Business Law Chapter 1-8 TF

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Page 1: Business Law Chapter 1-8 TF

Chapter 1—Introduction to Law

TRUE/FALSE

1. Roscoe Pound, a distinguished American jurist, defined law as predictions of the way in which a court will decide specific legal questionsANS: F PTS: 1 MSC: AACSB Analytic

2. The common law system is used in most of Europe, Scotland, and Latin America.ANS: F PTS: 1 MSC: AACSB Analytic

3. The primary function of the law is to maintain stability in the social, political, and economic system while simultaneously permitting change.ANS: T PTS: 1 MSC: AACSB Analytic

4. Substantive law creates legal rights and duties.ANS: T PTS: 1 MSC: AACSB Analytic

5. The Constitution provides that federal statutes are paramount to state constitutions and statutes.ANS: T PTS: 1 MSC: AACSB Analytic

6. The burden of proof in a criminal case is preponderance of the evidence.ANS: F PTS: 1 MSC: AACSB Analytic

7. The law does not change; it is based on unchanging and universal truths.ANS: F PTS: 1 MSC: AACSB Analytic

8. The main categories of the law are (a) substantive and procedural, (b) public and private, and (c) civil and criminal.ANS: T PTS: 1 MSC: AACSB Analytic

9. Law is an instrument of social control.ANS: T PTS: 1 MSC: AACSB Analytic

10. Under the civil law system, adversaries initiate and conduct litigation.ANS: F PTS: 1 MSC: AACSB Analytic

11. A judge deciding a common law case must look to similar cases previously decided for guidance.ANS: T PTS: 1 MSC: AACSB Analytic

12. The United States Constitution establishes the principle of judicial review, which divides the government into three distinct and independent branches: the judicial, executive, and legislative (Congress).ANS: F PTS: 1 MSC: AACSB Analytic

13. Since the end of the nineteenth century, case law developed from court opinions has been the primary source of new law and ordered social change in the United States.ANS: F PTS: 1 MSC: AACSB Analytic

14. A constitution restricts the powers of the government and specifies the rights and liberties of the people.ANS: T PTS: 1 MSC: AACSB Analytic

15. The Uniform Commercial Code is a federal law that applies to commercial transactions among the states.ANS: F PTS: 1 MSC: AACSB Analytic

16. Laws passed by Congress are the supreme law of the land in the United States and take precedence over the United States Constitution.ANS: F PTS: 1 MSC: AACSB Analytic

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17. The final arbiter as to the constitutionality of laws passed by Congress or by the legislature of a state is the Supreme Court of the United States.ANS: T PTS: 1 MSC: AACSB Analytic

18. The common law system of law uses the inquisitorial system of determining disputes.ANS: F PTS: 1 MSC: AACSB Analytic

19. Rodriguez and Compton asked a court for reformation of their contract based on a mutual mistake. They seek an equitable remedy.ANS: T PTS: 1 MSC: AACSB Analytic | AACSB Diversity

20. The principle of stare decisis gives stability to our system of jurisprudence.ANS: T PTS: 1 MSC: AACSB Analytic

21. Once a court has decided a case, the principle of stare decisis precludes correction of erroneous decisions.ANS: F PTS: 1 MSC: AACSB Analytic

22. Civil law systems, as found in the State of Louisiana and countries such as Scotland, depend on comprehensive legislative enactments.ANS: T PTS: 1 MSC: AACSB Analytic

23. The business law topics of contracts, agency, property, and trusts are governed primarily by the common law.ANS: T PTS: 1 MSC: AACSB Analytic

24. One important source of law in the United States is the Restatement of law.ANS: F PTS: 1 MSC: AACSB Analytic

25. The State of Minnesota has been negotiating with the Canadian government on issues involving acid rain and eventually reaches an agreement with Canadian officials. This is a valid treaty under the United States Constitution.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

26. In the United States, treaties are not subject to judicial review.ANS: F PTS: 1 MSC: AACSB Analytic

27. Tate brings an action against Marsheen for damages from trespass to Tate’s property. Tate must prove the case by a preponderance of the evidence.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

28. All laws are related to morals, but some moral precepts are not enforced by legal sanctions.ANS: F PTS: 1 MSC: AACSB Analytic

29. Business law is primarily public law.ANS: F PTS: 1 MSC: AACSB Analytic

30. Decisions of courts of appeals are published in volumes known as "reports" or "reporters."ANS: T PTS: 1 MSC: AACSB Analytic

31. The terms "law" and "justice" are interchangeable.ANS: F PTS: 1 MSC: AACSB Analytic

Chapter 2—Business Ethics

TRUE/FALSE

1. Ethics can be defined broadly as the study of what is good or right for human beings.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

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2. Like legal analyses, analyses of ethics have a central authority and follow clear-cut, universal standards.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

3. Business ethics has a special set of ethical principles that applies only to the world of business.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

4. Kohlberg believed that all people reach the third stage of moral development by adulthood.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

5. An ethical relativist looks to a central authority, such as the Bible, to guide her in ethical decision making.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

6. It is possible for legal acts to be immoral.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

7. Situational ethics, unlike ethical relativism, judges a person's ethics, but first looks at the decision or act from the perspective of the actor.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

8. Jeremy Bentham was a proponent of utilitarianism.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

9. A person who believes in the situational ethics theory would agree that precise guidelines for business behavior must be developed and adhered to by business professionals.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

10. A leading proponent of the utilitarian approach to ethics was the eighteenth century philosopher Immanuel Kant.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

11. Deontologists are criticized for rigidity and excessive formalism.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

12. Intuitionism holds that rational persons possess inherent powers to assess the correctness of actions.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

13. Kant's philosophy rejects the idea that the end justifies the means.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

14. Harvard philosopher John Rawls stressed liberty as the most important obligation owed by a society to its members.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

15. To a libertarian, it is not unjust for some people to accumulate fortunes while others live in poverty.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

16. Although corporations are not persons but artificial entities created by the state, it is clear that they can and should be held morally accountable.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

17. Rule utilitarianism supports rules that, on balance, produce the greatest good.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

18. According to Milton Friedman, the social obligation of a corporation is to return as much money as possible to its shareholders.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

19. Kant's categorical imperative is a variation of the Golden Rule.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

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20. The essential characteristic of ethical fundamentalism is a reliance upon a central repository of wisdom.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

21. To a libertarian, it is unjust for a society to take wealth earned by one citizen and to distribute it to others who did not earn it.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

22. What is unjust to a social egalitarian will also be unjust to a libertarian.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

23. From a Kantian perspective, for an action to be moral, it must be possible for it to be made into a universal law and it must be respectful of the autonomy and rationality of all human beings.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

24. Under a Kantian approach to ethics, a person should not lie to colleagues unless that person supports the right of all colleagues to lie to one another.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

25. Harvard philosopher, Robert Nozick, stressed liberty, not justice, as the most important obligation that society owes its members.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

26. Kant's approach, like that of ethical fundamentalists, asserts that universal laws stem from the direct pronouncements of God.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

27. Bill would like to propose to the board of directors of Bizmarc, Inc., that the corporation distribute one percent of its pre-tax yearly income to feed the poor. To Milton Friedman and others, Bill's proposal might be considered unethical, because it violates the purpose for which the corporation was established.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

28. Corporations are subject to a higher standard of accountability than are public bodies.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

29. Philosophers have found that the most effective way to develop dependable and universal methods for making ethical judgments is to fashion a priori guidelines.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

30. The "Television Test" is a test that is generally accepted by adherents of intuitionism.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

31. Deontological theories assess good and evil in terms of the consequences of actions.ANS: F PTS: 1 MSC: AACSB Ethics | AACSB Analytic

32. Utilitarian notions underlie cost-benefit analysis.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

33. Ethical issues in business settings include corporate governance, whistle-blowing, shareholder voting, and management's duties to shareholders.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

34. Ethical relativism holds that when any two individuals or cultures differ regarding the morality of a particular issue or action, they are both correct because morality is relative.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

35. Psychologist Lawrence Kohlberg observed that people progress through sequential stages of moral development according to the two major variables of age and reasoning.ANS: T PTS: 1 MSC: AACSB Ethics | AACSB Analytic

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Chapter 3—Civil Dispute Resolution

TRUE/FALSE

1. A case before a U.S. Court of Appeals is generally heard by all judges of the circuit sitting en banc.ANS: F PTS: 1 MSC: AACSB Analytic

2. The U.S. District Court is the trial level court in the federal court system.ANS: T PTS: 1 MSC: AACSB Analytic

3. Judges who serve in the U.S. Courts of Appeals receive lifetime appointments from the President, subject to confirmation by the Senate.ANS: T PTS: 1 MSC: AACSB Analytic

4. The federal courts only have jurisdiction to hear cases involving federal law.ANS: F PTS: 1 MSC: AACSB Analytic

5. In many states, judges are elected by the voters for a stated number of years.ANS: T PTS: 1 MSC: AACSB Analytic

6. The decisions of the U.S. Courts of Appeals are binding on the other federal courts except for the U.S. Supreme Court.ANS: F PTS: 1 MSC: AACSB Analytic

7. Venue has to do with which court has jurisdiction over the subject matter of a lawsuit.ANS: F PTS: 1 MSC: AACSB Analytic

8. Arbitration is a commonly used technique for resolving international disputes.ANS: T PTS: 1 MSC: AACSB Analytic

9. A quorum for the United States Supreme Court consists of any three justices.ANS: F PTS: 1 MSC: AACSB Analytic

10. When compared to a court trial, arbitration has the advantage of privacy.ANS: T PTS: 1 MSC: AACSB Analytic

11. Congress has established thirteen judicial circuits (twelve numbered circuits plus the District of Columbia circuit), each having a court known as the Court of Appeals.ANS: F PTS: 1 MSC: AACSB Analytic

12. The U.S. Court of Appeals for the Federal Circuit reviews decisions of the Merit Systems Protection Board, the Patent and Trademark Office, and the U.S. Court of Veterans Appeals.ANS: T PTS: 1 MSC: AACSB Analytic

13. The federal courts have jurisdiction over all matters that have not been exclusively given to the state courts.ANS: F PTS: 1 MSC: AACSB Analytic

14. Watson, charged with crossing the center line in his vehicle, would ordinarily have the case heard in his state’s trial court of general jurisdiction.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

15. A decision of a state court is binding on all courts inferior to it in its jurisdiction. Thus, the decision of a state supreme court binds all other courts in that state.ANS: T PTS: 1 MSC: AACSB Analytic

16. The appellate court does not hear any new evidence but rather takes the case upon the record, abstracts, and briefs.ANS: T PTS: 1 MSC: AACSB Analytic

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17. A deposition is a pretrial discovery device, which consists of sworn testimony of a witness or the opposing party.ANS: T PTS: 1 MSC: AACSB Analytic

18. In the United States, there is never a right to a jury trial in a civil case.ANS: F PTS: 1 MSC: AACSB Analytic

19. Mediation, like arbitration, is often a compulsory process in which the mediator can render a decision that is binding upon the parties.ANS: F PTS: 1 MSC: AACSB Analytic

20. The federal courts and the state courts can never have concurrent jurisdiction over the same case.ANS: F PTS: 1 MSC: AACSB Analytic

21. Subject matter jurisdiction refers to the authority of a particular court to adjudicate a controversy of a particular kind.ANS: T PTS: 1 MSC: AACSB Analytic

22. A long-arm statute allows a state to obtain jurisdiction over a nonresident defendant when the nonresident defendant has sufficient contacts with the state.ANS: T PTS: 1 MSC: AACSB Analytic

23. In personam jurisdiction can only be obtained by serving process on the party within the state in which the court is located.ANS: F PTS: 1 MSC: AACSB Analytic

24. A court needs to have both subject matter jurisdiction and jurisdiction over the parties involved before it can hear a particular case.ANS: T PTS: 1 MSC: AACSB Analytic

25. Arbitration may be preferred over litigation because the quality of the arbitrator's decision is often higher than that available through the court system.ANS: T PTS: 1 MSC: AACSB Analytic

26. Federal courts have exclusive jurisdiction over bankruptcy, patent, trademark, and copyright cases.ANS: T PTS: 1 MSC: AACSB Analytic

27. Stare decisis has no application in a dual court system.ANS: F PTS: 1 MSC: AACSB Analytic

28. For the general trial courts in the federal system, Congress has established nearly 100 judicial districts, each of which is located entirely in a particular state.ANS: T PTS: 1 MSC: AACSB Analytic

29. The U.S. Supreme Court has held that a state may not exercise personal jurisdiction over a nonresident defendant who is temporarily present by personally serving the defendant in the state.ANS: F PTS: 1 MSC: AACSB Analytic

30. A typical state long-arm statute applies only to nonresident defendants who commit criminal acts in the state.ANS: F PTS: 1 MSC: AACSB Analytic

31. Pleadings are the post-judgment requests of the losing party for a higher court to take an appeal of the case.ANS: F PTS: 1 MSC: AACSB Analytic

32. The purpose of pleadings is to give notice and to establish the issues of fact and law that the parties dispute.ANS: T PTS: 1 MSC: AACSB Analytic

33. The definition of in rem jurisdiction is jurisdiction based on claims against property.ANS: T PTS: 1 MSC: AACSB Analytic

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34. A counterclaim is a document filed by a defendant denying the allegations of the complaint.ANS: F PTS: 1 MSC: AACSB Analytic

35. After a plaintiff files a complaint with the clerk of the trial court, the clerk issues a summons to be served on the defendant to notify him that a suit has been brought against him.ANS: T PTS: 1 MSC: AACSB Analytic

36. A court will grant summary judgment after a trial if the judge makes a final, binding determination on the merits of the case.ANS: F PTS: 1 MSC: AACSB Analytic

37. The jury's verdict in a summary jury trial is not binding on the parties.ANS: T PTS: 1 MSC: AACSB Analytic

38. An appeal from a small claims court is taken to the state court of appeals where a trial de novo is begun.ANS: F PTS: 1 MSC: AACSB Analytic

39. The U.S. Supreme Court is rigidly bound by its own decisions under the doctrine of stare decisis.ANS: F PTS: 1 MSC: AACSB Analytic

40. Jurisdiction is defined as the power or authority of a court to hear and decide a given case.ANS: T PTS: 1 MSC: AACSB Analytic

41. Attorneys for Tigre Corp. and Swindal Co. are entering a structured settlement process whereby they conduct limited discovery and then present evidence to a panel of managers from each company as well as to a neutral retired judge. They are involved in an alternative dispute resolution technique known as a mini-trial.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

42. Issues of fact are not decided by the jury.ANS: F PTS: 1 MSC: AACSB Analytic

43. In the federal system, appeals from the Bankruptcy Court and Tax Court are heard directly by the U.S. Supreme Court.ANS: F PTS: 1 MSC: AACSB Analytic

44. The function of appellate courts is to examine the record of a case on appeal and to determine whether the trial court committed prejudicial error.ANS: T PTS: 1 MSC: AACSB Analytic

45. All methods of alternative dispute resolution, such as arbitration, mediation, conciliation, and negotiation, involve a third party to help resolve the dispute.ANS: F PTS: 1 MSC: AACSB Analytic TRUE/FALSE

1. Most constitutional protections apply only to governmental, or state, action.ANS: T PTS: 1 MSC: AACSB Analytic

2. Because of the Bill of Rights, state legislation that conflicts with federal legislation will preempt the federal legislation and the courts will apply the state statute without modification.ANS: F PTS: 1 MSC: AACSB Analytic

3. The fourth Congress approved ten amendments to the U.S. Constitution, now known as the Bill of Rights, which were adopted on December 15, 1799.ANS: F PTS: 1 MSC: AACSB Analytic

4. The U.S. Supreme Court can invalidate a law if it conflicts with the U.S. Constitution.ANS: T PTS: 1 MSC: AACSB Analytic

5. Generally, the executive branch of government has the power to enforce the law.

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ANS: T PTS: 1 MSC: AACSB Analytic

6. The framers of the Constitution considered it unnecessary to include in the original document liberties that the people were to keep for themselves.ANS: T PTS: 1 MSC: AACSB Analytic

7. Action taken by private citizens cannot constitute state action.ANS: F PTS: 1 MSC: AACSB Analytic

8. The federal government's authority to govern economic matters flows from the Commerce Clause.ANS: T PTS: 1 MSC: AACSB Analytic

9. The Supreme Court has defined the scope of the Commerce Clause narrowly and, therefore, has restricted the powers of the federal government to regulate business.ANS: F PTS: 1 MSC: AACSB Analytic

10. The Commerce Clause allows the federal government to invalidate state laws that burden interstate commerce.ANS: T PTS: 1 MSC: AACSB Analytic

11. The First Amendment allows free speech in any and all circumstances.ANS: F PTS: 1 MSC: AACSB Analytic

12. Judicial review is another phrase for an appeal of a lower court's judgment.ANS: F PTS: 1 MSC: AACSB Analytic

13. The First Amendment guarantee of free speech applies not only to individuals but also to corporations.ANS: T PTS: 1 MSC: AACSB Analytic

14. Under the Equal Protection Clause, all governmental action that treats two classes of citizens differently will be invalid.ANS: F PTS: 1 MSC: AACSB Analytic

15. Federalism is the division of governing power between the federal government and the states.ANS: T PTS: 1 MSC: AACSB Analytic

16. Commercial speech is expression related to the economic interests of the speaker and his audience.ANS: T PTS: 1 MSC: AACSB Analytic

17. Judicial review is the process by which courts review governmental action to determine whether such actions conform to the U.S. Constitution.ANS: T PTS: 1 MSC: AACSB Analytic

18. The federal government's power to tax has no limitations.ANS: F PTS: 1 MSC: AACSB Analytic

19. The Contract Clause of the Constitution prevents states from retroactively modifying public charters and private contracts.ANS: T PTS: 1 MSC: AACSB Analytic

20. The Bill of Rights applies directly to the states.ANS: F PTS: 1 MSC: AACSB Analytic

21. A public figure who brings a defamation suit against a newspaper which prints a false story about her must prove actual malice to win the suit.ANS: T PTS: 1 MSC: AACSB Analytic

22. A state regulation that does not conflict with a federal regulation may still be preempted by federal action.ANS: T PTS: 1 MSC: AACSB Analytic

23. The Fifth and Fourteenth Amendments contain due process clauses that limit the action of federal government.

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ANS: F PTS: 1 MSC: AACSB Analytic

24. The Minnesota Housing Authority plans to begin eminent domain proceedings to acquire 100 homes to rent to low-income persons. The Housing Authority wants to pay as little as possible for the homes so that it can acquire more homes in the future, but the homeowners insist they are entitled to the fair market value of the property. In a court hearing on the matter, the homeowners are likely to prevail.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

25. The Silkwood v. Kerr-McGee Corporation case illustrates the point that when Congress has not intended to displace all state legislation, nonconflicting state legislation is permitted.ANS: T PTS: 1 MSC: AACSB Analytic

26. The Bill of Rights restricts the power and authority of the federal government.ANS: T PTS: 1 MSC: AACSB Analytic

27. The Bill of Rights was approved by the first Congress to guarantee that the federal government would not abuse its powers.ANS: T PTS: 1 MSC: AACSB Analytic

28. The U.S. Constitution created a federal government of enumerated powers, and legislation enacted by Congress must be based on a specific power the Constitution grants to the federal government or be reasonably necessary for carrying out an enumerated power.ANS: T PTS: 1 MSC: AACSB Analytic

29. The U.S. Constitution was adopted in 1791 by representatives of the thirteen newly created states.ANS: F PTS: 1 MSC: AACSB Analytic

30. If Congress has not intended to displace all state legislation on a particular topic, state legislation that conflicts with the federal legislation is permitted.ANS: F PTS: 1 MSC: AACSB Analytic

31. State action is a term that may include conduct by private parties who perform a public function.ANS: T PTS: 1 MSC: AACSB Analytic

32. Under the Commerce Clause, any state statute that affects interstate commerce is unconstitutional.ANS: F PTS: 1 MSC: AACSB Analytic

33. According to the U.S. Supreme Court, the “necessary and proper” clause gives Congress the authority to legislate in areas not mentioned in the list of enumerated powers if the legislation reasonably relates to an enumerated power.ANS: T PTS: 1 MSC: AACSB Analytic

34. The Congressional power to borrow money on credit of the United States and to coin money have enabled the federal government to establish a national banking system, the Federal Reserve System, and specialized federal lending programs such as the Federal Land Bank.ANS: T PTS: 1 MSC: AACSB Analytic

35. The term "eminent domain" refers to a governmental taking of private property for public use.ANS: T PTS: 1 MSC: AACSB Analytic

36. The Contract Clause of the Constitution applies only to the actions of state governments and not to the federal government.ANS: T PTS: 1 MSC: AACSB Analytic

37. The U.S. Supreme Court has held that the Takings Clause requires just compensation not only if a governmental taking actually occurs, but also if a governmental regulation reduces the value of the property.ANS: F PTS: 1 MSC: AACSB Analytic

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38. In commercial speech cases, the U.S. Supreme Court requires that any restriction on such speech must be the least restrictive possible to achieve a substantial governmental interest.ANS: F PTS: 1 MSC: AACSB Analytic

39. The constitutional protection extended to commercial speech is based on the informational function of advertising.ANS: T PTS: 1 MSC: AACSB Analytic

40. "Actual malice" in defamation cases against the press requires a showing that a reporter intentionally lied.ANS: F PTS: 1 MSC: AACSB Analytic

41. Under the Due Process Clause, entitlements conferred by the government, such as social security payments, are property, which cannot be revoked without procedural due process.ANS: T PTS: 1 MSC: AACSB Analytic

42. Under the federalist system, the states retain significant powers; however, the Supremacy Clause of the Constitution provides that within the areas of regulation that are federal in nature, federal law is supreme.ANS: T PTS: 1 MSC: AACSB Analytic

43. In equal protection cases involving economic regulation, the courts use the rational relationship test.ANS: T PTS: 1 MSC: AACSB Analytic

44. In a sex discrimination case under the equal protection clause, the courts apply the strict scrutiny standard of review.ANS: F PTS: 1 MSC: AACSB Analytic

45. Classifications based on age and sex are examples of "suspect classifications" in the context of the Equal Protection Clause of the Constitution.ANS: F PTS: 1 MSC: AACSB Analytic

46. The U.S. Supreme Court is the final authority as to the constitutionality of any federal or state law.ANS: T PTS: 1 MSC: AACSB Analytic

47. The federal government's power to tax is subject to three major limitations.ANS: T PTS: 1 MSC: AACSB Analytic

48. Eminent domain is not one of the recognized inherent powers of government.ANS: F PTS: 1 MSC: AACSB Analytic

49. Most forms of speech are protected by the strict or exacting scrutiny standard.ANS: T PTS: 1 MSC: AACSB Analytic

50. There is no state action where a court orders enforcement of a private agreement among property owners since the property owners were private individuals.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

51. In relation to the takings clause, public use has been held to be synonymous with public purpose.ANS: T PTS: 1 MSC: AACSB Analytic

52. The federal government has no restrictions under the Constitution on its power to impair contracts since the Contract Clause restricts only actions of the states.ANS: F PTS: 1 MSC: AACSB Analytic

53. The U.S. Supreme Court has eliminated the doctrine that commercial speech is wholly outside the protection of the First Amendment and now allows very narrow, limited protection of commercial speech.ANS: F PTS: 1 MSC: AACSB Analytic TRUE/FALSE

1. Legislative rules by an administrative agency do not have the force of law.ANS: F PTS: 1 MSC: AACSB Analytic

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2. Administrative agencies sometimes act as if they are judicial bodies.ANS: T PTS: 1 MSC: AACSB Analytic

3. Administrative agencies operate only at the federal level.ANS: F PTS: 1 MSC: AACSB Analytic

4. Administrative agencies establish rules, and then act as both prosecutor and judge in determining whether the rules have been violated.ANS: T PTS: 1 MSC: AACSB Analytic

5. Agencies create more legal rules and adjudicate more controversies than all the nation’s legislatures and courts combined.ANS: T PTS: 1 MSC: AACSB Analytic

6. Congress appoints and removes the chief administrators of federal executive administrative agencies.ANS: F PTS: 1 MSC: AACSB Analytic

7. Legislative rules may, in certain circumstances, exceed the authority granted to an agency by the enabling statute.ANS: F PTS: 1 MSC: AACSB Analytic

8. A statute may preclude judicial review of an agency action.ANS: T PTS: 1 MSC: AACSB Analytic

9. Under the informal rulemaking procedures of the APA, an agency must provide notice of a proposed rule only if there is a good cause.ANS: F PTS: 1 MSC: AACSB Analytic

10. Enabling statutes may not impose more stringent requirements than those found in the APA.ANS: F PTS: 1 MSC: AACSB Analytic

11. Generally, legislative rules must be promulgated in accordance with the procedural requirements of the APA.ANS: T PTS: 1 MSC: AACSB Analytic

12. Interpretative rules of administrative agencies are automatically binding on the private parties the agency regulates.ANS: F PTS: 1 MSC: AACSB Analytic

13. Interpretative rules of administrative agencies are not automatically binding on the courts.ANS: T PTS: 1 MSC: AACSB Analytic

14. In general, procedural rules are exempt from the notice and comment requirements of the APA.ANS: T PTS: 1 MSC: AACSB Analytic

15. An administrative agency must always use formal procedures to resolve matters.ANS: F PTS: 1 MSC: AACSB Analytic

16. In 1990, Congress enacted the Administrative Dispute Resolution Act to require agencies to use alternative dispute resolution.ANS: F PTS: 1 MSC: AACSB Analytic

17. Only documentary evidence may be admitted at an administrative hearing.ANS: F PTS: 1 MSC: AACSB Analytic

18. Administrative hearings are held before a jury, just as are court hearings.ANS: F PTS: 1 MSC: AACSB Analytic

19. The 1990 Negotiated Rulemaking Act requires agencies to use negotiated rulemaking in the majority of circumstances.ANS: F PTS: 1 MSC: AACSB Analytic

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20. Administrative law judges are appointed by the President and confirmed by the Senate just as are judges in the U.S. District Court.ANS: F PTS: 1 MSC: AACSB Analytic

21. An important and fundamental part of administrative law is the limits imposed by judicial review upon the activities of administrative agencies.ANS: T PTS: 1 MSC: AACSB Analytic

22. To be constitutionally permissible, an enabling statute must establish reasonable standards to guide an agency in implementing the statute. Using a broad phrase such as “fair and equitable” in an enabling statute meets this requirement.ANS: T PTS: 1 MSC: AACSB Analytic

23. Formal rulemaking is the most frequently used rulemaking procedure for administrative agencies.ANS: F PTS: 1 MSC: AACSB Analytic

24. Interpretative rules are exempt from the APA's procedural requirements of notice and comment.ANS: T PTS: 1 MSC: AACSB Analytic

25. Congress enacted the Administrative Procedure Act in 1946.ANS: T PTS: 1 MSC: AACSB Analytic

26. Agencies are required to submit most newly adopted agency rules to each house of Congress before the rules can take effect.ANS: T PTS: 1 MSC: AACSB Analytic

27. Parties seeking to challenge agency action must have standing and must have exhausted their administrative remedies.ANS: T PTS: 1 MSC: AACSB Analytic

28. An administrative agency's discretion to compel the disclosure of information is subject to any legal privileges to withhold such information.ANS: T PTS: 1 MSC: AACSB Analytic

29. When reviewing factual determinations, the court uses one of three different standards: arbitrary and capricious, substantial evidence, or unwarranted by the facts.ANS: T PTS: 1 MSC: AACSB Analytic

30. If the decision of an ALJ is appealed to the governing body of the agency, the case may be decided de novo.ANS: T PTS: 1 MSC: AACSB Analytic

31. The Freedom of Information Act and the Government in the Sunshine Act are different names for the same statute.ANS: F PTS: 1 MSC: AACSB Analytic

32. Federal agencies may not charge for providing records to a person requesting access to the agency's files.ANS: F PTS: 1 MSC: AACSB Analytic

33. Only records specifically exempted by statute from disclosure are inaccessible under the FOIA.ANS: F PTS: 1 MSC: AACSB Analytic

34. Under the Administrative Procedure Act (APA), most legislative rules are issued in accordance with the informal rulemaking procedures.ANS: T PTS: 1 MSC: AACSB Analytic

35. The Sunshine Act allows for closed meetings if they concern agency participation in pending or anticipated litigation.ANS: T PTS: 1 MSC: AACSB Analytic

36. All agency decisions must include a statement of findings of fact and conclusions of law and the reasons or basis for them, as well as a statement of the appropriate relief.

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ANS: T PTS: 1 MSC: AACSB Analytic

37. There are more than twice as many federal judges as there are administrative law judges.ANS: F PTS: 1 MSC: AACSB Analytic

38. Federal administrative agencies must, within one year after creating records, make them available by electronic means.ANS: T PTS: 1 MSC: AACSB Analytic

39. An agency may impose in its orders sanctions, such as seizing property or revoking a license.ANS: T PTS: 1 MSC: AACSB Analytic

40. The technical common law rules governing admissibility of evidence are used by most administrative agencies during hearings.ANS: F PTS: 1 MSC: AACSB Analytic

Chapter 6—Criminal Law

TRUE/FALSE

1. The burden of proof in a criminal case is the same as that in a civil case.ANS: F PTS: 1 MSC: AACSB Analytic

2. Corporations may be held liable for a crime.ANS: T PTS: 1 MSC: AACSB Analytic

3. Mala in se crimes are those crimes that are not morally wrong but are declared wrongful by the legislature.ANS: F PTS: 1 MSC: AACSB Analytic

4. If Gene mistakenly hits Audrey with his truck and kills her, when he intended to hit and kill Cerise, his intent to kill Cerise is transferred to Audrey, regardless of whether he even knew Audrey, for the purpose of fulfilling the mental element of the crime.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

5. RICO provides for criminal penalties, but contains no provision for civil penalties.ANS: F PTS: 1 MSC: AACSB Analytic

6. Misdemeanors are less serious crimes punishable by a fine or imprisonment in a local jail.ANS: T PTS: 1 MSC: AACSB Analytic

7. A felony is a more serious type of crime than a misdemeanor.ANS: T PTS: 1 MSC: AACSB Analytic

8. Under the United States legal system, guilt is never presumed by the court.ANS: T PTS: 1 MSC: AACSB Analytic

9. The Fifth Amendment would protect a defendant from having to give blood samples to the prosecution since it would be a form of self-incrimination as interpreted by the courts.ANS: F PTS: 1 MSC: AACSB Analytic

10. Robbery is a larceny accompanied by force or a threat of force.ANS: T PTS: 1 MSC: AACSB Analytic

11. The key distinction between larceny and embezzlement is whether the person taking the property has the intent to deprive the victim permanently of the goods.ANS: F PTS: 1 MSC: AACSB Analytic

12. In the People v. Farell case, the court looked first to the words of the statute itself to determine legislative intent and determined that the theft statute applied to trade secrets as well as money.

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ANS: T PTS: 1 MSC: AACSB Analytic

13. Civil law is a part of public law, whereas criminal law is a part of private law.ANS: F PTS: 1 MSC: AACSB Analytic

14. Bill has had a problem with vandalism at his business, so he rigs up a spring gun at the entryway to his store, so that any after-hours intruder will be shot upon entry. Bill may legally use this deadly force to protect his business.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

15. Kim offered $50,000 to the vice president of operations of ChemKore Co. to induce her to divulge a secret process. In some states Kim would be guilty of commercial bribery.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

16. The defendant must testify in a criminal proceeding.ANS: F PTS: 1 MSC: AACSB Analytic

17. The Fifth Amendment protects all individuals against unreasonable searches and seizures.ANS: F PTS: 1 MSC: AACSB Analytic

18. A crime is an act or omission in violation of public law and punishable by the government.ANS: T PTS: 1 MSC: AACSB Analytic

19. The American Law Institute's Model Penal Code provides that a corporation cannot be convicted of a criminal offense for the conduct of its employees or board of directors.ANS: F PTS: 1 MSC: AACSB Analytic

20. The state may appeal a verdict of "not guilty" if there is an error in the trial.ANS: F PTS: 1 MSC: AACSB Analytic

21. A criminal defendant may be convicted by a preponderance of the evidence.ANS: F PTS: 1 MSC: AACSB Analytic

22. Vicarious liability is liability imposed upon one person for the acts of another.ANS: T PTS: 1 MSC: AACSB Analytic

23. A "bench trial" is one in which the decision is made without a jury.ANS: T PTS: 1 MSC: AACSB Analytic

24. Rhonda is arrested for a misdemeanor that carries a possible five-month prison sentence. She is entitled to a jury trial.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

25. The Fifth Amendment protects a defendant from double jeopardy.ANS: T PTS: 1 MSC: AACSB Analytic

26. Tracey offered the police chief $10,000 to ignore illegal gambling activity in her establishment. Tracey cannot be found guilty of bribery since the police chief refused her offer.ANS: F PTS: 1 MSC: AACSB Reflective Thinking | AACSB Diversity

27. RICO defines a pattern of racketeering as the commission of three or more predicate acts within a five-year period.ANS: F PTS: 1 MSC: AACSB Analytic

28. Today most crimes are covered by statutory law rather than by the common law, although many of the crimes in statutory form had their origins in the common law.ANS: T PTS: 1 MSC: AACSB Analytic

29. A preliminary hearing is held in a criminal case to determine whether there is probable cause to believe the defendant is the one who committed the crime.ANS: T PTS: 1 MSC: AACSB Analytic

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30. The Sixth Amendment protects persons against self-incrimination, double jeopardy, and being charged with a capital offense except by grand jury indictment.ANS: F PTS: 1 MSC: AACSB Analytic

31. Some states still recognize common law crimes.ANS: T PTS: 1 MSC: AACSB Analytic

32. White-collar crime is defined as a nonviolent crime usually involving deceit, corruption, or breach of trust.ANS: T PTS: 1 MSC: AACSB Analytic

33. Carelessness or negligence is a form of subjective fault.ANS: F PTS: 1 MSC: AACSB Analytic

34. Although mens rea is a required element for most crimes, many regulatory crimes dispense with it.ANS: T PTS: 1 MSC: AACSB Analytic

35. Selling liquor to a minor can result in criminal liability only if the seller intended to sell to an underage person.ANS: F PTS: 1 MSC: AACSB Analytic

36. Murder is a mala prohibita type of crime.ANS: F PTS: 1 MSC: AACSB Analytic

37. Paul grabs Don and threatens to stab him with his knife if Don doesn’t help Paul commit a robbery. If Don helps Paul and is prosecuted, Don would have a valid defense called self-defense.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

38. The Federal Organizational Corporate Sentencing Guidelines may require restitution to victims of certain corporate crimes.ANS: T PTS: 1 MSC: AACSB Analytic

39. The Federal Organizational Corporate Sentencing Guidelines encourage corporations to formulate and implement compliance programs to deter crimes by their employees; compliance can lead to lesser penalties when crimes do occur.ANS: T PTS: 1 MSC: AACSB Analytic

40. RICO has been successfully applied to businesses that are not engaged in organized crime, despite the fact that its intent is to target organized crime.ANS: T PTS: 1 MSC: AACSB Analytic

41. The term mala prohibita refers to the bad act element of a crime.ANS: F PTS: 1 MSC: AACSB Analytic

42. The term mens rea refers to the mental intent element of a crime.ANS: T PTS: 1 MSC: AACSB Analytic

43. Embezzlement and forgery are considered white-collar crimes.ANS: T PTS: 1 MSC: AACSB Analytic

44. There are no federal common law crimes.ANS: T PTS: 1 MSC: AACSB Analytic

45. The Sarbanes-Oxley Act passed in 2002 is the first comprehensive federal statute prohibiting computer crime.ANS: F PTS: 1 MSC: AACSB Analytic

46. All jurisdictions have enacted laws making it a crime to write a check when there is not enough money in the account to cover the check.ANS: T PTS: 1 MSC: AACSB Analytic

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Chapter 7—Intentional Torts

TRUE/FALSE

1. In order to sue for battery, a plaintiff must prove that he or she has received a physical injury.ANS: F PTS: 1 MSC: AACSB Analytic

2. Al, the bus driver on a cross-country Greyhound, kisses Susie, a passenger, while she sleeps. Al could be sued for battery.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

3. Sam goes to the movies one Friday evening. The movie is boring and Sam falls asleep. At 2 a.m., the security guard locks the building. Sam awakens the next morning when the cleaning crew opens the door. Sam can sue for false imprisonment.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

4. The law of torts is primarily made up of statutory law.ANS: F PTS: 1 MSC: AACSB Analytic

5. Damages awarded in excess of normal compensation in order to punish a defendant for a serious civil wrong are known as punitive damages.ANS: T PTS: 1 MSC: AACSB Analytic

6. Tim and his friend are playing catch in the back yard when Tim suddenly throws the ball over the fence into the neighbor's yard where it breaks the window. This is trespass to real property, even if Tim himself does not go onto the property to get the ball.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

7. Disparagement differs from defamation in that defamation pertains to personal reputation, whereas disparagement pertains to business interestsANS: T PTS: 1 MSC: AACSB Analytic

8. The purpose of tort law is to punish the wrongdoer.ANS: F PTS: 1 MSC: AACSB Analytic

9. Moore, an employee of Lewpenski Motors, fraudulently tells Tolson, a prospective car buyer, that the used car he is considering has never been in an accident. If Tolson buys the car in reliance on Moore’s false statement, both Moore and Lewpenski Motors are liable to Tolson for damages based on the fraudulent misrepresentation.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

10. In only a minority of states a jury may award punitive damages if a defendant's tortuous conduct is intentional and outrageous.ANS: F PTS: 1 MSC: AACSB Analytic

11. Arthur offers Bob, an employee of Carl, a yearly salary of $10,000 more than Bob receives under the contractual relationship between Bob and Carl. Arthur knows about the contract between Bob and Carl and knows that the contract should run for another five years, but Arthur badly wants Bob to work for him. Arthur probably is liable to Carl for intentional interference with contractual relations.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

12. The same act can be both a tort and a crime.ANS: T PTS: 1 MSC: AACSB Analytic

13. Qualified privilege depends on proper use of the privilege.ANS: T PTS: 1 MSC: AACSB Analytic

14. Brad doesn't like Carl and especially dislikes Carl's new felt hat, so he intentionally knocks it off Carl's head in order to embarrass Carl. Brad has committed a battery.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

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15. Minors under the age of 18 are not held liable for their torts.ANS: F PTS: 1 MSC: AACSB Analytic

16. John and Megan are at a crowded theater. In the press of people exiting the theater, John accidentally steps on Megan's big toe and breaks it. Megan can sue John for the tort of battery.

ANS: F PTS: 1 MSC: AACSB Reflective Thinking

17. All conversions are trespasses but not all trespasses are conversions.ANS: T PTS: 1 MSC: AACSB Analytic

18. Under constitutional privilege, a public official or public figure must prove that the defendant published the defamatory and false comment with knowledge of the comment's falsity or in reckless disregard of the truth.ANS: T PTS: 1 MSC: AACSB Analytic

19. BB, Inc. fires an employee and then, when asked for a reference on him, negligently makes some untrue statements, which prevent him from finding a job. BB is liable for defamation.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

20. Only the intentional destruction of personal property and not the use of the property in an unauthorized manner can give rise to a cause of action for conversion.ANS: F PTS: 1 MSC: AACSB Analytic

21. Punitive damages is a term referring to damages that will merely compensate victims for the harm they have suffered, but will cost defendants more money than they have.ANS: F PTS: 1 MSC: AACSB Analytic

22. The law provides no protection from harm to a person's right of dignity.ANS: F PTS: 1 MSC: AACSB Analytic

23. Intent, as used in tort law, requires an evil motive.ANS: F PTS: 1 MSC: AACSB Analytic

24. Defenses of absolute, conditional, and constitutional privilege apply to defamation and also to publication of any matter that is an invasion of privacy.ANS: T PTS: 1 MSC: AACSB Analytic

25. Malicious prosecution and wrongful civil proceedings impose liability for damages caused by improperly brought proceedings, including harm to reputation, credit, or standing; emotional distress; and expenses of defense.ANS: T PTS: 1 MSC: AACSB Analytic

26. Infliction of emotional distress occurs when a person by extreme and outrageous conduct intentionally or recklessly causes severe emotional distress to another person.ANS: T PTS: 1 MSC: AACSB Analytic

27. The cause of action of infliction of emotional distress protects a person from abusive language by a supervisor.ANS: F PTS: 1 MSC: AACSB Analytic

28. In the Vaughn v. Wal-Mart Stores, Inc. case, the court of appeals held Wal-Mart liable for false imprisonment for seeking to question a suspected shoplifter.ANS: F PTS: 1 MSC: AACSB Analytic

29. The law of torts reallocates losses caused by human misconduct.ANS: T PTS: 1 MSC: AACSB Analytic

30. Intentional infliction of emotional distress will protect a person from rudeness if the conduct was intended to cause emotional distress.

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ANS: F PTS: 1 MSC: AACSB Analytic

31. For purposes of intentional torts, a person can have the intent to cause harm if the harm is substantially certain to occur even if he or she doesn't desire that such harm occur.ANS: T PTS: 1 MSC: AACSB Analytic

32. Pointing an unloaded gun at someone who believes it is loaded and threatening to shoot constitutes an assault.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

33. For purposes of defamation, a publication includes non-written, verbal communication to third parties.ANS: T PTS: 1 MSC: AACSB Analytic

34. The tort of appropriation protects a person's exclusive right to exploit the value of her identify.ANS: T PTS: 1 MSC: AACSB Analytic

35. A letter sent to someone falsely accusing her of being a murderer constitutes the tort of defamation.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

36. The tort of defamation is best defined as the unreasonable public disclosure of private facts.ANS: F PTS: 1 MSC: AACSB Analytic

37. Invasion of privacy is in reality a collection of four distinct torts.ANS: T PTS: 1 MSC: AACSB Analytic

38. To help sell the product, a book publisher used a well-known commentator’s name and her quote on the back book jacket of a new release without the commentator’s knowledge or permission. No tort was involved since there was no injury to anyone.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

39. A person cannot be guilty of trespass unless he or she intended to violate the other's rights.ANS: F PTS: 1 MSC: AACSB Analytic

40. In 1996 the ALI approved development of the Restatement Third, Torts: Liability for Physical and Emotional Harm, which applies mostly to nonintentional torts and which, as of 2008, had not yet been published in final form.ANS: T PTS: 1 MSC: AACSB Analytic

41. A major difference between trespass to personal property and conversion is that the latter does not require intent to harm whereas trespass does.ANS: F PTS: 1 MSC: AACSB Analytic

42. Tort liability is civil liability that is voluntarily assumed.ANS: F PTS: 1 MSC: AACSB Analytic

43. If Smith works for Jones under an informal arrangement by which there is no contract stating dates for beginning or ending the relationship, Brown Co. could induce Smith to quit her job with Jones and come to work for Brown Co. without liability to Jones.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

44. X knows that Y has offered to sell wheat to Z at a certain price per bushel. Hoping to get Z for a customer, X offers Z wheat at $.50 less a bushel than Y offered. X gets the contract. X is liable to Y for the tort of interference with contractual relations.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

45. Tort law gives persons relief from civil wrongs or injuries to their person and property but not their economic interests.ANS: F PTS: 1 MSC: AACSB Analytic

46. One of the principal objectives of tort law is to prevent future harms and losses.ANS: T PTS: 1 MSC: AACSB Analytic

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47. A privilege may result in immunity from tort liability.ANS: T PTS: 1 MSC: AACSB Analytic

48. In some instances the same facts will give rise to an action for both false light and defamation.ANS: T PTS: 1 MSC: AACSB Analytic

49. The tort of false light imposes liability if the matter in question is objectionable to a reasonable person, but is not necessarily defamatory.ANS: T PTS: 1 MSC: AACSB Analytic

50. The tort of nuisance includes only the trespassory invasion of real property.ANS: F PTS: 1 MSC: AACSB Analytic

51. Perkins commits a battery against Connors. If the government brings a criminal action against Perkins, Connors cannot bring a civil tort action against Perkins for the same battery because this would constitute double jeopardy.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

52. A defamatory communication that is spoken or oral is designated as libel.ANS: F PTS: 1 MSC: AACSB Analytic

53. Sheena knowingly and falsely tells Jenn that an automobile she is trying to sell has never been in a flood. In reliance upon Sheena’s statement, Jenn buys the car. Sheena is liable to Jenn for fraudulent misrepresentation.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

54. All batteries are immediately preceded by an assault.ANS: F PTS: 1 MSC: AACSB Analytic

55. Misuse of procedure can occur even when the plaintiff succeeds in the litigation.ANS: T PTS: 1 MSC: AACSB Analytic

Chapter 8—Negligence and Strict Liability

TRUE/FALSE

1. A blind person will be held to the standard of care of the reasonable blind person rather than that of the reasonable sighted person for purposes of determining negligence.ANS: T PTS: 1 MSC: AACSB Analytic

2. In applying the reasonable person standard, the court takes into account a person's physical, but not mental handicaps.ANS: T PTS: 1 MSC: AACSB Analytic

3. A "reasonable person standard" does not apply to children since they do not have the judgment, intelligence, knowledge, or experience of adults.ANS: F PTS: 1 MSC: AACSB Analytic

4. The standard of conduct which is the basis for the law of negligence is usually determined by a cost-benefit or risk-benefit analysis.ANS: T PTS: 1 MSC: AACSB Analytic

5. In the majority of states, in a case of negligence per se, the plaintiff would only have to prove violation of a statute in order to show negligent conduct.ANS: T PTS: 1 MSC: AACSB Analytic

6. A reasonable person, as used in the law of torts, is a fictitious individual who is always careful, prudent, and never negligent.ANS: T PTS: 1 MSC: AACSB Analytic

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7. The general rule for the standard of care used in tort law is: a person is under a duty to all others at all times to exercise reasonable care for the safety of other persons and their property.ANS: T PTS: 1 MSC: AACSB Analytic

8. Compliance with a legislative enactment or administrative regulation does not prevent a finding of negligence if a reasonable person would have taken additional precautions to avoid harm.ANS: T PTS: 1 MSC: AACSB Analytic

9. In most of the states, a sixteen-year-old who drives a car will be held to the same standard of care as an adult for purposes of determining negligence.ANS: T PTS: 1 MSC: AACSB Analytic

10. Liability for the negligent conduct of a defendant requires not only that the conduct in fact caused injury to the plaintiff but also that it was the proximate cause of the injury.ANS: T PTS: 1 MSC: AACSB Analytic

11. A defendant will be liable for all harm that can be traced back to the defendant's negligence.ANS: F PTS: 1 MSC: AACSB Analytic

12. All intervening events that occur subsequent to the defendant's negligent conduct will relieve the defendant of liability.ANS: F PTS: 1 MSC: AACSB Analytic

13. If negligence of the plaintiff and negligence of the defendant proximately caused the injury and damage sustained by the plaintiff, the plaintiff can recover some damages in those states where contributory negligence is still recognized.ANS: F PTS: 1 MSC: AACSB Analytic

14. The Love v. Hardee’s Food Systems, Inc. case dealt with the responsibility of the owner or possessor of property to an invitee to warn of, remove, or barricade a dangerous condition of the premises.ANS: T PTS: 1 MSC: AACSB Analytic

15. Even if a defendant's own negligent conduct created an emergency, he will not be liable for the consequences of the conduct if he acted with care in the resulting emergency situation.ANS: F PTS: 1 MSC: AACSB Analytic

16. A violation of a statute constitutes negligence per se regardless of whether the injured party is a member of the class protected by the statute.ANS: F PTS: 1 MSC: AACSB Analytic

17. In some instances, people may be held liable for injuries they have caused even though they have not acted intentionally or negligently.ANS: T PTS: 1 MSC: AACSB Analytic

18. Tom's dog has bitten three mail carriers, but Tom can't bear to chain him up. When the dog bites the newsboy, Tom will be strictly liable.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

19. If a raccoon gets loose from a cage and harms someone, the owner can escape liability by showing that he took great care to keep the animal confined.ANS: F PTS: 1 MSC: AACSB Analytic

20. The owner of land is liable to adult trespassers for failure to maintain the land in a reasonably safe condition.ANS: F PTS: 1 MSC: AACSB Analytic

21. By law, bystanders are always required to help others in peril.ANS: F PTS: 1 MSC: AACSB Analytic

22. A widely applied test for causation in fact is the "but for" rule.ANS: T PTS: 1 MSC: AACSB Analytic

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23. The duty of employers includes the duty to exercise reasonable care in hiring, training, supervising, and retaining employees. This duty is the same as the vicarious liability of an employer for an employee’s tortious conduct during the course of employment.ANS: F PTS: 1 MSC: AACSB Analytic

24. If an intervening cause is deemed to be a superseding cause, it does not relieve the defendant of liability for that harm.ANS: F PTS: 1 MSC: AACSB Analytic

25. A tiger gets loose from the tent of a circus and mauls a passerby. The circus claims it has always treated the animal well and that it was not at all negligent in its handling of the animal. The circus has no liability for the injury caused by the animal.ANS: F PTS: 1 MSC: AACSB Reflective Thinking

26. If a person's 150-pound sheep dog has a propensity to jump enthusiastically on visitors, the animal's keeper would be liable for any damages done by the dog's playfulness.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

27. The plaintiff must prove that the defendant's negligent conduct proximately caused harm to a legally protected interest in order to have a valid negligence action.ANS: T PTS: 1 MSC: AACSB Analytic

28. Express voluntary assumption of the risk is a defense to an action based upon strict liability.ANS: T PTS: 1 MSC: AACSB Analytic

29. Ray is informed that his six-year-old child is shooting in the street with a.22 rifle. Ray fails to take the gun away from the child. The child unintentionally shoots Bill, a pedestrian. Ray is liable to Bill.ANS: T PTS: 1 MSC: AACSB Reflective Thinking

30. A licensee for purposes of tort law is a person invited upon land as a member of the public or for a business purpose.ANS: F PTS: 1 MSC: AACSB Analytic

31. A possessor of land has a legal duty to warn business invitees of obvious dangers that invitees should be able to discover themselves.ANS: F PTS: 1 MSC: AACSB Analytic

32. Res ipsa loquitur means "the thing speaks for itself" and it permits the jury to infer negligent conduct and causation from the mere occurrence of certain types of events.ANS: T PTS: 1 MSC: AACSB Analytic

33. In determining a defendant's liability for negligence, his or her superior skill or knowledge will be attributed in applying the reasonable person standard, thus increasing the chance that the defendant may be held liable.ANS: T PTS: 1 MSC: AACSB Analytic

34. If a defendant acts under emergency conditions, these conditions will be taken into account in applying the reasonable person standard.ANS: T PTS: 1 MSC: AACSB Analytic

35. Negligence per se is a defense in a negligence case.ANS: F PTS: 1 MSC: AACSB Analytic

36. There is an established rule in the law of torts that even one who has not created a peril has a duty to take affirmative action to assist an imperiled person, no matter what the relationship with that person, when the imperiled person can be saved from harm at little or no personal risk to the rescuer.ANS: F PTS: 1 MSC: AACSB Analytic

37. A number of states have included social guests in the invitee category, although they have traditionally been labeled as licensees.ANS: T PTS: 1 MSC: AACSB Analytic

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38. Res ipsa loquitur makes it easier for the defendant to prevail in a negligence action.ANS: F PTS: 1 MSC: AACSB Analytic

39. In the majority of states, a defendant is liable for negligently inflicted emotional distress, even in the absence of resultant physical harm.ANS: F PTS: 1 MSC: AACSB Analytic

40. Even though contributory negligence is proven by a defendant in a state in which it acts as a complete bar to recovery, the plaintiff may still recover if the defendant had the last clear chance to avoid the injury.ANS: T PTS: 1 MSC: AACSB Analytic

41. Because of the harshness of the all-or-nothing contributory negligence rule, nearly all states have now substituted the last clear chance doctrine for contributory negligence.ANS: F PTS: 1 MSC: AACSB Analytic

42. The “but for” test is useful when two or more forces, each of which is sufficient to bring about the harm in question, are actively operating.ANS: F PTS: 1 MSC: AACSB Analytic

43. Some states have today merged the implied assumption of risk doctrine into their comparative negligence systems.ANS: T PTS: 1 MSC: AACSB Analytic

44. All intervening causes of harm are also superseding causes.ANS: F PTS: 1 MSC: AACSB Analytic

45. While comparative negligence is generally not a defense in a strict liability case, contributory negligence generally is a successful defense.ANS: F PTS: 1 MSC: AACSB Analytic

46. A number of states have abolished or modified the defense of implied assumption of risk.ANS: T PTS: 1 MSC: AACSB Analytic

47. For an action of negligence, six elements must be proved.ANS: F PTS: 1 MSC: AACSB Analytic

48. A possessor of land must warn licensees of dangerous conditions of which the possessor has knowledge and the licensees do not and are not likely to discoverANS: T PTS: 1 MSC: AACSB Analytic

49. A duty to act is imposed on those whose innocent conduct has injured another and left him helpless and in danger of further harm.ANS: T PTS: 1 MSC: AACSB Analytic

50. There are no defenses available for strict liability; it is imposed absolutely.ANS: F PTS: 1 MSC: AACSB Analytic