Question 1

Malcolm was involved in an auto accident.He was judged to be 20 percent at fault in the accident,and the other party was judged to be 80 percent at fault.Malcolm's actual damages were $40,000.Under a pure comparative negligence rule,how much will Malcolm receive for his injuries?

Accepted Answer

Under a pure comparative negligence rule, each party is awarded damages in proportion to their percentage of fault. Since Malcolm was 20 percent at fault, he would be able to recover 80 percent of his actual damages. 80 percent of $40,000 is $32,000.

Question 2

Louise was in a hurry and tried to cross the street in the middle of the block rather than at a street corner.A car struck her.Even though Louise placed herself in danger,she may still be able to collect for her injuries if the driver had an opportunity to avoid hitting her but failed to do so.This rule is called the

Accepted Answer

The last clear chance rule states that even if the plaintiff (Louise) placed themselves in danger, they can still recover damages if the defendant (driver) had a clear chance to avoid the accident but failed to do so. Therefore, choice A is the correct answer. The collateral sources rule, alternative dispute resolution rule, and joint and several liability rule are unrelated to the given scenario.

Question 3

All of the following are proposed solutions to the medical malpractice problem EXCEPT

Accepted Answer

Eliminating arbitration panels to resolve disputes is not a proposed solution to the medical malpractice problem. The other options (shortening the statute of limitations, placing limitations on contingent fees charged by attorneys, and placing limitations on damage awards) are all solutions that have been proposed to address the issue of medical malpractice.

Question 4

James was injured in an auto accident caused by another motorist's negligence.He received severe facial lacerations and injured his back in the accident.In payment for his pain,suffering,and disfigurement,losses which cannot be specifically itemized,James will receive

Accepted Answer

General damages are awarded for losses that cannot be specifically itemized, such as pain, suffering, and disfigurement. Special damages are awarded for specific economic losses, such as medical expenses and lost wages. Punitive damages are awarded to punish the defendant for intentional or reckless behavior, and imputed damages refer to damages that are imputed to someone other than the actual wrongdoer, such as vicarious liability. In this case, James' injuries are not specific economic losses, so the best answer is general damages.

Question 5

One tort reform permits manufacturers to assert that as long as the product conformed to the prevailing technology and production methods at the time it was produced,it cannot be considered a defective product today.This defense is called the

Accepted Answer

The state of the art defense allows manufacturers to argue that their product was not defective at the time of production because it conformed to the prevailing standards and technologies of that time. This defense is often used in product liability cases to avoid liability for injuries caused by a product.

Question 6

The Sarbanes-Oxley Act requires which of the following?
I.Accounting firms auditing a company's books must provide other major services to the firm besides auditing services.
II.The company's Chief Executive Officer (CEO)must swear to the accuracy of quarterly and annual financial reports.

Accepted Answer

The Sarbanes-Oxley Act requires the company's Chief Executive Officer (CEO) to swear to the accuracy of quarterly and annual financial reports. It does not require accounting firms auditing a company's books to provide other major services to the firm besides auditing services. In fact, the Act prohibits accounting firms from providing certain non-audit services to audit clients. Therefore, only statement II is correct.

Question 7

Under one doctrine,a person who understands the danger inherent in an activity cannot recover damages in the event of injury from the activity.This doctrine is the

Accepted Answer

The assumption of risk doctrine states that if a person has knowledge of and understands the risks involved in a certain activity, they cannot recover damages if they are injured while engaging in that activity. This is because they voluntarily assumed the known risks associated with that activity. The other options listed (contributory negligence, comparative negligence, fellow servant) do not pertain to this specific scenario.

Question 8

Jan was injured in a work-related auto accident.She sued the other driver,and the case went to court.While questioning Jan,the defendant's lawyer asked if her injuries and lost earnings were covered under workers compensation.Jan's lawyer objected to the question.The judge ruled the question was improper and instructed the jury to disregard the question.Based on the judge's reaction to the question,we can conclude that which of the following rules is in force where this trial took place?

Accepted Answer

The judge's objection and instruction to the jury to disregard the question suggests that the jurisdiction follows the collateral source rule, which stipulates that compensation received by the plaintiff from other sources, such as workers compensation, should not reduce the damages awarded in a lawsuit.

Question 9

Francis opened a store.She knows that customers who come to the store may be injured on the premises and hold her responsible for their injuries.Under common law,business customers in the store Francis opened are considered

Accepted Answer

Customers who are invited onto the premises for a business purpose, such as shopping at Francis' store, are considered invitees under common law. This means that Francis owes them a duty of care to maintain a safe environment and prevent foreseeable harm.

Question 10

All of the following are categories of torts EXCEPT

Accepted Answer

Breach of contract is a separate area of law and not a category of torts. The other three choices are categories of torts.

Question 11

The doctrine of respondeat superior applies to a(n)

Accepted Answer

The doctrine of respondeat superior holds employers responsible for the negligent acts of their employees if the acts occurred within the scope of their employment. A is incorrect because it applies to parent-child relationships rather than employment relationships. B is incorrect because it applies to liability for a pet's actions rather than an employee's actions. D is incorrect because it applies to liability for a faulty product rather than an employee's actions.

Question 12

Arguments in favor of reforming the civil justice system include which of the following?
I.There is often a long delay in settling lawsuits.
II.Compensation awards have decreased significantly over the past two decades.

Accepted Answer

One of the primary arguments for reforming the civil justice system is the significant delay in settling lawsuits, which can hinder timely justice and increase costs for all parties involved. The statement about compensation awards decreasing significantly over the past two decades does not generally support arguments for reform, as concerns typically focus on the unpredictability and sometimes excessive size of awards, rather than a decrease.

Question 13

James was injured in an auto accident caused by another motorist's negligence.To reimburse him for his hospital bills and lost earnings,items which can be specifically itemized,James will receive

Accepted Answer

Special damages are also known as economic damages, which include the specific financial losses incurred by the victim of an accident or injury, such as medical bills, lost wages, and property damage. B is the correct choice as it fits the situation described in the question. Punitive damages, on the other hand, are awarded to punish the defendant for their egregious actions and are not based on specific financial loss. Imputed damages are damages assessed against a third party who may be legally responsible for the actions of the defendant, rather than the defendant themselves. General damages are non-economic damages, such as pain and suffering, and cannot be specifically itemized like special damages.

Question 14

Michelle had major abdominal surgery.Months after the surgery,she still did not feel well.When she was operated on again,the surgeon discovered two sponges that were not removed at the conclusion of the first operation.Michelle should be able to collect damages without having to prove negligence under the doctrine of

Accepted Answer

The doctrine of res ipsa loquitur allows for inference of negligence without actual proof. In this case, the fact that sponges were left inside Michelle's body after surgery suggests negligence.

Question 15

All of the following are examples of tort reform proposals EXCEPT

Accepted Answer

Tort reform proposals typically aim to limit the amount of damages that can be awarded in a lawsuit, either by capping damages or by making it harder for plaintiffs to win a case. Eliminating caps on noneconomic damages would be the opposite of a tort reform proposal, as it would allow unlimited payouts for things like pain and suffering. The other options listed - modifying the collateral source rule, regulating attorney fees, and imposing penalties for frivolous lawsuits - are all examples of more typical tort reform proposals.

Question 16

Bruce believes a local manufacturer is responsible for contaminating some land he owns.He filed suit against the company.Rather than have the case go to court,the manufacturing company's legal team suggested mediation or arbitration to settle the case.Methods that are employed to resolve legal disputes without litigation,such as mediation,are called

Accepted Answer

Alternative dispute resolution techniques, such as mediation or arbitration, are methods that are employed to resolve legal disputes without litigation. This is exactly what the manufacturing company's legal team suggested in order to settle the case with Bruce. Therefore, option B is the correct answer. The other options are unrelated to the given scenario.

Question 17

Shareholders and employees harmed by the negligent acts and deceptive statements of company leaders may file lawsuits against the company leaders.Company leaders are covered for such claims under which type of insurance?

Accepted Answer

Directors and officers liability insurance typically covers claims made against company leaders for negligent acts and deceptive statements. Employment practices liability insurance covers claims related to employment practices such as discrimination or harassment, employee benefit liability insurance covers claims related to employee benefits, and general liability insurance covers bodily injury or property damage claims.

Question 18

Situations under which parents can be held liable for the actions of a child include which of the following?
I.The child uses a parent's gun to injure someone.
II.The child is acting as an agent of the parent.

Accepted Answer

Under the legal principle of vicarious liability, parents can be held responsible for the actions of their child if they were negligent in supervising their child or if the child was acting as the parent's agent. If a child uses a parent's gun to injure someone, the parent may be held liable for negligent supervision. If the child is acting as an agent of the parent, the parent may also be held liable for the child's actions. Therefore, both situations described in I and II can make the parents liable.

Question 19

Alternative techniques for resolving legal disputes without litigation include which of the following?
I.Arbitration
II.Mediation

Accepted Answer

Both arbitration and mediation are alternative techniques for resolving legal disputes without litigation. Arbitration involves a neutral third party who makes a binding decision, while mediation involves a neutral third party who helps the parties come to a mutually agreed upon solution. Both techniques are often faster and less expensive than litigation.

Question 20

A defendant who is only slightly liable may be required to pay the full amount of damages under which of the following?

Accepted Answer

The joint and several liability rule allows the plaintiff to recover the full amount of damages from any defendant, regardless of their degree of liability. This means that if one defendant is only slightly liable but the other defendants are unable to pay their share of damages, the slightly liable defendant may be required to pay the full amount.

Quiz 19: The Liability Risk