Essentials of Business Law 8th Edition by Anthony Liuzzo – Test Bank

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Essentials of Business Law 8th Edition by Anthony Liuzzo – Test Bank

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Chapter 02 

True / False Questions

1. The development of technology has introduced a burgeoning array of ethical questions.
   True    False

 

2. Technological developments have created new ethical problems.
   True    False

 

3. Ethics takes a more philosophical approach in determining what is good or bad.
   True    False

 

4. Ethics concern behavior that is judged by society.
   True    False

 

5. There is only one kind of value—individual value.
   True    False

 

6. Values can vary from one individual to another.
   True    False

 

7. An individual’s values are significantly influenced by those held in the groups to which he or she belongs.
   True    False

 

8. Ethical issues are seldom multifaceted.
   True    False

 

 

9. Businesses concerned with ethics usually focus on their corporate responsibility and the development of codes of conduct.
   True    False

 

10. Credo is a term that is used to describe unethical behavior.
    True    False

 

11. A corporate code of ethics is a set of guidelines limited to corporate management.
    True    False

 

12. It is not possible for a code to make clear what a company expects of its personnel in terms of the ethical dimensions of corporate policies and actions.
    True    False

 

13. Educational institutions have responded to the increased need to examine ethics by adding courses, workshops and programs, and have expanded the study of ethics in existing courses.
    True    False

 

14. Trade associations are against developing guidelines for ethical business practices for their diverse memberships.
    True    False

 

15. A whistleblower is one who calls attention to unpleasant conditions at the workplace.
    True    False

 

 

 

Multiple Choice Questions

16. The fact that the Enron and Arthur Andersen case dominated the media and ­resulted in numerous congressional investigations showed the widespread concern with:
    A. ethical behavior in business.
    B. the enforcement of law.
    C. the power of the government.
    D. the role of educational institutions in the field of ethics.

 

17. The Sarbanes-Oxley statute established a board to oversee accounting practices in (the):
    A. United States.
    B. Netherlands.
    C. United Kingdom.
    D. Australia.

 

18. Ethical issues involving Internet and computer technology also have prompted people to consider ethical issues such as:
    A. privacy.
    B. governance.
    C. discrimination.
    D. apartheid.

 

19. Today’s business professionals involved in global markets are sometimes faced with ethical predicaments, because of different:
    A. modes of transport.
    B. languages.
    C. standards of ethics.
    D. values of money.

 

 

20. Beliefs and standards that are considered to be worthwhile are known as:
    A. values.
    B. morals.
    C. ethics.
    D. discretions.

 

21. Ethical theories and moral standards are derived from:
    A. law.
    B. religion.
    C. values.
    D. codes.

 

22. All of the following are the influencing factors on both group values and individual values, EXCEPT:
    A. religion.
    B. wealth.
    C. traditions.
    D. customs.

 

23. A larger culture has a certain genre of values that are different from the values held by employees of a corporation or department within a company, or what may be known as a:
    A. macro-culture.
    B. subculture.
    C. para-culture.
    D. cross-culture.

 

24. Governments may impose on individuals a set of duties known as:
    A. legal mandates.
    B. ethical considerations.
    C. legal imperatives.
    D. national imperatives.

 

 

25. A distinction between law and ethics is that legal mandates are usually more:
    A. flexible.
    B. precise.
    C. obscure.
    D. flawed.

 

26. The actions of corporations that are intended to demonstrate their wish to behave responsively take many forms and are conducted under the banner of:
    A. corporate liability.
    B. national mandate.
    C. patriotic duties.
    D. corporate responsibility.

 

27. Code of ethics is also known as:
    A. kudo.
    B. credo.
    C. an epilogue.
    D. quantum.

 

28. A ______ makes clear that the company expects its personnel to recognize the ethical dimensions of corporate policies and actions.
    A. rule
    B. regulation
    C. code
    D. social action

 

29. Some firms or industries have established a code of ethics, sometimes called a “credo.” The objective of a code of ethics is to:
    A. specify the principles of ethical behavior expected of its employees.
    B. set down the principles to be followed in dealing with government agencies.
    C. establish guidelines in dealing with suppliers.
    D. establish rules for management to follow in dealing with employee grievances.

 

 

30. Which of the following activities are not under the direct purview of governmental bodies?
    A. Legislation concerning fair labor practices.
    B. Consumer protection.
    C. Protection of the environment.
    D. Supervision of small businesses.

 

31. Incentives for corporations to act more ethically are provided by:
    A. Federal Sentencing Guidelines.
    B. Foreign Corrupt Practices Act.
    C. Civil Rights Act.
    D. Federal Indictments Act.

 

32. American firms are prohibited from bribing foreign officials under the:
    A. Federal Indictments Act.
    B. Civil Rights Act.
    C. Federal Sentencing Guidelines.
    D. Foreign Corrupt Practices Act.

 

33. All of the following are examples of self-regulatory standards of conduct created by trade associations, EXCEPT:
    A. telephone marketing.
    B. billboard marketing.
    C. marketing to children.
    D. sweepstakes.

 

34. The threat of legal prosecution and penalties:
    A. does not eliminate all unethical practices.
    B. helps to eliminate all unethical practices.
    C. has caused an increase in unethical practices.
    D. does not make any impact on unethical practices.

 

 

35. Sometimes, the driving force for reform may be the:
    A. ethic guru.
    B. quality assuror.
    C. whistleblower.
    D. protagonist.

 

36. A person who reveals to a governmental authority, or to news media, confidential information regarding some wrong doing or conduct that he or she regards as unethical is called a(n):
    A. whistleblower.
    B. ethic guru.
    C. quality assuror.
    D. protagonist.

 

37. The whistleblower may be confronted with an ethical:
    A. practice.
    B. observation.
    C. quantum.
    D. dilemma.

 

38. The federal government and many states have statutes that protect whistleblowers from:
    A. retaliation.
    B. rebuke.
    C. appraisal.
    D. indictments.

 

39. The usual motivation behind whistleblowing is the outrage to a person’s sense of:
    A. knowledge.
    B. self-esteem.
    C. ethics.
    D. confidence.

 

 

40. Ethical beliefs are the foundation of many of our:
    A. reports.
    B. laws.
    C. books.
    D. religious practices.

 

 

Short Answer Questions

 

41. How important is a code of ethics for companies today?

 

 

 

 

42. Briefly explain the Federal Sentencing Guidelines.

 

 

 

 

43. What are the basic functions of the U.S. Office of Government Ethics?

 

 

 

 

 

44. What are some non-legal penalties experienced by firms that engage in unethical practices?

 

 

 

 

 

 

 

 

 

True / False Questions

1. (p. 23)The development of technology has introduced a burgeoning array of ethical questions.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 2.1 Cite some examples of how unethical behavior in our world has negatively affected business practices.

2. (p. 23)Technological developments have created new ethical problems.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 2.3 Cite several influences on group and individual values.

3. (p. 23)Ethics takes a more philosophical approach in determining what is good or bad.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 2.2 Distinguish among ethics, morals, and values.

4. (p. 23)Ethics concern behavior that is judged by society.
   FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 2.2 Distinguish among ethics, morals, and values.

5. (p. 23)There is only one kind of value—individual value.
   FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 2.3 Cite several influences on group and individual values.

 

 

6. (p. 23)Values can vary from one individual to another.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 2.3 Cite several influences on group and individual values.

7. (p. 23)An individual’s values are significantly influenced by those held in the groups to which he or she belongs.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 2.3 Cite several influences on group and individual values.

8. (p. 24)Ethical issues are seldom multifaceted.
   FALSE

 

Bloom’s: Analysis
Learning Outcomes: 2.4 Discuss the relationship between law and ethics.

9. (p. 24)Businesses concerned with ethics usually focus on their corporate responsibility and the development of codes of conduct.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

10. (p. 25)Credo is a term that is used to describe unethical behavior.
    FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

 

 

11. (p. 25)A corporate code of ethics is a set of guidelines limited to corporate management.
    FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

12. (p. 25)It is not possible for a code to make clear what a company expects of its personnel in terms of the ethical dimensions of corporate policies and actions.
    FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

13. (p. 27)Educational institutions have responded to the increased need to examine ethics by adding courses, workshops and programs, and have expanded the study of ethics in existing courses.
    TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

14. (p. 27)Trade associations are against developing guidelines for ethical business practices for their diverse memberships.
    FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

 

 

15. (p. 28)A whistleblower is one who calls attention to unpleasant conditions at the workplace.
    TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 2.6 Discuss some ways businesses can ensure ethical practices.

 

Multiple Choice Questions

16. (p. 22)The fact that the Enron and Arthur Andersen case dominated the media and ­resulted in numerous congressional investigations showed the widespread concern with:
    A. ethical behavior in business.
    B. the enforcement of law.
    C. the power of the government.
    D. the role of educational institutions in the field of ethics.

 

Bloom’s: Knowledge
Learning Outcomes: 2.1 Cite some examples of how unethical behavior in our world has negatively affected business practices.

17. (p. 22)The Sarbanes-Oxley statute established a board to oversee accounting practices in (the):
    A. United States.
    B. Netherlands.
    C. United Kingdom.
    D. Australia.

 

Bloom’s: Knowledge
Learning Outcomes: 2.1 Cite some examples of how unethical behavior in our world has negatively affected business practices.

 

 

18. (p. 23)Ethical issues involving Internet and computer technology also have prompted people to consider ethical issues such as:
    A. privacy.
    B. governance.
    C. discrimination.
    D. apartheid.

 

Bloom’s: Knowledge
Learning Outcomes: 2.1 Cite some examples of how unethical behavior in our world has negatively affected business practices.

19. (p. 19)Today’s business professionals involved in global markets are sometimes faced with ethical predicaments, because of different:
    A. modes of transport.
    B. languages.
    C. standards of ethics.
    D. values of money.

 

Bloom’s: Knowledge
Learning Outcomes: 2.1 Cite some examples of how unethical behavior in our world has negatively affected business practices.

20. (p. 23)Beliefs and standards that are considered to be worthwhile are known as:
    A. values.
    B. morals.
    C. ethics.
    D. discretions.

 

Bloom’s: Knowledge
Learning Outcomes: 2.2 Distinguish among ethics, morals, and values.

21. (p. 23)Ethical theories and moral standards are derived from:
    A. law.
    B. religion.
    C. values.
    D. codes.

 

Bloom’s: Knowledge
Learning Outcomes: 2.2 Distinguish among ethics, morals, and values.

 

 

22. (p. 23)All of the following are the influencing factors on both group values and individual values, EXCEPT:
    A. religion.
    B. wealth.
    C. traditions.
    D. customs.

 

Bloom’s: Knowledge
Learning Outcomes: 2.3 Cite several influences on group and individual values.

23. (p. 23)A larger culture has a certain genre of values that are different from the values held by employees of a corporation or department within a company, or what may be known as a:
    A. macro-culture.
    B. subculture.
    C. para-culture.
    D. cross-culture.

 

Bloom’s: Knowledge
Learning Outcomes: 2.3 Cite several influences on group and individual values.

24. (p. 24)Governments may impose on individuals a set of duties known as:
    A. legal mandates.
    B. ethical considerations.
    C. legal imperatives.
    D. national imperatives.

 

Bloom’s: Knowledge
Learning Outcomes: 2.4 Discuss the relationship between law and ethics.

25. (p. 24)A distinction between law and ethics is that legal mandates are usually more:
    A. flexible.
    B. precise.
    C. obscure.
    D. flawed.

 

Bloom’s: Knowledge
Learning Outcomes: 2.4 Discuss the relationship between law and ethics.

 

 

26. (p. 25)The actions of corporations that are intended to demonstrate their wish to behave responsively take many forms and are conducted under the banner of:
    A. corporate liability.
    B. national mandate.
    C. patriotic duties.
    D. corporate responsibility.

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

27. (p. 25)Code of ethics is also known as:
    A. kudo.
    B. credo.
    C. an epilogue.
    D. quantum.

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

28. (p. 25)A ______ makes clear that the company expects its personnel to recognize the ethical dimensions of corporate policies and actions.
    A. rule
    B. regulation
    C. code
    D. social action

 

Bloom’s: Analysis
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

 

 

29. (p. 25)Some firms or industries have established a code of ethics, sometimes called a “credo.” The objective of a code of ethics is to:
    A. specify the principles of ethical behavior expected of its employees.
    B. set down the principles to be followed in dealing with government agencies.
    C. establish guidelines in dealing with suppliers.
    D. establish rules for management to follow in dealing with employee grievances.

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

30. (p. 27)Which of the following activities are not under the direct purview of governmental bodies?
    A. Legislation concerning fair labor practices.
    B. Consumer protection.
    C. Protection of the environment.
    D. Supervision of small businesses.

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

31. (p. 27)Incentives for corporations to act more ethically are provided by:
    A. Federal Sentencing Guidelines.
    B. Foreign Corrupt Practices Act.
    C. Civil Rights Act.
    D. Federal Indictments Act.

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

 

 

32. (p. 27)American firms are prohibited from bribing foreign officials under the:
    A. Federal Indictments Act.
    B. Civil Rights Act.
    C. Federal Sentencing Guidelines.
    D. Foreign Corrupt Practices Act.

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

33. (p. 27)All of the following are examples of self-regulatory standards of conduct created by trade associations, EXCEPT:
    A. telephone marketing.
    B. billboard marketing.
    C. marketing to children.
    D. sweepstakes.

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

34. (p. 27)The threat of legal prosecution and penalties:
    A. does not eliminate all unethical practices.
    B. helps to eliminate all unethical practices.
    C. has caused an increase in unethical practices.
    D. does not make any impact on unethical practices.

 

Bloom’s: Knowledge, Analysis
Learning Outcomes: 2.6 Discuss some ways businesses can ensure ethical practices.

35. (p. 28)Sometimes, the driving force for reform may be the:
    A. ethic guru.
    B. quality assuror.
    C. whistleblower.
    D. protagonist.

 

Bloom’s: Knowledge
Learning Outcomes: 2.6 Discuss some ways businesses can ensure ethical practices.

 

 

36. (p. 28)A person who reveals to a governmental authority, or to news media, confidential information regarding some wrong doing or conduct that he or she regards as unethical is called a(n):
    A. whistleblower.
    B. ethic guru.
    C. quality assuror.
    D. protagonist.

 

Bloom’s: Knowledge
Learning Outcomes: 2.6 Discuss some ways businesses can ensure ethical practices.

37. (p. 28)The whistleblower may be confronted with an ethical:
    A. practice.
    B. observation.
    C. quantum.
    D. dilemma.

 

Bloom’s: Comprehension
Learning Outcomes: 2.6 Discuss some ways businesses can ensure ethical practices.

38. (p. 28)The federal government and many states have statutes that protect whistleblowers from:
    A. retaliation.
    B. rebuke.
    C. appraisal.
    D. indictments.

 

Bloom’s: Knowledge
Learning Outcomes: 2.6 Discuss some ways businesses can ensure ethical practices.

 

 

39. (p. 28)The usual motivation behind whistleblowing is the outrage to a person’s sense of:
    A. knowledge.
    B. self-esteem.
    C. ethics.
    D. confidence.

 

Bloom’s: Knowledge, Analysis
Learning Outcomes: 2.6 Discuss some ways businesses can ensure ethical practices.

40. (p. 24)Ethical beliefs are the foundation of many of our:
    A. reports.
    B. laws.
    C. books.
    D. religious practices.

 

Bloom’s: Knowledge
Learning Outcomes: 2.4 Discuss the relationship between law and ethics.

 

Short Answer Questions

41. (p. 25)How important is a code of ethics for companies today?

Despite a few glaring lapses, many companies today understand the need to maintain ethical standards in their dealings with customers, suppliers and employees. To do this, some firms or industries establish a code of ethics, sometimes called a credo, that sets down the principle of ethical behavior expected of its personnel in various situations.

 

Bloom’s: Analysis
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

 

 

42. (p. 27)Briefly explain the Federal Sentencing Guidelines.

Under this mandate, when an employee violates a law in the course of his or her employment, a firm can reduce its possible liability if it can show that it took action to develop moral guidelines for its employees.

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

43. (p. 27)What are the basic functions of the U.S. Office of Government Ethics?

The U.S. Office of Government Ethics is concerned with conflicting financial interests, misuse of position, financial disclosure, impartiality in performing official duties, and other areas of concern.

 

Bloom’s: Knowledge
Learning Outcomes: 2.5 Provide examples of responses to ethical issues by business firms, educational institutions, governments, and trade and professional associations.

44. (p. 22)What are some non-legal penalties experienced by firms that engage in unethical practices?

Results may include unfavorable public relations, loss of consumer good will, and poor employee morale.

 

Bloom’s: Knowledge
Learning Outcomes: 2.6 Discuss some ways businesses can ensure ethical practices.

Chapter 04

 

True / False Questions

1. A tort, in contrast to a crime, is a violation of the rights of an identifiable individual or business that has been wronged either intentionally or by negligence.
   True    False

 

2. The law of torts deals with duties imposed by contract and it is not concerned with the violation of private rights.
   True    False

 

3. The communication of a false statement that harms the reputation of a certain person is known as nuisance.
   True    False

 

4. For an act to be considered defamatory, it is necessary to show that the defamatory statement was published.
   True    False

 

5. Libel is the spreading of damaging statements in written form—including pictures, cartoons, effigies, and defamation on radio, television, and Web sites.
   True    False

 

6. Slander is the spreading of damaging words or ideas about a person, directly or indirectly, in all other forms not considered libel.
   True    False

 

 

7. The threat of a libel suit by former employees who are unhappy with the references given by the former employer has gotten so serious that many firms refuse to respond to any inquiry about former workers—even those who have good records.
   True    False

 

8. There are no special privileges in making the defamatory statement to any person accused of defamation.
   True    False

 

9. If a defamatory statement can be proved to be true, the person who claims that he or she was defamed cannot recover damages.
   True    False

 

10. A public nuisance affects the community or the general public.
    True    False

 

11. A person can be charged with creating a public nuisance by causing loud noises, creating foul odors, shining bright lights, or diverting a stream.
    True    False

 

12. A nuisance entails the complete taking over of another’s property.
    True    False

 

13. Conversion may not ­involve removal, damage, destruction, or unauthorized use of another person’s property.
    True    False

 

 

14. Vicarious negligence is the charging of a negligent act of one person onto another.
    True    False

 

15. Under the doctrine of contributory negligence, injured parties are not prevented from recovering damages even if they were partly at fault.
    True    False

 

16. Under the doctrine of comparative negligence, the injured parties bringing the lawsuit are prevented from recovering damages even if they are partly at fault.
    True    False

 

17. Under a doctrine known as strict liability, people may be liable for injuries to ­others whether or not they have done something wrong.
    True    False

 

18. The term for this shifting of ­responsibility is vicarious liability, and it is related to vicarious negligence.
    True    False

 

 

Multiple Choice Questions

19. Defamation, nuisance, conversion, and negligence are various kinds of:
    A. common torts.
    B. grave criminal offences.
    C. trade jargons.
    D. commerce factors.

 

 

20. To call someone a thief to the person’s face may amount to:
    A. defamation.
    B. insult.
    C. nuisance.
    D. negligence.

 

21. If actions cause harm by an insinuation that holds someone up to hatred, ridicule, or contempt, or lowers his or her esteem, respect, or social position, the person who made the insinuation can be charged with the tort of:
    A. libel.
    B. slander.
    C. defamation.
    D. false imprisonment.

 

22. Defamation is a broad term that includes both:
    A. libel and slander.
    B. libel and conversion.
    C. nuisance and libel.
    D. grand and petty conversion.

 

23. The most common form of slander involves:
    A. gestures and actions.
    B. pictures.
    C. spoken words.
    D. cartoons.

 

24. The tort of slander:
    A. is limited to spoken defamation.
    B. includes spoken words and gestures.
    C. is limited to words spoken in anger.
    D. is limited to written words.

 

 

25. The spreading of damaging statements in written form is known as:
    A. slander.
    B. libel.
    C. negligence.
    D. false imprisonment.

 

26. Apart from defamatory statements published in books, newspapers, magazines, and Web sites, the possibility of libel also exists in:
    A. speech.
    B. parasailing instruction manual.
    C. cookery guides.
    D. ­business and personal letters.

 

27. Most cases of slander involve thoughtless statements that affect another person’s:
    A. reputation.
    B. property.
    C. capital.
    D. nationality.

 

28. The tort of slander does not require:
    A. an indirect defamatory statement.
    B. a direct defamatory statement.
    C. a drawing, picture, or cartoon.
    D. a direct attack.

 

29. In conducting business, a firm and its owners have the right not to be subjected to:
    A. politically correct statements.
    B. truthful statements.
    C. false and malicious statements.
    D. acts of negligence.

 

 

30. The tort of trade libel is similar to:
    A. scandal.
    B. libel.
    C. vicarious liability.
    D. traditional defamation.

 

31. The tort of trade libel deals with:
    A. an individual’s title to property.
    B. the quality of a firm’s research activities.
    C. spoken defamation of a company.
    D. written defamation relating to a firm’s employees.

 

32. The common defenses to charges of defamation are:
    A. insanity and privilege.
    B. truth and falsehood.
    C. truth and privilege.
    D. privilege and falsehood.

 

33. If the person accused of __________ had a special privilege, such as an attorney in a court proceeding who accuses a witness of lying, then the complainant person cannot recover damages:
    A. defamation.
    B. false imprisonment.
    C. vis major.
    D. negligence.

 

34. If the person accused of defamation had a special privilege in making the defamatory statement, such as an attorney in a court proceeding, who accuses a witness of lying, the defamed person:
    A. cannot recover damages.
    B. can recover damages.
    C. can file a suit of defamation .
    D. can make defamatory statement against attorney.

 

 

35. A person who acts in a way that denies another the right to enjoy his or her property without unreasonable interference is liable under:
    A. government nuisance.
    B. public nuisance.
    C. defamatory tort.
    D. private nuisance.

 

36. A person who is guilty of the wrongful taking, detention, or illegal assumption of ownership has committed the tort of:
    A. libel.
    B. defamation.
    C. slander.
    D. conversion.

 

37. The law gives each person the right to own and use personal property without interference from others. When this right is denied or abridged by another, the wrongdoer is said to have committed the tort of:
    A. nuisance.
    B. conversion.
    C. libel.
    D. scandal.

 

38. A tort ­action for conversion is one way to help:
    A. award punitive damages.
    B. attach private property.
    C. replace the money or property.
    D. punish the wrongdoer.

 

39. A term that is used in cases involving the negligence of professionals is known as:
    A. false imprisonment.
    B. vis major.
    C. misfeasance.
    D. malpractice.

 

 

40. To avoid legal action either as an individual or as an employee, each person must exercise reasonable care and good judgment to avoid:
    A. causing injury to others.
    B. curtailing others’ rights.
    C. breaching duties.
    D. payment of compensation.

 

41. The failure to exercise the necessary care not to expose others to unreasonable risk of harm is the tort of:
    A. liability.
    B. defamation.
    C. negligence.
    D. misfeasance.

 

42. A completely fictitious individual who is assumed to have the “judgment and skill” one would expect from a person with the strengths and limitations of the person whose behavior is being judged shall have to be:
    A. a person with criminal background.
    B. a person with legal background.
    C. a person of ordinary prudence.
    D. a person with high IQ.

 

43. Contributory negligence is also known as:
    A. vicarious negligence.
    B. comparative fault.
    C. strict liability.
    D. contributory fault.

 

 

 

Short Answer Questions

44. Describe “defamation,” how it relates to libel and slander, and what constitutes a defamatory act.

 

 

 

 

45. Explain the kinds of actions that can be slanderous.

 

 

 

 

46. Explain the phrase “tort of conversion.”

 

 

 

 

47. The law gives everyone the right to enjoy his or her land without unreasonable interference from others. What tort would be applicable if that right is denied?

 

 

 

 

 

48. Describe the term “negligence” under the law of torts.

 

 

 

 

 

 

 

 

 

 

True / False Questions

1. (p. 54)A tort, in contrast to a crime, is a violation of the rights of an identifiable individual or business that has been wronged either intentionally or by negligence.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.1 Explain the nature of torts and identify some common torts.

2. (p. 54)The law of torts deals with duties imposed by contract and it is not concerned with the violation of private rights.
   FALSE

 

Bloom’s: Comprehension
Learning Outcomes: 4.1 Explain the nature of torts and identify some common torts.

3. (p. 54)The communication of a false statement that harms the reputation of a certain person is known as nuisance.
   FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 4.2 Describe defamation.

4. (p. 54)For an act to be considered defamatory, it is necessary to show that the defamatory statement was published.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.2 Describe defamation.

 

 

5. (p. 54)Libel is the spreading of damaging statements in written form—including pictures, cartoons, effigies, and defamation on radio, television, and Web sites.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

6. (p. 54)Slander is the spreading of damaging words or ideas about a person, directly or indirectly, in all other forms not considered libel.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

7. (p. 56)The threat of a libel suit by former employees who are unhappy with the references given by the former employer has gotten so serious that many firms refuse to respond to any inquiry about former workers—even those who have good records.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

8. (p. 58)There are no special privileges in making the defamatory statement to any person accused of defamation.
   FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 4.4 Explain the two common defenses to charges of defamation.

9. (p. 58)If a defamatory statement can be proved to be true, the person who claims that he or she was defamed cannot recover damages.
   TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.4 Explain the two common defenses to charges of defamation.

 

 

10. (p. 58)A public nuisance affects the community or the general public.
    TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.5 Define nuisance and the types of nuisance charges.

11. (p. 58)A person can be charged with creating a public nuisance by causing loud noises, creating foul odors, shining bright lights, or diverting a stream.
    FALSE

 

Bloom’s: Knowledge, Analysis
Learning Outcomes: 4.5 Define nuisance and the types of nuisance charges.

12. (p. 58)A nuisance entails the complete taking over of another’s property.
    FALSE

 

Bloom’s: Analysis
Learning Outcomes: 4.5 Define nuisance and the types of nuisance charges.

13. (p. 59)Conversion may not ­involve removal, damage, destruction, or unauthorized use of another person’s property.
    FALSE

 

Bloom’s: Knowledge, Comprehension
Learning Outcomes: 4.6 Describe conversion and explain its main purpose.

14. (p. 61)Vicarious negligence is the charging of a negligent act of one person onto another.
    TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.7 Define negligence and distinguish between the different types of negligence.

 

 

15. (p. 61)Under the doctrine of contributory negligence, injured parties are not prevented from recovering damages even if they were partly at fault.
    FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 4.7 Define negligence and distinguish between the different types of negligence.

16. (p. 61)Under the doctrine of comparative negligence, the injured parties bringing the lawsuit are prevented from recovering damages even if they are partly at fault.
    FALSE

 

Bloom’s: Knowledge
Learning Outcomes: 4.7 Define negligence and distinguish between the different types of negligence.

17. (p. 63)Under a doctrine known as strict liability, people may be liable for injuries to ­others whether or not they have done something wrong.
    TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.8 Explain the legal concept of liability and provide examples.

18. (p. 63)The term for this shifting of ­responsibility is vicarious liability, and it is related to vicarious negligence.
    TRUE

 

Bloom’s: Knowledge
Learning Outcomes: 4.8 Explain the legal concept of liability and provide examples.

 

 

 

Multiple Choice Questions

19. (p. 54)Defamation, nuisance, conversion, and negligence are various kinds of:
    A. common torts.
    B. grave criminal offences.
    C. trade jargons.
    D. commerce factors.

 

Bloom’s: Knowledge
Learning Outcomes: 4.1 Explain the nature of torts and identify some common torts.

20. (p. 54)To call someone a thief to the person’s face may amount to:
    A. defamation.
    B. insult.
    C. nuisance.
    D. negligence.

 

Bloom’s: Knowledge, Analysis
Learning Outcomes: 4.2 Describe defamation.

21. (p. 54)If actions cause harm by an insinuation that holds someone up to hatred, ridicule, or contempt, or lowers his or her esteem, respect, or social position, the person who made the insinuation can be charged with the tort of:
    A. libel.
    B. slander.
    C. defamation.
    D. false imprisonment.

 

Bloom’s: Knowledge, Comprehension
Learning Outcomes: 4.2 Describe defamation.

 

 

22. (p. 54)Defamation is a broad term that includes both:
    A. libel and slander.
    B. libel and conversion.
    C. nuisance and libel.
    D. grand and petty conversion.

 

Bloom’s: Knowledge
Learning Outcomes: 4.2 Describe defamation.

23. (p. 54)The most common form of slander involves:
    A. gestures and actions.
    B. pictures.
    C. spoken words.
    D. cartoons.

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

24. (p. 54)The tort of slander:
    A. is limited to spoken defamation.
    B. includes spoken words and gestures.
    C. is limited to words spoken in anger.
    D. is limited to written words.

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

25. (p. 54)The spreading of damaging statements in written form is known as:
    A. slander.
    B. libel.
    C. negligence.
    D. false imprisonment.

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

 

 

26. (p. 55)Apart from defamatory statements published in books, newspapers, magazines, and Web sites, the possibility of libel also exists in:
    A. speech.
    B. parasailing instruction manual.
    C. cookery guides.
    D. ­business and personal letters.

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

27. (p. 48)Most cases of slander involve thoughtless statements that affect another person’s:
    A. reputation.
    B. property.
    C. capital.
    D. nationality.

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

28. (p. 49)The tort of slander does not require:
    A. an indirect defamatory statement.
    B. a direct defamatory statement.
    C. a drawing, picture, or cartoon.
    D. a direct attack.

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

29. (p. 50)In conducting business, a firm and its owners have the right not to be subjected to:
    A. politically correct statements.
    B. truthful statements.
    C. false and malicious statements.
    D. acts of negligence.

 

Bloom’s: Knowledge, Analysis
Learning Outcomes: 4.3 Explain the differences between libel and slander.

 

 

30. (p. 50)The tort of trade libel is similar to:
    A. scandal.
    B. libel.
    C. vicarious liability.
    D. traditional defamation.

 

Bloom’s: Knowledge, Evaluate
Learning Outcomes: 4.3 Explain the differences between libel and slander.

31. (p. 50)The tort of trade libel deals with:
    A. an individual’s title to property.
    B. the quality of a firm’s research activities.
    C. spoken defamation of a company.
    D. written defamation relating to a firm’s employees.

 

Bloom’s: Knowledge
Learning Outcomes: 4.3 Explain the differences between libel and slander.

32. (p. 50)The common defenses to charges of defamation are:
    A. insanity and privilege.
    B. truth and falsehood.
    C. truth and privilege.
    D. privilege and falsehood.

 

Bloom’s: Knowledge
Learning Outcomes: 4.4 Explain the two common defenses to charges of defamation.

33. (p. 50)If the person accused of __________ had a special privilege, such as an attorney in a court proceeding who accuses a witness of lying, then the complainant person cannot recover damages:
    A. defamation.
    B. false imprisonment.
    C. vis major.
    D. negligence.

 

Bloom’s: Knowledge
Learning Outcomes: 4.4 Explain the two common defenses to charges of defamation.

 

 

34. (p. 50)If the person accused of defamation had a special privilege in making the defamatory statement, such as an attorney in a court proceeding, who accuses a witness of lying, the defamed person:
    A. cannot recover damages.
    B. can recover damages.
    C. can file a suit of defamation .
    D. can make defamatory statement against attorney.

 

Bloom’s: Knowledge
Learning Outcomes: 4.4 Explain the two common defenses to charges of defamation.

35. (p. 51)A person who acts in a way that denies another the right to enjoy his or her property without unreasonable interference is liable under:
    A. government nuisance.
    B. public nuisance.
    C. defamatory tort.
    D. private nuisance.

 

Bloom’s: Knowledge
Learning Outcomes: 4.5 Define nuisance and the types of nuisance charges.

36. (p. 51)A person who is guilty of the wrongful taking, detention, or illegal assumption of ownership has committed the tort of:
    A. libel.
    B. defamation.
    C. slander.
    D. conversion.

 

Bloom’s: Knowledge
Learning Outcomes: 4.6 Describe conversion and explain its main purpose.

 

 

37. (p. 51)The law gives each person the right to own and use personal property without interference from others. When this right is denied or abridged by another, the wrongdoer is said to have committed the tort of:
    A. nuisance.
    B. conversion.
    C. libel.
    D. scandal.

 

Bloom’s: Knowledge
Learning Outcomes: 4.6 Describe conversion and explain its main purpose.

38. (p. 51)A tort ­action for conversion is one way to help:
    A. award punitive damages.
    B. attach private property.
    C. replace the money or property.
    D. punish the wrongdoer.

 

Bloom’s: Knowledge, Comprehension
Learning Outcomes: 4.6 Describe conversion and explain its main purpose.

39. (p. 52)A term that is used in cases involving the negligence of professionals is known as:
    A. false imprisonment.
    B. vis major.
    C. misfeasance.
    D. malpractice.

 

Bloom’s: Knowledge, Comprehension
Learning Outcomes: 4.7 Define negligence and distinguish between the different types of negligence.

 

 

40. (p. 52)To avoid legal action either as an individual or as an employee, each person must exercise reasonable care and good judgment to avoid:
    A. causing injury to others.
    B. curtailing others’ rights.
    C. breaching duties.
    D. payment of compensation.

 

Bloom’s: Knowledge
Learning Outcomes: 4.7 Define negligence and distinguish between the different types of negligence.

41. (p. 52)The failure to exercise the necessary care not to expose others to unreasonable risk of harm is the tort of:
    A. liability.
    B. defamation.
    C. negligence.
    D. misfeasance.

 

Bloom’s: Knowledge
Learning Outcomes: 4.7 Define negligence and distinguish between the different types of negligence.

42. (p. 53)A completely fictitious individual who is assumed to have the “judgment and skill” one would expect from a person with the strengths and limitations of the person whose behavior is being judged shall have to be:
    A. a person with criminal background.
    B. a person with legal background.
    C. a person of ordinary prudence.
    D. a person with high IQ.

 

Bloom’s: Knowledge
Learning Outcomes: 4.7 Define negligence and distinguish between the different types of negligence.

 

 

43. (p. 53-54)Contributory negligence is also known as:
    A. vicarious negligence.
    B. comparative fault.
    C. strict liability.
    D. contributory fault.

 

Bloom’s: Knowledge
Learning Outcomes: 4.7 Define negligence and distinguish between the different types of negligence.

 

Short Answer Questions

44. (p. 46)Describe “defamation,” how it relates to libel and slander, and what constitutes a defamatory act.

Defamation is the harming of a person’s reputation and good name by the communication of a false statement. For an act to be considered defamatory, it is necessary to show that the statement was made in such a way that others could hear or read it. Defamation may be further categorized into libel and slander. Libel is the written form, while slander is all other forms not considered libel.

 

Bloom’s: Comprehension
Learning Outcomes: 4.2 Describe defamation.

45. (p. 56-57)Explain the kinds of actions that can be slanderous.

If actions cause harm by an insinuation that holds a person up to hatred, ridicule, or contempt, or lowers a person’s esteem, respect, or social position, he can be charged with the tort of slander.

 

Bloom’s: Knowledge, Comprehension
Learning Outcomes: 4.3 Explain the differences between libel and slander.

 

 

46. (p. 51)Explain the phrase “tort of conversion.”

The law gives each person the right to own and use personal property without interference from others. When this right is denied or abridged by another, the wrongdoer is said to have committed the tort of conversion. Conversion may ­involve removal, damage, destruction, or unauthorized use of another person’s ­property. A lawsuit charging a person with conversion provides the victim with the means of collecting money damages from that person.

 

Bloom’s: Comprehension
Learning Outcomes: 4.6 Describe conversion and explain its main purpose.

47. (p. 51)The law gives everyone the right to enjoy his or her land without unreasonable interference from others. What tort would be applicable if that right is denied?

The law gives each person the right to own and use personal property without interference from others. When this right is denied or abridged by another, the wrongdoer is said to have committed the tort of conversion.

 

Bloom’s: Knowledge
Learning Outcomes: 4.6 Describe conversion and explain its main purpose.

48. (p. 52-53)Describe the term “negligence” under the law of torts.

The tort of negligence is the failure to exercise reasonable care necessary to protect others from risk of harm. There are three kinds of negligence. They are vicarious negligence, comparative negligence and contributory negligence.

 

Bloom’s: Comprehension
Learning Outcomes: 4.7 Define negligence and distinguish between the different types of negligence.