Business Law - Chapter 08 Tort Law

Tort law is primarily state law. 
TRUE

Tort law is primarily state law, so states may have slightly different definitions of each tort.

When it comes to assault, apprehension and fear are considered as the same thing. 
FALSE

Apprehension and fear are not the same thing when it comes to assault.
A person may be in apprehension of physical harm but be too courageous to be afraid. An assault occurs if apprehension exists, regardless of fear.

Consent, if proven, is a defense to battery. 
TRUE

Consent mitigates the element of unwanted. A person cannot commit a battery if the other party consented to the contact.

Defense of property cannot be a defense to a claim of battery. 
FALSE

A final defense to a claim of battery is defense of property. You can use reasonable force to defend your property from an intruder. The use of deadly force in defense of property is rarely, if ever, considered justified.

Subjective opinions are subject to an action for defamation in the same way as statements of alleged fact. 
FALSE

Subjective opinions are not capable of being proved. As such they are generally not actionable as defamation.

In China, defamation can be a civil or criminal action. 
TRUE

Chinese law treats defamation similarly to U.S. law. However, in China, defamation can be either a civil or a criminal action.

Privilege is an affirmative defense in a defamation action. 
TRUE

Privilege is an affirmative defense in a defamation action. An affirmative defense, as may be recalled from Chapter 7, occurs when the defendant admits to the accusation but argues there is a reason he should not be held liable.

If a defamation statement was originally broadcast by a company in the United States and was re-broadcast in the United Kingdom without the consent of the originator of the broadcast, the U.S. company may still be held liable in the United Kingdom court. 
TRUE

If a statement was originally broadcast by a U.S. company and rebroadcast in the United Kingdom without the consent of the originator, the U.S. company may still be held liable in the U.K. Court.

The use of moral pressure is insufficient to establish false imprisonment. 
TRUE

The use of moral pressure is not enough to establish a false imprisonment.

Simply offering a better deal is not enough to create liability for intentional interference with contract when only a prospective contract exists. 
TRUE

Regarding intentional interference with contract, because the essence of business is competition, simply offering a better deal is not enough to create liability.

Which of the following is a tort? 
A. A civil or criminal action in state court.
B. A civil or criminal action in state court or federal court.
C. A breach of contract.
D. A wrong or injury to another, other than a breach of contract.
E. None of the above.

A tort is a wrong or injury to another, other than a breach of contract.

Which of the following is true of the term "tort"? 
A. It is a French word meaning "wrong."
B. It is a German word meaning "mistake."
C. It is a Latin meaning "misfeasance."
D. It is an English word meaning "negligence."
E. It is a civil law term meaning "liability."

Which of the following is true regarding tort litigation? 
A. Tort litigation has been declining gradually since 1990.
B. Tort litigation has increased steadily since 1990.
C. Tort litigation has remained constant with no real change in numbers since 1990.
D. Tort litigation increased significantly in the 1990s but has declined in the last two years.
E. None of the above because there is no way nationally to measure the number of cases filed.

Despite the public impression of a litigation explosion, tort litigation has been declining gradually since 1990. The National Center for State Courts' statistics on tort filings in 15 states showed a general downward trend each year from 1995 to 2004.

Which of the following are common classifications of torts? 
A. Intentional, negligent, and criminal.
B. Intentional, criminal, and strict-liability.
C. Intentional, negligent, and strict-liability.
D. Criminal, negligent, and strict-liability.
E. Administrative, civil, criminal.

Intentional torts occur when the defendant takes an action intending certain consequences or knowing they are likely to result. Negligent torts occur when the defendant acts in a way that subjects other people to an unreasonable risk of harm. In other words, the defendant is careless to someone else's detriment. Finally, strict-liability torts occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes.

_________ torts occur when the defendant takes an action intending certain consequences will result or knowing certain consequences are likely to result. 
A. Criminal
B. Liability
C. Intentional
D. Negligent
E. Strict-liability

Intentional torts occur when the defendant takes an action intending certain consequences or knowing they are likely to result.

_____ torts occur when the defendant is careless and acts in a way that subjects other people to an unreasonable risk of harm. 
A. Criminal
B. Liability
C. Intentional
D. Negligent
E. Strict-liability

Negligent torts occur when the defendant acts in a way that subjects other people to an unreasonable risk of harm. In other words, the defendant is careless to someone else's detriment.

________ torts occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes. 
A. Criminal
B. Liability
C. Intentional
D. Negligent
E. Strict-liability

Strict-liability torts occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes.

Which of the following is true regarding the intent needed for an intentional tort? 
A. The intent at issue is not intent to harm but, rather, is intent to engage in a specific act, which ultimately results in an injury, physical or economic, to another.
B. The intent at issue is not intent to harm but, rather, is intent to engage in a specific act, which ultimately results in a physical injury to another. Economic injury is insufficient.
C. The intent at issue is intent to harm that results in an injury, physical or economic, to another.
D. The intent at issue is intent to harm that results in physical injury to another. Economic injury is insufficient.
E. The intent at issue is not intent to harm and is not intent to engage in a specific act. Instead, negligence will suffice.

Intentional torts, the most "willful" of torts, share the common element of intent. This intent is not to harm but, rather, to engage in a specific act, which ultimately results in an injury, physical or economic, to another.

Which of the following is a category into which intentional torts are divided? 
A. Torts against persons.
B. Torts against property.
C. Torts against economic interests.
D. All of the above.
E. None of the above.

Intentional torts are divided into (1) torts against persons, (2) torts against property, and (3) torts against economic interests.

A(n) _________ occurs when one person places another in fear or apprehension of an immediate, offensive bodily contact. 
A. Battery
B. Assault
C. Assault and battery
D. Negligence
E. Strict responsibility

An assault occurs when one person places another in fear or apprehension of an immediate, offensive bodily contact.

Which of the following is true regarding the apprehension necessary for the tort of assault? 
A. Apprehension and fear are the same thing.
B. A person may be in apprehension of physical harm, even if the same person is too courageous to be afraid of that physical harm.
C. Actual injury is necessary for valid apprehension to be proven.
D. The test for assault involves subjective apprehension, not reasonable apprehension.
E. There is no requirement that the apprehension be of immediate physical contact.

A person may be in apprehension of physical harm but be too courageous to be afraid. An assault occurs if apprehension exists, regardless of fear.

Robby calls Bobby on the telephone and threatened to come over and break his nose. Which of the following is true? 
A. Robby's conduct constitutes a battery.
B. Robby's conduct constitutes an assault.
C. Robby's conduct constitutes both a battery and an assault.
D. Robby's conduct does not constitute an assault because there is no question of immediate bodily harm.
E. Robby's conduct does not constitute an assault because there was no physical contact.

If someone called on the telephone and threatened to come over and break someone's nose, this is not an assault because there is no question of immediate bodily harm.

Which of the following it true regarding the intent needed for a battery? 
A. The intent of a person in making a contact is irrelevant for establishing liability.
B. A plaintiff may not prove liability unless the plaintiff can establish that the defendant intended to be offensive.
C. A plaintiff may not prove liability without demonstrating that the defendant intended to be offensive and also that harmful contact occurred.
D. A plaintiff may prove liability without having to demonstrate that the defendant intended to be offensive, but the plaintiff must establish harmful contact.
E. Accidental contact may establish a battery if economic injury is sustained.

Almost any unwanted intentional contact constitutes a battery, even if harmless, and intent is irrelevant for establishing liability. If the touch was intended as a joke but a reasonable person would be offended, the contact is deemed "offensive."

Mike gets angry because Ben made a better grade on a test than he did. They get into an argument, and Mike takes a swing at Ben intending to hit him. Ben shoves Mike in order to avoid the blow. Which of the following is true regarding Ben's actions? 
A. Ben has committed a battery.
B. Ben has committed both an assault and a battery.
C. Ben has not committed an assault or a battery because he acted in self-defense.
D. Ben cannot rely on self-defense because he was involved in the argument and not completely innocent.
E. Ben cannot rely upon self-defense because his life was not in danger.

The most common defense is self-defense, responding to the force of another with comparable force to defend yourself. You cannot respond with greater force than is being used against you.

Which of the following gives immunity to providers of interactive computer services for liability they might otherwise incur on account of material disseminated by them but created by others? 
A. The Internet Communications Act of 2000.
B. The Interactive Computer Services Protection Act of 2004.
C. The Communications Decency Act of 1996.
D. The Internet Communications Protection Act of 1998.
E. The Blog Protection Act of 2001.

One section of the Communications Decency Act of 1996 gives immunity to providers of interactive computer services for liability they might otherwise incur on account of material disseminated by them but created by others.

Which of the following may a person accused of defamation raise as a defense? 
A. Truth only.
B. Privilege only.
C. Need and truth.
D. Need, truth and privilege.
E. Truth and privilege.

A person accused of defamation can raise two defenses: truth and privilege.

When a[n] _______________ privilege exists, one cannot be sued for defamation for any false statements made, regardless of intent or knowledge of the falsity of the claim. 
A. Simple
B. Complex
C. Defamation
D. Absolute
E. None of the above.

A person with absolute privilege cannot be sued for defamation for any false statements made, regardless of intent or knowledge of their falsity.

Under a conditional privilege, a party will not be held liable for defamation unless the false statement was made _______. 
A. with actual malice
B. negligently
C. in print
D. publicly
E. to an employer

Under conditional privilege, a party will not be held liable for defamation unless the false statement was made with actual malice, that is, with either knowledge of its falsity or reckless disregard for its truth.

Which of the following would generally be public figures for purposes of the public figure privilege to actions for defamation? 
A. Politicians only.
B. Entertainers only.
C. Business owners only.
D. Politicians and entertainers.
E. Politicians, entertainers and business owners.

Public figures are those in the public eye, typically politicians and entertainers.

Which of the following would constitute the privacy tort of false light? 
A. Attributing characteristics or beliefs to a person that he or she does not possess.
B. Disclosing private facts about a person.
C. Defaming a person with actual malice.
D. Defaming a public figure.
E. Defaming a public figure for personal gain.

False light is closely related to defamation and occurs when publicity about a person creates an impression about that individual that is not valid.

Which of the following is true regarding the "case opener" involving the lawsuit for defamation brought by a plastic surgeon against the physician? 
A. The lawsuit was dismissed because of a lack of proof of an untrue statement.
B. The lawsuit was dismissed because of a lack of proof that the plastic surgeon was a public figure.
C. The lawsuit was dismissed both because of a lack of proof of an untrue statement and because of a lack of proof that the plastic surgeon involved was a public figure.
D. The verdict was upheld because the damages were proper and the plastic surgeon was not a public figure.
E. The verdict was upheld because the damages were proper and the plastic surgeon was a public figure.

On appeal, the defendant argued that the plastic surgeon was a public figure and as a result the jury should have been instructed that actual malice had to be shown. The supreme court of Nevada held that the plastic surgeon did not qualify as a public figure because he "did not voluntarily interject himself into a public [medical] controversy." Additionally, the court found that the awarded compensatory and punitive damages were proper.

Without obtaining advance permission, Annie places an unflattering photograph of the president of the college which she attends on folders that she is selling outside of class for extra money. Which of the following is true? 
A. Annie has committed defamation of the college president in the form of slander.
B. Annie has committed defamation of the college president in the form of libel.
C. Annie has appropriated for commercial gain the photograph which constitutes an invasion of privacy.
D. Annie has committed both defamation and invasion of privacy toward the college president.
E. Annie has not committed any tort.

Appropriation for commercial gain occurs when someone uses another person's name, likeness, voice, or other identifying characteristic for commercial gain without that person's permission.

Which of the following are defenses to an action for libel brought by a public figure in the United Kingdom regarding a statement made in the United Kingdom? 
A. Only that the statements were true.
B. Only that the statements were made in Parliament.
C. Only that the statements were made in court.
D. That the statements were made in Parliament or court.
E. That the statements were true, that the statements were made in Parliament, or that the statements were made in court.

All a public figure, or any other libel plaintiff, must do to win a case against the media in the United Kingdom is demonstrate that the defamatory statement was communicated in the United Kingdom and his or her reputation was damaged as a result. The only defenses are (1) the statements are true or (2) the statements were made in Parliament or court. The burden of proving truth is on the defendant.

Bill decides to install two-way mirrors in the dressing room of his ladies' clothing store. He has a habit of watching ladies while they try on clothing. Which of the following has Bill committed? 
A. Intrusion on an individual's affairs or seclusion.
B. Slander.
C. Libel.
D. False light invasion of property.
E. Both false light invasion of property and intrusion on an individual's affairs or seclusion.

Intrusion on an individual's affairs or seclusion occurs when someone invades a person's solitude, seclusion, or personal affairs when the person has the right to expect privacy.

Which of the following occurs when an individual is confined or restrained against his or her will for an appreciable period of time? 
A. Forcible detention
B. False imprisonment.
C. Qualified imprisonment.
D. Contained detention.
E. False detention.

False imprisonment occurs when an individual is confined or restrained against his or her will for an appreciable period of time.

Which of the following would constitute false imprisonment? 
A. Threatening to use immediate physical force to detain someone.
B. Refusing to release property.
C. Physical restraint, such as tying someone to a chair.
D. All of the above.
E. Physical restraint and threatening to use immediate physical force, but not refusing to release property.

The imprisonment may occur by (1) physical restraint, such as tying someone to a chair, (2) physical force, such as forcibly pinning someone against a wall, (3) a threat to use immediate physical force, or (4) refusal to release the plaintiff's property.

Which of the following is true regarding a storekeeper who detains a suspected shoplifter? 
A. There is no special rule for shopkeepers. Shopkeepers commit the tort of false imprisonment if they detain anyone even if that person is suspected of shoplifting. Instead, the police should be called.
B. When a retailer has a reason to believe that a person is guilty of shoplifting, the store may question the person about said shoplifting in a reasonable manner and for a reasonable length of time.
C. Whenever a retailer has a reason to believe that a person is guilty of shoplifting, the store may detain the person for any length of time but may not ask any questions prior to the arrival of the police.
D. The shopkeeper may detain the shoplifter only for a reasonable length of time but may not ask any questions prior to the arrival of the police.
E. None of the above.

Retailers are protected under "shopkeeper's privilege," but the suspect cannot be held for an unreasonable length of time, and questioning must be reasonable.

Which of the following occurs when someone engages in outrageous, intentional conduct likely to cause extreme emotional distress to the party toward whom the conduct is directed? 
A. Negligent infliction of emotional distress.
B. Intentional infliction of strict liability distress.
C. Intentional infliction of emotional distress.
D. Reckless invasion of solitude.
E. Psychological infliction of distress.

Sometimes called the "tort of outrage," intentional infliction of emotional distress occurs when someone engages in outrageous, intentional conduct likely to cause extreme emotional distress to another party.

Which of the following torts seek to compensate people wrongfully charged with either criminal or civil matters? 
A. Malicious prosecution.
B. Wrongful civil proceedings.
C. Abuse of proceeding.
D. Malicious prosecution and wrongful civil proceedings but not abuse of proceeding.
E. Malicious prosecution, wrongful civil proceedings, and abuse of proceeding.

Malicious prosecution and wrongful civil proceedings, serve similar functions. Both seek to compensate those wrongfully charged with either criminal or civil matters. Abuse of process is more general and applies to both criminal and civil matters in which a legal procedure is misused to achieve a different goal than it intends. There is not a tort called abuse of proceedings.

Jane is unhappy with her neighbor Sam because Sam will not allow her to swim in his swimming pool. She tells him that unless he lets her swim in the pool, she will bring an action against him for nuisance because he plays his stereo late at night at times. He refuses, and she proceeds to sue him for nuisance. Which of the following is true? 
A. Jane is completely within her rights and has done nothing wrong.
B. Sam can sue Jane for malicious prosecution and win only if he wins the nuisance action.
C. Sam can sue Jane for abuse of process and win only if he wins the nuisance action.
D. Sam can sue Jane for malicious prosecution regardless of whether or not he wins the nuisance action.
E. Sam can sue Jane for abuse of process and win regardless of whether or not he wins the nuisance action.

Abuse of process is more general and applies to both criminal and civil matters in which a legal procedure is misused to achieve a different goal than it intends.

Under which of the following situations does the tort of trespass to realty occur? 
A. A person causes an object to be placed on the land of another without the landowner's permission.
B. A person stays on the land of another when the owner tells him to depart.
C. A person refuses to remove something he placed on the property that the owner of the property asked him remove.
D. All of the above.
E. None of the above because a person does not commit trespass to realty unless it can be established that the person initially entered the land of another without permission.

The tort of trespass to realty, also called trespass to real property, occurs when a person intentionally (1) enters the land of another without permission; (2) causes an object to be placed on the land of another without the landowner's permission; (3) stays on the land of another when the owner tells him to depart; or (4) refuses to remove something he placed on the property that the landowner asked him to remove.

Which of the following is defamation of a business product or service? 
A. Disparagement.
B. Interference with a contract.
C. Conversion.
D. Derogation.
E. Abuse of title.

The plaintiff in a disparagement case must prove that the defendant published a false statement of a material fact about the plaintiff's product or service that resulted in a loss of sales.

A false statement of a material fact regarding ownership of business property that results in a loss of sales is referred to as _______. 
A. Slander of quality
B. Trade libel
C. Libel of title
D. Slander of title
E. None of the above.

The plaintiff in a disparagement case must prove that the defendant published a false statement of a material fact about the plaintiff's product or service that resulted in a loss of sales. If the statements relate to ownership of the business property, it is slander of title.

Bob, who has a large trust fund, is angry at Alice because she stopped dating him. Alice ran a successful dog grooming shop but Bob decided to open a dog grooming shop next door solely to run her out of business because he was angry over the break up. Which of the following is correct? 
A. Bob has committed the tort of unfair competition.
B. Bob has committed the tort of interference with contract.
C. Bob has committed the tort of unfair competition and also the tort of interference with contract.
D. Bob has committed the tort of disparagement.
E. Bob has not committed any tort.

When someone enters an industry with the sole intent of driving another firm out of business, the law punishes this act as unfair competition.

The primary type of damages in tort law is referred to as _____. 
A. Punitive damages
B. Compensatory damages
C. Nominal damages
D. Accrual damages
E. Perspective damages

Because the primary objective of tort law is to compensate victims, the primary type of damages is compensatory damages, designed to compensate the victim for all the harm caused by the person who committed the tort.

A person who commits a tort is often referred to as a ___________. 
A. Tortfeasor
B. Guiltfeasor
C. Criminal
D. Runaway defendant
E. Nominal defendant

Compensatory damages are designed to compensate the victim for all the harm caused by the person who committed the tort, often called the tortfeasor.

Which of the following is not a typical type of compensatory damage? 
A. Pain and suffering.
B. Cost to repair damaged property.
C. Medical expenses.
D. Attorney fees.
E. None of the above are typical types of compensatory damages.

Surprisingly, attorney fees are not recoverable as compensatory damages, despite the fact that most plaintiffs could not bring an action against the tortfeasor without hiring an attorney.

_______________ damages are a small amount of money given to recognize that a defendant did indeed commit a tort in a case in which there were no compensable damages suffered by the plaintiff. 
A. Nominal
B. Compensatory
C. Punitive
D. Retaliatory
E. Revenge

Nominal damages are a small amount of money given to recognize that a defendant did indeed commit a tort in a case where the plaintiff suffered no compensable damages.

___________ damages are damages awarded to punish the defendant and to deter others from similar conduct. 
A. Nominal
B. Compensatory
C. Punitive
D. Retaliatory
E. Revenge

Punitive damages are awarded both to punish conduct that is extremely outrageous and to deter similar activity by the defendant and others.

Which of the following torts seek to compensate people wrongfully subjected to litigation?

Malicious prosecution, wrongful civil proceedings, and abuse of process.