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92 terms

Business Law Quiz 2

STUDY
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Tort law is primarily state law.
True
When it comes to assault, apprehension and fear are considered as the same thing.
False
Consent, if proven, is a defense to battery.
True
Defense of property cannot be a defense to a claim of battery.
False
Subjective opinions are subject to an action for defamation in the same way as statements of alleged fact.
False
In China, defamation can be a civil or criminal action.
True
Privilege is an affirmative defense in a defamation action.
True
If a defamation statement was originally broadcast by a company in the United States and was re-broadcast in the United Kingdom without the consent of the originator of the broadcast, the U.S. company may still be held liable in the United Kingdom court.
False
The use of moral pressure is insufficient to establish false imprisonment.
True
Simply offering a better deal is not enough to create liability for intentional interference with contract when only a prospective contract exists.
True
In some situations, the law specifies the duty of care one individual owes to another.
True
The courts generally hold that landowners have a duty to protect individuals on their property.
True
When negligence per se applies, the plaintiff is required to show that a reasonable person would exercise a certain duty of care toward the plaintiff.
True
A plaintiff in a negligence suit may choose whether the plaintiff wishes pure comparative negligence or modified comparative negligence to be applied by the court.
False
According to the pure comparative negligence defense, a defendant must be more than 50% at fault before the plaintiff can recover.
False
Assumption of the risk is a doctrine which makes it easier for a plaintiff to prevail in a lawsuit.
False
More than half the states remain contributory negligence states.
False
To use the assumption of the risk defense successfully, a defendant must prove that the plaintiff voluntarily and unreasonably encountered the risk of the actual harm the defendant caused.
True
Implied assumption of the risk occurs when the plaintiff expressly agrees, usually in a written contract, to assume the risk posed by the defendant's behavior.
False
Good Samaritan statutes impose liability upon people for refusing to stop at accident scenes.
False
Strict liability is liability without fault.
True
The term "consideration" in relation to contracts involves parties acting in an ethical manner.
False
The Restatement of the Law Second, Contracts is not actually the law itself.
True
Whether a contract is bilateral or unilateral depends upon what response the offeror expects from the offeree.
True
Today, courts hold that once an offeree begins performance, the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance.
True
Quasi-contracts are actual contracts.
False
If a quasi-contract is imposed, the amount of damages for a breach is based upon the fair market value of any service provided to the defendant.
True
In order to recover under quasi-contract, there is no requirement that enrichment be unjust.
False
If a contract is valid, then it is enforceable.
False
Any contract that is not a formal contract is an informal contract, also called a simple contract.
True
In the employer/employee context, the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.
True
Courts interpret contracts using an objective standard.
True
Only the offeree to whom an offer is directed can accept the offer.
True
Once an offer is made, an offeror has no right to terminate it before receiving a reply.
False
An offer by a retailer to purchase seasonal goods from a wholesaler would not lapse sooner than an offer to purchase goods that could easily be sold all year long.
False
There are a limited number of circumstances under which silence can be an acceptance.
True
If the subject matter of an offer is destroyed, the offer terminates after 10 days or notice of the death to the offeree, whichever comes first.
False
If an offeree makes a mistake and sends an acceptance to the wrong address, there is an acceptance upon dispatch.
False
An "instructed authorization" occurs if the means by which an acceptance can be communicated to the offeror is expressly stated in the offer.
True
If an acceptance is received after a rejection is received, the acceptance is still valid.
False
Under the Mailbox Rule, a valid contract has been formed if a rejection is dispatched, but before it is received, the acceptance is communicated to the offeror.
True
Which of the following is a tort?
A wrong or injury to another, other than a breach of contract.
What language is the word tort and what does it mean?
French; wrong
Tort litigation has been
declining gradually since 1990
Common classifications of torts
intentional, negligent, and strict-liability
Intentional torts
occur when the defendant takes an action intending certain consequences will result or knowing certain consequences are likely to result
Negligent torts
occur when the defendant is careless and acts in a way that subjects other people to an unreasonable risk of harm
Strict-liability torts
occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes
Intent needed for an intentional tort
the intent at issue is not intent to harm but, rather, is intent to engage in a specific act, which ultimately results in an injury, physical or economic, to another
three categories of intentional torts
against persons, against property, against economic interests
Assault
occurs when one person places another in fear or apprehension of an immediate, offensive bodily contact
Intent needed for battery
a plaintiff may prove liability without having to demonstrate that the defendant intended to be offensive, but the plaintiff must establish harmful contact
The Communications Decency Act of 1996
gives immunity to providers of interactive computer services for liability they might otherwise incur on account of material disseminated by them but created by others
truth and privilege
a person accused of defamation may raise this as a defense
absolute privilege
when this exists, one cannot be sued for defamation for any false statements made, regardless of intent or knowledge of the falsity of the claim
actual malice
under a conditional privilege, a party will not be held liable for defamation unless the false statement was made with
Politicians and entertainers
Which would generally be public figures for purposes of the public figure privilege to actions for defamation
False light
attributing characteristics or beliefs to a person that he or she does not possess
negligence
behavior that creates an unreasonable risk of harm to others and involves the failure to exercise reasonable care to protect another's personal property
Duty, breach of duty, causation and damages
needed to be proved to win a negligence case
reasonable person standard
a measurement of the way members of society expect an individual to act in a given situation
breach of duty
the violation of a duty of care
actual cause and proximate cause
elements of causation
cause in fact
actual cause is also known as
actual cause
the determination that the defendant's breach of duty resulted directly in the plaintiff's injury
actual cause
sometimes referred to as "but for" causation
legal cause
proximate cause is also referred to as this
proximate cause
the extent to which, as a matter of policy, a defendant may be held liable for the consequences of his actions
forseeability
in most states, proximate cause is determined by
compensatory
damages that are intended to reimburse a plaintiff for their losses
why are punitive damages awarded?
to punish the offender and to deter others from committing similar offenses
gross negligence
courts usually award punitive damages in cases in which the offender has committed
consideration
a bargained-for exchange
contractual capacity
the legal ability to enter into a binding agreement
legal object
the requirement that a contract not be either illegal or against public policy
a lack of genuine assent
acceptance secured through fraud, undue influence, or misrepresentation
objective theory
contract law is said to be based on this, meaning that the existence and interpretation of the contract is based on the outward manifestations of intent by the parties
objective intent
not relevant when determining whether a contract exists; rather, what is relevant is how they represented their intent through actions and words
case law and the Uniform Commercial code
two most important sources of contract law
England
todays law of contracts originated from judicial decisions in
common
the law of contracts is primarily this kind of law
2 and 2a
articles part of the Uniform Commercial Code relevant to contracts
with reserve
if nothing is stated to the contrary in terms of an auction, an auction is presumed to be
without reserve
if the seller is treated as making an offer to accept the highest bid, the auction is
material terms
the terms that allow a court to determine what the damages would be in the event that one of the parties breaches the contract
Andrus vs. State Department
plaintiff had not specifically accepted the job
"master of his offer"
the right of an offeror to revoke an offer
option contract
If a person wishes to ensure that an offer will in fact be held open for a set period of time, the person may do so by entering into this kind of contract
when is revocation effective
when it is received by the offeree
If an option contract exists
the administrator of an offeror's estate must hold an offer open until it expires in accordance with the contract
by performance or by a return promise
a way in which an oferee can manifest intent to enter into a bilateral contract
by performance
way an offer may accept a unilateral contract