The Legal Environment Today Summarized Case Edition Business in its Ethical, Regulatory E-Commerce, And Global Setting 8th Edition by Roger LeRoy Miller – Test Bank

Complete Test Bank With Answers

 

 

Sample Questions Posted Below

 

Legal Environment Today, 8th Edition – Miller/Cross All Rights Reserved – Cengage Learning©

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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

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ANSWER: False

POINTS: 1

DIFFICULTY: Easy

REFERENCES: Intentional Torts Against Persons

LEARNING OBJECTIVES: LO – 2

NATIONAL STANDARDS: United States – BUSPROG – Analytic – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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

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LEARNING OBJECTIVES: LO – 2

NATIONAL STANDARDS: United States – BUSPROG – Analytic – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

LOCAL STANDARDS: United States – OH – Default City – AICPA Legal

KEYWORDS: Bloom’s: Knowledge

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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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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

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ANSWER: False

POINTS: 1

DIFFICULTY: Moderate

REFERENCES: Intentional Torts Against Persons

LEARNING OBJECTIVES: LO – 3

NATIONAL STANDARDS: United States – BUSPROG – Analytic – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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

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LEARNING OBJECTIVES: LO – 3

NATIONAL STANDARDS: United States – BUSPROG – Analytic – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

LOCAL STANDARDS: United States – OH – Default City – AICPA Legal

KEYWORDS: Bloom’s: Knowledge

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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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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

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b. False

ANSWER: False

POINTS: 1

DIFFICULTY: Easy

REFERENCES: Negligence

LEARNING OBJECTIVES: LO – 4

NATIONAL STANDARDS: United States – BUSPROG – Analytic – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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

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DIFFICULTY: Easy

REFERENCES: Negligence

LEARNING OBJECTIVES: LO – 4

NATIONAL STANDARDS: United States – BUSPROG – Analytic – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

LOCAL STANDARDS: United States – OH – Default City – AICPA Critical Thinking

KEYWORDS: Bloom’s: Knowledge

OTHER: N

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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 – BUSPROG: Analytic

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 – BUSPROG: Analytic

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

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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

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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:Analytic:Ref: – BUSPROG: Analytic

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

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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:Analytic:Ref: – BUSPROG: Analytic

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.

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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

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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

Cengage Learning Testing, Powered by Cognero Page 16Legal Environment Today, 8th Edition – Miller/Cross All Rights Reserved – Cengage Learning©

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

Cengage Learning Testing, Powered by Cognero Page 17Legal Environment Today, 8th Edition – Miller/Cross All Rights Reserved – Cengage Learning©

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

Cengage Learning Testing, Powered by Cognero Page 18Legal Environment Today, 8th Edition – Miller/Cross All Rights Reserved – Cengage Learning©

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

Cengage Learning Testing, Powered by Cognero Page 19Legal Environment Today, 8th Edition – Miller/Cross All Rights Reserved – Cengage Learning©

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.

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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

Cengage Learning Testing, Powered by Cognero Page 21Legal Environment Today, 8th Edition – Miller/Cross All Rights Reserved – Cengage Learning©

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

Cengage Learning Testing, Powered by Cognero Page 22Legal Environment Today, 8th Edition – Miller/Cross All Rights Reserved – Cengage Learning©

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

Cengage Learning Testing, Powered by Cognero Page 23Legal Environment Today, 8th Edition – Miller/Cross All Rights Reserved – Cengage Learning©

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:Analytic:Ref: – BUSPROG: Analytic

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

ANSWER: 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?

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.

Cengage Learning Testing, Powered by Cognero Page 24Legal Environment Today, 8th Edition – Miller/Cross All Rights Reserved – Cengage Learning©

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

ANSWER: 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?

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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