Preview Extract
CHAPTER 5-INTENTIONAL TORTS AND BUSINESS TORTS
TRUE/FALSE
1. A tort is a violation of a duty imposed by the civil law.
Answer: True
2. The First Amendment guarantee of freedom of speech is an absolute right.
Answer: False
3. Public officials and public figures receive less protection from defamation than ordinary
people.
Answer: True
4. Opinion is generally a valid defense in a defamation lawsuit because it is not meant to be a
factual statement.
Answer: True
5. In order for a plaintiff to win a case involving intentional infliction of emotional distress,
she must prove the defendant acted in an extreme and outrageous manner.
Answer: True
6. Under Section 230 of the Communications Decency Act, Internet service providers are
held responsible for defamatory postings by their members or users.
Answer: False
7. If Gloria threw a rock which hit Merle, she is liable for an intentional tort of battery only if
she intended to injure or harm Merle.
Answer: False
8. Lori works for Big Corporation as an "at will" employee. Richard, owner of a small store,
offers to pay Lori much more money if she will leave Big Corp and work for his store. When
Lori starts to work for Richard, Big Corp correctly claims Richard is liable for tortious
interference with a contract.
Answer: False
9. A salesclerk at Braybon's Department Store observed a customer remove a ring from a
display case and put it in her purse. In most states, Braybon's will be able to detain the
customer for suspicion of shoplifting.
Answer: True
10. Dewayne sold a space heater to Vivian, telling her it would heat a 200-square-foot area,
even though he knew it would effectively heat only about one third of that space. Dewayne is
liable for the intentional tort of fraud.
Answer: True
11. Working out some frustrations after a bad game, Jessica angrily hits a baseball and then
sees it is flying toward the umpire. She yells, “Watch out!” The umpire ducks and the ball
misses him. Since there was no physical contact, no assault or battery occurred.
Answer: False
12. In an advertisement, FreshAir, Inc. stated that its air freshener lasted for 3 hours while the
competitor, Smell Sweet, lasted for only 36 minutes. In fact, Smell Sweet freshens the air for
more than 2 hours. FreshAir has not violated the Lanham Act because the First Amendment's
guarantee of freedom of speech applies.
Answer: False
13. Punitive damages are intended to punish the defendant for conduct that is extreme and
outrageous.
Answer: True
14. Ahmi was a witness in a lawsuit. When asked why he fired Rana, Ahmi replied, "Rana
was fired for willful misconduct." Indeed, Rana had not engaged in any misconduct. Rana
will be able to successfully sue Ahmi for defamation based on what Ahmi said in court.
Answer: False
15. Krista, the Director of Advertising at Trein, Inc., approved a series of magazine
advertisements using a close-up photograph of celebrity look-alike models driving a train
engine with the slogan, “Get on Board with Trein.” Each ad included a signature, meant to
look like that celebrity’s autograph. Since in most cases, these “autographs” are not legible,
this series of ads does not commit any tort.
Answer: False
MULTIPLE CHOICE
1. Which of the following statements about torts is correct?
a. A tortious act is always a criminal act.
b. A criminal act is always a tortious act.
c. A tortious act may also be a criminal act.
d. All the above are correct.
Answer: C
2. Shortly after Brian started to work at Trevit, Inc., a co-worker, Ann, began asking him out.
Brian said no. Nevertheless, Ann persisted. One day Ann playfully, but intentionally touched
Brian “below the belt.” Which statement is correct?
a. Ann defamed Brian.
b. Ann committed the tort of trespass.
c. Ann committed the tort of interference with a prospective advantage.
d. Ann committed the tort of battery.
Answer: D
3. Jim told his manager, Lana, that a co-worker, Diane, had been in prison for theft. Lana
checked into the matter and, when she learned that Diane had served time in prison for theft,
fired her.
a. Jim is liable to Diane for defamation.
b. Jim is liable to Diane for defamation unless he can show a legitimate reason for having to
tell Lana about Diane's prison history.
c. Jim is liable to Diane for defamation only if she is a public figure.
d. Jim is not liable to Diane for defamation.
Answer: D
4. A national magazine published an article about a famous television star. The television
personality is upset because the information contained in the story is not correct. If the actress
sues the magazine:
a. she will need to show that the magazine has a history of being "reckless" with facts on a
regular basis.
b. she will need to show that the magazine either knew the story was false or acted with
reckless disregard of the facts.
c. she will need to show that the magazine failed to attempt to verify the story by trying to
contact her or her agent before the story was printed.
d. she will need to show that the magazine could have discovered that the story was false but
failed to do so.
Answer: B
5. Theft is to the criminal law as ____ is to the civil law.
a. stealing
b. appropriating
c. conversion
d. trespass
Answer: C
6. Wholesome Bread, Inc. advertised that its honey wheat bread had 25% fewer calories than
a competing brand, Valley Grains. In fact Wholesome's bread had the same amount of
calories as Valley Grains' bread. Wholesome Bread's conduct:
a. does not violate the Lanham Act because of the First Amendment freedom of speech.
b. does not violate the Lanham Act because Wholesome did not act with actual malice.
c. does not violate the Lanham Act because comparative ads are exempt from the law.
d. violates the Lanham Act.
Answer: D
7. Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the
office one night, Adam, wearing a mask, stepped out from behind some bushes. He pointed a
handgun made out of licorice at her and demanded her purse. He then pushed the candy gun
to her head and told her if she told anybody he'd kill her. Linda was very scared during the
whole incident. She did not think it was funny when Adam pulled the mask off and took a
bite out of the gun as he gave her the purse back. Which statement is correct?
a. Adam committed an assault but not a battery.
b. Adam committed a battery but not an assault.
c. Adam committed an assault and a battery.
d. Adam committed neither an assault nor a battery since he used a candy gun and was only
playing a joke on Linda.
Answer: C
8. Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the
office one night, Adam, wearing a mask, stepped out from behind some bushes. He pointed a
handgun made out of licorice at her and demanded her purse. He then pushed the candy gun
to her head and told her if she told anybody he'd kill her. Linda was very scared during the
whole incident. She did not think it was funny when Adam pulled the mask off and took a
bite out of the gun as he gave her the purse back. Did Adam commit the tort of intentional
infliction of emotional distress?
a. Yes, as his conduct was intentional.
b. Yes, but only if Adam intended to cause Linda serious emotional distress.
c. No, since he was only playing a practical joke.
d. No, since Linda was not physically hurt by Adam.
Answer: A
9. John was driving home one night in a terrible snow storm when his car stalled. He
managed to push the car onto a small shopping center's parking lot. The next day about noon
he came to get the car and it had been towed away by the owner of the parking lot. The owner
explained she had to remove the car to clean the snow off her lot and told John where the car
had been towed. Which statement is correct?
a. The owner of the parking lot is liable for conversion. She took John's car without his
consent.
b. The parking lot owner has a qualified privilege for towing the car since it was a business
necessity.
c. Even though John left his car in the parking lot under emergency conditions, he still
committed a trespass on the owner's property.
d. All the above are correct.
Answer: C
10. An intentional tort involves conduct in which:
a. the defendant intended to harm the plaintiff.
b. the defendant intended a certain physical act which ends up injuring someone.
c. injuries are caused to someone because of the defendant’s neglect or oversight.
d. there is resulting punishment, including prison, for the defendant.
Answer: B
11. Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to
promote Trein's products. E-presto Inc., a competitor of Trein, was interested in having Mia
promote its products and knew of her contract with Trein. E-presto offered Mia a three-year,
$5 million contract. Mia left Trein and signed with E-presto. Which statement is correct?
a. Trein is liable for tortious interference with a contract.
b. Mia is liable for tortious interference with a contract.
c. E-presto is liable for tortious interference with a contract.
d. Both Mia and E-presto are liable for tortious interference with a contract.
Answer: C
12. A salesclerk at Sparkle Jewelry Store observed a customer remove a ring from a display
case and put it in his pocket. In most states, Sparkle:
a. can reasonably detain the customer for suspicion of shoplifting.
b. cannot detain the customer but can alert the police.
c. cannot detain the customer but once the customer leaves the store, the salesclerk can make
a citizen's arrest.
d. cannot detain the customer but can sue for conversion.
Answer: A
13. Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to
promote Trein's products. E-presto Inc., a competitor of Trein, was interested in having Mia
promote its products but knew of her contract with Trein. E-presto offered Mia a three-year,
$5 million contract. Mia left Trein and signed with E-presto. If Trein sues E-presto for
tortious interference with a contract, E-presto:
a. will be able to establish a justification since E-presto was acting to protect an existing
economic interest.
b. will be able to establish a justification because, in talking to Mia, E-presto was exercising
its First Amendment freedom of speech.
c. will be able to establish a justification because to decide otherwise would subject Mia to
involuntary servitude.
d. will not be able to establish a justification.
Answer: D
14. Runyon was ready to sign a two-year agreement with Barnett Corp. to become Barnett’s
sales representative for a three-state area. LaPrise, who wants to be the representative for that
area, threatens Runyon with bodily harm if he takes the position. Runyon decides his physical
well being is more important to him than the job, so he does not accept the position. LaPrise:
a. committed tortious interference with a contract.
b. committed tortious interference with a prospective advantage.
c. committed a battery.
d. caused a breach of contract and committed the tort of intrusion.
Answer: B
15. A company that makes a commercial with a person who does an excellent, realistic job of
pretending to be a famous movie star could be sued by the real actor for the tort of:
a. intrusion.
b. defamation.
c. commercial exploitation.
d. none of the above, since public figures are often imitated by other actors.
Answer: C
16. Which of the following is a valid defense to a defamation claim?
a. The statement was true.
b. The statement was only an opinion.
c. The person making the statement made it only to the plaintiff, not to any third parties.
d. All of the above.
Answer: D
17. Jerry believes his co-worker, Ben, is using illegal drugs. Since both he and Ben are
nurses, Jerry is concerned Ben's drug usage could result in injury to a patient. He tells his
supervisor, Cyndi. Cyndi talks with Jerry about the alleged drug usage and Ben produces a
bottle of prescription medicine he is required to take for high blood pressure. The medication
does not affect his ability to do his work. When Ben learns it was Jerry who reported him,
Ben claims that Jerry committed an act of defamation when Jerry told Cyndi he used illegal
drugs. Is Ben right?
a. Yes. Jerry committed slander.
b. Yes. Jerry committed libel.
c. No. Ben is, in fact, using drugs.
d. No. Jerry is protected by the qualified privilege defense.
Answer: D
18. Angela sued Tom for battery. Angela was awarded $30,000 for future medical expenses.
Five years after the award, Angela realizes that her medical expenses will far exceed $30,000.
Under the single recovery principle:
a. Angela will be able to submit the additional medical bills to the court for payment.
b. Tom will have to pay the additional medical bills.
c. Tom will have a qualified privilege and only have to pay a portion of the additional
medical expenses.
d. Angela will have no recourse against Tom or the court for the medical expenses as long as
the original award was reasonable.
Answer: D
19. Rodney was employed by Deluxe Discount Store. Rodney's manager directed him to
check the prices of dog food at Huge Savings Store. The manager of Huge Savings Store saw
Rodney writing down prices and asked him to leave. Rodney, fearful that he would be fired
by Deluxe, refused to leave. Rodney committed the tort of:
a. larceny.
b. trespass.
c. misrepresentation.
d. conversion.
Answer: B
20. The elements in a defamation case are:
a. defamatory statement; falseness; communication; and injury.
b. a contract; knowledge of the contract; improper inducement; injury.
c. false or misleading fact statements; statements in commercial advertising; likelihood of
harm.
d. duty; breach of duty; proximate causation; and damages.
Answer: A
21. Howson won a lawsuit against Hardwick for intentionally inflicting emotional distress.
The jury awarded Howson $500,000 in compensatory damages. It also awarded Howson $4
million in punitive damages because Hardwick was quite wealthy and the jury thought a large
amount was necessary for Hardwick to feel the punishing effects of the judgment. How does
the jury’s award fit into the guidelines offered by the U.S. Supreme Court?
a. The punitive award is excessive because it exceeds the Supreme Court’s suggested ratio of
compensatory damages to punitive damages.
b. The punitive award is excessive because the Supreme Court has stated that the trial court
may not use the defendant’s wealth as an excuse to award an unreasonably high award.
c. The punitive award is excessive both because of the ratio of compensatory damages to
punitive damages and because the punitive damage award was based partly on the
defendant’s wealth.
d. The jury award is not excessive based on the Supreme Court’s guidelines.
Answer: B
22. E-trex, Inc. wanted Prince, a professional basketball player, to endorse its products.
Prince, however, was not interested. E-trex was not deterred and hired a person who looked
and sounded liked Prince for its commercials.
a. E-trex has defamed Prince.
b. E-trex has interfered with a contract.
c. E-trex has interfered with a prospective advantage.
d. E-trex's conduct raises the issue of commercial exploitation.
Answer: D
23. In awarding punitive damages, a court must consider:
a. the reprehensibility of the defendant's conduct.
b. the ratio between the harm suffered and the award.
c. the difference between the punitive award and any civil penalties used in similar cases.
d. All of the above.
Answer: D
24. Don was standing in a cafeteria line holding a plate. Tim was upset with Don. Tim turned
Don around and grabbed the plate out of Don's hand. Tim then held the plate up and
threatened to break it over Don's head. Tim has committed:
a. a battery, but not an assault.
b. an assault, but not a battery.
c. both an assault and a battery.
d. neither an assault nor a battery.
Answer: C
25. Which of the following is a true statement about tort reform?
a. Almost all the states have passed statutes limiting the amount a jury can award in a tort
case.
b. Congress has proposed and debated bills placing limits on tort awards, but so far has not
enacted such legislation.
c. Large medical malpractice awards account for about 60 percent of the dramatic increase in
health care costs in the United States during the last two decades.
d. All of the above.
Answer: B
ESSAY
1. Wilma’s arm is broken when Paula knocks her down during an argument. If Wilma sues
Paula for battery, what damages is Wilma likely to receive?
Answer: A successful plaintiff usually receives compensatory damages, which are supposed
to place the plaintiff in the position she was in before the defendant’s conduct caused injury.
Wilma can receive money for medical expenses she proves by producing bills from her
medical providers. If a doctor testifies that she will need future treatment, she may also be
awarded the expected cost. Under the single recovery principle, the court awards a lump sum
for past and future expenses, and any unexpected expenses that arise in the future cannot be
recovered. Paula is liable for Wilma’s lost wages caused by the battery. Also, Wilma may
receive payment for pain and suffering. Punitive damages, intended to punish the defendant
for conduct that is extreme and outrageous, are awarded in relatively few cases.
2. Identify and discuss two specific causes of action a plaintiff can allege that deal
specifically with privacy rights.
Answer: Two causes of action under the general umbrella of privacy are intrusion and
commercial exploitation. Intrusion, such as peeping through someone's windows or
wiretapping a telephone, is a tort if a reasonable person would find it offensive. The tort of
commercial exploitation occurs if someone's likeness or voice is used for commercial
purposes without permission.
3. Tracy is an "at will" employee of Zebra Toy Company. One afternoon she has lunch with a
friend who works in marketing for her company's biggest competitor, Tiger Toys. Over a
period of about three months, Tiger Toy representatives convince Tracy to work with them.
Tiger offers a larger base salary with bigger commissions than she had with Zebra. When
Tracy leaves Zebra, it sues Tiger Toys claiming it intentionally interfered with a contractual
relationship. Will Zebra Toy Company be successful?
Answer: No. An "at will" employee is free to leave anytime she wishes (just as her employer
is free to terminate her employment at any time). A claim for interference with a contractual
relationship must involve a "definite" duration contract (e.g., contact for two years) rather
than an indefinite duration (e.g., at will employment) contract.
4. On its Web site, Otrex, Inc. claimed that its pain reliever was more effective than Nelton, a
competing pain reliever. Discuss the elements that Nelton must prove to win a case under
Section 43(a) of the Lanham Act.
Answer: Nelton must prove that: (a) Otrex made false or misleading fact statements about
Nelton's product; (b) Otrex used the statements in commercial advertising or promotion; and
(c) the statements created the likelihood of harm to Nelton.
5. As assistant manager of a discount department store, you have been asked to review the
store's policy concerning shoplifters. (a) Discuss the legal standard used in most states
governing the detention of suspected shoplifters. (b) In reviewing the store's policy, discuss
some of the items that you will consider.
Answer: a) Generally, a store may detain a customer for alleged shoplifting provided there is
a reasonable basis for the suspicion and the detention is done reasonably.
b) Some of the items that should be considered include: what is a "reasonable" suspicion of
shoplifting; what is "reasonable" detention; how private should the detention be; how can
bias and prejudice be avoided; and how much questioning should the store do.
Test Bank For Introduction to Business Law
Jeffrey F. Beatty, Susan S. Samuelson
9781133188155
