Business Law #2

Front 1

Starla was killed when her car struck one of a group of horses that were roaming on the highway. The Sea Horse Ranch owned the horses, which were property of the corporation that owned the ranch. The horses frequently escaped through poorly maintained fences surrounding the ranch. Shipley, the ranch’s owner and president of the corporation, had been cited by the police and the humane society for allowing his horses to run free on the highway. The state sought to prosecute both the Sea Horse Ranch and Shipley for involuntary manslaughter. Can the Sea Horse Ranch corporation be held liable for the crime?

Back 1

Yes, because a corporation can be held liable for the criminal actions of its officers.

Front 2

Rama advertises on the radio that she is selling a cream guaranteed to grow hair. Rama knows that the cream will not do what she claims it will. Rama may be tried

Back 2

for the federal crime of wire fraud.

Front 3

Gavin runs an illegal gambling operation out of the back of a store that he owns. The store shows increasing profits because Gavin reports the profits of his gambling operation as legitimate store income on his tax returns. Gavin is engaged in

Back 3

money laundering

Front 4

Justin is the accountant for a trucking company. A driver, Andrew, holds a gun to Justin’s head and forces him to steal from the company. Justin falsifies records, obtains cash, and gives it to Andrew. If criminal charges are brought against Justin, he can assert the defense of

Back 4

duress

Front 5

The Department of Justice wants access to the telephone records of a major newspaper. The requirement for a search warrant, an order from a judge authorizing the search of the records, would be required under the

Back 5

Fourth Amendment

Front 6

Vince relies on his computer skills to have enough money to attend college. He breaks into computer systems to transfer funds to his own accounts. He occasionally gets paid by other students for breaking into the university’s computers to alter their grades. Vince is what is commonly referred to as a

Back 6

hacker

Front 7

The state of Texas has placed caps on noneconomic damages in medical malpractice causes of action. This type of limitation on damages is

Back 7

an example of tort reform

Front 8

Mel sent Jasper an e-mail message telling Jasper that his wife had been killed in a car accident, and Mel knew this was untrue. Jasper may be able to sue Mel for

Back 8

infliction of emotional distress

Front 9

Mark is a famous syndicated radio personality for TalkRadio. He has a distinctive voice and manner of speaking. MoreTalk hires Gordon, who sounds nearly identical to Mark, to host a competing show. MoreTalk encourages Gordon to imitate Mark as closely as possible while on the air. MoreTalk is most likely to be liable for

Back 9

appropriation.

Front 10

The members of the City High soccer team have been training with Hanson, a personal trainer who charges by the hour, for several years. Bob, the soccer coach, tells the team members that they must now train with Martin, not Hanson, or they will be kicked off the team. All of Hanson's clients immediately stop training with Hanson. Bob is most likely to have committed

Back 10

wrongful interference with a business relationship

Front 11

Austin, Texas has passed a local ordinance that provides all motor vehicles must provide at least three feet of clearance when passing a bicycle. Ted is driving his vehicle and accidentally hits Zoey. His actions of violating the local ordinance and hitting Zoey constitute

Back 11

negligence per se:is the violation of an ordinance that was enacted to prevent the type of injury Zoey incurred

Front 12

Andy decides to go skydiving for his 40th birthday. He signs a waiver, boards the plane and prepares for the jump. Everything is going smoothly until just before landing a down draft forces Andy down at a much faster rate into the ground, causing injury to both of his legs. Andy will likely not be able to recover for his injuries under the defense of

Back 12

assumption of the risk.

Front 13

While Jessica, Ashley, and Bryan are snowboarding, they ignore warning signs indicating that they have left the marked trail and are entering dangerous territory. They become lost, and a rescue effort begins. Climbing the mountain, a snowplow accidentally cuts a nearby town’s main electrical cable. Due to the loss of her electric heat, Ethel, an elderly woman, dies of hypothermia. The boarders’ negligence in ignoring the warning signs is

Back 13

he causation in fact, but not the proximate cause, of Ethel’s death.

Front 14

Exxon owned a gasoline station in Virginia that it used for years. The station had five underground gasoline storage tanks that were not properly maintained. The property was sold to AFA, which discovered gasoline contamination of the soil. AFA filed a lawsuit in Virginia state court contending that Exxon should be held strictly liable for the cost of cleaning up the property. The court most likely found that Exxon was

Back 14

not liable, because gasoline storage is not an abnormally dangerous activity

Front 15

Martha is walking from her office building to her car in a torrential downpour with an umbrella manufactured by Umbrellas USA, Inc. She is struck by lightening, and files suit claiming the manufacturer failed to include a warning. A court would likely find that

Back 15

there is no duty to warn about risks that are obvious or commonly known, such as the risk of lightening occurring during a rainstorm.

Front 16

David’s family purchased a trampoline in 2000. They sold the trampoline at a garage sale in 2010 to Zac’s family. In 2012, Zac’s son is injury while jumping on the trampoline when it collapses. If they sue the trampoline manufacturer in 2013, their lawsuit will likely be dismissed based on the

Back 16

statute of repose.

Front 17

Harvey is driving while intoxicated in his new truck when his tire blows out. He loses control of the truck and crashes into a tree causing injury to himself and to his vehicle. The tire is determined to be defective. Which of the following defenses would be the most viable to be raised by the tire manufacturer in a product liability cause of action?

Back 17

Comparative negligence.

Front 18

Whitney works at home making unique children’s clothes. Liam buys Whitney’s clothes to sell in his store. With respect to Whitney’s legal relationship to Liam, she is probably

Back 18

an independent contractor

Front 19

Charlie tells Jamal that Marisol has agreed to allow him to sell her racing bicycle. Marisol is present at the time, hears the conversation, and says nothing. Jamal wants to buy a bicycle like Marisol’s, so he agrees with Charlie to buy Marisol’s bike. Marisol then refuses to sell the bicycle. Marisol claims that she is not bound by the agreement formed by Charlie and Jamal because Charlie is not her agent. Marisol is

Back 19

bound by the contract, under a theory of agency by estoppel.

Front 20

Sarah has to move from the East Coast to the West Coast for her job. Elmo agrees to act as Sarah’s agent to sell her New York condo. As her agent, Elmo owes Sarah all of the following duties except

Back 20

payment.

Front 21

Robert attempts to avoid paying Andrew a commission check on the sale of his house to a buyer procured by Andrew by waiting until after the listing agreement has expired. Andrew finds out about this after Robert sells his house. Andrew can

Back 21

sue Robert for breach of contract.

Front 22

Sarah asks Sergio to mow her law. Sergio, who is overloaded with work, contracts with Dan to do the work for him as an independent contractor. As Dan is mowing, Sarah walks out of her house and the lawnmower throws a rock and hits Sarah, causing serious injuries. In this situation, Sergio is

Back 22

probably not liable for Sarah’s injuries

Front 23

Sally registers the domain name thedallascowboys.com before the NLF football team is able to do so, with the title of her web site called The Dallas Cowboys, a nightclub in Austin, Texas. Sally’s use of the domain name and the name of her bar is

Back 23

trademark dilution.

Front 24

Sean is researching federal law to determine if there are civil or criminal penalties associated with the circumvention of the encryption software on a DVD. He should find the

Back 24

Digital Millennium Copy Right Act

Front 25

Ben has consulted with an attorney regarding his employer having reviewed his personal communications at work. Be would have a viable claim for a violation of the Electronic Communications Privacy Act for which of the following actions?

Back 25

Accessing Ben’s private Facebook page by guessing his password.

Front 26

Unobtainium Venture Capital, a new venture capital start-up, wants to create a place for employees to communicate and share files, but wants to minimize its potential risk to competitors by protecting its trade secrets that the shared data may contain. UVC should utilize

Back 26

an internal social network.

Front 27

Lily developed a blog and relays rumors and gossip she hears in her hometown. She should be concerned about

Back 27

online defamation.

Front 28

Jennifer has filed a privacy complaint against Google. The federal agency to conduct an investigation by consumer complaints is the

Back 28

FTC