Final Flashcards by Denisse Corral

5 Elements of Negligence

did the defendant owe plaintiff a duty of due care?
did the defendant breach this duty of due care?
did the defendant’s breach of the duty of due care cause the plaintiff harm?
was result of defendant’s breach so remote/bizarre/ unforseable/unusual/ it would be unfair to hold him or her liable
was the plaintiff actually injured in some way?

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If a crime does not injure an identifiable person, it is not a tort

TRUE

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A victim of a tort may sue- and recover damages- in a criminal case against the tortfeasor

FALSE

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Strict liability only applies to extreme negligence - not “garden variety” negligence

FALSE

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Careless actions that result in injuries to others are always crimes - not only torts

FALSE

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Motive is an element of tort liability

FALSE

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Motive is an element of criminal liability

FALSE

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Motive

the overall goal that prompts a person’s actions

not an element of a crime or tort

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Intent

involves an express or implied desired to perform a particular act

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3 major categories for Strict Liability

Animals

Abnormally Dangerous Activities

Products Liability

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The same act can - but only rarely - be both a crime and tort

FALSE

Many actions that constitute torts also constitute crimes, and most crimes involve tortious acts

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The same act can be both a breach of contract and a tort

TRUE

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The tort of invasion of privacy is always defined as appropriation of another’s name or likeness

FALSE

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Professionals have a duty to perform their functions at the same level as would a reasonable person

FALSE

as reasonable professional practicing the same profession

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Negligence can be proven w/o showing showing an actual injury

FALSE

injury is the 5th element of negligence

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Truth is not a defense to defamation

FALSE

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The criminal law of all states is the same b/c all states have adopted a uniform criminal code

FALSE

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Since a corporation is not a human being ( and thus cannot be sentenced to to prison) it cannot be convicted

FALSE

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For business related crimes, managers cannot be criminally responsible for the conduct of their employees

FALSE

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For an act to be deemed criminal, it is necessary that some person be named

FALSE

there are victimless crimes

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Bribery

illegal payments or offers to pay, whether money, property, or services, to a political campaign, to government officials, or to other persons such a the employees of a competing firm, for the purpose of receiving favorable treatment, proprietary information, or other assistance that the briber either is not entitled to receive or - at the very least- cannot lawfully receive by the method chosen (kickbacks or payoffs)

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Bribery requires the use of violence or the threat of violence

FALSE

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White-collar crimes, typically, involve violence or the threat of violence

FALSE

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Due process rights apply only to individuals - not artificial beings, such as corporations

FALSE

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Appellate court - not trial court judges - establish and define crimes and specify their punishment

FALSE

Felonies consist of only federal crimes - serious federal crimes

FALSE

Perjury occurs only in court (federal or state)

FALSE perjury is the act of a person deliberately making material false or misleading statements while under oath

Comparative negligence has been rejected by most states

FALSE

The degree of care required of a person is that which an extraordinary person would exercise under similar circumstances

FALSE

The concept of immunity from liability means that certain persons are not subject to tort liability

TRUE

The widest range of tort liability arises in the area of negligence

TRUE

Defamation of a public figure requires the additional element of ?

malice

Delores strikes Betty but not purposefully. Betty should sue Delores for?

negligence

Regarding torts and crimes

every crime is a tort

Commercial exploitation can be a type of invasion of privacy

TRUE

For tort liability to be imposed, the tortfeasor must have acted w/the intent to do wrong

FALSE

Which statement is correct? a. If the defendant is found guilty, he he/she may appeal. b. If the defendant is found not guilty, the government can appeal C. If the jury cannot arrive at a unanimous decision about the defendant's guilt/innocence, the jury (in the great majority of U.S. legal systems) is considered a "hung jury" and the trial judge must order the jury to continue its deliberations until it reaches a unanimous decision. d. For jury trials, every state judicial system requires a unanimous vote for a conviction. e. None of the above.

a. If the defendant is found guilty, he he/she may appeal.

Which statement is correct? a. A person charged with any crime in any jurisdiction (state/territory) is presumed guilty until proven innocent. b. The government has the burden of proving that the accused (the defendant) is guilty of the crime charged. c. The defendant - to be convicted - must be found guilty by "clear and convincing evidence." d. None of the above. e. B and c.

b. The government has the burden of proving that the accused (the defendant) is guilty of the crime charged.

A plea of nolo contendere (no contest) means that the accused agrees to the imposition of a penalty but does not admit guilt.

TRUE

There is no such thing as criminal negligence

FALSE IE; MICHAEL JACKSON'S DOCTOR

Criminal laws: a. Vary from state to state. b. Are the same from state to state. c. Are the same from state to state, except for white collar crimes. d. Are the same from state to state, except for violent crimes. e. none of the above

a. Vary from state to state.

A person can be guilty of a crime even if her attempt to commit a crime was unsuccessful or incomplete.

TRUE

For an act to be a crime, it is necessary that some person be harmed.

FALSE

"Mental state" does not require an awareness of guilt.

TRUE

Regarding business crimes, managers/supervisors cannot be held criminally responsible for the conduct of their employees.

FALSE

An innocent person convicted of a crime is always able to obtain compensation for the injustice he/she suffered.

FALSE

Crimes are defined - and their punishments (maximums and minimums) - are specified by: a. Trial court judges. b. Appellate court judges. c. The United State Constitution. d. The U.S. Constitution and state constitutions. e. None of the above.

e. None of the above.

A public official, appointed/elected to represent the state in criminal cases in a particular judicial district: a. District attorney. b. City attorney. c. United States attorney. d. Solicitor General

a. District attorney.

A serious crime, usually punishable by imprisonment for more than one year or by death: a. Infraction b. Felony c. Misdemeanor d. None of the above.

b. Felony

Which of the following is true? a. Felonies are less serious than misdemeanors. b. Felonies involve violent crimes only. c. Felonies are federal crimes only. d. A defendant charged with a felony has the right to a preliminary hearing or grand jury. e. None of the above.

d. A defendant charged with a felony has the right to a preliminary hearing or grand jury.

Which statement is incorrect? a. Some states do not let a criminal defendant refuse to take the stand. b. Some states protect criminal defendants against self-incrimination, but allow the judge or jury to draw an adverse inference from a defendant's decision not to take the stand. c. In the U.S. - under the federal judicial system and all state judicial systems - a criminal defendant does not have to take the stand and no adverse inference is permitted. d. A-b are both incorrect. e. A-c are all incorrect.

d. A-b are both incorrect.

Daniel Dipstick is hurrying to catch a plane at SFO. And drives his car at 60 mph through a stop sign. He did not intend to hurt anyone by his reckless driving., Nevertheless, he struck a pedestrian, knocking her 50 feet in the air and killing her. Which statement is correct? a. Dipstick is guilty of attempted murder. b. Dipstick is guilty of murder. c. Dipstick is guilty of manslaughter. d. None of the above.

c. Dipstick is guilty of manslaughter.

The provision found in the Fifth Amendment to the U.S. Constitution which bars an individual from being criminally prosecuted/sentenced twice for substantially the same offense: a. Due process clause b. Ex post-facto clause c. Retroactive clause d. Double jeopardy clause

d. Double jeopardy clause

A crime can be committed only if ________ of its elements have been fulfilled. a. all b. a majority c. the most significant d. None of the above

a. all

To be a crime, the act must _________ be accompanied by a criminal intent. a. always b. usually c. occasionally d. None of the above

b. usually

_________ judge may formulate/introduce a new crime if he/she believes a new crime is essential to convict the defendant and in his/her estimation the defendant deserves to be convicted of some crime.: a. No b. A trial c. Only an appellate court d. None of the above

a. No

In class, Zuckerman discussed how his ex- real-life attorney was convicted of burglary. Burglary is a general intent crime.

FALSE

As respects Zuckerman's ex-attorney, Zuckerman explained that administrative agencies always/almost always treat felonies as "moral turpitude offenses" but never/almost never view misdemeanors as moral turpitude offenses.

FALSE

Miranda warnings include the following: a. You have the right to remain silent. b. Any statement you make may be used as evidence against you. c. You have the right to an attorney present during any questioning. d. If you cannot afford to hire an attorney, the court will appoint one for you, if you so desire, before any questioning. e. All of the above.

e. All of the above

Miranda warnings pertain only to federal criminal cases - not state criminal cases.

FALSE

Linda a Hayward police officer, conducted an unconstitutional search of Zuckerman's (she needed a search warrant but did not obtain one). During her search, she found a key to a locker at the Amtrak train station in Emeryville. Inside that locker was evidence that Zuckerman was part of a notorious East Bay gang that sells illegal drugs throughout Alameda and Contra Costa counties. Based only on these facts, that evidence would be excluded in Zuckerman's trial. a. True b. False c. Dude, I need more information

a. True

A person who is declared legally insane cannot be criminally responsible.

TRUE

Generally (not always), a police officer cannot arrest someone without a warrant.

FALSE

What is a correct statement about the plea of nolo contendere? a. It is Latin for "no contest.' b. It is an implied confession of guilt. c. The court (trial judge) will treat it as the equivalent of a guilty plea. d. It leaves the defendant free to deny his/her guilt at any subsequent civil proceedings. e. All of the above.

e. All of the above.

If a defendant pleads guilty at his/her arraignment, is he or she still entitled to a preliminary hearing/grand jury? a. Yes, but only if he/she plead guilty to a felony. b. Yes, period. c. No. d. Dude, I need more information.

c. No

Which of the following is definitely a felony? a. Reckless driving. b. Disturbing the peace. c. Robbery. d. Burglary. e. None of the above.

c. Robbery.

What is a correct statement about negligence? a. As the criminal act must be accompanied by criminal intent, there is no such thing as criminal negligence. b. Negligence is a concept more frequently used in civil cases than in criminal cases. c. In criminal law., negligence or recklessness is equivalent to a general criminal intent. d. B and c are both correct.

D. B and c are both correct.

Bribery requires the use of violence or threatened violence

FALSE

An act that constitutes a felony in one state will necessarily be a felony in all other states.

FALSE

Which statement about proof of motive is correct? a. It is unimportant when the defendant's guilt is clearly established. b. It may be relevant when the defendant's guilt is not clearly established. c. The existence of motive tends to prove guilt. d. The absence of proof a motive indicates innocence. e. All of the above.

e. All of the above.

A specific criminal intent is an element of some - but not most - crimes

TRUE

Can an officer or director of a corporation go to prison for a crime that the corporation commits even though he/she was not convicted?

Plea bargains are binding on the court. That is, a trial judge does not have the power to "bust" a plea bargain

FALSE

Jury trials are available for all felony cases, but almost never available to defendants charged only with misdemeanors

FALSE

The prosecutor - not the defendant - decides whether there will be a jury.

FALSE

___________ is a screening device to prevent hasty, malicious and oppressive prosecutions. a. A preliminary hearing. b. A grand jury. c. An arraignment d. All of the above e. A and b

e. A and b

The right against double jeopardy is guaranteed in federal - but not state - courts

FALSE ITS BOTH

Zuckerman, a crooked bank teller, steals cash that bank customers deposited. This is robbery

FALSE THIS IS EMBESSLEMENT

Manslaughter is the unlawful killing of a human being with malice.

FALSE THIS IS MURDER

Robbery is the taking of personal property from another person's home, office, commercial building or other structure after entering the building/structure without authority

FALSE THIS IS BURGLARY

"White collar" crimes, typically, involve cunning and deceit - not physical force.

TRUE

Burglary is defined as the taking of personal property from another by use of force or fear of force.

FALSE THIS IS ROBBERY

Actus reus refers to "evil intent" - the possession of the required state of mind to commit a crime.

FALSE

The crime of bribery can involve: a. Money b. Property c. Favors d. Anything of value

d. Anything of value

50. Nadine Nogoodnik is the purchasing agent for ABC, Inc. It is her job to buy all of the equipment that ABC needs to manufacture is widgets. Lester Larcenous is a sales representative for a company that makes certain equipment that ABC can use to manufacture its widgets. Lester offers to pay Nadine a 10% "kickback" if she buys equipment from him. Nadine accepts the offer and orders the equipment. Which statement is correct? a. Nadine is guilty of bribery, but not Lester. b. Lester is guilty of bribery but not Nadine. c. Both Lester and Nadine are guilty of bribery. d. None of the above.

c. Both Lester and Nadine are guilty of bribery.

51. Ain many criminal cases, the government enters into a plea- bargaining agreement with the defendant. The government does this for the following reason(s): a. Avoid the risks of trial. b. Save $$$ c. Prevent further overcrowding of prisons d. All of the above

?????

As you know, pop icon, Michel Jackson died in June 2009, from a massive overdose of the general anesthetic, propofol. Subsequently, Jackson's physician, Dr. Conrad Murray was charged with - and convicted of - what crime? a. First degree murder. b. Second degree murder. c. Voluntary manslaughter. d. Involuntary manslaughter.

d. Involuntary manslaughter.

In the famous case of R v. Dudley and Stephens (often called "cannibalism on the high seas"), the defendants asserted the following defense: a. Self-defense b. Duress c. Necessity d. None of the above

c. Necessity

54. Harry buys oxycodone from a dealer named "Grandpa" after a prescription for the drug he'd been given to treat knee pain ran out and his treating physician would not renew it. He bought the drugs on credit as he was unemployed and did not have the $150. To pat Grandpa. A few weeks later, Grandpa and his thug associates started coming by to demand the $150. Harry was so scared that he and his mother (Harry lived with his mom) moved from the apartment in which they were living. Just a few days later, however, Grandpa and his crew appeared outside Harry's new apartment. They forced Harry into their car, where (according to Harry) one of Grandpa's associated told him that he was either going to pay up that night or "get beaten so bad" his mother wouldn't recognize him. Then according to Harry, Grandpa gave him a phony prescription for oxycodone with Harry's name on it and told Harry that he (Harry) was going to go to the downtown Hayward CVC store and fill the prescription to clear his debt. Harry said that two of Grandpa's thugs went into the CVC store with him to make certain that he filled the prescription. Later, the Hayward police arrested Harry and he was subsequently charged with trafficking in oxycodone and obtaining a prescription by fraud. You are Harry's defense counsel. What defense are you going to assert? a. Self-defense b. Necessity c. Duress d. Entrapment e. None of the above

????//

Albert, 72, lived alone in a single- family house. He was a semi-retired handyman and was extremely upset that some expensive tools had been stolen from his garage. Thus, he mounted a .22 caliber pistol in his garage. The pistol was aimed at the center of the garage door and was set to discharge if the door was opened several inches. One day, two high school punks, ages 15 and 16, tried to break into Albert's garage. Upon opening the door, the 16-year old was shot in the face by the gun. He survived - barely. Now, the Alameda County DA is prosecuting Albert for assault with a deadly weapon. You are Albert's attorney. What is Albert's defense? a. Self-defense. b. Duress c. Necessity d. Entrapment Should Albert be convicted?

a. Self-defense.

Roxanne was a single-mother - she had a baby daughter, Deanna. Roxanne's new boyfriend (not Deanna's father) was Horace. Horace moved in with Roxanne and Deanna (when Deanna was just 10-months old) in their Hayward home. One day, Horace volunteered to watch Deanna while Roxanne went to work. When Roxanne returned, Deanna was screaming and seriously burned on her bottom and side. Horace said he gave her a bath, but the water suddenly got too hot. Three months later, Deanna arm broke when Horace tried to pull her from Roxanne's arms. Then a month later, Deanna received a black eye while in Horace's care. And a few weeks after that, Horace screamed in Deanna's face when she was crying. About six months later, Deanna died from severe beating and shaking injuries suffered while in Horace's care. The medical examination revealed that Deanna also had preexisting injuries from other incidents of abuse. Prosecutors charged Horace with murder. Additionally, they charged Roxanne with felony child endangerment. The prosecution's case against Roxanne will fail as there is no proof that Roxanne had any criminal intent. T/F

FALSE

Proof of motive is essential to a conviction. That is, an element of every crime

FALSE

Proof of motive is essential to a conviction. That is, an element of every crime

FALSE

Matthew Stafford, a famous American football player, discovered that his picture was appearing on billboards throughout the states of Florida, Georgia, South Carolina, North Carolina, and Alabama endorsing a big food company’s new energy bar. The food company had not received Stafford's permission for use of either his picture or his endorsement. a. Stafford can successfully sue the food company for defamation. b. Stafford can successfully sue the food company for invasion of privacy. c. Stafford can successfully sue the food company for breach of contract. d. The food company committed a crime and a tort.

b. Stafford can successfully sue the food company for invasion of privacy.

Abel, an instructor at CSUEB, unknown to his department chairperson or to anyone else at CSUEB, was under the care of Dr. I.M. Cain, a Hayward psychiatrist, for certain mental issues that did not – in any possible way – interfere with his job. At a CSUEB social function – to which Dr.Cain was invited – Dr. Cain discussed Abel’s psychotherapy sessions with some of Abel’s colleagues, including his department chairperson. As Abel was – in no way – a threat to anybody, Dr. Cain had no need to warn anybody about him. Nevertheless, as a result of Dr. Cain's disclosure about Abel’s mental condition to his chairperson and other colleagues, Abel lost his job. a. Abel can successfully sue Dr. Cain for defamation. b. Abe can successfully sue Dr. Cain for invasion of privacy. c. Abel can successfully successfully sue Dr. Cain for invasion of privacy and malpractice (professional negligence). d. Abel can successfully sue Dr. Cain for invasion of privacy, malpractice (professional negligence), and breach of contract. e. None of the above.

d. Abel can successfully sue Dr. Cain for invasion of privacy, malpractice (professional negligence), and breach of contract.

Nancy Nogoodnik was criminally charged by the state of California and convicted of robbery. She had attacked and badly beaten – after taking $1,000 from the store’s cash register – a 7-11 store clerk in San Leandro. a. In addition to the conviction, the 7-11 clerk can sue Nancy for assault and battery. b. After being convicted, Nancy cannot be sued for the same offense (this would be “double jeopardy”). c. Need more information, dude.

a. In addition to the conviction, the 7-11 clerk can sue Nancy for assault and battery.

______________________ deals with private wrongs and affects individuals – not society as a whole. a. Criminal law b. Tort law c. Criminal law and tort law d. Need more information, dude.

b. Tort law

At the start of his Legal Environment of Business class, Zuckerman asked Ms. Hudson to remain after class to discuss her terrible attendance record. However, at the end of the class, Hudson refused to stay as she had another class across campus that was beginning in 10 minutes. Zuckerman responded by blocking the exit so that Hudson was unable to leave as she wanted to do. a. Hudson may claim false arrest. b. Hudson may claim false imprisonment. c. Hudson may claim false imprisonment and false arrest. d. Hudson may claim false imprisonment, false arrest and defamation.

b. Hudson may claim false imprisonment.

Jennifer, a waitress at a Denny’s coffee shop, had the misfortune of waiting on Zuckerman, a very rude customer. Finally, after having endured a number of impolite comments, Jennifer said to Zuckerman, “Okay, jerkface, I’ve had enough – unless you leave right now, I’m going to throw this cup of coffee in your face!” Zuckerman refused to leave, and Jennifer made good on her threat – she threw Zuckerman's cup of coffee in his face. a. Jennifer is liable to Zuckerman for assault. b. Jennifer is liable to Zuckerman for battery. c. Jennifer is liable to Zuckerman for assault and battery. d. If any third person (i.e. customer, other Denny’s employee, etc.) heard Jennifer call Zuckerman “jerkface,” Jennifer would also be liable to Zuckerman for defamation. e. Zuckerman will have a choice – either press criminal charges against Jennifer, or sue her for tort damages. He cannot do both.

c. Jennifer is liable to Zuckerman for assault and battery.

Same scenario as #6, above. Zuckerman wants to sue Denny’s. a. Zuckerman is out of luck. Denny’s will definitely not be liable. b. Zuckerman will be successful. This is a classic case of respondeat superior. c. Unless Denny's manager/s told Jennifer to act as she did, Denny’s will not be liable to Zuckerman. d. Dude, I need more information.

d. Dude, I need more information

Jim is an employee of the Hayward Bakery Co. His car is in the shop for repairs and body work (he recently was involved in an accident). In the meantime, Jim has permission to drive one of the company’s delivery trucks – Jim’s boss, Dave, said, “No biggie, Jim, until your car is repaired, you can use the company’s truck to go to and from work.” However, one night after work, Jim, decided that he wanted to see the Oakland A’s play against the Baltimore Orioles at the O. Co. Coliseum. On the way to the baseball stadium, Jim stopped at a bar, and became drunk. Then, once on the road headed to the ballpark), Jim drove too fast for the existing road conditions, and the company truck collided with another car – tragically, the other motorist was killed. Now, the other motorist’s widow and two children are suing Jim and his employer for wrongful death. Lastly, until this terrible accident, Jim had a perfect driving record. a. Jim will be liable in tort, but not his employer. b. Jim and his employer will both be liable in tort. . c. Jim will be liable – both in tort and criminally – as will his employer. d. Jim will be liable (in tort and criminally), but his employer will only be liable in tort (not criminally).

a. Jim will be liable in tort, but not his employer. or d. Jim will be liable (in tort and criminally), but his employer will only be liable in tort (not criminally).

Zuckerman, an alcoholic, down on his luck attorney, owes thousands of dollars to various credit card companies. One particular collection agency, “Rat Dog Collections,” has been calling Zuckerman every night – until midnight – at his home. Their collection specialists call Zuckerman names, such as “deadbeat” and “parasite.” They also threaten Zuckerman by saying, “You will lose your job if you don’t pay up.” This type of conduct by Rat Dog collection specialists has caused Zuckerman tremendous anguish and worry. a. Zuckerman has a cause of action for defamation against Rat Dog. b. Zuckerman has a cause of action for the intentional infliction of emotional distress. c. Zuckerman has no valid cause of action against Rat Dog. d. Zuckerman has a cause of action for invasion of privacy against Rat Dog. e. Zuckerman can successfully sue Rat Dog for defamation, invasion of privacy, and the intentional infliction of emotional distress.

b. Zuckerman has a cause of action for the intentional infliction of emotional distress.

Ted is an in-house accountant for Superior Widget Company. Louella Parsons, Superior’s CEO, in an attempt to make the company’s financial statements look better, has instructed Ted to falsely boost sales figures. This little trick made it look as if the company was actually making money – in fact, it was losing money. a. Ted is liable for civil fraud, but not criminal fraud. b. Ted is not liable, either civilly or criminally, as he was just following his boss’s orders. c. Ted is liable for both civil and criminal fraud. d. Ted is liable for both civil and criminal fraud, and – if his wrongdoing is discovered by third parties – will, in all probability, lose his CPA license.

d. Ted is liable for both civil and criminal fraud, and – if his wrongdoing is discovered by third parties – will, in all probability, lose his CPA license.

Assumption of the risk is a defense against people who voluntarily expose themselves to a risk of harm, suffer an injury, and then sue.

TRUE

A group of CSUEB students decided to hold a picnic and swimming pool party at the Hayward Hills home of Bob Bigbucks, who was on vacation. They had a great time – just one problem: They never asked for Bigbucks’s permission. a. The students committed a nuisance. b. The students committed a trespass. c. Bigbucks can sue the students for conversion. d. The students can be found liable for both civil and criminal trespass.

d. The students can be found liable for both civil and criminal trespass.

A trade secret consists of any information (financial, scientific, technical, etc.), technique, formula/method/process that is used in business and that provides this business an advantage that its competitor(s) do not know about. Please select from the choices below the ways in which a trade secret may be improperly acquired. a. Industrial espionage (i.e. spying, electronic surveillance). b. Bribery. c. Fraud. d. Interception of communications. e. All of the above.

e. All of the above.

Betty, a single mother of two small children (ages 9 and 11), is a grammar school teacher. To earn more money, Betty teaches music – including the drums – in a small, makeshift music studio in her garage, between the hours of 7 pm and 11 pm. However, the loud noises from the garage are disturbing Betty’s neighbors. a. Betty’s neighbors appear to have a valid cause of action for nuisance against Betty. b. Betty’s neighbors appear to have a valid cause of action for trespass against Betty. c. Betty’s neighbors appear to have valid causes of action for nuisance and trespass against Betty. d. Betty’s neighbors appear to have valid causes of action for nuisance, trespass, and intentional infliction of emotional distress against Betty.

a. Betty’s neighbors appear to have a valid cause of action for nuisance against Betty.

A wrongful death lawsuit can only be based on an intentional act – never a negligent act.

FALSE

In almost all states, the harsh and unfair rules of comparative negligence have been replaced by contributory negligence.

FALSE

17. . Lester, a CSUEB professor, suffered a sudden, massive heart attack behind the wheel of his car and, as a result, lost control of his car. Tragically, Lester’s car struck two young brothers, 11 and 9, as they were crossing an intersection – Lester’s car went through a red light – the two boys were in a pedestrian crosswalk and they had the right of way. Assume Lester reasonably believed that he was in perfect health, and that immediately before the heart attack, Lester was driving under the speed limit, and, in no way, was operating his car negligently. a. Lester is liable for wrongful death based on negligence. b. Lester is strictly liable for the tragedy. c. Lester’s lack of knowledge regarding his poor health will constitute a defense in any criminal proceeding, but will be help him in a civil action. d. Lester appears not to be liable – either civilly (tort) or criminally – for this tragedy.

d. Lester appears not to be liable – either civilly (tort) or criminally – for this tragedy.

Compensatory damages are to punish – and make an example of – the defendant. a. True b. False c. Dude, it depends.

b. False

Dexter was the office manager for a group of five orthopedic surgeons. In 2016, he developed a gambling addiction, and became heavily in debt. Increasingly desperate, he falsified patient records and took money from the physicians’ accounts to pay his debts. What type of theft offense did Dexter commit? a. Larceny b. Shoplifting c. Embezzlement d. False pretenses

c. Embezzlement

Let’s pretend the following facts: Suppose (a) the San Francisco Giants baseball club had a famous pitcher named Warren Spahn; (b) a writer named Ted Jones wrote a biography of Spahn that was aimed at children; and (c) the biography made Spahn out to be a war hero by falsely claiming that he had earned the Bronze Star while he was stationed in Afghanistan. Assume that Spahn is very upset because though he is proud of his military service, he did not earn the Bronze Star and does not want anybody to think he was a hero when he was not. What cause of action should Spahn claim against the author and publisher of his biography? a. Defamation b. Intentional infliction of emotional distress c. Invasion of privacy – public disclosure of private facts d. Invasion of privacy – false light e. Invasion of privacy – intruding upon a person’s right to be left alone

d. Invasion of privacy – false light

Through deception, a magazine entitled Hustler, which is devoted to the publication of lewd pictures of women and to sexual exploitation, obtained a picture of an entertainer, Jeannie Braun, who performed an amusement park act with a swimming pig. The picture showed Ms. Braun with her pig in a swimming pool, with the caption: [required] What would be the most appropriate cause of action for Ms. Braun to assert against Hustler? a. Defamation b. Invasion of privacy – false light c. Intentional infliction of emotional distress d. Intentional infliction of emotional distress – public disclosure of private facts

b. Invasion of privacy – false light

crime = A private wrong against an individual tort = A public wrong against society

FALSE

crime = The plaintiff is the prosecution (either the state or federal government). (The offended person is usually a witness against the defendant). tort = Plaintiff is , typically, an individual or business..

TRUE

crime = Mostly, case law (aka “common law”). tort = Mostly, common law”.

FALSE

crime = Burden of proof for plaintiff (prosecutor) is beyond a reasonable doubt. tort = Plaintiff’s burden of proof is, generally, a preponderance of the evidence.

TRUE

crime = Consent is rarely a defense. tort = Consent is usually a defense.

TRUE

crime = No damages are necessary. tort = Damages must be proven.

TRUE

crime = Basis for criminal guilt: Generally, an intentional act, but sometimes recklessness (gross negligence) and, in rare cases, strict liability. tort = Basis for tort liability: An intentional act, negligence, or strict liability.

TRUE

How does the Cardozo approach to negligence differ from the Andrews approach to negligence? a. Cardozo and Andrews disagreed on whether the plaintiff had to prove that he/she was really injured (suffered damages). b. Under Cardozo’s approach, the defendant owed a duty of due care to the plaintiff only if – at the time of the defendant’s act/omission – the plaintiff was in a “zone of danger.” That is, a duty of due care was owed only if a reasonable person in the defendant’s position would have foreseen that the plaintiff could have been injured by the defendant’s act/omission. In contrast, under Andrews’ approach, the defendant always owed a duty of due care to the plaintiff because all men owe one another a duty not to act negligently. c. Courts that follow the Cardozo approach exercise greater control in negligence cases than do courts that follow the Andrews approach: In Cardozo cases, the courts (judges) decide whether or not the defendant owed the plaintiff a duty of due care. That is, if the court rules that the defendant did not owe the plaintiff a duty of due care, the plaintiff will lose his/her negligence case even before having a chance to present it to the jury. d. The great majority of states follow the Cardozo approach to negligence. e. (b) – (d)

e. (b) – (d)

False Imprisonment

"a restraint of a person in a bounded area w/o justification or consent" this can be both a tort and a crime

If an agent makes a properly authorized contract with a third person (that is, the agent is not exceeding his/her authority by making the contract) on behalf of a disclosed principal, the agent has no personal liability on the contract (the third-party cannot successfully sue the agent if the principal breaches the contract).

TRUE

If an agent’s tort causes loss to a third person, that third person (the tort victim) can hold the agent liable for the loss.

TRUE

A principal directs and controls the performance of an independent contractor’s work. That is, the principal does not merely tell the independent contractor what he wants done. Instead, he/she dictates how he/she wants the work done

FALSE

A person may select as an agent: a) A minor b) A citizen of a foreign country (alien) c) A corporation d) An LLC (limited liability company) e) All of the above

e) All of the above

When an agent is authorized to transact all activities in a particular business, that agent is: a) An omnibus agent b) A general agent c) A perfected agent d) A special agent e) A secret agent

b) A general agent

Typically (not always) an agency is created by: a) Express authorization b) Conduct c) Operation of law d) Ratification

a) Express authorization

A principal may ratify an agent’s unauthorized contract.

TRUE

A party working for and under the control of another and authorized to enter into contracts for that other person/entity is called an: a) Attorney b) Independent contractor c) Agent d) Employee e) None of the above

c) Agent

An agent acting under a power of attorney is called a(n): a) Imposter b) Gritter c) Broker d) Attorney-in-fact e) Person of interest

d) Attorney-in-fact

Which of the following is correct? a) An agent has the power to contract on a principal’s behalf. b) Most employees do not have the power to contract on behalf of an employer. c) An independent contractor controls the way he/she performs his/her work. d) All of the above (A through C are all correct statements) e) None of the above (A -D are all incorrect statements)

d) All of the above (A through C are all correct statements)

The term apparent authority is used when there is: a) no interaction between the principal and third persons. b) Actual authority. c) Only the appearance of authority and the principal created that appearance. d) Only the appearance of authority and the agent created that appearance

c) Only the appearance of authority and the principal created that appearance.

An agent is under a duty to obey: a) Any instructions given by the principal. b) All lawful instructions given by the principal. c) Only those lawful instructions which the agent believes are correct. d) None of the above.

b) All lawful instructions given by the principal.

An agent breaches his/her duty of loyalty to the principal by: a) Accepting a secret gift from a third person in connection with that agency. b) Acting as an agent for both parties in a transaction without disclosure. c) Aiding a principal’s competitors. d) All of the above.

d) All of the above.

When the principal’s words/conduct leads a third person to reasonably believe that a person is authorized to act as his/her agent but this is not true, and the third person relies on that appearance, this creates a cause of: a) Express authority b) Incidental authority c) Customary authority d) Apparent authority e) No authority

d) Apparent authority

A third person dealing with an agent should determine/verify the extent of the agent’s authority by: a) Contacting law enforcement b) Contacting the Better Business Bureau c) Asking the agent d) Asking the principal e) Contacting an impartial/neutral individual who has had business transactions with both the agent and the principal

d) Asking the principal

If an agent conceals a material fact, the principal’s ratification that is made in ignorance of such concealment is: a) Binding b) Not binding c) Binding but only for the known facts d) None of the above

b) Not binding

A third person may sue the agent or principal when both are liable a) But, the third person may sue just one at a time. b) But, the third person must sue the agent first. c) But, the third person must sue the principal first d) None of the above

d) None of the above

Who is not liable for torts? a) The employer of an employee who commits a tort in the scope of the work for that employer. b) The principal of an agent who commits a tort in the scope of his/her work for the principal. c) A property owner when the tort is committed by an independent contractor (hired to work on the property) during his work for the property owner. d) The principal when the principal commits a tort outside the scope of the agent’s work.

c) A property owner when the tort is committed by an independent contractor (hired to work on the property) during his work for the property owner.

When an employee commits a tort or crime: a) The principal is always vicariously (look up the meaning of this word) liable. b) The principal is never vicariously liable. c) Vicarious liability cannot be imposed on the employer because an employee is not an agent. d) Vicarious liability could be imposed on the employee if the act was committed within the course and scope of his/her employment.

d) Vicarious liability could be imposed on the employee if the act was committed within the course and scope of his/her employment.

A restaurant promises delivery in 30 minutes “or your next order is free.” If a delivery person hits a pedestrian while driving frantically to beat the deadline, the company will be legally responsible for the pedestrian’s injuries.

TRUE

A technology services company gives its sales staff company cars to make sales calls. After work hours, a salesperson hits a pedestrian while using the company car to do personal errands. Most likely, the company will not be held responsible for the incident.

TRUE

A law firm issues cell phones to all of its lawyers, to allow them to call into the office and check in with clients when they are on the road. A lawyer, driving, hits a pedestrian because she is completely engrossed in her telephone conversation with a senior partner of the firm. The law firm will probably have to pony up for the pedestrian’s injuries

TRUE

A medical billing company hires a fumigator, who sprays the company’s office with powerful pesticides. The next day, a dozen employees fall ill from the fumes. One of the affected employees is sent home; on the way, she suffers a dizzy spell and hits a pedestrian. The company is probably on the hook

TRUE

A pizza company hired a delivery driver without looking into his criminal past - which included a sexual assault conviction and an arrest for stalking a woman he met while delivering pizza for another company. After he raped a customer, the pizza franchise was liable to his victim for negligent hiring.

TRUE

A car rental company hired a man who later raped a coworker. Had the company verified his resume claims, it would have discovered that he was in prison for robbery during the years he claimed to be in high school and college. The company was liable to the coworker.

TRUE

A furniture company hired a delivery man without requiring him to fill out an application or performing a background check. The employee assaulted a female customer in her home with a knife. The company was liable to the customer for negligent hiring

TRUE

Payment to an authorized agent is: a) Payment to the principle only if the agent remits the payment (gives the payment to the principal). b) Payment to the principle only if the third party (the payor) personally informs the principal. c) Payment to the principal if (and only if) the agent does not misappropriate the payment. d) Payment to the principal.

d) Payment to the principal.

An undisclosed principal cannot sue or be sued: a) Under any condition. b) By any party to the contract, except his/her agent. c) None of the above

c) None of the above

Apparent authority has the same legal effect as: a) Undisclosed authority b) Actual authority c) Partially disclosed authority d) None of the above

b) Actual authority

To collect under a property insurance policy, the insured must have an insurable interest when (a) the policy is "taken out" (when he/she applies for the policy) and (b) the loss occurs

TRUE

There is no insurance coverage for losses caused by intentional acts

TRUE

For life insurance, the insurable interest may be the insured 's a. own life b. life of his/her spouse c. life of his.her children d. life of his/her parents e. life of his/her debtors f. all of the above

f. all of the above

Typically, an insurer must give its permission before a property or liability insurance policy can be assigned to a third party

TRUE

As respects disputes over policy interpretation, ambiguities are interpreted against the policy's drafter (almost always, the insurer)

TRUE

Via ___________, an insurer "stands in the insured's shoes. Thus, having paid for an insured's loss, the insurer may seek reimbursement from a third party whose neglect/intentional act caused the loss. a. subordination b. subrogation c. cross-liability d. comparative negligence e. none of the above

b. subrogation

__________ insurance is frequently referred to as "litigation insurance" a. property b. first-party c. health d. liability

d. liability

A business partner does not have an insurable interest in the life of each of his/her other partners

FALSE

Typically, the terms broker and agent are synonymous since both work directly for the insurer

FALSE

An insurance agent generally is an independent contractor who is not employed by any one insurance company.

FALSE

A co-insurance clause requires the insured to maintain insurance on the covered property up to a certain amount or a certain percent of the value (such as 80%)

TRUE

When a provision of an endorsement conflicts with a provision of a policy, the endorsement controls

TRUE

A person who obtains life insurance on his/her own life can name anyone as the beneficiary regardless of whether that beneficiary has an insurable interest in the insured's life

TRUE

In the absence of a state statute to the contrary, if a wife names her husband as a beneficiary of her life insurance policy, and the two are thereafter divorced, the insurance policy is not affected

TRUE

An application for insurance is, typically, oral

FALSE IT IS WRITTEN

An application for insurance has no binding effect on the applicant

FALSE

An application for insurance is attached to the policy and becomes a part of the insurance contract

TRUE

An application for insurance must be drawn (written) by an attorney

FALSE

A person who would suffer a direct pecuniary (monetary) loss if a particular piece of property were destroyed has a(n) __________ in the property a. contractual risk b. hazard c. problem d. insurable interest

d. insurable interest

The person to whom an insurance policy is issued is called a. the insured b. the policyholder c. the insurer d. all of the above e. none of the above

a. the insured and b. the policyholder also the "assured"

Typically, standard business liability policies exclude coverage for negligent and intentional acts

FALSE

Primary liability policies include a duty to defend but not a duty to indemnify

FALSE IT INCLUDES BOTH DEFEND AND INDEMNIFY

Excess liability policies include a duty to defend but not a duty to indemnify

FALSE INCLUDE ONLY DUTY TO INDEMNIFY

Most insurance policies are comprised of standard forms, except for the declaration page

TRUE

Dewey Cheatham & Howe (DCH), a law firm, hired Ted, an attorney, as an “independent contractor” to help with its “overload.” Ted met with clients, drafted certain legal documents, made court appearances, took depositions, etc. However, DCH’s partners (the attorney-owners) carefully checked all of his work, and gave him very clear instructions on (a) what goals they wanted him to accomplish and (b) how he was to accomplish these objectives. To reiterate, DCH carefully controlled and supervised how Ted performed his work. Additionally, Ted performed all of the work at the DCH office – he was not permitted to work on any DCH matters outside of the DCH office. However, Ted signed an agreement with DCH in which both parties explicitly agreed that Ted would be an independent contractor – not an employee – for DCH. Based on the above facts, Ted is a/an: a) Principal. b) Employee. c) Independent contractor. d) None of the above.

b) Employee.

Which statement is incorrect? a) An agent is not personally liable on a properly executed contract that is made for a disclosed principal if the agent has actual authority. b) An agent is not personally liable on a properly executed contract that is made for an undisclosed principal if the agent has apparent authority. c) A principal is a disclosed principal if the agent discloses (a) the principal’s name/identity; and (b) that the agent is acting for the principal. d) A principal is bound by statements made by an agent while acting within the scope of his/her authority.

b) An agent is not personally liable on a properly executed contract that is made for an undisclosed principal if the agent has apparent authority.

Which of the following examples does not definitely represent a breach of the duty of due care? a) Grocer who fails to post a sign warning customers of a slippery floor, although for several hours she knew the floor was very wet. b) An accountant who completed tax returns but did not know the changes in the tax law, although the changes were five years old. c) An attorney who waited until after the statute of limitations had expired before trying to file the lawsuit, even though he had the case for several months (it was not a situation where the client first met the attorney a day before the statute of limitations ran). d) A surgeon who amputated the wrong leg. e) A surgeon whose patient died on the operating table.

e) A surgeon whose patient died on the operating table.

Sarah strikes Joe, who falls and suffers head injuries. This is an intentional tort: a) If Sarah “had it in” for Joe. b) If Sarah intended to strike Joe. c) Only if Sarah intended that Joe suffer head injuries. d) If Sarah had an unacceptable reason for striking Joe. e) If Joe was within the “zone of danger.”

b) If Sarah intended to strike Joe.

To prove a cause of action based on strict liability in tort for personal injuries arising from the use of a defective product, one of the elements that the plaintiff must prove is that the seller (defendant): a) Had a contract with plaintiff. b) Failed to exercise reasonable care. c) Was engaged in the business of selling the product. d) Negligently designed the product.

c) Was engaged in the business of selling the product.

A joint venture is legally treated as a(n) ________________ and is governed by ________________law. a) Partnership; partnership b) Corporation; corporation c) Franchise; franchise d) Agency; agency

a) Partnership; partnership

Worker’s compensation is __________ for on-the-job injuries. a) The exclusive remedy b) One of several remedies c) Optional d) A system based on fault

a) The exclusive remedy

Tod Zuckerman, a famous professional basketball player (hey, I can dream), discovers that his picture is appearing on billboards - in the states of California, Nevada, Idaho, Montana, North Dakota, and South Dakota – alongside a food company’s oat bran cereal product. The food company had not obtained Zuckerman's express or implied permission for use of his picture. a) Zuckerman can sue the food company for libel. b) Zuckerman can sue the food company for invasion of privacy. c) Zuckerman can sue the food company for damages. d) Zuckerman can sue the food company to force it to stop using his picture. e) B-d.

e) B-d

What types of damages are imposed on the wrongdoer (aka “tortfeasor”) (the defendant) for intentional torts or extreme negligence (aka “recklessness” /"gross negligence")? a) Liquidated damages. b) Compensatory damages and punitive (aka “exemplary”) damages. c) Punitive (aka “exemplary”) damages only. d) Extraordinary damages.

b) Compensatory damages and punitive (aka “exemplary”) damages.

Danny’s. a national chain of diner-type restaurants, hires Denise to manage one of its restaurants – a brand new one in Hayward (across the street from the Safeway supermarket on Foothill Boulevard). Although their employment agreement is silent on whether Denise can hire employees to work in the store, Denise has this authority. This is a) Common-sense authority. b) Persuasive authority. c) Delusional authority. d) Implied authority. e) Apparent authority.

d) Implied authority

Unsafeway Supermarkets, Inc. (“Unsafeway”) employs Bozo as a driver. Big mistake: Bozo, an alcoholic, has an atrocious driving record – accidents and many traffic-related citations (including but not limited to DUIs (driving under the influence of alcohol or drugs)). Shortly, after Unsafeway hires Bozo, while acting within the scope of his employment, Bozo causes an accident in which Susan is seriously injured. Susan can recover from: a) Neither Unsafeway nor Bozo (it is a criminal matter only) b) Unsafeway only c) Unsafeway (but only based on respondeat superior) and Bozo d) Unsafeway (based on both respondeat superior and direct liability) and Bozo e) Bozo only

d) Unsafeway (based on both respondeat superior and direct liability) and Bozo

Identify the advantages for employers in hiring independent contractors (as opposed to employees). a) Generally, no tort liability under the doctrine of respondeat superior. b) Fewer administrative burdens. c) Less in benefit expenses. d) More control over a worker’s performance. e) (a) - (c).

e) (a) - (c)

Zuckerman intentionally attempts to have Frankel break a contract Frankel has with Lowenthal. Zuckerman will be liable under which theory of tort? a) Libel. b) Product disparagement. c) Wrongful interference with a contract. d) Infliction of emotional distress.

c) Wrongful interference with a contract.

The degree of care required of a person is: a) That which a very brilliant person would exercise in that situation. b) That which an extraordinary person would exercise under similar circumstances. c) That which an ordinarily prudent person would exercise under similar circumstances. d) None of the above.

c) That which an ordinarily prudent person would exercise under similar circumstances.

Professionals have a duty to perform their jobs at the level of: a) A reasonable person. b) A reasonable professional in the same profession. c) An extraordinarily careful person. d) None of the above.

b) A reasonable professional in the same profession.

In determining whether respondeat superior applies, courts look at various tests. Which of the following is not one of the tests? a) The conduct must be of a kind the agent was employed to perform. b) The conduct must occur at the authorized place and time of employment. c) The conduct must be totally motivated by service to the principal, not the agent’s self- interest. d) The principal could have anticipated the use or means that the agent employed.

c) The conduct must be totally motivated by service to the principal, not the agent’s self- interest.

Betty Jo and Phyllis Ann were competing for head cheerleader position at Texas Tech University. With the intent to cause harm to Phyllis Ann, Betty Jo repeatedly made harassing, obscene and threatening telephone calls to Phyllis Ann. Phyllis Ann was so frightened by the calls that she suffered a nervous breakdown, requiring her to be hospitalized for a week. Under these facts: a) Phyllis Ann can sue Betty Jo for the tort of battery. b) Phyllis Ann can sue Betty Jo for intentional infliction of emotional distress. c) Phyllis Ann can sue Betty Jo for the tort of product disparagement. d) Phyllis Ann can sue Betty Jo for the tort of malpractice. e) Phyllis Ann can sue Betty Jo for the tort of defamation.

b) Phyllis Ann can sue Betty Jo for intentional infliction of emotional distress.

Louise had an 11:15 p.m. "redeye" flight from San Francisco to Los Angeles on United Airlines. However, before boarding, Louise first had to resolve an issue concerning his boarding pass with a United Airlines clerk. After a few minutes of conversation between the two, Louise became so angry and agitated with the clerk that, standing just a few inches away from the clerk, Louise drew her arm back and with a fist, stated, “Look, you bitch, I am going to punch your lights out right now!" What tort, if any, did Louise commit? a) No tort. We are not a nation of weenies/snowflakes - occasionally, we must endure some insults and threats. b) Libel. c) False imprisonment. d) Assault. e) Battery.

d) Assault.

Jeremiah owned a word processing company in a city of approximately 50,000 people. One day, Dexter, who owned the other word processing company in the city, intentionally planted a virus in the software of Jeremiah’s computer system, with the intent to destroy the information stored in the Jeremiah’s computer system. The virus eventually destroyed all the information that had been stored in Jeremiah’s computer system. Under this scenario: a) Jeremiah can sue Dexter for only actual (aka compensatory) damages. b) Jeremiah can sue Dexter for only punitive damages. c) Jeremiah can sue Dexter for compensatory and punitive damages. d) Dexter committed a crime, and, thus, Jeremiah cannot sue for damages. Instead, the state can bring a criminal action against Dexter.

c) Jeremiah can sue Dexter for compensatory and punitive damages.

Which type of behavior below is not part of business ethics? a) Truthfulness. b) Keeping promises. c) Loyalty. d) Preserving confidentiality. e) (a) - (d) are all part of business ethics.

e) (a) - (d) are all part of business ethics.

The law that bars a defendant from being prosecuted a second time for the same offense is called: a) The rule against subsequent prosecutions. b) The rule against multiple prosecutions. c) Due process. d) The rule against double jeopardy.

d) The rule against double jeopardy.

What statement below is not part of the Miranda rule? (As you hopefully remember, this rule mandates that – before questioning by law enforcement personnel – a person taken into custody or otherwise deprived of her freedom, must be given certain warnings/advisements): a) You have the right to remain silent b) You have the right to the presence of an attorney c) Any statement you make may be used as evidence against you d) If you cannot afford an attorney, the government will pay for any attorney you choose e) None of the above (that is, each statement (a) through (d) is part of the Miranda rule).

d) If you cannot afford an attorney, the government will pay for any attorney you choose

Which of the following is a correct test to determine legal causation (aka “proximate causation”) in a negligence case? a) The “but for” test b) The “substantial factor” test c) The “remoteness” in time or distance test d) None of the above e) B and C

c) The “remoteness” in time or distance test

Assume a California statute requires nursing homes to install hand railings along all walkways at nursing homes. Also assume that a 25 year old able-bodied visitor to the nursing home is injured in a fall that would have been prevented by a railing. Question: would the courts apply the negligence per se doctrine to this scenario? a) Yes b) No

b) No

Assume a night club bouncer evicts a drunken patron with such force as to cause death. Based only on this fact, the club owner is directly liable under the doctrine of respondeat superior.

FALSE

___________ is a principal’s express or implied approval or adoption of an agent’s unauthorized contract. a) Endorsement b) Affirmation c) Ratification d) Apparent authority

c) Ratification

Under the doctrine of strict liability, who may be liable for a defective product that causes bodily injury/death? a) Manufacturers. b) Wholesalers. c) Retailers. d) All of the above. e) None of the above.

d) All of the above.

______________________ deals with private wrongs and affects individuals – not society as a whole. a) Criminal law b) Tort law c) Criminal law and tort law d) Need more information, dude.

b) Tort law

At the start of his Legal Environment of Business class, Zuckerman asked Mr. Couldcareless to remain after class to discuss his terrible attendance record. However, at the end of the class, Couldcareless refused to stay as she had another class across campus that was beginning in 10 minutes. Zuckerman responded by blocking the exit so that Couldcareless was unable to leave as he wanted to do. a) Couldcareless may validly claim false arrest. b) Couldcareless may validly claim false imprisonment. c) Couldcareless may validly claim false imprisonment and false arrest. d) Couldcareless may validly claim false imprisonment, false arrest and defamation.

b) Couldcareless may validly claim false imprisonment.

Zuckerman, an alcoholic, down on his luck attorney, owes thousands of dollars to various credit card companies. One particular collection agency, “Rat Dog Collections,” has been calling Zuckerman every night – even after midnight – at his home. Its collection specialists call Zuckerman names, such as “deadbeat” and “parasite.” They also threaten Zuckerman by saying, “you will lose your job if you don’t pay up” and "we will report your crooked butt to the State Bar - your license to practice law" is in jeopardy." This type of conduct by Rat Dog collection specialists has caused Zuckerman tremendous anguish and worry. a) Zuckerman has a cause of action for defamation against Rat Dog. b) Zuckerman has a cause of action for the intentional infliction of emotional distress. c) Zuckerman can successfully sue Rat Dog for defamation, invasion of privacy, and the intentional infliction of emotional distress.. d) Zuckerman has a cause of action for invasion of privacy against Rat Dog. e) Zuckerman can successfully sue Rat Dog for invasion of privacy and the intentional infliction of emotional distress.

e) Zuckerman can successfully sue Rat Dog for invasion of privacy and the intentional infliction of emotional distress.

Ted is an in-house accountant for Superior Widget Company. Louella Parsons, Superior’s CEO, in an attempt to make the company’s financial statements look better, has instructed Ted to falsely boost sales figures. This little trick made it look as if the company was actually making money – in fact, it was losing money. a) Ted is liable for civil fraud, but not criminal fraud. b) Ted is not liable, either civilly or criminally, as he was just following his boss’s orders. c) Ted is liable for both civil and criminal fraud. d) Ted is liable for both civil and criminal fraud, and will lose his CPA license.

d) Ted is liable for both civil and criminal fraud, and will lose his CPA license.

A group of CSUEB students decided to hold a picnic and swimming pool party at the Hayward Hills home of Bob Bigbucks, who was on vacation. They had a great time – just one problem: They never asked for Bigbucks’s permission. a) The students committed a nuisance. b) The students committed a trespass. c) Bigbucks can successfully sue the students for invasion of privacy. d) The students can be found liable for both civil and criminal trespass.

d) The students can be found liable for both civil and criminal trespass.

A trade secret consists of any information (financial, scientific, technical, etc.), a technique, formula/method/process that is used in business and that provides this business an advantage that its competitor(s) do not know about. Please select from the choices below the ways in which a trade secret may be improperly acquired. a) Industrial espionage (i.e. spying, electronic surveillance). b) Bribery c) Fraud d) Interception of communications e) All of the above.

e) All of the above.

Betty, a single mother of two small children (ages 9 and 11), is a grammar school teacher. To earn more money, Betty teaches music – including the drums – in a small, makeshift music studio in her garage, between the hours of 7 pm and 11 pm. However, the loud noises from the garage are disturbing Betty’s neighbors. a) Betty’s neighbors appear to have a valid cause of action for nuisance against Betty. b) Betty’s neighbors appear to have a valid cause of action for trespass against Betty. c) Betty’s neighbors appear to have valid causes of action for nuisance and trespass against Betty. d) Betty’s neighbors appear to have valid

a) Betty’s neighbors appear to have a valid cause of action for nuisance against Betty.

Lester, a CSUEB professor, suffered a sudden, massive heart attack behind the wheel of his car and, as a result, lost control of his car. Tragically, Lester’s car struck two young brothers, 11 and 9, as they were crossing an intersection – Lester’s car went through a red light – the two boys were in a pedestrian crosswalk and they had the right of way. A few days after the accident, both brothers died of their injuries. Assume Lester reasonably believed that he was in perfect health, and that immediately before the heart attack, Lester was driving under the speed limit, and, in no way, was operating his car negligently. a) Lester is liable for wrongful death based on negligence. b) Lester is strictly liable for the tragedy. c) Lester’s lack of knowledge regarding his poor health will constitute a defense in any criminal proceeding, but will not help him in a civil action. d) Lester appears not to be liable - either civilly (tort) or criminally - for this tragedy.

d) Lester appears not to be liable - either civilly (tort) or criminally - for this tragedy.

Dexter was the office manager for a group of five orthopedic surgeons. Part of his job was to be in charge of the office's finances. In 2016, he developed a gambling addiction, and became heavily in debt. Increasingly desperate, he took money from the physicians’ accounts to pay his debts. What type of theft offense did Dexter commit? a) Burglary b) Shoplifting c) Embezzlement d) False pretenses

c) Embezzlement

Through deception, a magazine entitled Hustler, which is devoted to the publication of lewd pictures of women and to sexual exploitation, obtained a picture of an entertainer, Jeannie Braun, who performed an amusement park act with a swimming pig. The picture showed Ms. Braun with her pig in a swimming pool, with the caption: “This woman is crazy for pigs!” What would be the most appropriate cause of action for Ms. Braun to assert against Hustler? a) Defamation b) Invasion of privacy - false light c) Intentional infliction of emotional distress d) Invasion of privacy - public disclosure of private facts

b) Invasion of privacy - false light

Torts arise from a violation of a ______ duty. a) Public b) Private c) Contractual d) Criminal

b) Private

Torts are classified as a) Intentional only. b) Negligence only. c) Strict liability only. d) Intentional, negligence, and strict liability.

d) Intentional, negligence, and strict liability

Bob strikes Ted, but not purposefully. Ted should sue Bob for: a) An intentional tort. b) Negligence. c) Strict liability. d) Absolute liability.

b) Negligence.

Which represents the majority rule as respects the duty of due care? a) Andrews. b) Cardozo. c) Zuckerman (I said it before – I can dream!).

b) Cardozo.

Defamation of a public figure requires what additional element? a) Intent b) Malice c) Causation d) None of the above

b) Malice

Violations of “veggie libel laws” are a type of: a) Slander. b) Product disparagement tort. c) Both of the above. d) None of the above.

b) Product disparagement tort.

Comparative negligence: a) Has been rejected by most of the states. b) Allows a comparison of negligence between plaintiff and defendant. c) Is very unfair. d) Is applied identically in all states. That is, all states have exactly the same type/form of comparative negligence.

b) Allows a comparison of negligence between plaintiff and defendant.

Almost 90-years ago, The New York Court of Appeals (that state’s highest court) issued its decision in ___________________, a case that has become a landmark in negligence law. It stands for the rule that a defendant’s duty of care extends only to those who may be injured as a result of reasonably foreseeable risk – that is, it does not extend to a person whose injury could not be reasonably foreseen. a) Jacob & Youngs v. Kent b) Marbury v. Madison c) Taylor v. Baseball Club of Seattle, L.P. d) Brown v. Board of Education of Topeka, KS. e) None of the above

e) None of the above

Which country provides the greatest recovery for tort? a) United States b) England c) Japan d) Australia e) Canada

a) United States

Damages for mental distress are available to a plaintiff: a) Who can show an intention to engage in outrageous conduct. b) Who can prove negligence. c) Who is a mere bystander. d) All of the above.

d) All of the above.

A major disadvantage (probably the biggest disadvantage) of the sole proprietor form of business is: a) No organizational fees. b) Sole proprietor receives all the profits. c) Unlimited personal liability for business debts. d) Sole proprietor makes all business decisions.

c) Unlimited personal liability for business debts.

___________ serve as the corporation’s agents - they run the corporation's day-to-day operations. a) Officers b) Directors c) Shareholders d) Employees

a) Officers

Typically, in a franchise operation: a) Both franchisor and franchise will be liable to third persons for contracts that the franchisee breaches. b) Only the franchisee will be liable to third persons for contracts that the franchisee breaches. c) Only the franchisor will be liable to third persons for contracts that the franchisee breaches. d) Neither the franchisor nor the franchisee will be liable to third persons for contracts that the franchisee breaches.

b) Only the franchisee will be liable to third persons for contracts that the franchisee breaches.

Defamation consisting of the publication or communication of false, spoken words that are not permanently recorded is termed: a) Slander. b) Libel. c) Privilege. d) Perjury.

a) Slander.

The tort of invasion of privacy includes: a) Intrusion into private affairs. b) Public disclosure of private facts. c) Appropriation of another’s name/likeness/voice for commercial purposes. . d) False light. e) All of the above.

e) All of the above.

Sarah Sleazoid (“Sarah”) is a famous politician who is running for public office. In which situation can Sarah sue for the tort of invasion of privacy? a) The National Tipster, a checkout stand tabloid, somehow managed to hide a camera in the ceiling of Sarah’s bedroom to get exclusive photos of Sarah’s personal life (the newspaper heard – from reliable sources – that Sarah had two or three “boy toys.”). b) The Portland Oregonian (the biggest daily newspaper in the state of Oregon (Sarah’s home state) published a story about Sarah’s recent rowdy and ribald behavior at a local, public nightclub. c) Without Sarah’s permission, Zuckerman Industries, Inc. used Sarah’s picture to advertise its deodorant products. d) Both (a) and (c).

d) Both (a) and (c).

Identify below which personal service obligation could be delegated to another (without the approval of the party to whom the obligation is owed). a) Beyonce has an August 4, 2017 performance scheduled for San Jose’s SAP Center. She wants to send her sister, Solange in her stead. b) Famous University of California San Francisco surgeon, Dr. Steve Superior decides to have one of his colleagues perform surgery that Dr. Superior was supposed to perform. c) Well known criminal defense attorney, Simon Shyster, decides to go on vacation and asks his associate, Dennis Dense, to defend his client at trial. d) Richard, a member of a corporation’s board of directors, has become very busy with personal matters, so he decides to ask his adult daughter, Edwina, to perform his board duties for him. e) None of the above.

e) None of the above.

What statement(s) about workers’ compensation laws is/are correct? a) They require employees to give up their right to sue employers for accidental death, injury, or disease arising from or during the course of their employment. b) In exchange for relinquishing their right to sue their employers, the employees gain the right to receive financial benefits – regardless of fault. c) The financial benefits paid to the employees are according to a statutory schedule (each state has its own schedule) of benefits. d) All of the above. e) None of the above.

d) All of the above.

Zoe and Kelly Ann, two students at CSUEB, went to see the San Francisco Giants play a baseball game at the AT&T Baseball Stadium. They sat high up in the stands behind first base, even though they both knew that foul balls often landed in this area. In the sixth inning, a foul ball struck Kelly Ann in the head, causing her serious injuries. Kelly Ann sued the baseball club for negligence. In all likelihood, is the baseball club liable to Kelly Ann? a) Yes, the baseball club was negligent in allowing fans to watch the baseball game. b) Yes, the baseball club was liable under strict liability since baseball is an ultra-hazardous activity. c) No, Kelly Ann assumed the risk that foul balls would sometimes land in the stands. d) No, baseball clubs owe no duty to protect fans from unreasonable risk of harm.

c) No, Kelly Ann assumed the risk that foul balls would sometimes land in the stands.

In almost all states, the harsh rules of ____________________ negligence have been replaced by the doctrine of ____________________ negligence, which is considered fairer because in many, if not most, accidents, no one person is 100 percent at fault. a) Contributory; comparative b) Comparative; contributory c) Complete; proportionate d) Proportionate; excess

a) Contributory; comparative

Workers' compensation is _________________ for on-the-job injuries a) The exclusive remedy b) One of several remedies c) Optional d) A system based on fault

a) The exclusive remedy

What is the test most commonly used to determine whether a worker is an employee or an independent contractor? a) Right to control how the hired person performs his/her work. b) The method of calculating payment for the work. c) The parties’ intent, such as evidenced in a written agreement between the parties. d) The permanency and exclusions of the work relationship.

a) Right to control how the hired person performs his/her work.

Tom, without authority, contracted to buy widgets from Widgco Corp. for Ace Corp. Tom told Widgco that he was acting on Ace’s behalf. For Ace to ratify the contract with Widgco, which statement is true? a) Tom must be Ace’s general agent. b) Ace had to ratify Tom’s entire act (that is, the whole contract - not just the favorable provisions of the contract). c) Ace must notify Widgco that Ace intends to ratify the contract. d) Tom must have acted reasonably and in Ace’s best interest - that is, Tom had to believe that he was making a “good deal” for Ace.

b) Ace had to ratify Tom’s entire act (that is, the whole contract - not just the favorable provisions of the contract).

Jennifer, a waitress at a Denny’s coffee shop, had the misfortune of waiting on Henry, a very rude customer. Finally, after having endured a number of impolite comments, Jennifer said to Henry, “Okay, jerkface, I’ve had enough – unless you leave right now, I’m going to throw this cup of coffee in your face!” Henry refused to leave, and Jennifer made good on her threat – she threw Henry’s cup of coffee in his face. a) Jennifer is liable to Henry for assault. b) Jennifer is liable to Henry for battery. c) Jennifer is liable to Henry for assault and battery. d) If any third person (i.e. customer, other Denny’s employee, etc.) heard Jennifer call Henry “jerkface,” Jennifer would also be liable to Henry for defamation (in addition to assault and battery). e) Henry will have a choice - either press criminal charges against Jennifer, or sue her for tort damages. He cannot do both.

c) Jennifer is liable to Henry for assault and battery.

Jennifer, a waitress at a Denny’s coffee shop, had the misfortune of waiting on Henry, a very rude customer. Finally, after having endured a number of impolite comments, Jennifer said to Henry, “Okay, jerkface, I’ve had enough – unless you leave right now, I’m going to throw this cup of coffee in your face!” Henry refused to leave, and Jennifer made good on her threat – she threw Henry’s cup of coffee in his face Same scenario as above, Henry wants to sue Denny’s. a) Henry is out of luck. Denny’s will definitely not be liable. b) Henry will be successful. This is a classic case of respondeat superior. c) Unless Denny’s management told Jennifer to act as she did, Denny’s will not be liable to Henry. d) Dude, I need more information before I can opine (at least with confidence) on whether Denny’s will be liable.

d) Dude, I need more information before I can opine (at least with confidence) on whether Denny’s will be liable.

The people in the corporation ultimately responsible for the management of the business are: a) Officers b) Shareholders c) Directors d) Employees

c) Directors

A sole proprietor is taxed: a) On a personal and corporate level. b) Only on the corporate level. c) Only on the personal level. d) None of the above.

c) Only on the personal level.

One evening – about 9 pm – Annie Absentminded leaves her keys in the ignition and her car doors unlocked in a crowded, badly lit shopping center parking lot. Tom Thief enters Annie’s car and speeds away. A half-mile later, Tom drives through a red light and collides with a pedestrian, Peter Pedestrian, who, of course, had the right of way. Would Annie be liable to Mr. Pedestrian for negligence? a) No. Tom’s actions are an intervening cause of the accident. b) No. Tom’s actions are a superseding cause of the accident. c) Yes. Annie caused the accident – end of story (there are no other elements to consider). d) Yes. Tom’s actions were not an intervening cause of the accident.

b) No. Tom’s actions are a superseding cause of the accident.

A single act can ________________ be a crime and a tort. a) Never b) Often c) Very rarely d) None of the above

b) Often

After a frustrating day at the office, attorney Regina Rambolina got extremely angry at her secretary, David Dipstick. Regina called Dipstick into her office and told him to shut the door. Then, standing just a foot away from Dipstick, Regina said, “Goddamn it, you are a fucking moron – maybe, a sub-moron! You filed important court documents in the wrong damn court, and it took you all day to type my briefs. Shit, my two daughters can type better than you and they are both in grammar school! I swear – if you fuck up tomorrow like you did today- I will punch your lights out.” What tort – if any – did Regina commit? a) Slander. b) False imprisonment. c) Battery. d) Assault. e) It appears that Regina committed none of the above listed torts.

e) It appears that Regina committed none of the above listed torts.

Bob Nogoodnik was criminally charged by the state of California and convicted of robbery. He had attacked and badly beaten – after taking $1,000 from the store’s cash register – a 7-11 store clerk in San Leandro. a) In addition to the conviction, the 7-11 clerk can sue Bob for assault and battery. b) After being convicted, Bob cannot be sued for the same offense (this would be “double jeopardy”) c) Need more information, dude.

a) In addition to the conviction, the 7-11 clerk can sue Bob for assault and battery.

An attempt to commit a crime is a crime separate and distinct from the actual crime.

TRUE

There are statutes of limitation for torts, but not for crimes.

FALSE

One of the disadvantages of general partnerships is double taxation.

FALSE

Punitive damages are available to plaintiff for ordinary negligence.

FALSE

Apparent authority is created if an unauthorized agent or a non-agent misleads a third party into reasonably believing that the unauthorized agent/non-agent has authority to represent the principal.

FALSE

Generally, respondent superior does not apply to commuting to and from work.

Assumption of the risk is a defense against people who voluntarily expose themselves to a risk of harm, suffer an injury, and then sue.

TRUE

A wrongful death lawsuit can only be based on an intentional act – never a negligent act.

FALSE

In almost all states, the harsh and unfair rules of comparative negligence have been replaced by contributory negligence.

FALSE

A sole proprietorship is dissolved (terminated) by the death of the sole proprietor.

TRUE

A corporation must have at least two shareholders.

FALSE

Partnership agreements must always (pursuant to the law) be in writing.

FALSE

A majority shareholder’s death terminates a corporation.

FALSE

A sole proprietor is subject to unlimited personal liability for the debts of the business.

TRUE

A franchisor is the person to whom the franchise is granted.

FALSE

Franchising is contractual.

TRUE

Under a liability insurance policy, an insurance company’s duty to indemnify is broader than its duty to defend. That is, it is easier for an insured to successfully assert a duty to defend claim than a duty to indemnify claim.

FALSE

The limited liability provided by a corporation or limited liability company is a substitute for business liability insurance. That is, if the business is a corporation or LLC it does not need liability insurance.

FALSE

An LLC can if it chooses, be taxed in the same way as a partnership. That is, LLC profits are, typically, not taxed at the business level - instead, they “flow through” to the individual owners.

TRUE

The S corporation is fast being superseded by the LLC.

TRUE

Corporations have “eternal life” (if one/even all of the owners of a small corporation dies, the corporate entity continues to exist).

TRUE

LLCs blend many of the benefits of a partnership and corporation.

TRUE

Just as with a partnership, an LLC should have a written agreement which defines the basic rights and duties of the LLC owners.

TRUE

Like a corporation’s shareholders, an LLC’s owners are not liable for company debts beyond the amount each has invested into the company.

TRUE

A limited partnership agreement must have at least one entity/individual called the “general partner.”

TRUE

If a nightclub bouncer evicts a drunken patron with such force as to cause death, the club owner is directly liable under the doctrine of respondeat superior.

FALSE

All states have the same statutes of limitations.

FALSE

It is prudent to grant someone a general power of attorney - a special (specific) power of attorney is an extremely dangerous document.

FALSE

As respects crimes, an agent is not liable for a crime if his/her principal directs/approves/participates in the crime. Instead, under the doctrine of respondeat superior, only the principal is criminally liable.

FALSE

Under the doctrine of strict liability, the defendant is liable for the plaintiff’s injuries despite the absence of negligence or intentional, wrongful acts.

TRUE

Generally, excess liability insurance policies include a duty to defend and primary liability policies only include a duty to indemnify.

FALSE

Nancy Nogoodnik was criminally charged by the state of California and convicted of robbery. She had attacked and badly beaten – after taking $1,000 from the store’s cash register – a 7-11 store clerk in San Leandro. a) In addition to the conviction, the 7-11 clerk can sue Nancy for assault and battery. b) After being convicted, Nancy cannot be sued for the same offense (this would be “double jeopardy”). c) Need more information, dude.

a) In addition to the conviction, the 7-11 clerk can sue Nancy for assault and battery.

d) All of the above (A through C are all correct statements)

The same act can be both a breach of contract and a tort.

TRUE

The criminal law of all states is the same because all states have adopted a uniform criminal code.

FALSE

The degree of care required of a person is that which an extraordinary person would exercise under similar circumstances.

FALSE

The concept of immunity from liability means that certain persons are not subject to tort liability.

TRUE

CERCLA is based on: a) Strict liability b) Retroactive liability c) Joint and several liability d) All of the above e) A and C

e) A and C

CERCLA: a) Concerns endangered species b) Concerns close and abandoned hazardous waste sites c) Gives the US Environmental Protection Agency the authority to control hazardous waste from cradle to grave d) All of the above e) B and C

b) Concerns close and abandoned hazardous waste sites

Who famously wrote the following: “I want employees tot ask themselves whether they are willing to have any contemplated act appear the next day on the front page of their local paper, to be read by their spouses, children and friends, with the reporting done by an informed and critical reporter.” a) Bill Gates b) Mark Zuckerberg c) Andrew Carnegie d) Warren Buffett e) Jack Welch

d) Warren Buffett

A ______ economy is an environment in which temporary positions are common and business organizations contract with independent workers (“independent contractors”) for short term engagements. a) Bitcoin b) Gig c) Millennial d) Digital e) Booming

b) Gig

_______ wrote Silent Spring. a) Stewart Udell b) Aldo Leopold c) Rachel Carson d) Tod Zuckerman e) None of the above

c) Rachel Carson

Unethical conduct in the workplace could lead to the following: a) Criminal liability b) Civil liability c) Administrative liability d) All of the above e) B and C

d) All of the above

Rebecca acts as Zuckerman’s agent when he purchases Tom’s prize-winning show horse. Tom does not know Zuckerman, but he thinks any friend of Rebecca’s must be A-OK. (Tom thinks Rebecca is a wonderful, high-quality person). Big mistake - yes, Rebecca is A-OK, but Zuckerman is NG - a charming “BS artist” (liar) and deadbeat (a person who does not pay his debts). Zuckerman’s injures Tom’s horse, fails to pay the full contract price, and quickly disappears. Tom demands that Rebecca make good (pay) Zuckerman’s debt. Which statement is correct? a) Tom is out-of-luck. Rebecca is not liable because Zuckerman was a fully disclosed principal. b) Tom can recover from Rebecca, Zuckerman, or both (assuming his attorneys can find Zuckerman). c) Tom can recover only from Rebecca (even if his attorneys can locate Zuckerman). d) All of the above (A through C are all correct statements). e) A and B.

a) Tom is out-of-luck. Rebecca is not liable because Zuckerman was a fully disclosed principal.

Two stockbrokers, Zuckerman and Shyster, sell fraudulent stock out of their offices at a legitimate (law-abiding) brokerage house, Norgan Stunley, using Norgan Stunley email accounts and making presentations to investors in Norgan Stunley’s conference rooms. Which is a correct statement? a) Norgan Stunley is not liable. b) Norgan Stunley is liable because their two crooked brokers had actual authority to sell the fraudulent stock. c) Norgan Stunley is liable because their two crooked brokers had implied authority to sell the fraudulent stock. d) Norgan Stunley is liable because their two crooked brokers had apparent authority to sell the fraudulent stock. e) B, and D.

d) Norgan Stunley is liable because their two crooked brokers had apparent authority to sell the fraudulent stock.

Concerning the doctrine of respondeat superior, which statement is correct? a) During a National Basketball Association (“NBA” - a U.S. professional basketball league), Steph Curry, a player for the Golden State Warriors, pushed Russell Westbrook, a player for the Oklahoma City Thunder, into some spectator seats under the basket to prevent him from scoring an easy basket. If Westbrook is seriously injured, the Golden State Warriors basketball club is not liable. b) Over the course of the long NBA season, Curry and Westbrook develop a bitter rivalry. After Westbrook wins the Most Valuable Player (MVP) award, Curry becomes extremely angry, as he thinks he deserved the award. A couple of months after the season is over, Curry sees Westbrook - by chance - in a parking lot of an upscale shopping center. Curry immediately walks over to him and punches him in the face. The Golden State Warriors basketball club is not liable. c) Bob is a delivery driver - for Jane’s Flowers (a Hayward flower shop). Jane, the owner, constantly tells Bob not to speed when driving the shop’s delivery van. One day, however, Bob ignores Jane’s instructions and drives 15 miles per hour over Mission Boulevard’s speed limit. As a result, he plows into Sandra, a CSUEB student. Jane’s Flower shop is liable to Sandra, even though Jane told Bob not to speed. d) Same facts as in (c) above, except Bob - in between deliveries - gets very hungry and stops at the McDonald’s drive-in window on Mission Boulevard en route to making a delivery. On the way out of McDonald’s parking lot, Bob reached for a pickle that fell out of his Big Mac and, as a result, crashed. Jane’s Flower Shop is liable to Ted. e) B, C and D.

e) B, C and D.

Louise was founder of an Internet start-up company. Joe was her driver. One day, after he had dropped Louise off at a board of directors meeting, Joe went to the car wash, as Louise’s car was a bit dirty and Louise always wanted her car to look immaculate. While at the carwash, Joe flirted with a very attractive woman - Joe told her that he was an “analyst for a money management firm.” Of course, this was a lie. Nevertheless, Joe was so convincing that the woman gave him $20,000 to invest. On the way out of the car wash, Joe was so excited that he hit another customer’s very expensive car. Which statement is correct? a) Louise is liable for the damage to other customer’s car. b) Louise is liable to the attractive woman for her investment money. c) A and B. d) None of the above.

a) Louise is liable for the damage to other customer’s car.

A principal will not be vicariously liable (indirectly liable) to a third party for a tort committed by his/her agent: a) Unless the principal instructed the agent to commit the tort. b) Unless the tort was committed within the course and scope of the agency relationship. c) If the agency agreement limits the principal’s liability for the agent’s tort. d) If the tort also constitutes a criminal act.

b) Unless the tort was committed within the course and scope of the agency relationship.

Which of the following activities committed by an agent probably will not create liability for the principal? a) A car accident while driving to work b) Accidentally spilling a glass of water in the company cafeteria, causing a visitor (not an employee) to fall and break her ankle a few hours later. c) Beating up a visitor because he was rude to the company receptionist. d) A truck accident while delivering company products to a customer in the middle of the workday. e) Accidentally catching the building on fire while taking a smoking break.

a) A car accident while driving to work

Which is a disadvantage of a sole proprietorship? a) The owner of the business is personally liable for all of the business’s debts. b) The owner of the business has limited options for financing his/her business. c) There is no need to file a separate tax return for the business. d) All of the above. e) A and B.

e) A and B.

Which of the following statements concerning corporations are true? a) Shareholders have limited personal liability (they may lose their investments in the company but not their other assets). b) Linda is an employee and shareholder. One day, Linda negligently causes a terrible accident while at work. Assume a third-party is catastrophically injured. Linda will not be personally liable (except for the value of his/her investment in the company). c) Corporate stock can be easily bought and sold. d) Corporations have perpetual existence. e) A, C and D.

e) A, C and D.

An ___ offers the limited liability of a corporation and the status of a partnership. a) Close corporation b) Sole proprietorship c) Limited liability company d) None of the above

c) Limited liability company

Harriet operates a construction and remodeling business. She has 100 employees. Which form of business organization is definitely not right for her business? a) Limited liability company b) Corporation c) Limited partnership d) Sole proprietorship e) A and D

d) Sole proprietorship

Which statement is correct? a) A partner always has the power to leave a partnership. b) A partner may not have the right to leave a partnership. c) Large partnerships are almost always run by (a) one/two partners who are called managing partners, or (b) members of the executive committee. d) All of the above e) A and C.

d) All of the above

Venture capitalists prefer which business entity? a) Sole proprietorship b) Corporation c) Limited partnership d) General partnership e) Corporation

b) Corporation

Which is a correct statement regarding general partnerships? a) Every partner is an agent of the partnership. b) A partnership is liable for any torts that a partner commits in the ordinary course of the partnership’s business. c) If a partnership does not have enough assets to pay its debts, creditors may go after the property of individual partners, whether or not they were in any way responsible for the debt. d) Even if creditors have a judgment against an individual partner (for a partnership debt), they cannot go after that partner’s assets until all of the partnership’s assets are exhausted. e) All of the above.

e) All of the above.

Ex-CSUEB student, Robert Jones, loved to bake. He decided to open a biscuit shop called the Pioneer Bakery. The business was a sole proprietorship. Whenever he ordered supplies, he was very careful to sign the contract in the name of the business (not personally) as follows: The Pioneer Bakery by Robert Jones. Sadly, after nine months, Robert had no money to pay his flour bill. When the flour vendor threatened to sue Robert, Robert told him that he could only sue the business, “as all the contracts I signed with you are in the business’s name. Too bad you did not take Business Law in college like I did. If you had, you would know that I have no personal liability.” Will Robert be personally liable? a) Yes b) No c) It depends on whether he was a fully disclosed principal. d) It depends on whether he was a partially disclosed principal.

a) Yes

Louise wants to control a business completely. Additionally, she knows nobody else with whom she wishes to work, is not concerned about lawsuits, and especially dislikes formalities, paperwork, and attorneys. What type of business organization would she probably prefer? A) Corporation B) Limited partnership C) Limited liability company D) General partnership E) None of the above

E) None of the above

Denise, a recent CSUEB grad, has the time and expertise to put into a new bakery. However, she just does not have the money. Denise's friend, Robert, another CSUEB alum, works for Oracle in Redwood City. He is making really good money but is still living with his parents as he wants to save as much as possible. Robert thinks very highly of Denise's baking skills and respects her as a person - he thinks she is honest, very intelligent, and hard working. Robert has a substantial sum of money to invest and he wants to "roll the dice" on Denise's bakery idea. At the same time, Robert has zero time and interest for getting involved in the bakery's day-to-day operations. What type of business organization would you recommend? a. General partnership b. Limited partnership c. Corporation d. Limited liability company e. Sole proprietorship

b. Limited partnership c. Corporation d. Limited liability company CREDIT FOR EITHER ONE OF THESE ANSWERS

As respects franchises, which statement is false: a. A franchise is a relationship - specifically, a contractual arrangement whereby, in return for an initial fee and recurring royalties from the franchisee, the owner (franchisor) of a trademark, trade name, copyright, patent, trade secret or some form of business operation, process, or system permits (licenses) its franchisees to use that property, operation, or system, in furnishing goods or services. b. A franchise is a type of business entity - therefore, a franchisee and franchisor cannot take the form of sole proprietorships, partnerships, limited liability companies, or corporations. c. One of the advantages to franchisees is that they are almost always successful because franchisees can safely rely on the franchisor's business expertise in marketing, research, and personnel training. d. One of the advantages to franchisors is that franchisees absorb much of the risk of losses. e. B and c.

e. B and C