: An implied contract is not an actual contract.
National Grocers, Inc., enters into a contract with Overland Shipping Company for the delivery of a shipment of fresh produce. If ambiguities appear in the contract, they will be construed against
a. the promisor.
b. the party with the greater bargaining power.
c. the party who drafted the contract.
d. the promisee.
Phil enters into a contract with Quality Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be determined by reference to
a. the face of the instrument.
b. any available evidence.
c. the later testimony of the parties.
d. any relevant extrinsic evidence.
Following negotiations with Merchants Storage Company, Lonny enters into an informal contract to clean the loading dock. This means that the parties' contract
a. requires no special form.
b. does not exist.
c. is indefinite and imprecise.
d. must be drafted "in form" to be valid.
When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is
a. an express contract.
b. no contract.
c. a quasi contract.
d. an implied contract.
Freida and Gail enter into a bilateral contract, which is created when Freida gives a promise in exchange for Gail's
a. payment of money only.
b. prudent awareness only.
c. promise only.
d. performance of a particular act only.