Question 1

First Fidelity Insurance received a call from Second Fifth Bank regarding Margaret Gessner, a former Fidelity employee. Gessner had been fired for embezzlement. Can First Fidelity disclose such information? Must First Fidelity disclose it?

Accepted Answer

The answer of First Fidelity Insurance received a call from...

Question 2

Three boys were leaving Wal-Mart when they were stopped by plain clothes security officers. One officer said, "Those shirts that you have on were stolen." One boy said, "You can't be serious." The officer responded, "Yes, I am. Come with me." The boys then went with the officers to a side door and into an office. The boys' parents have filed suit against Wal-Mart. Discuss what their suit might be for and what defenses Wal-Mart has.

Accepted Answer

The answer of Three boys were leaving Wal-Mart when they...

Question 3

James Keller was an employee at Radical Boards, Inc.  Radical Boards is a surf and skateboard shop that also sells clothing.  While employed there, Radical Board's principal shareholder discovered that Keller had created peep holes in the shop's dressing rooms.  When confronted with the peep holes, Keller denied ever using them and indicated that they were there to prevent shoplifting.  The shop manager was told to fire Keller.  Shortly after Keller left, a 16-year-old and her mother filed suit because the teen learned, through conversations with Keller, that he had seen her in the dressing room while she was trying on swimming suits.  Keller was able to describe her not-generally-seen birthmarks to her.  Keller has applied for a position at a summer camp for girls, ages 14-18.  The camp director had called Radical Board's manager and asked for a reference on Keller. Suppose that Radical Board's manager simply verifies employment for the camp director. During Keller's first month at the camp, he is able to gain access to the girls at night and sexually assaults three of them. The girls' parents have brought suit against the camp as well as Radical Boards. The camp:

Accepted Answer

The camp might be liable for negligent hiring if it failed to conduct a thorough background check or ignored warning signs about Keller's past behavior.

Question 4

During an altercation, Tyrone hits LaQuisha several times causing LaQuisha pain and injuries. Discuss LaQuisha's options to this situation.

Accepted Answer

The answer of During an altercation, Tyrone hits LaQuisha several...

Question 5

Delia Jones is shopping at Kohl's one afternoon. She has her two small children with her and they are not cooperating. As she is looking at several pairs of earrings, one of the children in her stroller spills a drink on the stroller and floor. Delia places two pairs of earrings on top of her diaper bag and begins cleaning up the children's mess. Frustrated, she then leaves the store to return home. On her way out in the parking lot, she is stopped by store security who asks her to come with him to the store offices. She does so. As they are walking to the elevator, the security guard passes an employee and says, "We've got another loser shoplifter here." 
Delia is kept at the offices until the police come. She explains the situation and the store manager declines to prosecute. Discuss the liability of the store for its conduct.

Accepted Answer

The answer of Delia Jones is shopping at Kohl's one...

Question 6

In an opinion column published in wallstreetbuzz.com, a columnist wrote, "James Jackson, CEO of Blain Investments, now posting an $8 billion write-down, has robbed shareholders blind through his accounting slights of hand. Jackson insists that he has scruples. I don't know about that but if he does have scruples you can bet they belong to somebody else." The columnist:

Accepted Answer

The columnist is likely protected from defamation liability under the opinion/analysis quasi-privilege because the statement is presented as an opinion rather than a factual assertion.

Question 7

A dentist makes a mistake while she is working on a patient. The dentist will be held to a reasonable_____ standard.

Accepted Answer

A dentist is held to a reasonable dentist standard, meaning they are expected to perform with the skill and care that a competent dentist would under similar circumstances.

Question 8

James Keller was an employee at Radical Boards, Inc.  Radical Boards is a surf and skateboard shop that also sells clothing.  While employed there, Radical Board's principal shareholder discovered that Keller had created peep holes in the shop's dressing rooms.  When confronted with the peep holes, Keller denied ever using them and indicated that they were there to prevent shoplifting.  The shop manager was told to fire Keller.  Shortly after Keller left, a 16-year-old and her mother filed suit because the teen learned, through conversations with Keller, that he had seen her in the dressing room while she was trying on swimming suits.  Keller was able to describe her not-generally-seen birthmarks to her.  Keller has applied for a position at a summer camp for girls, ages 14-18.  The camp director had called Radical Board's manager and asked for a reference on Keller. Radical Boards:

Accepted Answer

Radical Boards might be held liable for negligent failure to disclose Keller's history because they were aware of his inappropriate behavior and did not inform the camp director, potentially putting others at risk.

Question 9

The Arizona Daily Desert View carried a story on a recent E-Coli problem in a Phoenix fast food restaurant. The story included a history of Arizona E-Coli incidents and indicated that the Saguaro Grill had an E-Coli problem in 1999 that resulted in the hospitalization of seven customers. The owner of the Saguaro Grill called the newspaper and complained because the newspaper was rehashing an incident from nearly 10 years ago that damaged its reputation. The Arizona Daily Desert View :

Accepted Answer

The newspaper is not liable because it reported a true historical fact, which does not constitute libel, defamation, or invasion of privacy.

Question 10

Rex Crim is an International Harvester dealer from Henderson, Texas. At the request and expense of International Harvester, Crim traveled to Phoenix, Arizona, for purposes of the demonstration of a new vehicle called the International Scout, designed to compete against the Jeep. Crim went to the proving grounds in the desert around Phoenix and spent a day watching the vehicle demonstrations. Crim and other dealers drove the vehicles and much dust resulted from their driving. A few weeks later Crim became ill with flu-like symptoms. He was finally diagnosed as having coccidioidomycosis or "Valley Fever." Valley Fever is a disease well known to Arizona residents and most have had it if they have lived there over ten years. Newcomers are particularly vulnerable to the disease since the exposure to dust seems to build up immunity among the residents. 
Crim became quite ill and brought suit against International Harvester for its failure to warn him about the Valley Fever phenomenon before he came out to the testing grounds. Was International Harvester responsible for warning Crim? Is there negligence in the failure of International Harvester to warn Crim?

Accepted Answer

The answer of Rex Crim is an International Harvester dealer...

Question 11

Which of the following would not be classified as libel?

Accepted Answer

The answer of Which of the following would not be...

Question 12

Sally Tiffany was parked in the high school parking lot in a designated space. A landscaping truck was parked behind her car along a red curb. Sally had difficulty backing out and struck the trailer. Who is liable for the accident?

Accepted Answer

The answer of Sally Tiffany was parked in the high...

Question 13

When compensatory damages are substantial, the United States Supreme Court ruled that punitive damages are allowable if the ratio of punitive damages to compensatory damages is:

Accepted Answer

The answer of When compensatory damages are substantial, the United...

Question 14

Kirk Daly, a 36-year-old attorney, was killed when his Buick Opel collided with some metal fence on the Harbor Freeway in Los Angeles. He was traveling at a speed between 50 and 70 mph. After the collision, the car spun and the driver's door flew open. Daly was ejected from the car and sustained fatal head injuries. Had the door stayed closed, his injuries would have been relatively minor. Daly was not wearing his seat belt. Discuss the negligence theory for recovery in the suit Daly's widow has brought against General Motors, the makers of the Buick Opel. Also discuss any defenses General Motors might have.

Accepted Answer

The answer of Kirk Daly, a 36-year-old attorney, was killed...

Question 15

Cynthia Fromm and Delores Rankin left after their fall semester finals for a four-day skiing trip in Northern Arizona. During their return drive, they hit a severe snowstorm and were having difficulty with directions. They took a wrong turn onto a road that is closed during the winter months and is not plowed. The winter barricades for the road were not yet in place. Fromm and Rankin were soon stuck in the snow. They remained in their vehicle for 11 days until they were rescued by snowmobilers. Both had severe frostbite. Fromm lost both feet. Rankin lost all of her toes. Both filed suit against the state of Arizona for its failure to put up barricades in a timely fashion. Should the state be held liable?

Accepted Answer

The answer of Cynthia Fromm and Delores Rankin left after...

Question 16

The Arizona Daily Desert View carried a story on a recent E-Coli problem in a Phoenix fast food restaurant. The story included a history of Arizona E-Coli incidents and indicated that the Saguaro Grill had an E-Coli problem in 1999 that resulted in the hospitalization of seven customers. Suppose that the restaurant that had the E-Coli outbreak in 1999 was Saguaro Buffet, not the Saguaro Grill. The Arizona Daily Desert View :

Accepted Answer

Libel involves publishing a false statement that is damaging to a person's or entity's reputation. If the newspaper incorrectly reported that Saguaro Grill had an E-Coli outbreak, it could be liable for libel.

Question 17

Which of the following is prohibited under HIPAA?

Accepted Answer

HIPAA prohibits unauthorized disclosure of patient information, including visible computer screens to unauthorized individuals and contacting patients at locations they have requested not to be contacted.

Question 18

Representative Pete Stark said the following in a speech on the floor of the U.S. House of Representatives, "You're going to spend it to blow up innocent people if we can get enough kids to grow old enough for you to send to Iraq to get their heads blown off for the president's amusement." Representative Stark:

Accepted Answer

The answer of Representative Pete Stark said the following in...

Question 19

John Reisen posted the following message in a chat room, "MIC Corporation will have to restate its earnings for the past three years. Its CEO will resign in disgrace because he is responsible." The message is false and MIC Corporation's shares lose 45% of their value before the company can stop the rumor.

Accepted Answer

Reisen has committed the tort of defamation because he made a false statement that was published to a third party, causing harm to MIC Corporation's reputation.

Question 20

The landmark case for proximate cause is:

Accepted Answer

Palsgraf v. Long Island Railroad Co. is the landmark case for proximate cause.

Quiz 8: Business Torts