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MGMT 209 Exam 2 Practice Questions
Terms in this set (140)
Sam points a water pistol at Jane who thinks Sam is going to kill her. Jane is terrified and runs away. Jane sues Sam. What will probably happen?
If the judge or jury felt that a reasonable person would be afraid, they would rule for Jane
If the judge or jury felt that it was unreasonable to be afraid of that particular water pistol, they would rule for Sam
Which of the intentional torts does Texas NOT recognize?
Interference with prospective economic advantages
The purpose of tort law is:
You are at a party and Herman gets very drunk. You try to take his keys away from him so that he will not drive home drunk. To get the keys away from Herman you hold him down and make him give you the keys by force. Herman is not hurt. Once he sobers up, Herman sues you for assault, battery and false imprisonment. Which of the following is correct about this situation?
Herman wins if you acted unreasonably
You win if the court finds that you were privileged in your actions
Strict liability in torts is:
liability without fault.
normally limited to abnormally dangerous activities.
Defenses to assault and battery include all of the following except:
Defenses to trespass include all of the following:
a trespasser enters the property to assist a non-trespasser who is in danger.
a trespasser enters the property to assist a trespasser who is in danger.
a trespasser enters the property to save the property from danger.
In Two Pesos, Inc. v. Taco Cabana, Inc. the Supreme Court held that a Mexican-style restaurant could not copy the décor of a competitor because of the law protecting:
Mary tries to register the name of her product, "Twin Cities Pretzels", and is turned down by the federal government. Which of the following is true?
Mary can utilize state law for trademark protection
Howard and his girlfriend decide to drive through a crowd in the nude on his motorcycle to attend the "streak in" outside the Academic Building. The motorcycle dies and he has to jump start the motorcycle while she stands next to him trying to describe what to cover up. The student newspaper takes a picture and publishes it in the next edition of the paper and names of Howard and his girlfriend. If Howard and his girlfriend sue, what is the probable tort and result?
Invasion of privacy but they would lose
The Lanham Act covers:
a duty owned to the injured party.
harm to the injured party.
breach of the duty.
Which of the following forms of intellectual property are protected only under state law or common law?
Lee takes a picture of the sunset with a windmill in front of the sun. The windmill is not associated with any product or company. He decides that he wants to protect the photograph as his intellectual property. His best way to do so would by:
The Student Body President at a major university goes to a party and gets drunk. He then tells all of the attendees at the party that the very popular basketball coach is really a child molester and that he was at a meeting where the President of the University decided to fire the coach. One of the party goers is the editor of the university student newspaper and she makes this the headline story in the next edition of the paper. The basketball coach sues for defamation per se. What must he prove to win?
That the statements were false
That the harm is so bad that he does not have to prove it
That the supposed defamation was actually published
One of the biggest companies to benefit from the Sonny Bono Copyright Extension Act of 1998, as discussed in class, was:
During Boot Line when Texas A&M is playing Texas University on national TV and the game is covered by ABC. Puck the bad Ag drops his pants and shows his tattoos of "Beat to" on his left cheek and "12 Man Rocks" on his right cheek. He is caught on national TV during the half time activities part of the ABC coverage with his pants down. The following week Puck is expelled from Texas A&M University and IBM calls him and tells him that the job offer they had made is no longer a realistic option. Both were done due to the TV incident. Puck sues ABC for invasion of privacy. What will be the result of Puck's lawsuit?
Puck will lose because what he did was in public
MacPhearson v. Buick Motor Co. established which type of products liability?
Mary thinks that Sterling is the best looking guy in school. Mary asks Sterling out and he rejects her. She finds out that Sterling is gay and dances at a gay bar. Mary tells the whole class at the next class meeting. Sterling sues Mary for defamation and invasion of privacy. Sterling will:
lose the defamation case if in fact he is gay and lose the invasion of privacy case since he dances in public at a gay bar and who cares if he is gay.
Which of the following are protected by copyright law?
Writing a story about a historical event
Intellectual property is property created from ideas or thought process of the creator and includes copyrights, patents and trade secrets.
The first copyright law of the United States was passed by New York in 1789.
FALSE (it was passed in 1790)
Obtaining a copyright is very complicated and expensive and you should hire an expert to register your copyright.
FALSE (copyright registration is not as hard as patent registration)
Since 1978, the author of copyrightable material who claims it can automatically get protection of the copyright by the Copyright Act of 1976.
After a copyright is registered for five (5) years it becomes the absolute, irrefutable property of the registrant of the copyright.
FALSE (after 5 years it serves as "prima facie" evidence of ownership)
To prove copyright infringement, the owner of the copyright must prove that the infringer had access to the copyright material and that the pirated copy of the infringer is exactly the same as the work of the owner of the copyright.
FALSE (pirated work does not need to be exactly the same but similar enough)
One of the biggest violators of international copyright law is China.
Provisional filing of patents in only good for up to 1 year but does not count against the 20 year time period of the non-provisional filing.
A patent issued by the United States is good world-wide.
FALSE (one must apply for patent registration on each country that the product might be used in)
A service mark is basically the same thing as a trademark except it denotes a service instead of a product.
The USPTO will conduct a search once a trademark is registered to see if there are any possible conflicts with the mark.
FALSE (USPTO will only conduct searches in patent registration)
Trademark law does NOT allow online registration.
FALSE (it does allow online registration, most if not all registrations allow it)
Registration of a trademark is normally concluded from beginning to end in 45 days of less.
FALSE (registration can take years)
"Intent to use" filing was given to us by the Federal Trademark Dilution Act of 1995.
FALSE (give by the Trademark Law Revision Act of 1988)
Trade Dress is where the infringer steals the entire inherent distinctive look of a competitor such as in Taco Cabana v. Two Pesos.
Probably the most famous trade secret in the world is the formula to Coca-Cola.
There are four (4) major types of torts, intentional torts, negligence, strict liability and criminal law.
FALSE (only three types, intentional torts, negligence and strict liability)
Unlike contracts, tort violations can result in punitive damages.
An intentional act of placing a person in fear or apprehension of immediate bodily harm or offensive contact is battery.
FALSE (this is called assault)
Tort Law is judged by the subjective standard of reasonable person.
FALSE (judged by an objective standard)
If I hit you in the head with a baseball bat and you had no idea that I was even there, it is probably the tort of battery.
A defense is a legal justification for the action of the alleged tortfeasor.
Texas has a specific statute to protect businesses when they utilize their shopkeepers privilege and so long as the business follows that statute, they cannot be sued for false imprisonment.
FALSE (Texas has "shopkeeper's privilege" but does not have statutes to protect it)
Being cussed out by a tortfeasor leads to a claim of Intentional Infliction of Emotional or Mental Distress.
FALSE (a person should be able to withstand a certain amount of stress without the need for legal action)
Slander is written defamation.
FALSE (libel is written defamation)
An absolute privilege in defamation is available to legislators and other public officials for the statements they make as long as it is within their official capacity as a legislator or public official.
FALSE (called constitutional privilege, book says that it is actually a type of absolute privilege however)
In malicious prosecution, Texas requires special damages or injuries.
If a party in Texas maliciously misuses or misapplies regularly issued civil or criminal process for a purpose and thereby obtains a result not lawfully warranted, that party is liable for malicious prosecution.
FALSE (doing that is called "abuse of power" and its a separate tort from "malicious prosecution"
Simply concealing the knowledge that something is false cannot give rise to fraud.
FALSE (doing this can lead to fraud if the person believes it)
False advertisement is the same tort as business disparagement.
FALSE (similar but it deals with your own product instead)
Texas recognizes the tort of interference with prospective economic advantage as do most states
FALSE (not universal, and Texas does not recognize it)
Trespass to real property requires that the owner implicitly or expressly made it known to the tortfeasor that the property was not open to the tortfeasor.
In a minority of states a property owner is liable for the damages that a trespasser reasonably incurs.
Actual defenses to trespass to real property involve saving the property or someone from danger on the property.
Conversion is civil theft.
If your neighbor is a total slob and allows trash to continually blow onto your property and then refuses to clean up the mess, you can sue the neighbor for a private nuisance.
Negligence requires actual harm which means physical harm.
After Palsgraf v. Long Island Railroad Co. a person claiming to be a victim of negligence must prove both case in fact and proximate cause.
A superseding cause breaks the causal connection of the proximate cause requirement and thus is a defense to negligence claims.
FALSE (it breaks the "cause in fact" requirement)
Texas follows the defense of comparative negligence and also uses the 50% rule.
Who regulates the meat industry?
What type of regulatory rules do the courts give the closest scrutiny?
An example of an independent agency is/are:
Regulatory agencies were held to be invalid or at least constitutional suspect during what President's administration?
Franklin D Roosevelt
Which of the following federal regulatory agencies was/were created during the Social Conscious Era of the 1960s and 1970s?
An agency where the President of the United States appoints the head official and can remove the head official is called a/an:
The statute that creates most regulatory agencies is called:
an enabling statute.
What product did I use as an example in class of being recalled by the CPSC?
What was an example of a product that was removed from the market by the FDA that was later allowed to be put back on the market when it was determined that the FDA was wrong?
Silicon breast implants
Which of the following is NOT a type of enforcement by a regulatory agency?
Performing tests and inspections
The ultimate control over regulatory agencies is held by:
Which of the following types of reform agencies do not apply to the federal agencies?
What was/were the historical reason(s) for the passage of the Pure Food and Drug Act of 1906?
Spanish American War
Publication of the book, "The Jungle"
Which of the following federal regulatory agencies was/were created during the Great Depression and the New Deal Era?
The Kefauver-Harris Amendment deals with:
Which of the following are duties of the CPSC?
Develop and issue consumer product safety standards
Issue labeling standards
Issue minimum performance criteria for products
When does a regulatory agency have to utilize formal rule making procedures?
When creating substantive rules
There are at least three eras of federal regulatory agencies. The FDA was created during which one?
An example of a dependent agency is/are:
What is the power that sets aside the regulatory agencies from other branches of government?
They have enforcement power in and of themselves
Enabling statutes are usually very specific, with the details left to the courts to declare when the regulatory agency oversteps its legal boundaries.
FALSE (enabling statutes are very broad)
The first federal regulatory agency that was created was the Interstate Railroad Commission.
FALSE (Interstate Commerce Commission was the first, being founded in 1887)
The SEC is a historical regulatory agency.
FALSE (was founded in 1934, making it part of the New Deal Era)
Most of the historical regulatory agencies are industry specific.
The National Labor Relations Board is an economy-wide regulatory agency.
Executive Agencies are created by Executive Orders and Independent Regulatory Agencies are created by enabling statutes.
FALSE (both can be created by enabling statutes or executive orders)
The EPA is an Independent Regulatory Agency.
FALSE (it is an Independent Executive Agency)
A Commission is normally an Independent Executive Agency.
FALSE (it is an Independent Regulatory Agency)
The delegation of legislative powers to the bureaucratic agencies was declared unconstitutional in the Yakus case.
FALSE (bureaucratic agencies were never declared unconstitutional, and they are no longer challenged nowadays)
The organizational structure of Independent Agencies and Executive Agencies is very different.
FALSE (structure is very similar)
Only Independent Regulatory Agencies and Independent Executive Agencies are covered by the Administrative Procedures Act.
FALSE (Executive Agencies are also included)
The first step in the rule making procedures of either the informal or formal type is for the agency to identify the need for a rule or regulation.
The main job of most agencies is usually thought to be enforcement (investigatory) power.
"Open Field" observations by a regulatory agency requires an administrative warrant.
FALSE (if it is in plain view then there is no need for a warrant)
Search of closely regulated industries such as liquor and firearm businesses require no warrant.
An agency often relies on a combination of enforcement tools.
When a complaint is filed against a business, the business can claim the 7th Amendment and have a court appointed attorney.
FALSE (No jury and no state given attorney)
The final decision of the regulatory agency sets precedent and has the same force as a regulation or rule so allowing an agency to charge an individual and thereby establish precedent is called end-running.
The ultimate reform of a regulatory agency is deregulation.
The first federal law in the area of food was the Pure Food and Drug Act of 1906.
FALSE (first actual law was passed in 1848 during the Mexican-American War dealing with the adulteration of food)
One problem in getting the Pure Food and Drug Act passed was opposition from the American Medical Association.
FALSE (the American Medical Association actually led to more serious crusading than before)
The Food and Drug Administration is under the Department of Agriculture.
FALSE (it is under the Department of Health and Human Services.)
The tragedy of Elixir Sulfanilamide in 1937 led to the deaths of over 100 people and led to the Food, Drug and Cosmetics Act of 1938.
The Drug Enforcement Administration was created in 1968 to combat the illegal use of amphetamines, barbiturates, hallucinogens as well as some other drugs.
Food additives are controlled by the Delaney Clause of 1958.
The FDA is a subdivision of the Department of Health and Human Services.
A complaint to the FDA in Texas can be filed by Skype.
Companies normally work with the FDA and try to settle a complaint early to avoid the potential publicity.
When a Soviet report came out claiming that Red Dye #2 was cancer causing, citizens panicked and refused to purchase products such as red M&Ms.
The Delaney Clause added pesticides to the jurisdiction of the FDA.
FALSE (the Delaney Clause added food additives to the jurisdiction of the FDA, pesticides are under multiple agencies)
Tylenol laced with cyanide resulted in the Hatch -Waxman Act.
FALSE (this resulted in the Federal Anti-Tampering Act, the Hatch-Waxman Act dealt with generic drugs)
Probably the best example of the FDA's jurisdiction over medical devices was the silicone breast implants controversy.
Flavored cigarettes are still legal but the FDA recommends that consumers not use the product.
FALSE (they are illegal due to advertisement that the FDA deemed to be tailored to children and teens)
The Consumer Product Safety Commission began in 1887.
FALSE (it began in 1972)
The first direct regulation of product safety in the United States can in the form of the Consumer Product Safety Act in 1972.
Industrial products are covered by the CPSC.
FALSE (the CPSC only covers consumer products)
The CPSC is one of those regulatory agencies that cannot have a super majority of its members from any one political party.
The Consumer Product Safety Act is the only federal law to protect consumers from product injuries and death.
FALSE (many other Individual Consumer Safety Laws, such as CGCPA, FHSA, CSPA and PPPA)
The CPSC is authorized to develop and issue consumer product safety standards for all products the CPSC covers.
After the CPSC tests a new product, if the CPSC determines that the product is not safe, they can ban the product, prevent it from being sold.
Which of the following is/are exempt from the Anti-Trust Laws that we discussed in class?
Insurance and other state regulated industries
Certain agricultural organizations
Which of the following is exempt from the Anti-Trust Laws that we discussed in class?
MLB-Major League Baseball
What is price discrimination?
Selling your product to one entity for one price and selling the same product to another entity for a different price without justification
If two companies want to merge that sell the same products in a different part of the country, what type of merger would this be?
Geographic extension merger
The FTC usually enforces:
FTC vs. Superior Court Trial Lawyers Association:
dealt with horizontal price discrimination
issued a decision by the per se rule with the exception that horizontal price discrimination is allowed if it is the only way to do it.
Horizontal exchange of information is subject to a high burden rule. Therefore, one should not exchange information if:
they discuss price
they hide the fact that they are sharing the information.
Price discrimination is handled by what law(s)?
The relevant market is the:
If two totally unrelated companies want to merge this would be what type of merger?
The United States merger guidelines can apply to:
If Chrysler merged with General Motors, what type of merger would this be?
If a supplier mergers with a retailer this would be a:
The Antitrust Act(s) that was/were broad and punitive rather than specific and preventative is:
What caused the trusts to become powerful in the late 1880s?
Growth of corporations
Pro business attitudes of the courts
What is a type of justification to price discrimination?
Your are simply meeting the competitions price
Product is out of season
If a Florida manufacturer of widgets that only sells its widgets in Florida merges with a North Carolina manufacturer of the same widgets who only sells his widgets in North Carolina, this would be a/an:
horizontal geographic extension merger.
What are the requirements of vertical restraint guidelines?
the seller has to have market power in the tying product
the tied product and the tying product must be separate
there must be substantial adverse effect on the tied product market
The primary concern in anti-trust law is:
the good of the consumer.
The Sherman Act proved to be ineffective due to:
interpretation by the federal courts.
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