Showing posts with label Business Law Chapter 6. Show all posts
Showing posts with label Business Law Chapter 6. Show all posts

Spino, Inc. entered into a one-year, $1 million contract with Elana, a sports celebrity, to promote Spino's products. Sportz Inc., a competitor of Spino, was interested in having Elana promote its products and knew of her contract with Spino. Sportz offered Elana a three-year, $5 million contract. Elana left Spino and signed with Sportz. Which statement is correct?

Spino, Inc. entered into a one-year, $1 million contract with Elana, a sports celebrity, to promote Spino's products. Sportz Inc., a competitor of Spino, was interested in having Elana promote its products and knew of her contract with Spino. Sportz offered Elana a three-year, $5 million contract. Elana left Spino and signed with Sportz. Which statement is correct?



a. Elana is liable for tortious interference with a contract.
b. Sportz is liable for tortious interference with a contract.
c. Both Elana and Sportz are liable for tortious interference with a contract.
d. Spino is liable for tortious interference with a contract.







Answer: B

Which of the following is a true statement about tort reform?

Which of the following is a true statement about tort reform?





a. Congress has proposed and debated bills placing limits on tort awards, but so far has not enacted such legislation.
b. 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.
c. All of these answers.
d. Almost all the states have passed statutes limiting the amount a jury can award in a tort case.






Answer: A

In awarding punitive damages, a court must consider:

In awarding punitive damages, a court must consider:



a. the ratio between the harm suffered and the award.
b. the difference between the punitive award and any civil penalties used in similar cases.
c. All of these answers.
d. the reprehensibility of the defendant's conduct.






Answer: C

Luke was employed by Major Markdown Store. Luke's manager directed him to check the prices of dog food at Lotsa Deals Store. The manager of Lotsa Deals Store saw Luke writing down prices and asked him to leave. Luke, fearful that he would be fired by Major, refused to leave. Luke committed the tort of:

Luke was employed by Major Markdown Store. Luke's manager directed him to check the prices of dog food at Lotsa Deals Store. The manager of Lotsa Deals Store saw Luke writing down prices and asked him to leave. Luke, fearful that he would be fired by Major, refused to leave. Luke committed the tort of:



a. trespass.
b. misrepresentation.
c. conversion.
d. larceny.







Answer: A

The elements in a defamation case are:

The elements in a defamation case are:




a. a contract; knowledge of the contract; improper inducement; injury.
b. false fact statements; statements in commercial advertising; likelihood of harm.
c. duty; breach of duty; proximate causation; and damages.
d. defamatory statement; falseness; communication; and injury.





Answer: D

Darrell was standing in a cafeteria line holding a plate. Tommy was upset with Darrell. Tommy turned Darrell around and grabbed the plate out of Darrell's hand. Tommy then held the plate up and threatened to break it over Darrell's head. Tommy has committed:

Darrell was standing in a cafeteria line holding a plate. Tommy was upset with Darrell. Tommy turned Darrell around and grabbed the plate out of Darrell's hand. Tommy then held the plate up and threatened to break it over Darrell's head. Tommy has committed:




a. an assault, but not a battery.
b. both an assault and a battery.
c. neither an assault nor a battery.
d. a battery, but not an assault.






Answer: B

Trek, Inc. wanted Druce, a professional basketball player, to endorse its products. Druce, however, was not interested. Trek was not deterred and hired a person who looked and sounded liked Druce for its commercials. Which of the following is correct?

Trek, Inc. wanted Druce, a professional basketball player, to endorse its products. Druce, however, was not interested. Trek was not deterred and hired a person who looked and sounded liked Druce for its commercials. Which of the following is correct?



a. Trek has interfered with a contract.
b. Trek has interfered with a prospective advantage.
c. Trek's conduct raises the issue of commercial exploitation.
d. Trek has defamed Druce.








Answer: C

Gail sued Bob for battery. Gail was awarded $30,000 for future medical expenses. Five years after the award, Gail realizes that her medical expenses will far exceed $30,000. Under the single recovery principle:

Gail sued Bob for battery. Gail was awarded $30,000 for future medical expenses. Five years after the award, Gail realizes that her medical expenses will far exceed $30,000. Under the single recovery principle:




a. Bob will have to pay the additional medical bills.
b. Bob will have a qualified privilege and only have to pay a portion of the additional medical expenses.
c. Gail will have no recourse against Bob or the court for the medical expenses as long as the original award was reasonable.
d. Gail will be able to submit the additional medical bills to the court for payment.






Answer: C

Townsend won a lawsuit against Hardwick for intentionally inflicting emotional distress. The jury awarded Townsend $500,000 in compensatory damages. It also awarded Townsend $4 million in punitive damages because Wickson was quite wealthy and the jury thought a large amount was necessary for Wickson 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?

Townsend won a lawsuit against Hardwick for intentionally inflicting emotional distress. The jury awarded Townsend $500,000 in compensatory damages. It also awarded Townsend $4 million in punitive damages because Wickson was quite wealthy and the jury thought a large amount was necessary for Wickson 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 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.
b. 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.
c. The jury award is not excessive based on the Supreme Court's guidelines.
d. The punitive award is excessive because it exceeds the Supreme Court's suggested ratio of compensatory damages to punitive damages.





Answer: A

Shortly after Aidin started to work at Treetop, Inc., a co-worker, Jean, began asking him out. Aidin said no. Nevertheless, Jean persisted. One day Jean touched Aidin's crotch. Which statement is correct?

Shortly after Aidin started to work at Treetop, Inc., a co-worker, Jean, began asking him out. Aidin said no. Nevertheless, Jean persisted. One day Jean touched Aidin's crotch. Which statement is correct?



a. Jean committed the tort of trespass.
b. Jean committed the tort of interference with a prospective advantage.
c. Jean committed the tort of battery.
d. Jean defamed Aidin.




Answer: C

An intentional tort involves conduct in which:

An intentional tort involves conduct in which:



a. the defendant intended a certain physical act which ends up injuring someone.
b. injuries are caused to someone because of the defendant's neglect or recklessness.
c. there is resulting punishment, including prison, for the defendant.
d. the defendant intended to harm the plaintiff.






Answer: A

YumYum Juice, Inc. advertised that its mango juice had 25% fewer calories than a competing brand, TasteyJuice. In fact YumYum's juice had the same amount of calories as TasteyJuice juice. YumYum's conduct:

YumYum Juice, Inc. advertised that its mango juice had 25% fewer calories than a competing brand, TasteyJuice. In fact YumYum's juice had the same amount of calories as TasteyJuice juice. YumYum's conduct:



a. does not violate the Lanham Act because YumYum did not act with actual malice.
b. does not violate the Lanham Act because comparative ads are exempt from the law.
c. violates the Lanham Act.
d. does not violate the Lanham Act because of the First Amendment freedom of speech.








Answer: C