51)T/F "Product misuse" is a defense to product liability.

52)T/F The law of negligence encompasses an important ethics concept:duty or

responsibility.

53)T/F When business suffers large punitive damage awards, it can increase prices as a way

to offset these costs.

54)T/FGenerally, one is liable for the torts of one's independent contractor.

55)T/FPunitive damages are awarded to punish and deter outrageous conduct and to send a

message to similarly situated potential defendants.

56)T/FCorporate vicarious liability is a way to broaden the scope of corporate responsibility

for criminal offenses by employees.

57)Negligence is comprised of the following elements:

a)breach of duty of care

b)proximate causation

c)injury

d)all of the above

58)T/F Under strict liability, no proximate causation need be proved.

59)T/F The reasonable person test is used in negligence theory to determine breach of duty of

care.

60)T/FForeseeability is another way to determine breach of duty.

61)T/FOne reason for strict liability is to make it more difficult for injured parties to be made whole.

62)T/F "Assumption of risk" can be a defense if the plaintiff knowingly and

willfully assumed the risk of injury.

63)T/FUnder comparative negligence, the proportionate amount of negligence is accounted

for, i.e., a plaintiff may be 20% at fault him/herself while the defendant is 80% at fault.

64)T/FStrict liability sends a message to manufacturers of products to be more careful.

65)T/FIn a contributory negligence jurisdiction, if the plaintiff is the least bit negligent, his/her

recovery is denied.

66)T/FTo recover under product liability, a form of strict liability, one must prove "defective

condition unreasonable dangerous," in addition to proximate causation and injury.

67)T/FProximate cause need not be the scientific cause;it must be close or proximate enough

to the injury to be foreseeable.

68)T/FStrict liability, as with negligence, requires proof of breach of duty of care using a

reasonableness standard.

69)T/FA reasonable physician follows appropriate medical standards.

70)T/FAn assault occurs when the party acted upon experiences offensive bodily contact.

71)T/FCorporate profits are subject to double-taxation.

72)T/FIn a general partnership, each partner is personally liable for losses.

73)T/FThe LLP is a popular form of business organization for professionals.

74)T/FCorporations must file with the State since corporate charters originate there.

75)T/FThe Uniform Partnership Act (UPA) governs partnerships in most states in the absence

of an express agreement.

76)T/FThe LLC combines the tax advantages and management flexibility of a partnership with

the limited liability of a corporation.

77)T/FOne must weigh a variety of advantages and disadvantages when choosing their

preferred form of business organization.

78)T/FThe sole proprietorship, unlike the partnership, offers a shield from personal liability.

79)T/FGeneral partners share in both the profits and losses of a general partnership.

80)T/FLimited partners are investors without managerial control.

81)T/FSociety expects to have safer products through awarding punitive damages.

82)T/FAn element of a battery is offensive bodily contact.

83)T/FThe Commerce Clause has been interpreted to create uniformity across the States.

84)T/FInsider trading is a criminal offense that violates U. S. securities laws.

85)T/F Generally, money damages are awarded in a criminal suit.

86)T/FIf a Taiwanese Company exports motorcycles to the State of California, it is "doing

Business" in California under the State's Long-Arm Statute.

87)T/F Local zoning laws, for example regulating the size of McDonald's golden arches, can

be a legal limitation of free speech.

88)T/F An intentional tort such as an assault, can be prosecuted as a crime and be the basis of a

civil suit for money damages.

89)T/F Generally, arbitration awards can still be easily appealed.

90)T/FInsider trading requires "inside" knowledge that the public does not have that is used

to trade stocks.

91)T/FIf a business accepts credit cards, it is likely involved in Interstate Commerce.

92)T/FThe Racketeer Influenced & Corruption Act (RICO)is used to combat "white collar"

crimes such as fraud.

93)T/FThe False Claims Act can be used by an employee to sue an employer for defrauding

the government.

94)T/FThe Sarbanes-Oxley Act requires proper record keeping and maintenance.

95)T/FThe Sarbanes-Oxley Act was passed by Congress in response to corporate scandals

such as Enron and Arthur Andersen involving allegations of fraud for mis-statements of

earnings.

96)T/FBusiness crimes involving fraud are referred to as "white collar" crimes.

97)T/F"Intentional interference with contract" is a tort against economic interests.

98)T/FThe Foreign Corrupt Practices Act (FCPA) prohibits the bribing of foreign government

officials by U.S. business.

99)T/FA bribe is interpreted broadly as anything of value.

100)T/F"Compensatory damages" compensate tort victims for damages such as pain and

suffering, medical expenses, repair of property and lost wages.