Chapter 5: Torts and Cyber Torts

65
CHAPTER 5: TORTS AND CYBER TORTS
Chapter 5
Torts and Cyber Torts
TRUE/FALSE QUESTIONS
1.
Tort law provides legal remedies for property damage.

ANSWER: T
NAT: AACSB Analytic
2.
PAGE:
132
AICPA Legal
TYPE:
PAGE:
133
AICPA Legal
TYPE:
PAGE:
134
AICPA Legal
TYPE:
To commit an intentional tort, a person must act with a harmful

motive.
ANSWER: F
NAT: AACSB Analytic
6.
A person may commit an intentional tort if he or she acts knowing

with substantial certainty that certain consequences will result.
ANSWER: T
NAT: AACSB Analytic
5.
TYPE:
Punitive damages are intended to punish a wrongdoer and deter

others.
ANSWER: T
NAT: AACSB Analytic
4.
132
AICPA Legal
Tort is a French word for court.

ANSWER: F
NAT: AACSB Analytic
3.
PAGE:
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134
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TYPE:
The apprehension that an assault will occur need not be reasonable.
66
UNIT ONE: THE FOUNDATIONS
ANSWER: F
NAT: AACSB Analytic
PAGE:
134
AICPA Legal
TYPE:
67
7.
A battery occurs only if the victim suffers actual physical harm.

ANSWER: F
NAT: AACSB Analytic
8.
TYPE:
PAGE:
135
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TYPE:
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135
AICPA Legal
TYPE:
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136
AICPA Legal
TYPE:
PAGE:
136
AICPA Legal
TYPE:
A written defamatory statement must be communicated to a third

party to be actionable.
ANSWER: T
NAT: AACSB Analytic
14.
135
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Defamation involves wrongfully hurting a persons good reputation.

ANSWER: T
NAT: AACSB Analytic
13.
PAGE:
Slander involves the oral communication of defamatory language.

ANSWER: T
NAT: AACSB Analytic
12.
A store manager may delay a suspected shoplifter if the manager has

probable cause to justify delaying the suspect.
ANSWER: T
NAT: AACSB Analytic
11.
TYPE:
False imprisonment is a tort only if the confinement or restraint is

justified.
ANSWER: F
NAT: AACSB Analytic
10.
134
AICPA Legal
Consent is a defense to an allegation of assault, but not battery.

ANSWER: F
NAT: AACSB Analytic
9.
PAGE:
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138
AICPA Legal
TYPE:
An unauthorized scan of a bank account cannot be an invasion of

privacy.
ANSWER:
PAGE:
140
TYPE:
68
NAT: AACSB Reflective

15.
AICPA Legal
An illegal search can be an invasion of privacy.

ANSWER: T
PAGE:
16.
PAGE:
PAGE:
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146
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TYPE:
147
AICPA Legal
TYPE:
148
AICPA Legal
TYPE:
149
AICPA Legal
TYPE:
Conversion is wrongfully taking or retaining an individuals personal

property and placing it in the service of another.
ANSWER: T
NAT: AACSB Analytic
22.
An artisans lien is a defense to a charge of trespass to personal

property.
ANSWER: T
PAGE:
21.
TYPE:
To commit the tort of trespass to land, a person must harm the land.
ANSWER: F
NAT: AACSB Analytic
20.
143
AICPA Legal
Bona fide competitive behavior can constitute wrongful interference

with a contractual relationship.
ANSWER: F
NAT: AACSB Analytic
19.
Unintentionally causing a party to break a contract may constitute

wrongful interference with a contractual relationship.
ANSWER: F
PAGE:
18.
TYPE:
Puffery is fraud.
ANSWER: F
NAT: AACSB Analytic
17.
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AICPA Legal
PAGE:
149
AICPA Legal
TYPE:
There is no defense (except innocence) to a charge of conversion.
69
ANSWER: F
NAT: AACSB Analytic
23.
149
AICPA Legal
TYPE:
Publishing false information about anothers product is trade libel.

ANSWER: T
NAT: AACSB Analytic
24.
PAGE:
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AICPA Legal
TYPE:
An ordinary person standard determines whether allegedly negligent

conduct resulted in a breach of a duty of care.
ANSWER: F
NAT: AACSB Analytic
PAGE:
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TYPE:
70
25.
Business owners have no duty to exercise reasonable care to protect

invitees.
ANSWER: F
PAGE:
26.
153
AICPA Legal
TYPE:
PAGE:
154
TYPE:
AICPA Critical Thinking
PAGE:
155
AICPA Legal
TYPE:
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155
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TYPE:
A superseding cause is an intervening event that imposes liability on

a defendant for injuries caused by the intervening event.
ANSWER: F
NAT: AACSB Analytic
32.
PAGE:
An assumption of risk defense does not require knowledge of the risk.

ANSWER: F
NAT: AACSB Analytic
31.
A person assumes all risks associated with any activity in which he or

she participates.
ANSWER: F
NAT: AACSB Analytic
30.
153
TYPE:
AICPA Critical Thinking
In theory, causation in fact is limitless.

ANSWER: T
NAT: AACSB Analytic
29.
If a person breaches a duty of care and another person suffers an

injury, causation is established.
ANSWER: F
NAT: AACSB Analytic
28.
TYPE:
The degree of care to be exercised in a situation can vary with a

persons profession or occupation.
ANSWER: T
PAGE:
27.
152
AICPA Legal
PAGE:
156
AICPA Legal
TYPE:
The doctrine of res ipsa loquitur applies if an event causing harm

does not normally occur in the absence of negligence.
71
ANSWER: T
NAT: AACSB Analytic
PAGE:
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AICPA Legal
TYPE:
72
33.
Negligence per se may occur on the violation of a statute.

ANSWER: T
N
NAT: AACSB Analytic
34.
PAGE:
TYPE:
AICPA Legal
An Internet service provider (ISP) is not normally liable for its users
defamatory remarks.
ANSWER: T
PAGE:
35.
157
159
AICPA Legal
TYPE:
TYPE:
There are no statutes regulating the use of spam.

ANSWER: F
NAT: AACSB Analytic
PAGE:
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AICPA Legal
MULTIPLE-CHOICE QUESTIONS
1.
At Sea Food Cafe, Tom believes that he was overcharged and shoves
Wally, a waiter. Wally sues Tom, alleging that the shove was a battery.
Tom is liable if
a.
b.
c.
d.
Sea Food did not overcharge Tom.

the shove was offensive.
Tom acted out of malice.
Wally did not wait on Tom.
ANSWER: B
PAGE:
2.
134
AICPA Legal
TYPE:
Lon trespasses on Mega Corporations property. Through the use of

reasonable force, Megas security guard Ned detains Lon until the
police arrive. Mega is liable for
a.
b.
c.
d.
assault and battery.

false imprisonment.
intentional infliction of emotional distress.
none of the choices.
ANSWER: D
PAGE:
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AICPA Legal
TYPE:
73
74
3.
Louie files a suit against Myra for assault and battery. Myra can raise
the defense of property as a defense to the charge of
a.
b.
c.
d.
assault only.
assault or battery.
battery only.
neither assault nor battery.
ANSWER: B
PAGE:
4.
did not actually shoplift.

had not shoplifted in the past.
had probable cause to leave the premises.
was detained for an unreasonably long time.
ANSWER: D
PAGE:
135
AICPA Legal
TYPE:
Dale hears Ed falsely accuse Flo of stealing from Galore Warehouse,

Inc., their employer. Eds statement is defamatory
a.
b.
c.
d.
because Dale heard it.

only if Ed made the statement loudly.
only if Eds statement is also published in the Dispatch, a local
paper.
only if Flo suffers emotional distress.
ANSWER: A
PAGE:
6.
TYPE:
Ron, the manager of Sav-Mart Discount Store, detains Tina, whom

Ron suspects of shoplifting. Tina sues Ron, alleging that the detention
was false imprisonment. Ron is liable if Tina
a.
b.
c.
d.
5.
135
AICPA Legal
138
AICPA Legal
TYPE:
Todd files a suit against United Media Corporation for defamation.

Actual malice must be shown for recovery of damages if Todd is
a.
b.
c.
d.
a
a
a
a
corporate officer.
non-citizen.
private individual.
public figure.
75
ANSWER: D
PAGE:
139
AICPA Legal
TYPE:
76
7.
Grande Tans, Inc., uses, in its radio ads, a recording by Holly, who
owns the rights, without paying for the use. Over time, the song
comes to be associated with Grande Tans. In Hollys suit against
Grande Tans, the firm is most likely liable for
a.
b.
c.
d.
appropriation.
conversion.
wrongful interference with a customary relationship.
ANSWER: A
PAGE:
8.
d.
discloses the truth.

represents as a fact something that she knows is untrue.
states an opinion concerning something that she knows nothing
about.
uses puffery.
ANSWER: B
PAGE:
142
AICPA Legal
TYPE:
Kai files a suit against Lana based on one of Lanas statements that
Kai alleges is fraudulent. To give rise to fraud, the statement must be
one of
a.
b.
c.
d.
delusion.
fact.
illusion.
opinion.
ANSWER: B
PAGE:
10.
TYPE:
Kelly is an appliance salesperson. Kelly commits fraud if, to make a

sale, she
a.
b.
c.
9.
141
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143
AICPA Legal
TYPE:
Concept Computers, a computer store, takes unethical steps to divert

the customers of Digit All Goods, an adjacent competing store.
Concept may be liable for
a.
b.
appropriation.
wrongful interference with a business relationship.
77
c.
d.

ANSWER: B
PAGE:
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AICPA Legal
TYPE:
78
11.
Clem, a Delite Dairy salesperson, follows Edna, a salesperson for

Festive Foods, a Delite competitor, as Edna visits stores to make
sales. Clem solicits each of Ednas customers. Clem is most likely
liable for
a.
b.
c.
d.
conversion.
trespass to personal property.
ANSWER: C
PAGE:
12.
Phil asks Quinn to leave and Quinn refuses.

Quinn enters the property in the evening.
Quinn makes disparaging remarks about Phil to third parties.
the property is damaged during the visit.
ANSWER: A
PAGE:
148
AICPA Legal
TYPE:
Bill enters onto Cindys property to help Donna, who is in danger.

Cindy charges Bill with trespass to land. Bill has
a.
b.
c.
d.
a complete defense.
a partial defense.
a possible defense.
no defense.
ANSWER: A
PAGE:
14.
TYPE:
Phil invites Quinn onto his land. Quinn commits trespass if

a.
b.
c.
d.
13.
147
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148
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TYPE:
Ned leaves his car with OK Car Shop to have it repaired. After the car
is fixed, OK keeps it. OK is not liable for trespass to personal property
if
a.
b.
c.
d.
Ned refuses to pay for the repair.

Ned thinks his car is a joke.
OK is keeping the car as a joke.
OK received payment for the repair.
79
ANSWER: A
PAGE:
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AICPA Legal
TYPE:
80
15.
Quinn, a clerk at PC Computer Store, takes a computer from the store

without PCs permission. Quinn is liable for conversion
a.
if he damages the computer.
b.
if he does not have a good reason for taking the computer.
c.
if he fails to prevent a theft of the computer from his
possession.
d.
under any circumstances.
ANSWER: D
PAGE:
16.
conversion.
disparagement of property.
no tort.
ANSWER: A
PAGE:
149
AICPA Legal
TYPE:
Steve, a television news reporter, knowingly broadcasts an untrue

story claiming that Medi-Drugs, Inc., markets a medicine for children
that contains highly addictive drugs. Steve is liable for
a.
b.
c.
d.
slander of quality.
slander of title.
none of the Choices.
ANSWER: A
PAGE:
18.
TYPE:
Ian steals a business law textbook from Jules. Kris, who does not
know that the book is stolen, buys it from Ian. Kris has committed
a.
b.
c.
d.
17.
149
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150
AICPA Legal
TYPE:
In newspaper ads, Super! Used Autos falsely accuses Mighty Value

Vehicles, a competitor, of selling stolen cars. Mightys sales decrease.
Super! has most likely committed
a.
b.
c.
d.
slander of quality.
slander of title.
81
ANSWER: B
PAGE:
19.
TYPE:
Jay drops a bowling ball on Kylas foot. Jay is liable for negligence if
he acted
a.
b
c.
d.
unrealistically.
unreasonably.
unrecognizably.
unreliably.
ANSWER: B
PAGE:
20.
150
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152
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TYPE:
To protect its customers and other business invitees, Supreme Retail

Corporation must warn them of
a.
b.
c.
d.
all dangers.
foreseeable dangers.
open dangers.
no dangers.
ANSWER: B
PAGE:
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TYPE:
Fact Pattern 5-1 (Questions 2122 apply)

Roy owns a building in which Shelly rents an apartment. The sidewalks
around the building are in poor repair. Many sections have buckled from the
growth of tree roots over the years.
21.
Refer to Fact Pattern 51. As the owner of the building, Roy has a
duty to
a.
b.
c.
d.
arrange to escort anyone who walks onto the property.

do nothing.
repair the sidewalks.
repair the sidewalks only if he is notified that it is a problem.
ANSWER: C
PAGE:
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TYPE:
82
22.
Refer to Fact Pattern 51. As a tenant in the building, Shelly has a

duty to
a.
b.
c.
d.
arrange to escort anyone who walks onto the property.

do nothing.
repair the sidewalks.
repair the sidewalks only if she is notified that it is a problem.
ANSWER: B
PAGE:
23.
an average human being.

a reasonable person.
a reasonable physician.
a typical professional.
ANSWER: C
PAGE:
153
AICPA Legal
TYPE:
Lara hires Mike, an architect, to design a warehouse. Lara is dissatisfied with the look of the new building and sues Mike, alleging
negligence. Mike can successfully defend against the suit by proving
that
a.
b.
c.
d.
he is not familiar with every principle of art.

his design is as attractive as an ordinary persons.
Lara could not have designed a more attractive building.
Lara was not injured in any way.
ANSWER: D
PAGE:
25.
TYPE:
Lola files a suit against Mac, a medical doctor, alleging negligence. As

a physician, Mac is held to the standard of
a.
b.
c.
d.
24.
152
AICPA Legal
153
AICPA Legal
TYPE:
Kit carelessly bumps into Luke, knocking him to the ground. Kit has
committed the tort of negligence
a.
b.
c.
d.
only if Luke is injured.

only if Luke is not injured.
under any circumstances.
under no circumstances.
83
ANSWER: A
PAGE:
26.
153
AICPA Legal
TYPE:
Pat files a successful suit against Quality Stores based on Qualitys

negligence. Normally, an award in such a suit consists of
a.
b.
c.
d.
comparative damages.
compensatory damages.
contributory damages.
punitive damages.
ANSWER: B
NAT: AACSB Analytic
PAGE:
153
AICPA Legal
TYPE:
84
27.
Driving his sport utility vehicle negligently, Bart crashes into a

streetlight. The streetlight falls, smashing through the roof of a
house, killing Chris. But for Barts negligence, Chris would not have
died. Regarding the death, the crash is the
a.
b
c.
d.
cause in fact.
intervening cause.
proximate cause.
superseding cause.
ANSWER: A
PAGE:
28.
b.
c.
d.
neither the causation in fact nor the proximate cause of the

injury.
only the causation in fact of the injury.
only the proximate cause of the injury.
the causation in fact and the proximate cause of the injury.
ANSWER: D
PAGE:
154
AICPA Legal
TYPE:
Molly shoots Norm with Opals pistol. The proximate cause of Norm
being shot is most likely attributable to
a.
b.
c.
d.
Molly and Opal.

Molly only.
Opal only.
neither Molly nor Opal.
ANSWER: B
PAGE:
30.
TYPE:
Dirk is driving a sport utility vehicle in which Elin is a passenger when

they are involved in a traffic accident, and Elin is injured. Liability
may be imposed on Dirk for Elins injury if Dirks driving is
a.
29.
154
AICPA Legal
154
AICPA Legal
TYPE:
Will enters the Xtreme Decathlon, an athletic competition, an event

in which Will has competed before. Regarding the risk of injury, Will
assumes
a.
all of the risks associated with the event.
85
b.
c.
d.
only the risks different from those normally associated with the
event.
only the risks greater than those normally associated with the
event.
only the risks normally associated with the event.
ANSWER: D
PAGE:
155
AICPA Legal
TYPE:
86
31.
Eve is injured when she slips and falls in Finest Discount Warehouse.
Eve files a suit against Finest for $50,000. Under a pure
comparative negligence rule, Eve could recover damages from Finest
a.
b.
c.
d.
only if Eve and Finest were equally at fault.

only if Eve was less at fault than Finest.
only if Eve was more at fault than Finest.
whether Eve was less, more, or equally at fault.
ANSWER: D
PAGE:
32.
a dram shop act.

a violation of the danger invites rescue doctrine.
negligence per se.
res ipsa loquitur.
ANSWER: C
PAGE:
157
AICPA Legal
TYPE:
Amber pushes Brad into the path of an oncoming car driven by Carol.
Don tries to rescue Brad, but the car hits both of them. Amber is
liable for the injuries of
a.
b.
c.
d.
Brad and Don.

Brad only.
Don only.
neither Brad nor Don.
ANSWER: A
PAGE:
34.
TYPE:
A state statute requires machinery in food processing plants to

include automatic shut-off switches accessible to each employee
working on the machine. Fruit Companys (FCs) equipment does not
have the switches. Greg, an FC employee, suffers an injury that an
accessible shut-off switch would have prevented. Gregs best ground
for recovery is that FC committed
a.
b.
c.
d.
33.
156
AICPA Legal
157
AICPA Legal
TYPE:
In an emergency situation, Lori renders aid to Mike, who needs help.

Mike would most likely be prohibited from suing Lori for negligence
under
87
a.
b.
c.
d.
any circumstances.
a Good Samaritan statute.
a social host statute.
no circumstances.
ANSWER: B
PAGE:
158
AICPA Legal
TYPE:
88
35.
Beta Services (BS) is an Internet service provider. On a BS online

bulletin board, Carl, a BS customer, posts a defamatory remark about
Delta Company. Delta could successfully file a suit against
a.
b
c.
d.
BS only.
BS or Carl.
Carl only.
neither BS nor Carl.
ANSWER: C
PAGE:
159
AICPA Legal
TYPE:
ESSAY QUESTIONS
1.
Eagle Engineering, Inc., and Fast Code Corporation market

competitive software products. Eagle launches an advertising
campaign in which Eagle claims that Fast Code, instead of testing its
software before it is marketed, has its customers test the software
by using it. Fast Code knows this is not true but begins to lose sales
to Eagle. On what grounds could Fast Code sue Eagle for to Fast
Codes reputation?
ANSWER: Fast Code could sue Eagle for the harm Eagle is causing
to Omegas reputation on the ground of defamation. Defamation
occurs when a party makes a false statement that injures anothers
reputation. In this problem, any defamatory statements likely take
the form of libel (defamatory statements in written or printed form).
To bring a suit on this ground, Fast Code would have to show Eagles
publication of false informationthat is, its communication to a third
party. If Fast Code is considered a public figure, it will also need to
prove that Eagle made its statements with actual malicethat is,
with either knowledge of their falsity or a reckless disregard for the
truth. Publication of false information about anothers product,
alleging that it is not what its seller claims, also constitutes the tort of
slander of quality, or trade libel. To bring a suit on this theory
successfully, Fast Code would have to show not only that a third
person refrained from dealing with it because of the improper publication but also that there were associated damages. Fast Code
might also include a claim based on the tort of misrepresentation, or
fraud. Misrepresentation leads another to believe in a condition that
is different from the one that actually exists. This tort requires several
elements: (1) misrepresentation of facts or conditions with knowledge
89
that they are false or with reckless disregard for the truth, (2) intent
to induce another to rely on the misrepresentation, (3) justifiable
reliance by the deceived party, (4) damages suffered as a result of
the reliance, and (5) a causal connection between the
misrepresentation and the injury.
PAGES:
136141
2.
TYPE:
N
AICPA Decision Modeling
A water pipe bursts, flooding a General Business Company (GBC)

utility room and tripping the circuit breakers on a panel in the room.
GBC contacts Hal, a licensed electrician with ten years of experience,
to investigate the damage and turn the breakers on. Hal attempts
to turn on one of the breakers without testing for short circuits, which
he knows should be done. Hal is electrocuted, and files a suit against
GBC for damages, alleging negligence. How might GBC defend itself?
ANSWER: GBC might defend against this claim by asserting the defense of assumption of risk. GBC could claim that it had no duty to
warn Hal of a dangerous risk of which he should have been aware.
Given the common knowledge of the accepted practices in the field
in which Hal practiced his trade and his level of training and
experience, a court might agree that there was no need on the part
of GBC to warn Hal of this danger, and that Hal voluntarily entered
the risky situation, knowing the risk involved. GBC might also raise
comparative negligence as a defense. All individuals are expected to
exercise a reasonable degree of care in looking out for themselves.
Both parties negligenceif, indeed, GBC was negligent at allcan
be computed and the liability distributed accordingly. GBC might also
plead assumption of risk, claiming that Hal voluntarily entered into a
risky situation, knowing the risk involved.
PAGES:
155156
TYPE:
N
AICPA Decision Modeling

Chapter 5: Torts and Cyber Torts

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65

CHAPTER 5: TORTS AND CYBER TORTS

Tort law provides legal remedies for property damage.

To commit an intentional tort, a person must act with a harmful

A person may commit an intentional tort if he or she acts knowing

Punitive damages are intended to punish a wrongdoer and deter

Tort is a French word for court.

The apprehension that an assault will occur need not be reasonable.

UNIT ONE: THE FOUNDATIONS

CHAPTER 5: TORTS AND CYBER TORTS

A battery occurs only if the victim suffers actual physical harm.

A written defamatory statement must be communicated to a third

Defamation involves wrongfully hurting a persons good reputation.

Slander involves the oral communication of defamatory language.

A store manager may delay a suspected shoplifter if the manager has

False imprisonment is a tort only if the confinement or restraint is

Consent is a defense to an allegation of assault, but not battery.

An unauthorized scan of a bank account cannot be an invasion of

UNIT ONE: THE FOUNDATIONS

NAT: AACSB Reflective

An illegal search can be an invasion of privacy.

Conversion is wrongfully taking or retaining an individuals personal

An artisans lien is a defense to a charge of trespass to personal

Bona fide competitive behavior can constitute wrongful interference

Unintentionally causing a party to break a contract may constitute

There is no defense (except innocence) to a charge of conversion.

CHAPTER 5: TORTS AND CYBER TORTS

Publishing false information about anothers product is trade libel.

An ordinary person standard determines whether allegedly negligent

UNIT ONE: THE FOUNDATIONS

Business owners have no duty to exercise reasonable care to protect

A superseding cause is an intervening event that imposes liability on

An assumption of risk defense does not require knowledge of the risk.

A person assumes all risks associated with any activity in which he or

In theory, causation in fact is limitless.

If a person breaches a duty of care and another person suffers an

The degree of care to be exercised in a situation can vary with a

The doctrine of res ipsa loquitur applies if an event causing harm

CHAPTER 5: TORTS AND CYBER TORTS

UNIT ONE: THE FOUNDATIONS

Negligence per se may occur on the violation of a statute.

There are no statutes regulating the use of spam.

Sea Food did not overcharge Tom.

Lon trespasses on Mega Corporations property. Through the use of

assault and battery.

CHAPTER 5: TORTS AND CYBER TORTS

UNIT ONE: THE FOUNDATIONS

did not actually shoplift.

Dale hears Ed falsely accuse Flo of stealing from Galore Warehouse,

because Dale heard it.

Ron, the manager of Sav-Mart Discount Store, detains Tina, whom

Todd files a suit against United Media Corporation for defamation.

CHAPTER 5: TORTS AND CYBER TORTS

UNIT ONE: THE FOUNDATIONS

discloses the truth.

Kelly is an appliance salesperson. Kelly commits fraud if, to make a

Concept Computers, a computer store, takes unethical steps to divert

CHAPTER 5: TORTS AND CYBER TORTS

wrongful interference with a contractual relationship.

UNIT ONE: THE FOUNDATIONS

Clem, a Delite Dairy salesperson, follows Edna, a salesperson for

Phil asks Quinn to leave and Quinn refuses.

Bill enters onto Cindys property to help Donna, who is in danger.