Chapter 5 Business Law Practice Test

Ron, the manager of Sav-Mart Discount Store, detains Tina, whom Ron suspects of shoplifting. Tina sues Ron, alleging that the detention was false imprisonment. Ron is liable if Tina:

was detained for an unreasonably long time.

The tort of strict liability can apply to injuries caused:

only by a wild animal that a person is keeping as a pet.

only by an abnormally dangerous activity.

only by a domestic animal that the owner knows has a propensity to harm others.

by any of these situations.

by any of these situations.

Which of the following would be included as intentional tort against property?

Trespass to personal property and appropriation

Trespass to land and wrongful interference

Appropriation and conversion

Conversion and disparagement of property

Conversion and disparagement of property

Which of the following is not a defense available to a person who is sued for assault and battery?

Defense of property

Self-defense

Defense of others

Lack of consent

Lack of consent

Axel steals a business law textbook from Beth. Curt, who does not know that the book is stolen, buys it from Axel. Curt has committed:

conversion.

A significant application of strict liability is in the area of product liability, where liability is imposed on manufacturers and sellers of defective products.

True

An illegal search can be an invasion of privacy.

True

A statute of limitations:

limits the time period during which a plaintiff can successfully file a tort lawsuit against a defendant.

Strict liability is an intentional tort.

False

Roberto was seriously injured when his car was struck by Ivan, who had been drinking in the Bad Biker Bar, and was drunk. Roberto can sue Ivan for his injuries, but can also sue the owner of Bad Biker bar under the state:

dram shop act.

In order to commit an intentional tort, a person must cause harm and:

intend to commit the act that caused harm.

An unauthorized scan of a bank account cannot be an invasion of privacy.

False

A state statute requires machinery in food processing plants to include automatic shut-off switches accessible to each employee working on the machine. Fruit Company's (FC's) equipment does not have the switches. Greg, an FC employee, suffers an injury that an accessible shut-off switch would have prevented. Greg's best ground for recovery is that FC committed:

negligence per se.

Special damages compensate the plaintiff for things such as:

costs of repairing damaged property.

Unintentionally causing a party to break a contract may constitute wrongful interference with a contractual relationship.

False

Business owners have no duty to exercise reasonable care to protect invitees.

False

The doctrine of negligence per se applies if an event causing harm does not normally occur in the absence of negligence.

False

Liberty Fireworks Company puts on fireworks displays at parties and events. Judith attended a party where Liberty was hired to put on a fireworks display. During the party, the fireworks were being stored in a storage building. While Judith was walking outside the storage building, the fireworks prematurely exploded. The explosion caused parts of the storage building to hit and injure Judith. Liberty is strictly liable for Judith's injury:

regardless of whether or not Judith's injury was reasonable foreseeable or Liberty's employees were at fault.

Bona fide competitive behavior can constitute wrongful interference with a contractual relationship.

False

Sam, an engineer, supervises the construction of a new bridge. When the bridge collapses due to faulty construction, Sam is sued by those injured in the collapse. As a professional, Sam is held to the same standard of care as:

other engineers.

Quinn, a clerk at PC Computer Store, takes a computer from the store without PC's permission. Quinn is liable for conversion:

under any circumstances.

Negligence is classified as:

an unintentional tort.

Susan's pet tiger bites Jason's arm. Is Susan liable for Jason's injuries?

Yes, Susan is strictly liable for Jason's injuries.

Kelly is an appliance salesperson. Kelly commits fraud if, to make a sale, she:

represents as a fact something that she knows is untrue.

General damages do not include damages for:

medical expenses.

Ann believes that Burt is about to hit her. To prevent harmful contact in this situation, Ann may use:

force that is reasonably necessary.

At Sea Food Cafe, Tom believes that he was overcharged and shoves Wally, a waiter. Wally sues Tom, alleging that the shove was a battery. Tom is liable if:

the shove was offensive.

Steve, a television news reporter, knowingly broadcasts an untrue story claiming that Medi-Drugs, Inc., markets a medicine for children that contains highly addictive drugs. Steve is liable for:

slander of quality.

Conversion is wrongfully taking or retaining an individual's personal property and placing it in the service of another.

True

There are no legally recognized defenses in a tort lawsuit.

False

General Construction Company engages in blasting in its operations. This is subject to strict liability because:

blasting is an abnormally dangerous activity.

Torts may be classified broadly into two categories:

unintentional and intentional.

To commit the tort of trespass to land, a person must harm the land.

False

Toni files a suit against Universal Media Corporation for defamation. Actual malice must be shown for recovery of damages if Toni is:

a public figure.

Tort is the French word for:

wrong.

Defamation involves wrongfully hurting a person's good reputation.

True

Phil invites Quinn onto his land. Quinn commits trespass if:

Phil asks Quinn to leave and Quinn refuses.

The owner of a pet dog cannot be held strictly liable for an injury to another person caused by the dog.

False

An individual's right to privacy includes the exclusive use of his or her identity.

True

Dru tells his Excel Company coworkers that Fiona, Excel's office manager, is stealing from their employer. The statement is defamatory only if:

the statement is false.

Lehigh Corp. was a real estate developer. The corporation brought prospective customers to its development, Lehigh Acres, and provided accommodations at its company-owned motel. Lehigh was very successful and entered into many contracts with buyers. Chris Azar, a real estate agent, pursued the purchasers as they entered Lehigh's motel. He then persuaded many of them to cancel their contracts with Lehigh and purchase less expensive property from him. Lehigh filed a lawsuit against Azar claiming that Azar was wrongfully interfering with its contractual relationships. Lehigh sought an injunction to prevent Azar from continuing this behavior. Azar contended that he was merely providing Lehigh's customers with an opportunity to obtain comparable property at lower prices. The court most likely:

granted the injunction, because Azar was wrongfully interfering with Lehigh's contracts with its customers.

The doctrine of res ipsa loquitur applies if an event causing harm does not normally occur in the absence of negligence.

True

Drake pushes Evon into the path of an oncoming car driven by Flip. Gina tries to rescue Evon. Drake is liable for any injuries to:

Evon, Flip, and Gina.

Eve owns First-Rate Salvage, a demolition company. A demolition by a First-Rate crew injures Glen, a passerby. Under the theory of strict liability, Eve must pay for Glen's injury:

whether or not the First-Rate crew was at fault.

A store manager may delay a suspected shoplifter if the manager has probable cause to justify delaying the suspect.

True

Which of the following elements is NOT required in order to prove the intentional tort of interference with a contractual relationship?

One of the two parties that made the contract must induce the other party to breach the contract.

A third party must intentionally induce a party to breach the contract.

A valid, enforceable contract must exist between two parties.

A third party must know that the contract exists.

One of the two parties that made the contract must induce the other party to breach the contract.

A battery occurs only if the victim suffers actual physical harm.

False

The purpose of tort law, generally, is to provide remedies for the invasion of various protected interests, such as:

physical security and freedom of movement.

destruction of property.

damage to property.

all of these choices.

all of these choices.

In tort actions, plaintiffs may seek two kinds of damages:

punitive and compensatory.

Which of the following would constitute real property?

A house and the furniture inside that house

A house and a stone wall

An apartment building and car in the building's parking lot

Land and the deed to the land

A house and a stone wall

Jerry says something that surprises Elaine. She pushes him shouting, "Come on!" He falls backward against a piece of furniture and breaks an arm. A tortious act has:

been committed

A defendant is strictly liable for the results of his or her acts only if he or she intended those results.

False

Dun & Bradstreet, a large credit-reporting agency, sent a computerized letter to its subscribers that included the false statement that Arthur Greenmoss had filed for bankruptcy. Greenmoss was a well-known businessman who was also on the Vermont state legislature and was running for governor. Greenmoss subsequently filed a lawsuit against Dun & Bradstreet for libel. Dun & Bradstreet claimed that it had not acted with malice because an employee had included the statement in the letter without verifying its accuracy. Under the common law of Vermont, malice may be shown "by conduct showing reckless or wanton disregard" for the truth. In this situation, the court most likely also concluded that Dun & Bradstreet was:

liable for defamation, because the statement in the publication was false and malicious.

T/F: An assumption of risk defense does not require knowledge of the risk.

False

False imprisonment is a tort only if the confinement or restraint is justified.

False

One of the requirements for a suit based on strict liability is a failure to exercise due care.

False

To protect its customers and other business invitees, Supreme Retail Corporation must warn them of:

concealed dangers.

A written defamatory statement must be communicated to a third party to be actionable.

True

Which of the following is not an element of the tort of fraudulent misrepresentation?

A causal connection between the misrepresentation and the injury suffered

Damages suffered as a result of reliance on the misrepresentation

Justifiable reliance by the party that was deceived

A lack of intent to cause reliance on the misrepresentation

A lack of intent to cause reliance on the misrepresentation

For purposes of establishing negligence, causation in fact exists if an injury would have occurred even without the defendant's act.

False

If your actions harm someone else but you never intended to cause that harm, you may nevertheless be liable for the tort of:

negligence.

The two notions that serve as the basis of all torts are:

wrongs and compensation.

Publishing false information about another's product is conversion.

False

The purpose of tort law is to provide remedies when various protected interests have been invaded.

True

Tort law provides legal remedies for property damage.

True

Joy invites Ken into her apartment. Ken commits trespass to land if he:

enters the apartment with fraudulent intent.

makes disparaging remarks about Joy to others.

refuses to leave when Joy asks him to go.

harms the apartment in any way.

refuses to leave when Joy asks him to go.

Tortfeasor is the term for a person who commits a tort.

True

Carmen loans a DVD to Tanya for the weekend. Tanya sells the DVD to Vishnu. Who is liable for conversion?

Both Tanya and Vishnu are liable for conversion.

Strict liability is liability without:

fault.

Punitive damages to plaintiffs in tort actions are limited:

by due process mandated in the Constitution.

Publishing false information about another's product is trade libel.

True

Gary is standing on a defective stool when it collapses, causing Gary to fall and suffer an injury. Gary files a suit against Interstate Stools, Inc., the manufacturer. A significant application of the doctrine of strict liability is in the area of:

product liability.

Punitive damages are intended to punish a wrongdoer and deter others.

True

An artisan's lien is a defense to a charge of trespass to personal property.

True

Which of the following would not constitute trespass to land?

Without permission, you tunnel under your neighbor's land.

Without permission you shoot an arrow across your neighbor's land.

Without permission, your neighbor sets up a vegetable stand on your land.

With permission, you walk across your neighbor's land.

With permission, you walk across your neighbor's land.

If Sal sends Max a high-priority e-mail message telling Max that his wife has just died, when in fact Sal knows this is untrue, Max may be able to sue Sal for:

infliction of emotional distress.

Slander involves the oral communication of defamatory language.

True

Reaching for a bottle of soda from a display in a Bargain Mart store, Cody slips in a puddle of spilled soda and falls, suffering an injury. Bargain Mart's employees are not aware of the spilled soda until Cody falls. In a suit against Bargain Mart, Cody will most likely:

win, because the spilled soda was foreseeable.

Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The streetlight falls, smashing through the roof of a house, killing Chris. But for Bart's negligence, Chris would not have died. In this case, the crash is the:

cause in fact.

Slander of quality is also known as:

trade libel.

Dale hears Ed falsely accuse Flo of stealing from Great Warehouse, Inc., their employer. Ed is liable for defamation:

because Dale heard the statement.

Curt, a dairy goods salesperson, follows Dona, a competitor's salesperson, as she visits convenience stores to make sales. Curt solicits each of Dona's customers. Curt is likely liable for:

wrongful interference with a business relationship.

T/F: Under the doctrine of strict liability, liability is imposed strictly according to fault.

False

The basic purpose of tort law is to:

provide remedies for the invasion of protected interests.

If a dentist violates his or her duty of care to you by negligently cracking two of your teeth, you may be able to sue the dentist for:

malpractice.

Exxon owned a gasoline station in Virginia that it used for years. The station had five underground gasoline storage tanks that were not properly maintained. The property was sold to AFA, which discovered gasoline contamination of the soil. AFA filed a lawsuit in Virginia state court, contending that Exxon should be held strictly liable for the cost of cleaning up the property. The court most likely found that Exxon was:

not liable, because gasoline storage is not an abnormally dangerous activity.

Molly shoots Norm with Opal's pistol. The proximate cause of Norm being shot is most likely attributable to:

Molly only.

One week after biting his friend Linus, Charlie's dog, Spot, bites Charlie's friend, Sam, in the leg. Which of the following is correct?

Charlie will be liable for Sam's dog bite injury only if it can be proven that Charlie was not as careful as possible in protecting against Spot biting Sam.

Unless a defense applies, Charlie is strictly liable for Sam's dog bite injury.

Charlie will not liable for Sam's dog bite injury in any event because the law encourages pet ownership and protects pet owners from this type of liability.

Charlie will be liable for Sam's dog bite injury only if it can be proven that Charlie was negligent in preventing Spot from biting Sam.

Unless a defense applies, Charlie is strictly liable for Sam's dog bite injury.