Legal Environment Today 8th Edition By Miller – Test Bank

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Sample Questions Posted Below

 

 

 

 

True / False

 

1. Through tort law, society compensates those who suffer injuries as a result of others’ wrongful conduct.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Introduction
LEARNING OBJECTIVES:   LO – 1
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

2. Very few states have limited the amount of damages that can be awarded in tort cases.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   The Basis of Tort Law
LEARNING OBJECTIVES:   LO – 1
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

3. Class-action lawsuits are suits in which a number of persons join together to bring an action.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   The Basis of Tort Law
LEARNING OBJECTIVES:   LO – 1
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

5. For a tort to be considered intentional, the tortfeasor must have an evil or harmful motive.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

6. Self-defense is a defense to an allegation of both assault and battery.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

7. Defense of others is a defense to an allegation of battery, but not assault.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Comprehension
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   =

 

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

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

11. Statements made by in judicial proceedings are NOT privileged communications and may be the basis for defamation.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

12. The public disclosure of private facts about a person is an invasion of privacy.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

13. The use of a person’s likeness for commercial purposes without permission is appropriation.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

16. The courts consider legitimate competitive behavior permissible only if it does not result in the breaking of a contract.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

18. Wrongfully taking personal property without the owner’s permission is conversion.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

19. A failure to return personal property is disparagement of property even if the rightful owner consented to the initial taking.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

21. Failure to live up to a standard of care may be an act or an omission.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

22. To determine whether a duty of care has been breached, a judge asks how a reasonable person would have acted in the same circumstances.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

23. Under the theory of negligence, the duty of care requires a careless act.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

24. To avoid liability for negligence, a business owner must protect its pa-trons against all risks.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

25. Some risks are obvious but that does not necessarily excuse a business owner from the duty to protect customers from foreseeable harm.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

26. Proximate cause exists when the connection between an act and an in-jury is strong enough to justify imposing liability.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

29. Self-defense is a defense to negligence.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   +

 

31. Under the doctrine of comparative negligence, only the plaintiff’s negligence is taken into consideration.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

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

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Critical Thinking
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

34. The extreme risk of an activity is a defense against imposing strict liability.

  a. True
  b. False

 

ANSWER:   False
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Strict Liability
LEARNING OBJECTIVES:   LO – 5
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
KEYWORDS:   Bloom’s: Knowledge
OTHER:   +

 

35. An Internet service provider cannot be held liable for disseminating others’ defamatory remarks.

  a. True
  b. False

 

ANSWER:   True
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Strict Liability
LEARNING OBJECTIVES:   LO – 5
NATIONAL STANDARDS:   United States – BUSPROG – Analytic – Business knowledge and analytic skills
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

Multiple Choice

 

36. The Class Action Fairness Act of 2005

  a. shifted jurisdiction over certain class-action lawsuits from the state courts to the federal courts.
  b. shifted jurisdiction over certain class-action lawsuits from the federal courts to the state courts.
  c. made forum shopping punishable by large fines.
  d. limited the amount of damages that could be awarded in a medical malpractice suit.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   The Basis of Tort Law
LEARNING OBJECTIVES:   LO – 1
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Knowledge
OTHER:   N

 

37. Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury

  a. if Ike intended to push Joan.
  b. only if Ike did not intend to break Joan’s arm.
  c. only if Ike had a bad motive for pushing Joan.
  d. only if Ike intended to break Joan’s arm.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

38. Mary is angry with Julia so she waits outside Julia’s house and hits Julia with a baseball bat as Julia leaves the house. When Julia sues Mary for battery, Mary will be considered a

  a. victim.
  b. tortfeasor.
  c. plaintiff.
  d. unreasonable person.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
KEYWORDS:   Bloom’s: Application
OTHER:   +

 

39. 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

  a. assault and battery.
  b. assault but not battery.
  c. battery but not assault.
  d. neither assault nor battery.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

40. Liz trespasses on Mega Corporation’s property. Through the use of rea-sonable force, Mega’s security guard Ned detains Liz until the police ar-rive. Mega is liable for

  a. assault.
  b. battery.
  c. false imprisonment.
  d. none of the choices.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

41. Roger wants Andy to work late on a project. He tells Andy that the morally correct thing to do is to stay late at the office and work on the project. Andy feels obligated to stay and work late due to the moral pressure from Roger. Andy stays late at the office, even though he does not want to. Andy can sue Roger for

  a. false imprisonment.
  b. battery.
  c. defamation.
  d. no tort.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 2
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking: Re – BUSPROG: Reflective Thinking
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

42. Jackie distributes a handbill throughout her neighborhood accusing her neighbor Ked of being a convicted sex offender. The statement is defamatory if

  a. a neighbor repeats it.
  b. Ked suffers emotional distress.
  c. the statement is true.
  d. the statement is false.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

43. Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen’s statement is NOT defamatory if

  a. only Hu hears it.
  b. a third party hears it.
  c. the statement is published.
  d. the statement is a lie.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking: Re – BUSPROG: Reflective Thinking
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

44. Jane develops a new color of lipstick. To market her lipstick, Jane uses a computer design program to show a famous model using Jane’s lipstick. Jane does not ask the model’s permission. The model can sue Jane for

  a. battery.
  b. fraudulent misrepresentation.
  c. defamation.
  d. appropriation.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

45. Barbara is selling her car. She knows that the brakes do not work. When a potential buyer asks Barbara if there are any problems with the car, Barbara assures the buyer that there are no problems. The buyer purchases the car based on the assurance that there is nothing wrong with it. The buyer may be able to sue Barbara for

  a. assault.
  b. defamation.
  c. fraudulent misrepresentation.
  d. appropriation.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

46. Obie accuses Portia, a broker with QT Financial Services, of fraudulently inducing him to invest in Risky Development Company, whose stock price declines in value. The reliance that gives rise to liability for fraud requires

  a. a subjective statement.
  b. misrepresentation of a fact knowing that it is false.
  c. puffery.
  d. seller’s talk.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

47. 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 the statement is the truth.
  b. fraud if Jim believes that this statement is not true.
  c. fraud if Jim is stating his opinion, not the facts.
  d. not fraud.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

48. 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 inter-ference with a

  a. bargaining relationship.
  b. business relationship.
  c. contractual relationship.
  d. customer relationship.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

49. 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

  a. emotion.
  b. fact.
  c. illusion.
  d. opinion.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

50. OK Dry-Cleaning advertises so effectively that the regular customers of its competitor Purity Cleaners patronize OK instead of Purity. This is

  a. appropriation.
  b. conversion.
  c. wrongful interference with a contractual relationship.
  d. no tort.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Easy
REFERENCES:   Intentional Torts Against Persons
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

51. 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

  a. does not have Bella’s permission to drive on the property.
  b. drives onto the property for recreational purposes.
  c. harms the property in a material way.
  d. harms the property in any way.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

52. Manuel is walking past Thomas’s house when he hears a smoke alarm going off. He also hears a child calling for help and sees smoke coming from a window. Manuel rushes into Thomas’s house, finds the child and brings it outside. If Thomas sues Manuel for trespass to land, Manuel’s defense will probably be

  a. assisting someone in danger.
  b. consent.
  c. self-defense.
  d. the reasonable person defense.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

53. Susan takes her car to Ken’s repair shop and asks him to fix the car’s brakes. Ken completes the work and sends Susan a bill for $100. Susan refuses to pay so Ken refuses to return Susan’s car. Susan can probably successfully sue Ken for

  a. battery.
  b. conversion.
  c. trespass to property.
  d. none of the choices.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

54. 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

  a. appropriation.
  b. conversion.
  c. disparagement of property.
  d. trespass to personal property.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

55. Lizzie, a clerk at a Movies Unlimited store, takes a DVD player from the store without permission. Lizzie is liable for

  a. appropriation.
  b. benefiting an employee.
  c. conversion.
  d. wrongful interference with a business relationship.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

56. In newspaper ads, Lo-Price Autos falsely accuses Hi-Value Vehicles, a competitor, of selling stolen cars. Hi-Value’s sales decrease. Lo-Price has most likely committed

  a. slander of quality.
  b. slander of title.
  c. wrongful interference with a business relationship.
  d. none of the choices.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

57. 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 blameless person.
  b. a faultless person.
  c. a holistic person.
  d. a reasonable person.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

58. 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

  a. a realistic person.
  b. a reasonable person.
  c. a recognizable person.
  d. a reliable person.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

59. Cook’s Pantry Appliances, a retail store, must use reasonable care on its premises to warn its patrons of

  a. all risks.
  b. hidden risks.
  c. obvious risks.
  d. no risks.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

60. Nico is a passenger in a car driven by Owen, whose reckless driving 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, and Nico is injured. Nico files a suit against Owen, alleging negligence. The element most likely to be a question for the court to decide is

  a. causation in fact.
  b. proximate cause.
  c. the duty of care.
  d. the injury requirement.

 

ANSWER:   b
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

61. Ralph, a van driver for Speedy Delivery Company, causes a multi-vehicle accident on a city street. Ralph and Speedy are liable to

  a. all those who were injured.
  b. only those who were uninsured.
  c. only those whose injuries could have been reasonably foreseen.
  d. only those whose vehicles were closest to Ralph’s van.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

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

  a. both parties were emotionally rattled.
  b. Caleb apparently did not intend to cause an accident.
  c. Duffy must have been comparatively negligent.
  d. Duffy was not injured.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

63. Richard is an avid baseball fan and attends baseball games whenever he can. Richard considers himself an expert on all things, including risks, related to baseball. One day a ball flies into the stands, hits Richard in the head and seriously injures him. Richard can probably successfully win a case against the sports stadium based on

  a. negligence.
  b. breach of duty of care.
  c. defamation.
  d. none of the choices.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

64. Liu enters Mountain Triathlon, an athletic competition in which Liu has never competed. Regarding the risk of injury, Liu assumes the risks

  a. attributable to the triathlon in any way.
  b. different from the risks normally associated with the triathlon.
  c. greater than the risks normally associated with the triathlon.
  d. normally associated with the triathlon.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

65. 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 neg-ligence principles, Frank would recover

  a. $0.
  b. $250,000.
  c. $400,000.
  d. $500,000.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

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

  a. assault.
  b. assumption of risk.
  c. invasion of privacy.
  d. negligence.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Critical Thinking
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

67. 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

  a. assumption of risk.
  b. negligence per se.
  c. res ipsa loquitur.
  d. strict liability.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

68. 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. Keely, a patron, is injured. Jack’s has committed

  a. abuse of process.
  b. battery.
  c. false imprisonment.
  d. negligence.

 

ANSWER:   d
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Negligence
LEARNING OBJECTIVES:   LO – 4
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

69. Jean is playing a video game on a defective disk that melts in her game player, 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 appli-cation of this doctrine is in the area of

  a. cyber torts.
  b. intentional torts.
  c. product liability.
  d. unintentional torts.

 

ANSWER:   c
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Strict Liability
LEARNING OBJECTIVES:   LO – 5
NATIONAL STANDARDS:   United States – BUSPROG: Reflective Thinking: Re – BUSPROG: Reflective Thinking
LOCAL STANDARDS:   United States – OH – Default City – AICPA Critical Thinking
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

70. 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 will be

  a. Oakley.
  b. Pierre.
  c. Roominate.
  d. SocNet.

 

ANSWER:   a
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Strict Liability
LEARNING OBJECTIVES:   LO – 5
NATIONAL STANDARDS:   United States – AACSB Technology
LOCAL STANDARDS:   United States – OH – Default City – AICPA Legal
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

Essay

 

71. 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 that (1) a valid, enforceable contract existed between two parties; (2) a third party knew that this contract existed; and (3) the third party intentionally caused the breach of the contract for the purpose of advancing that party’s own interest. For a successful tort action, Quik must also show that the third party’s act caused damages. 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.
POINTS:   1
DIFFICULTY:   Moderate
REFERENCES:   Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Decision Modeling
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

72. After two years of research and the investment of considerable funds, 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 while 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 also 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.
POINTS:   1
DIFFICULTY:   Challenging
REFERENCES:   Intentional Torts Against Persons
Intentional Torts Against Property
LEARNING OBJECTIVES:   LO – 3
NATIONAL STANDARDS:   United States – BUSPROG: ReflectiveReflective – BUSPROG: Reflective
LOCAL STANDARDS:   United States – OH – Default City – AICPA Decision Modeling
KEYWORDS:   Bloom’s: Application
OTHER:   N

 

 

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