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Business Law Mid Term pt. 2

The courts award punitive damages in tort cases to punish the wrongdoer and deter other from similar wrongdoing
A successful defense releases the defendant from liability in a lawsuit for tortious act
When outrageous conduct consists of speech about a public figure, the First Amendment guarantee of freedom of speech limits emotional distress claims
A misrepresentation leads another to believe in a condition that is differ from the condition that actually exists
To win a fraud claim in court, the Plantiff need not prove intentional conduct
Abuse of process applies to any person using a legal process against another in an improper manner
Specifically targeting the customers of a customers of a competitor is not a legitimate business practice
The tort of trespass to land is designed to protect the right of an owner to exclusive possession
Most states do not allow automobile repair shops to hold a customers car when the customer refuses to pay for repairs already completed
Failure to live u to a standard of care may be an act or an omission
The duty to exercise reasonable care requires storeowners to warn business invitees of all risks
Judges use proximate cause to limit the scope of a defendant liability to potential plaintiffs that might have been harmed by the defendants negligence
Negligence per se may occur if an individual violates a statue providing for a criminal penalty and the violation causes another to be injured
Courts apply the assumptions of risk doctrine only in emergency situations
Under the doctrine of comparative negligence, only the plaintiff negligence is computed and the liability for damages is distributed accordingly
Texas is a comparative negligence state
Feo throws a rock intending to hit Chica but misses and hits Chato instead. On the basis of the tort of battery, Chato can sue
Looza intentionally trespass on Merchandise Mart`s property. Through the use of reasonable force, Merchandise Marts security guard detains Looza until the police arrive. Merchandise Mart liable for
none of the choices
Arthur Anderson an accountant distributes a handbill to business clients and potential customers accusing a competitor of being a convicted thief. The statement is defamatory if
the statement is false
Llamalips develops a new color of lipstick. To market her lipstick, Llamalips uses a computer design program to show Madonna using Llamalips lipstick. Llamalips does not ask Madonna permission. Madonna can sue Llamalips for
S.M.H. Brady knows that the brakes on his car do not work, but he tells Doe Eye, a potential buyer that there are no problems with the car. On this assurance, Doe Eye buys the car. On learning the truth she may sue S.M.H Brady for
fraudulent misrepresentation
Jenny Lee is an appliance salesperson. To make a sale, she asserts that a certain model of a Kitchen Helper refrigerator is the “best one ever made.” This is
not fraud
Dom, an EZ Bake salesman, follows Flora a saleswoman for Pastries, INC. as she attempts to make sales to food stores. Dom solicits each of Flora customer. Dom is most likely liable for wrongful interference with a
business relationship
Fifi, a clerk at a Games n Gamers store takes a video game player and a selection of new games from the store without permission. Fifi is liable for
Bette backs out of City Parking Garage, colliding with Dills`s car and thereby causing damage to the vehicle. Dill may recover the cost of repair if Bette failed to act as
a reasonable person
Cook`s Pantry Appliances a retail store, must use reasonable care on its premises to warn its patrons of
hidden risks
Rafi, a van driver for Speedy Uber, causes a multi-vehicle accident on a city street. Rafi and Speedy are liable to
only those whose injuries could have been reasonable foreseen
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 liable to Dufy on a negligence theory because
Duffy was not injured
An Iowa state statue requires amusement parks to maintain equipment in specific condition for the protection of patrons. Jack Fun Park fails to maintain its equipment. A patron is injured. A Jack has committed
negligence per se
Burly enters Ginormouse Triathlon, an athletic competition in which he has never competed. Regarding the iso of injury, he assumes the risks
Normally associated with the triathlon
Tramp Stamp slips and falls on Pearl Harbors Tour Boat,, and is injured. She files a suit against Pearl Harbor for 500,000. If she is 20 percent at faulty and Pearl Harbor is 80 percent, under the “50 percent rule” comparative negligence principles, she would recover
Precision Crafted Tools, Inc. makes tools for consumer and construction professional. While using a precision crafted tool to replace an electrical fixture, Quinn neglects to shut off the power and is electrocuted. Quinn heirs file a suit against Precision Crafted. In a contributory negligence jurisdiction, the plaintiffs could recover
Mary concerned with antibiotics and chemicals in the food supply, started a raise a lamb in the backyard of her suburban home. Mary had a little Lamb but it didn’t stay little and soon Mary had a lot of lamb. She now has fourteen lams that produce a significant amount of sold waste, which attracts insects and smell very bad. There are no town or country ordinances that specifically forbid raising lambs. Her neighbors should challenge her right to engage in this activity based on the tort of
Dr. Sawbone accidentally left a scalpel in Rodney Dangerfield during his operation. Besides causing him pain and additional surgery, he just gets no respect. His lawyer will most likely use the special doctrine of _______ when he sues Dr. Sawbone for negligence
Res ipsa loquitur
The famous American case that established that a defendant may be liable in negligence only for this damages that are reasonably foreseeable is
Palsgraph V. Long Island Railroad Co.
Friz Mohawk is bringing suit in strict liability for personal injuries caused by a defectively designed hair dyer. Which of the following parties can be defendant in this case?
All of above
People who keep domestic animals are strictly liable for any harm caused by the animals
Manufactures must use due care in selecting the material to be used in a product
A product liability action based on negligence does not require pivity of contract between the injured plaintiff and the defendant manufacturer
Manufactures must use due care in inspecting and testing any purchased components used in a product
The law sometimes imposes strict liability as a matter of public policy based in part on the assumption that manufacturers can better bear the costs associated with injuries cause by their products
Because many products cannot be made entirely safe for all uses, sellers, and lessors are made liable only for products that are unreasonably dangerous
An action in strict product liability requires that a product be in a defective condition caused by its purchasers
A manufacturing defect is a departure from a product unit design specifications that results in a products that physically flawed
To successfully assert a design defect a plaintiff has to show that no reasonable alternative design was available
There is a city to warn about risks that are obvious or commonly known
Sellers are required to take precaution against every conceivable misuse of a product
An injured party may sue only the manufacturer of defective products are subject to comprehensive federal regulatory schemes
Statues of repose places an outer time limit sue on product liability claims
Roadbuilders Inc uses dynamite in its operation. Sky-Hi Inc stores explosive in it warehouse. Most likely liable under the doctrine of strict liability for any injury caused by these abnormally dangerous activist wi
Roadbuilders and Sky-Hi
Luke is playing a video game on defective disk that melts in his game player, starting a fire that injuries his hands. Luke files a suit against Mystic Maze Inc, the games maker under the doctrine of strict liability. A significant application of this doctrine is in the area of
Product liability
Street Bike Inc, makes and sells a bicycle to Theo. Street Bikes fails to exercise “due care” to make the bicycle safe, and Theo is injured as a result. Street Bikes is most likely liable for
Island Breeze Company designs and makes desk, window, and ceiling fans. In a product liability suit based on negligence, Island Breeze could be liable for violating its duty of care with respites to all of the following except
a consumer unforeseeable misuse of a fan
Forest & Field company makes and leases a backhoe to Gravedigger. Due to a defect attributes to Forest & Field negligence. Gravediggers is injured in an accident in which his neighbor Grizela is also hurt. In a product liability suit based on negligence, Forest & Field may be label to
Gravedigger and Grizelda
Lipstick, Inc makes cosmetics. Lipstick intentionally mislabels its packages products to conceal a defect. Trusting and relying on the mislabeling, Mikayala buys a Lipstick product and suffers an injury. Lipstick is most liable for
Brazilian Hair Company makes hair products. Trunk Junki discovers that her products is defective because it is falling apart and sues the maker for the product liability based on negligence. To win, Trunk Junki must show that she
suffered an injury caused by the defect
Sea & Surf Corporation makes sailboards, which are bought and distributed by Tropical Marketing Company to UV Sports Stores Inc., which sells them to consumer. Wen is injured while using Sea & Surf board that he bought from UV Sports. In a product liability suit based on strict liability, Wen may recover from
Sea & Surf Company, Trpical Marketing, or UV sports
ClearCall Corporation makes phones which are sold to consumer by DefDeals sotres. Erna files a product liability suit against ClearCall, alleging a design defect. In deciding whether to hold ClearCall liable, the court may consider
an available alternative design
Fleet Feet Corporation makes athletic shoes. A marathoner files a product liability suit against Fleet Feet, alleging a design defect. In deciding whether to hold Fleet Feet liable, the court may consider an alternative design’s
advantages and disadvantages.
MedBeat Inc., makes medical devices, including heart pacemakers. Myna Flutter, a heart patient, files a product liability suit against MedBeat, alleging a warning defect with respect to its pacemaker. In deciding whether to hold MedBeat liable, the court may consider whether there is a foreseeable risk of harm posed by the pacemaker and
the omission of a warning renders the pacemaker not reasonably safe.
BioChem Corporation, ChemCo Company, and DexLabs Inc. make and distribute toxic chemicals. In a product-liability suit against all of these parties, the court is most likely to impose market-share liability if it cannot be proved which of the parties
supplied the particular product that caused the injury.
Fine Motor Company buys gas pedals and other parts from General Mechanix, Inc., and puts them in its vehicles without changing their composition. If the pedals or other parts are defective, strictly liable for any damage caused by the defects are
Fine Motor and General Mechanix.
The brakes on a train owned by Rolling Stock Railway Inc. malfunction. The train rolls towards maintenance workers on the tracks. Everyone gets out of the way except Sid, who wants to show off. The train hits Sid, who sues Train Components, Inc., the brakes’ manufacturer. Train Components can raise the defense of
assumption of risk.
Garage Magic, Inc., contracts for the sale of a certain number of garage door openers to Home Hardware stores. Ian buys one of openers. The applicable statute of limitations prescribes a period of four years. To bring a product liability claim against Garage Magic, Ian must file a suit within four years of
Ian’s discovery of an injury caused by the opener.
Vogel bought a phone made by WiFi Communications, Inc. Three months later, after recharging the battery through a power jack, Vogel picked up the phone only to have it ignite in his hand. Suffering a severe burn, Vogel filed a suit against WiFi, alleging that a design defect in the phone weakened the connection between the power jack and the motherboard, causing the wiring to overheat and creating an unreasonable safety hazard. Could Vogel succeed on his strict product liability claim? Explain.
Yes, Vogel can succeed with his claim if he can meet the requirements.
A product is defective in design when the foreseeable risk of harm posed by the product could have been reduced or avoided by the adoption of a reasonable alternative design, and its omission renders the product not reasonably safe.
Vogel must show that the phone was defective when WiFi sold it, WiFi was normally engaged in selling that product, the phone was unreasonably dangerous to a user because of its defect, Vogel incurred physical harm by use of the phone, the defect was the proximate cause of the harm, and the phone was not substantially changed from the time that it was sold to the time of the injury.
The Prosthetic Legs and Arms Act (PLAA) sets up a no-fault compensation program for persons injured through the use of medical prostheses. The PLAA protects prosthesis makers from liability for unavoidable side effects. When Quint is injured in an auto accident, his physician prescribes and fits him for a certain prosthetic. When Quint suffers injuries from its use, he, files a suit against Replacement Limbs LLC, the maker of the prosthetic, alleging strict product liability. Is there a defense that Replacement Limbs might successfully assert in this case? If so, what is it, and why?
Yes, there is a defense that Replacement Limbs might successfully assert to the allegations in this suit.
The defense of preemption can be successfully raised by defendants. This theory basically states that in appropriate cases government regulations preempt plaintiffs’ claims for product liability. An injured party may not be able to sue the manufacturer of defective products that are subject to comprehensive federal regulatory schemes. Medical treatments and devices are subject to extensive government regulation and undergo a rigorous premarket approval process.
In this question, the PLAA strikes a balance between paying victims harmed by the covered medical devices and protecting the prosthetic industry from collapsing under the possible costs of tort liability. In exchange for the compensation program, prosthetic makers who comply with the regulatory requirements are immunized from strict product liability.
In a criminal case, the state must prove its case by a preponderance of the evidence.
The penalties imposed on criminal wrongdoers are the same as those applied in civil cases
One element that generally must exist for a person to be convicted of a crime is the commission of an act prohibited by statute.
The crime of theft requires only the taking of another person’s property, not the awareness that the property belongs to another.
Corporate officers and directors who have authority in the subject area may be held criminally liable for the actions of employees under their supervision.
Falsifying public records or altering a legal document is larceny.
The crime of bribery occurs when the bribe is offered—it is not required that the bribe be accepted.
An employer’s failure to remit withholding taxes that were collected from employee wages does not constitute a crime.
The theft of trade secrets is a civil wrong but not a crime.
In the event of a RICO violation, the government can seek the divestiture of a defendant’s interest in a business.
For most crimes, the state must initiate prosecution within a certain number of years after the crime occurs.
Once immunity is given, a person has an absolute privilege against self- incrimination and can no longer refuse to testify on Fifth Amendment grounds.
Under the Fourth Amendment, general inspecific searches through a person’s belongings are permissible.
If a person in custody is to be subjected to interrogation, he or she must first be informed in clear and unequivocal terms that he or she has the right to remain silent.
In a phishing attack, a perpetrator “fishes” for financial data and from consumers by posing as a legitimate business.
A company takes a risk when it electronically stores their online credit-card numbers.
No federal statute specifically addresses cyber crime.
Doorite arrests Leonida on suspicion of embezzlement. According to the United States Supreme Court in Case 10.3, Miranda v. Arizona, Leonida must be told of certain constitutional rights
prior to any police interrogation.
Reno, driving while intoxicated, causes a car accident that results in the death of Santo. Reno is arrested and charged with a felony. A felony is a crime punishable by at least imprisonment for
more than one year.
Maura enters a gas station and points a gun at the clerk Nate. She then forces Nate to open the cash register and give her all the money. Maura can be charged with
Megan reaches into Ned’s pocket and takes his wallet—without his consent and without his awareness. Unlike robbery, picking pockets does not involve
force or fear.
Laird is an employee of Motor Parts, an auto parts store. On the orders of his employer, he switches trademarks on parts that come into the store to be sold to consumers. This is most likely
Eartha receives from Fergie a guitar stolen from Harper. To be criminally liable, Eartha must
know that the guitar is stolen.
Kimberly, the owner of Littleton Cinema, trusts Max to manage the theater’s daily cash flow. One night, without Kimberly’s knowledge or consent, Max takes and keeps $1,000 from the receipts. This is most likely
Owen uses the Internet to defraud Prairie Valley Credit Union. He is found guilty of wire fraud. He can be punished by
imprisonment for up to thirty years and fines of up to $1 million.
Quiana, an employee of Reservations for Less, Inc., pays Svetlana, an employee of Reservations for Less’ competitor Travel Cheap, Inc., for a secret Reservations for Less pricing schedule. This may be
commercial bribery.
Dreyfus points a gun at Eton, threatening to shoot him if he does not steal from his employer, Freddy’s Gas & Shop store, and give the stolen funds to Dreyfus. Charged with theft, Eton can successfully claim, as a defense
The Lone Ranger who holds a law enforcement commission, wants to search the offices of Kemo Sabe Corporation. He makes application to Judge Pearl to issue a warrant. Under the Fourth Amendment, no warrant for a search can be issued without
probable cause.
Landon is arrested at a warehouse in Metro Corporate Park. A state prosecutor has obtained from the grand jury a formal charge against Landon for receiving stolen property. This charge is an
Ajay sells “Bulk Up” steroids over the Internet. He is arrested and charged with the sale of a controlled substance. This is cyber crime, which is
a crime that occurs in the virtual community of the Internet.
Posing as Platinum Bank, Quentin e-mails Rachel, asking her to update her personal banking information through a link in the e-mail. She clicks on the link and types in the data, which Quentin promptly sells to Spence. This is
identity theft.
Via the Internet, Porcio sabotages the computer system of Quik Chik’n Company, a fast-food restaurant operator, to alter the ingredients in the company’s recipes and products so that consumers of the foods become ill. Porcio is a
Chaz uses his computer to secretly install software on thousands of personal computers without their owners’ knowledge. The program can reproduce itself and spread from one computer to another via any USB port. This program is a
Gem programs software to prompt a computer to continually crash and reboot. Gem intends to install this program on various companies’ computer systems without the companies’ knowledge. The program can reproduce itself, but must be attached to a host file to travel from one computer network to another. This program is a
Farouk uses his computer to break into Global Financial Center’s computer.
Farouk is a
Leslie commits an act via e-mail against Money Investment Company, a business in New York, where the act is a cyber crime. Leslie resides in Ohio, where the act is not a crime. Prosecution of Leslie in New York involves questions of
Durite, a police office, stops Harry Potted’s car for a traffic offense. While talking to Harry, Durite shines a flashlight into the passenger side of Harry’s car and sees evidence of drug paraphernalia. Which statement is correct:
Durite may search the passenger side of the car and any place else in the car, including the trunk, without Harry’s consent.
Leroy Brown, badder than old King Kong (besides tugging on Superman’s cape), was charged with attempted murder. His defense was that he was insane at the time of the act. A jury accepted Leroy’s defense.
Leroy will probably be committed to a mental hospital and when that hospital determines he is no longer a danger to society, he will be released.
Bonnie and Clyde agree that they will break into and steal money from the Lonesome Dove Bank on Sunday at 3:00 a.m. Bonnie buys some tools to force open the back door. Before they actually break into the bank, however, the police catch them. Bonnie and Clyde can be charged with which of the following crimes?
Pyro, who often sings “Highway to Hell,” burned his own warehouse in order to collect on a fire insurance policy. Pyro has committed:
Bubba, the owner of the He Ain’t Here Bar, repeatedly warns his bartenders to check IDs and to be on the lookout for fake IDs. Bartender was caught by police serving alcohol to a minor. Despite his many warnings, under which doctrine would Bubba be held criminally liable?
Vicarious liability
Hottie is an undercover police officer. One evening she is posing as a prostitute in a bar. Loser, a salesman who is attending an out-of-state convention, begins talking with Hottie. After about ten minutes, Hottie suggests going to her room for a good time but points out he will need to “donate” $100 to her. Arriving at Hottie’s hotel room, Loser asks if she is a policewoman. Hottie lies and says she is not. When Loser gives her $100, Hottie shows him her identification and arrests him.
Loser appears to have been the victim of entrapment since Hottie was the one who suggested the activity that resulted in Loser’s arrest.
Babs sees an e-book reader on the porch of Coco’s house, takes the reader to her home, and tells everyone she owns it. Danno, wielding a knife, forces Easter to give him her smartphone, and runs away with it. Fritz breaks into Ginger’s apartment, takes a laptop, and leaves. Hazel sells Idi an expensive wristwatch for a fraction of its value, admitting that the watch is stolen property but claiming that she is not the thief. Which of these acts are crimes, and what are the differences among them?
Babs has wrongfully taken and carried away the personal property of another with the intent to permanently deprive the owner of that property. This is larceny.
Danno has unlawfully and forcibly taken the personal property of an- other. This is robbery.
Fritz has broken into and entered a dwelling with the intent to commit a felony. This is burglary.
The basic differences: burglary requires breaking and entering a building without the use of force against a person; robbery does not involve any breaking and entering, but force is required; and larceny is the taking of per- sonal property without force and without breaking and entering a building. Generally, because force is used, robbery is considered the most serious of these crimes and carries the most severe penalties. Because larceny involves no force or threat to human life, it carries the least severe penalty of the three. Burglary, because it involves breaking and entering, frequently into people’s homes, carries a lesser penalty than robbery but a greater penalty than larceny.
Idi committed the crime of receiving stolen goods. She was aware that the watch was stolen property but she bought it anyway. That Hazel knew the watch was stolen indicates she committed the same crime as Idi—receiving stolen goods—when she initially obtained the watch.
Cameron is an accountant in the accounting department of Data Analytics Company. Cameron’s son’s college tuition is due within a week, or he cannot continue taking classes. To meet the due date, Cameron transfers funds from Data Analytics to a fictitious bank account, planning to repay the firm within one month. The transfer is discovered before the firm is repaid, and Cameron is arrested. Explain what crime, or crimes, if any, has Cameron committed?
Cameron committed at least embezzlement.
The crime of embezzlement is committed when a person entrusted with
another’s funds or property fraudulently appropriates it. That Cameron may have intended to repay the “borrowed” funds is no defense (although an embezzler who returns what has been taken may not be prosecuted because the owner may not wish to take the time to make a complaint, give depositions, and appear in court, or to reveal that the firm failed to have safeguards against embezzlement).Depending on how Cameron engineered the theft, he may have
committed other crimes—forgery, larceny, or a computer crime.
Explain at least four differences between criminal court cases and civil court cases.

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