Mgt 5015 – legal challenges of business

Category: Law

Question 1
1. Multiple Dwellings Corporation (MDC) owns an apartment building. MDC must use reasonable care to ensure that its tenants are not injured. MDC fails to fix the ceiling when the ceiling starts fall apart, and one of the tenants is hit on the head by an object that falls through the broken ceiling. The tenant most likely has a claim against MDC for
 
A. negligence.
 
B. battery.
 
C. trespass.
 
D. intentional infliction of emotional distress.
2 points  
Question 2
1. Common law rules develop from
 
A. decisions of the courts in legal disputes.
 
B. regulations issued by administrative agencies.
 
C. statutes enacted by Congress and the state legislatures.
 
D. uniform laws drafted by legal scholars.
2 points  
Question 3
1. Fact Pattern for Questions 3 and 4
 
Moony and Zaco are great friends. They are aliens from the planet Xintar who landed in the United States ten years ago. One day, the two friends decide to go swimming at the local pool. The pool has a sign which states “swim at your own risk”. The sign further provides that swimming is a dangerous activity and since there is no lifeguard on duty, the swimmers risk drowning. The friends read the sign and laugh. Xintar is filled with rivers and lakes. They swam practically every day before they came to earth. They believe themselves to be much stronger than average earthlings.
While they are in the pool, there is an accident with some of the wires off to the side of the pool. The wires explode electricity, which hits Moony’s body and damages his organs. As a result of the accident, Moony suffers greatly and is hospitalized for three months. He sues the owners of the pool for damages for hospitals costs, pain and suffering, and his lost income.

 
You are the attorney for the owners of the pool. Which of the following defenses will you assert? (Please pick the best defense.)
 
A. Moony has only been in the United States for ten years, and is not yet a citizen. The laws of the United States do not apply to Moony, so he cannot sue in court.
 
B. Moony assumed the risks of swimming in the pool.
 
C. Moony is guilty of negligence per se.
 
D. Res ipsa loquiter (i.e. the thing speaks for itself)
2 points  
Question 4
1. Fact Pattern for Questions 3 and 4
 
Moony and Zaco are great friends. They are aliens from the planet Xintar who landed in the United States ten years ago. One day, the two friends decide to go swimming at the local pool. The pool has a sign which states “swim at your own risk”. The sign further provides that swimming is a dangerous activity and since there is no lifeguard on duty, the swimmers risk drowning. The friends read the sign and laugh. Xintar is filled with rivers and lakes. They swam practically every day before they came to earth. They believe themselves to be much stronger than average earthlings.
While they are in the pool, there is an accident with some of the wires off to the side of the pool. The wires explode electricity, which hits Moony’s body and damages his organs. As a result of the accident, Moony suffers greatly and is hospitalized for three months. He sues the owners of the pool for damages for hospitals costs, pain and suffering, and his lost income.
 
 
It turns out that the accident with the wires was partially caused by Moony. There is clear, undisputed evidence that the wires were initially 5 feet away from the pool and Moony brought them closer to the pool because he wanted to play a game with them. As such, the owners of the pool have asserted the defense of contributory negligence. You are the attorney for Moony. There is no way to dispute the evidence of Moony’s negligence. Which of the following arguments should you make? (Please pick the best argument.)
 
A. This is not a jurisdiction that uses the contributory negligence doctrine. It uses the comparative negligence doctrine.
 
B. Moony assumed the risks of swimming in the pool.
 
C. Moony is unaware of the laws in the United States.
 
D. Moony did not realize that it was dangerous to put the wires so close to the pool.
2 points  
Question 5
1. Arthur pushes Jeffrey. As a result, Jeffrey falls and breaks his arm. Arthur will be liable for the injury
 
A. if Arthur intended to push Jeffrey.
 
B. only if Arthur did not intend to break Jeffrey’s arm.
 
C. only if Arthur had a bad motive for pushing Jeffrey.
 
D. only if Arthur intended to break Jeffrey’s arm.
2 points  
Question 6
1. Moony sneaks into Zaco’s house, sneaks into the bedroom where Zaco is taking a nap, hits Zaco on the head and runs away. Zaco, who is a deep sleeper, sleeps through the entire episode without realizing what happened. There are no marks on his head and he has no idea that Moony had been in his home. Finally, 6 months later, Zaco watches the home security video from that day and sees what Moony did to him. He goes to the hospital and finds that he has been damaged by Moony’s attack. His brain was damaged, and he is no longer as intelligent as he used to be! He becomes very angry. He runs to Moony’s house and punches Moony. Moony goes to court and sues Zaco, and Zaco likewise sues Moony. Which of the following is true?
 
A. Zaco has legitimate claims against Moony for trespass, assault and battery.
 
B. Moony has no legitimate claims against Zaco.
 
C. Zaco has only one legitimate claim against Moony.
 
D. None of the above.
2 points  
Question 7
1. Betty the Monkey owns a large ranch in Colorado. Dan the Turtle drives his sport utility vehicle off a highway and onto Betty’s land. Dan commits trespass if he
 
A. does not have Betty’s permission to drive on the property.
 
B. drives onto the property for recreational purposes.
 
C. harms the property in a material way.
 
D. knew that it was Betty’s property.
2 points  
Question 8
1. Steve, a television news reporter, knowingly broadcasts an untrue story claiming that Medi-Drugs, Inc., mar¬kets a medicine for children that contains highly addictive drugs. Medi-Drugs, Inc. loses a lot of business as a result of this story. Steve is most likely liable for
 
A. negligence.
 
B. defamation.
 
C. breach of contract.
 
D. strict liability.
2 points  
Question 9
1. One day, while Zaco was visiting Moony’s house, the ceiling caved in and hit Zaco in the head. Zaco sued Moony for negligence. The case went all the way up to the Unites States Supreme Court. The Supreme Court held that Moony was negligent. A few years later, the friends make up and begin visiting each other again. Moony is at Zaco’s house one day when the ceiling caves in and hits him in the head. He decides to sue Zaco for negligence. Under the doctrine of stare decisis, the court will most likely
 
A. hold that Zaco was negligent.
 
B. hold that Moony “had it coming” and is not entitled to any damages.
 
C. throw the case out of court.
 
D. require Zaco and Moony to enter alien counseling!
2 points  
Question 10
1. A disadvantage of mediation is:
 
A. Mediators are the smartest people in the United States.
 
B. Mediation is much more expensive than is litigation in court.
 
C. Mediation is much cheaper than is litigation in court.
 
D. None of the above
2 points  
Question 11
1. Public law includes
 
A. the prosecution of private individuals by other private individuals.
 
B. the prosecution of public officials by private individuals.
 
C. wrongs committed against the public as a whole.
 
D. the relief available when a person’s rights are violated.
2 points  
Question 12
1. You own a small hardware store. The large superstore “Monkey-Mart” moves into your neighborhood. The prices are very low, and you start to lose your customers to Monkey-Mart. You are worried about your future. One day, you find out that Monkey-Mart abuses monkeys. You are shocked! You immediately begin spreading this information to anyone who will listen. Monkey-Mart begins to lose its customers, and sues you for defamation. Which of the following is the best defense that you can utilize in this case?
 
A. This is a free market and I have the freedom to defend my business!
 
B. I was telling the truth!
 
C. Monkey-Mart is still making money! It is still making a profit, even if the profit is smaller than before.
 
D. Monkey-Mart is a big company and I am just a small business owner!
2 points  
Question 13
1. Fact Pattern for Questions 13 and 14
 
Cindy walks into a room in Jessica’s house and the door locks behind her. She screams for help. Jessica hears her and laughs. Cindy is locked in the room for ten days before Jessica lets her out. Cindy sues Jessica for false imprisonment.

Which of the following is true?
 
A. Cindy cannot win this case because Jessica did not cause the door to lock.
 
B. Cindy can win this case even though Jessica did not cause the door to lock.
 
C. Jessica did nothing wrong legally.
 
D. None of the above.
2 points  
Question 14
1. Fact Pattern for Questions 13 and 14
 
Cindy walks into a room in Jessica’s house and the door locks behind her. She screams for help. Jessica hears her and laughs. Cindy is locked in the room for ten days before Jessica lets her out. Cindy sues Jessica for false imprisonment.
 
They go to arbitration and Cindy wins. Jessica cannot believe the arbitrator’s decision, and wants to appeal the case in court. Which of the following is true?
 
A. The court must take this case.
 
B. The court cannot take this case.
 
C. The court may take this case.
 
D. Arbitration decisions are not binding under the law.
2 points  
Question 15
1. In order to prevail in a negligence lawsuit, the plaintiff must establish four key elements. These elements include
 
A. causation.
 
B. duty of care.
 
C. breach of duty.
 
D. all of the above.
2 points  
Question 16
1. Jennifer decides to borrow her neighbor’s car without his permission. She gets into an accident and the car is destroyed. The neighbor has a good claim against Jennifer for the intentional tort of
 
A. Appropriation.
 
B. Libel per se.
 
C. Conversion.
 
D. Negligence.
2 points  
Question 17
1. Moony and Zaco are in court again! They entered into a contract with a human named Alfred, and are suing for breach of contract because Alfred refused to give them the painting that he had agreed to sell to them under the contract. Alfred is willing to return their money, but Moony and Zaco are requesting specific performance. Is specific performance appropriate in this case?
 
A. Probably, because a painting is a unique good.
 
B. No, because specific performance is not appropriate for personal service contracts.
 
C. No, because specific performance is not an appropriate remedy for breach of contract.
 
D. No, because Alfred is willing to return their money.
2 points  
Question 18
1. In the above case, the judge decides to invalidate the contract (so that Alfred does not need to meet his obligations under the contract). The judge cites a Florida Statute that went into effect after Moony, Zaco and Alfred entered into the contract. The statute states that humans are not allowed to sell paintings to aliens. (Moony and Zaco are aliens.) Moony and Zaco decide to appeal the judge’s decision. Which of the following is the best argument that Moony and Zaco can make?
 
A. Alfred carried a pocket knife when he was a school boy – he is a known criminal!
 
B. The judge violated the First Amendment’s protection of free speech.
 
C. The painting was one of a kind!
 
D. The Florida Statute is unconstitutional because it violates the Contract Clause.
2 points  
Question 19
1. Everyone is mad at Monkey-Mart. In response, Florida passes a law limiting a company’s right put up billboard signs advertising monkeys. Monkey-Mart does so anyway, and gets fined by the state. Monkey-Mart refuses to pay the fine, arguing in court that the law is unconstitutional because it violates the freedom of speech. You are the lawyer representing Florida. What is your best response?
 
A. The law regulates political speech, and such regulation has no protection under the constitution.
 
B. The law regulates commercial speech, and (1) the government has a rational and substantial interest in restricting the regulated speech, (2) the restriction directly advances the government interest, and (3) the restriction is narrowly tailored and thus is not more extensive than necessary to serve the government’s interest.
 
C. The law does not violate the Establishment Clause.
 
D. Monkey-Mart is guilty of false advertising.
2 points  
Question 20
1. Wendy fires a gun during class. The shot hits the teacher, but does not hit any of the students. Based on these facts, which of the following claims can be legitimately made against Wendy by the other students?
 
A. Intentional infliction of emotional distress.
 
B. Assault and battery.
 
C. Appropriation.
 
D. Libel per se.
2 points  
Question 21
1. A judge
 
A. is not allowed to interpret statutes.
 
B. may strike down a federal statute if it is unconstitutional.
 
C. may strike down a constitutional amendment if it contradicts an international treaty.
 
D. Both (b) and (c).
2 points  
Question 22
1. Moony and Zaco love to wrestle with each other. One day, Moony gets hurt and has to go to the hospital. He sues Zaco for battery. What is Zaco’s best defense?
 
A. Truth.
 
B. Consent.
 
C. Absolute privilege.
 
D. None of the above is a defense to battery.
2 points  
Question 23
1. Fact Pattern for Questions 23 – 25
 
Moony drops the above case, but he is still very mad about what happened. He decides to get even with Zaco. He runs up to him and takes a flying leap. Unfortunately, he misses, and ends up landing on a small boy named Alfred. Alfred is holding a pocket knife, and it tears into Moony accidentally. Moony once again ends up in the hospital!

Zaco is now mad and wants to sue Moony. What is his best claim?
 
A. Defamation
 
B. Battery
 
C. Assault
 
D. Both (b) and (c).
2 points  
Question 24
1. Fact Pattern for Questions 23 – 25
 
Moony drops the above case, but he is still very mad about what happened. He decides to get even with Zaco. He runs up to him and takes a flying leap. Unfortunately, he misses, and ends up landing on a small boy named Alfred. Alfred is holding a pocket knife, and it tears into Moony accidentally. Moony once again ends up in the hospital!
 

In Zaco’s suit against Moony, Moony defends himself by alleging self-defense (because Zaco had hit him first during the wrestling match weeks earlier.) Is this a good defense?
 
A. Yes.
 
B. No, because Zaco attacked him weeks earlier.
 
C. Self defense is not a defense in tort.
 
D. None of the above.
2 points  
Question 25
1. Fact Pattern for Questions 23 – 25
 
Moony drops the above case, but he is still very mad about what happened. He decides to get even with Zaco. He runs up to him and takes a flying leap. Unfortunately, he misses, and ends up landing on a small boy named Alfred. Alfred is holding a pocket knife, and it tears into Moony accidentally. Moony once again ends up in the hospital!
 
Moony sues Alfred for battery. Will Moony win?
 
A. No, because Alfred lacked the requisite intent.
 
B. No, because Alfred is a child.
 
C. No, because Moony is an alien.
 
D. Yes.
2 points  
Question 26
1. Jennifer whispers “Arthur is a thief!” Arthur sues Jennifer for defamation. Which of the following is the best defense that Jennifer can assert?
 
A. I was only whispering!
 
B. Nobody heard me!
 
C. I didn’t mean to hurt Arthur.
 
D. I am allowed to say whatever I want – the first amendment protects free speech!
2 points  
Question 27
1. What is temporary (or spoken) defamation called? (In other words, this is the type of spoken defamation that is not recorded, is not on television or radio, and is not spoken to a large audience.)
 
A. Libel
 
B. Negligence
 
C. Slander
 
D. Trespass
2 points  
Question 28
1. Strict liability in tort was created in order to
 
A. Promote consumer safety and protect consumers.
 
B. Protect employees.
 
C. Promote free trade.
 
D. Make it more difficult to bring a tort claim.
2 points  
Question 29
1. Jennifer is at a public park. Moony sees her, and decides to take her picture so that he can look at her image whenever he wants. He blows the picture up and hangs it over his fireplace so that he can gaze at her beauty every evening. Jennifer wants to sue Moony. Which of the following is a good claim that she can make in court?
 
A. Appropriation.
 
B. Intrusion.
 
C. False Light.
 
D. None of the above are good claims under the facts given.
2 points  
Question 30
1. Winona goes on a radio talk show and states that Moony is dating Tabitha. Moony’s wife listens to the show, and gets mad. She asks Moony for a divorce. Moony wants to sue Winona for defamation. He comes to you for advice. What should he claim?
 
A. Slander per se.
 
B. Slander per quod.
 
C. Libel per se.
 
D. Libel per quod.
2 points  
Question 31
1. The pharmacy was required by law to explain the risks of its drugs to its consumers. The pharmacist forgot to do so, and the customer ended up getting sick. The customer sued. What doctrine should the customer use?
 
A. Negligence per se, because the pharmacist broke the law.
 
B. The customer can sue for negligence, but negligence per se does not apply in this case.
 
C. Res ipsa loquiter.
 
D. Battery.
2 points  
Question 32
1. Jeffrey trespasses on Anna’s property carrying a large bat. He does not mean any harm. He is walking home from baseball practice and Anna’s property provides the quickest route. Anna sees Jeffrey and becomes frightened he is going to hurt her. She runs up behind him and hits him on the head with a bowling pin. Jeffrey sues her for battery. Anna asserts self-defense. Does Anna have a good defense?
 
A. No, because Jeffrey did not intend to hurt her.
 
B. Yes, if Anna had reasonable grounds to believe she was being attacked.
 
C. No, because Jeffrey did not actually hurt her.
 
D. No, because Jeffrey did not have a gun.
2 points  
Question 33
1. In the above case, Jeffrey also sues Anna for assault. You represent Anna. How will you respond to this claim?
 
A. Jeffrey could not have been aware that Anna was behind him before he was hit in the head.
 
B. Jeffrey is only a teenager.
 
C. Anna is smaller than Jeffrey.
 
D. This case is unconstitutional.
2 points  
Question 34
1. Moony and Zaco live in Florida. However, Moony loves potatoes! He borrows $300,000 from Zaco in order to purchase a summer home in Idaho. Years go by and he never pays Zaco back, and Zaco believes he is entitled to the home. Zaco decides to sue Moony under a Florida Statute in order to assert his rights to the property. You are Moony’s attorney. You assert that Florida does not have jurisdiction in this case. How will the court most likely rule regarding this claim?
 
A. The court will rule in Moony’s favor because this action is in rem.
 
B. The court will rule in Zaco’s favor because this action is in rem.
 
C. The court will rule in Zaco’s favor because Moony and Zaco live in Florida.
 
D. The court will rule in Moony’s favor because of the Establishment Clause.
2 points  
Question 35
1. Products can be deemed defective in three ways. These ways include each of the following, except:
 
A. The product contains a flaw.
 
B. The product lacks a warning.
 
C. The product is defectively designed.
 
D. The product unfairly priced.
2 points  
Question 36
1. Zaco is being sued in strict liability because the car he sold to his neighbor blew up. Which of the following is Zaco’s best defense?
 
A. I am not a merchant. I do not regularly sell cars.
 
B. The car was manufactured in perfect accordance with the product specifications.
 
C. I gave my neighbor a great price!
 
D. None of the above will hold up in court.
2 points  
Question 37
1. The neighbor also sues the car manufacturer in strict liability. The neighbor argues that the car was defectively designed. Which of the following is the car manufacturer’s best defense?
 
A. The car was manufactured in perfect accordance with the specs!
 
B. The product would not have been affordable if we had designed it safer!
 
C. We didn’t breach our duty of care!
 
D. We didn’t sell you the car! (Zaco sold you the car!)
2 points  
Question 38
1. Eve, an architect, hires Frank, an accountant, to handle her accounts. Dissatisfied with Frank’s work, Eve sues him, alleging negligence. Frank may successfully defend against the suit by proving that he
 
A. did not injure Eve in any way.
 
B. does not know every principle of accounting.
 
C. performed as well as an ordinary person could have.
 
D. performed as well as Eve could have.
2 points  
Question 39
1. Which of the following is true?
 
A. Congress has the power to regulate commerce among the states.
 
B. Congress has the power to regulate most aspects of religion.
 
C. Congress has the power to regulate most speech.
 
D. Congress has the power take people’s property without due process of the law.
2 points  
Question 40
1. Assume that the Congress and the state government of Tennessee have written laws that conflict with each other. As a consequence, a Tennessee case has gone to the Supreme Court, and one of the legal issues being litigated is which law should be followed (the state law or the federal law). Which of the following is true?
 
A. The state law should be followed because in Tennessee, Tennessee laws are paramount.
 
B. The federal law should be followed because the federal government has greater authority than the Tennessee government.
 
C. Under the facts given, it is not possible to determine the outcome of this legal issue.
 
D. Neither law should be followed, as there is a conflict.
2 points  
Question 41
1. Strict liability in tort will not apply unless
 
A. The seller is engaged in the business if selling the product.
 
B. The product is expected to, and in fact does, reach the user or consumer without substantial change in the condition in which it was sold.
 
C. (a) and (b).
 
D. None of the above.
2 points  
Question 42
1. Moony and Zaco bring their alien religion to earth. One of their religious practices is to use Ecstasy on the first Monday of every month. However, use of this drug is illegal in the U.S. The aliens are arrested for drug possession. You are their lawyer. Which of the following is their best defense?
 
A. The law outlawing Ecstasy is unconstitutional because it violates the Establishment Clause of the First Amendment, which prevents the government from establishing a “state religion” or from preferring one religion over another.
 
B. The law outlawing Ecstasy is unconstitutional because it violates the Free Exercise Clause of the First Amendment, which prevents the government from interfering with the free exercise of religion.
 
C. The law outlawing Ecstasy is unconstitutional because it violates the First Amendment’s protection of political speech.
 
D. The law outlawing Ecstasy is unconstitutional because it violates the Fifth Amendment, which states that private property cannot be taken for public use without just compensation (i.e. Eminent Domain).
2 points  
Question 43
1. Foolishly, you entered into a contract with Moony. (He is a known criminal!) Pursuant to the contract, you pay him $3,000 and he agrees to clean your house every Friday for one year. He takes the money from you, but then the leaves the state. He never cleans your house. You are now in court suing him for breach of contract. You sue him in Maine, but he responds that jurisdiction is not appropriate in Maine because you wrote the contract in Florida and your house is in Florida. You respond that jurisdiction is in Maine because the contract states that jurisdiction is in Maine. Which of the following statements is true?
 
A. Jurisdiction is in Florida because you wrote the contract in Florida.
 
B. Jurisdiction is in Maine because the contract states that the jurisdiction is in Maine.
 
C. It is unclear where jurisdiction should be.
 
D. You cannot sue Moony because he is an alien.
2 points  
Question 44
1. If an injunction is granted,
 
A. The defendant may be forced to do a particular act.
 
B. The defendant may be forced to stop doing a particular act.
 
C. The defendant will be ordered to pay money to the plaintiff.
 
D. The defendant is automatically sent to prison.
2 points  
Question 45
1. If the constitution has not specifically delegated a particular regulatory power to either the federal government or the state governments, which of the following is true? (Assume that such regulatory power would not conflict with the Bill of Rights.)
 
A. The federal government has such regulatory power, but the state governments do not.
 
B. The state governments have such regulatory power, but the federal government does not.
 
C. Both the federal and state governments have such regulatory power.
 
D. Neither the federal nor the state governments have such regulatory power because there is a conflict of interest.
2 points  
Question 46
1. The government takes your property without your permission under eminent domain (a “taking”). Which of the following is an argument you can use in court against the government?
 
A. This is unconstitutional. The government is not allowed to take my property without my permission.
 
B. The government did not pay me fair market value for the property.
 
C. My grandparents are buried on the property, so the government should not have been allowed to take it.
 
D. Both (b) and (c).

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