Business Law

Business Law

1.A person’s actions that might constitute fraud can be treated as which type of legal claim(s)?


(a) A crime, but not an intentional tort.

(b) Both a crime and an intentional tort, one claim prosecuted by the government, the other by the injured plaintiff in civil court.

(c) An intentional tort only.

(d) Both a crime and an intentional tort, both claims initiated by a prosecutor’s office.




2. A portion of a damages award meant to punish a civil defendant for behavior that was “extreme and outrageous” rather than to compensate the injured plaintiff would be



(a) A combination of compensatory and punitive damages.

(b) nominal damages.

(c) Damages for “pain and suffering.”

(d) Punitive damages.





3. Jeremy attacked Hector in a tavern, injuring Hector and causing him to incur medical expenses and lost wages from three days of missed work. Which of the following statements is most accurate?



(a) Hector can only “win” an award of damages in criminal court under these circumstances.

(b) Hector does not have the right to sue Jeremy if the state decides to prosecute Jeremy for the crime of assaulting and battering Hector.

(c) Jeremy can be prosecuted by the state for a criminal offense and Hector may sue Jeremy for money damages in civil court – either or both may happen under these circumstances.

(d) The state cannot prosecute Jeremy for the crime of assaulting and battering Hector if Hector decides to bring a civil lawsuit against Jeremy.




4. Injuries for which plaintiffs may be awarded damages in tort cases include:



(a) Missed work opportunities and medical expenses incurred up to the time of trial.

(b) Future medical expenses.

(c) Economic harm in the form of damage to property or injury to one’s professional reputation.

(d) All of the other answer choices are correct.




5. When a jury makes a proper finding that the defendant is liable to the plaintiff for negligence, it means that the alleged harm was:



(a) Unforeseeable.

(b) Harm that was caused intentionally.

(c) Harm that was caused by the defendant carelessly, by the fault of the defendant.

(d) Harm that was caused by the defendant, regardless of whether or not the defendant was at fault.




6. Arthur is driving his automobile along Kirkwood Aveune in downtown Bloomington. Foreseeable plaintiffs, who might be injured and have the right to sue if Arthur carelessly causes an accident include:



(a) Pedestrians and bicyclists.

(b) Two, but not three of the other answer choices are correct.

(c) Other drivers.

(d) Arthur’s passengers.

(e) Three of the other answer choices are correct.




7. In the U.S., which of the following statements describe actions that might result in an intentional tort and also a crime.


(a) Intentionally tricking people out of their money by selling “stocks” that are actually worthless pieces of paper.

(b) Intentionally punching someone in the face during a heated argument.

(c) Two (but not three) of the other answers describe actions that might result in an intentional tort and also a crime.

(d) Intentionally taking someone else’s computer and keeping it for yourself.

(e) Three of the other answer choices are correct, describing actions that are both intentional torts and crimes.




8. Leslie is employed full-time as truck driver for Big-Rig Trucking Company, Inc. (“Big-Rig”). Leslie knows that timely deliveries are important. Late deliveries might result in Big-Rig losing business opportunities. One day, while making a delivery, Leslie found the road ahead blocked by a malfunctioning railroad crossing gate. After waiting for a few minutes in front of the gate, Leslie became impatient. She put her truck into gear, drove forward, and crashed through the gate, continuing on her way to make the delivery. Assuming destruction of the railroad’s property can be an intentional tort, which of the following statements is most accurate regarding persons who may be found liable if the railroad sues to recover for the damage caused to its crossing gate.


(a) Only Big Rig can be found liable because Leslie was working for Big Rig when the crossing gate was damaged.

(b) Only Leslie can be found liable because the damage was caused intentionally.

(c) Big Rig and Leslie will both be found liable because Leslie caused the damage, she was employed by Big Rig, and she was motivated (at least partially) to help Big Rig by making an ontime delivery.

(d) Big Rig cannot be held liable because Leslie acted intentionally, not negligently, in destroying the crossing gate.

(e) Two of the other answer choices are correct.




9. Ari logs on to her Facebook account and posts that a popular coffee shop claims it uses 100% arabica bean coffee, but actually uses lower grade robusta bean coffee. Ari’s post is false. The coffee shop sues Ari for the intentional tort of libel. To “win” its case, things the coffee shop must prove include which of the following:



(a) Two of the other answer choices are correct.

(b) That Ari posted her false statement in a way that it was visible to people other than Ari and the coffee shop.

(c) That Ari’s statement posted on Facebook includes a false assertion of fact.

(d) None of the other answer choices are correct – Ari cannot be found liable under these circumstances because she is exercising her right to free speech.




10. Punitive damage awards are:



(a) Not permitted in cases involving disputes between businesses.

(b) Paid by the defendant into a state victim compensation fund.

(c) Only permitted in criminal cases.

(d) Relatively rare in most types of civil lawsuits, but more common in intentional tort cases.

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