Business Law, 8e: Chapter 7

Chapter 7
Torts:

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1. Tom operates "Do It Yourself Hardware," a hardware store. Tom's major competitor is "Home Improvements." In hopes of increasing its business at the expense of Home Improvements, Tom ran a newspaper advertisement falsely stating that Home Improvements' products were inferior and manufactured overseas. Is Tom liable for disparagement?: a. True
b. False

3. Recovery for intentional torts is based on the concept of fault, while recovery for strict liability and negligence are not.: a. True
b. False

4. Conversion occurs when a person unintentionally exercises exclusive control over the personal property of another without permission.: a. True
b. False

5. Shannon, a server at Grease Restaurant, accidently spilled some ketchup on the dining room floor. Distracted by a customer, Shannon forgot about the ketchup. Two hours later a customer slipped and fell on the ketchup breaking their leg. Grease is liable for the customer's injury.: a. True
b. False

7. Most states follow the traditional view of contributory negligence.: a. True
b. False

8. The New York Times v. Sullivan case dealt with the defamation of a public figure.: a. True
b. False

9. Supervisor Joe called employee Nancy into his office and closed the door. He told her that she was under suspicion for larceny and suspended her with pay. Her coworkers began to talk. Joe is liable for defamation.: a. True
b. False

10. Strict liability is based on foreseeability and fault of the tortfeasor.: a. True
b. False

11. When Steven arrived at the airport for his prearranged flight, the clerk informed him that there were no seats available. Steven lost his composure and started to yell and scream at the clerk demanding a seat on the plane. As he hollered, Steven paced back and forth in front of the airline counter. Steven made no physical movement towards the clerk. Which statement is correct?: a. The airline is liable for the tort of mental distress. Its actions caused Steven to suffer serious emotional distress.
b. The airline is liable for the tort of false imprisonment because Steven could not leave the airport on his prearranged flight.
c. Steven is strictly liable because he acted like a wild animal.
d. Steven is not liable for assault because verbal threats alone are not assault.

12. The tort of fraud consists of which of the following elements?: a. Material fact, misrepresentation, serious indignity, and damage.
b. Material fact, falsehood, scienter, reliance, and damage.
c. Opinion, falsehood, serious indignity, misrepresentation, and injury.
d. Opinion, falsehood, scienter, injury, and reliance.

13. Roxanne, a 30 year old woman, went to Dr. Lynn's office for a pregnancy test. Before Roxanne was notified about the positive test results, Dr. Lynn's nurse called Roxanne's mother and told her about the pregnancy. The nurse has most likely committed the tort of:: a. negligence.
b. misappropriation of trade secrets.
c. invasion of privacy.
d. slander.

14. There are four elements that must be shown before a recovery for the tort of negligence is permitted. Which of the following lists these four conditions?: a. Duty, breach of duty, approximate cause, and injury.
b. Duty, breach of duty, necessity, and injury.
c. Duty, breach of duty, proximate cause, and injury.
d. Duty, damage, assumption, and injury.

15. Tanya, the security guard of a gift shop, was watching a shopper. Tanya saw the customer pick-up a bracelet with her right hand and then quickly put the same hand in her pocket. Which statement is correct?: a. Tanya can detain the shopper because the shopper was trespassing.
b. Tanya can detain the shopper because the shopper committed the tort of conversion.
c. Tanya can detain the shopper because of a privilege. Tanya reasonably believed that the shopper was shoplifting.
d. Tanya can detain the shopper because it was a necessity.