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LST 240 study guide for Exam 2

by: Sydney Hunt

LST 240 study guide for Exam 2 LST 240

Marketplace > Murray State University > Business > LST 240 > LST 240 study guide for Exam 2
Sydney Hunt
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About this Document

main topics of chapters 7-11
Business Law/Legal Environment
Dr. Alkhatib
Study Guide
business, Law
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This 12 page Study Guide was uploaded by Sydney Hunt on Tuesday May 17, 2016. The Study Guide belongs to LST 240 at Murray State University taught by Dr. Alkhatib in Spring 2016. Since its upload, it has received 53 views. For similar materials see Business Law/Legal Environment in Business at Murray State University.


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Date Created: 05/17/16
LST 240 Study Guide Chapter 7 1. When is a tort committed? Tort is committed when a duty owed by one person to another is breached, proximately causing injury or damage to the owner or legally protected interest. 2. When are businesses liable for the torts committed by their employees? Businesses that conduct their business activities through employees are also liable for the torts their employees commit in the course of employment. 3. What are the ways that injuries may be inflicted in torts? Injuries may be inflicted intentionally, negligently, or without fault in torts. 4. As to torts/wrongful conduct, what is the purpose of the law? The purpose of the law in torts and wrongful conduct is to compensate the injured party, not to punish the wrongdoer. 5. What are punitive damages? When are they imposed? Punitive damages are damages over and above the amount necessary to compensate the plaintiff. Punitive damages are imposed when conduct has been intentional, reckless, outrageous, show malice, fraudulent, or evil motive 6. According to the court in State farm, what is the purpose of imposing punitive damages? Punitive damages are designed to punish and make an example of the defendant, deterring others from similar conduct. 7. What is “intent” in torts? Intent is the desire to cause the consequences are subsequently certain to result from it. 8. Give examples of defenses to intentional torts? The defense to intentional torts is that the conduct was privileged. Such as self Defense, defense of property, defense of others and the plaintiffs consent to the defendants conduct. 9. What is harm to person? Harm to the person is an intentional tort caused by bodily harm, emotional distress, loss or impairment of earnings, reasonable medical expense, and harm to their property or business. 10.What is battery? Battery is the intentional infliction of harmful or offensive bodily contact. 11.What is false imprisonment? In the light of the decision in Vaughn v. Wal-Mart, how should a shopkeeper exercise the authority to detain suspect shoplifters? False imprisonment is the intentional interference with a person’s freedom of movement by unlawful confinement. When exercising authority to detain a suspect it must be with probable cause, in a reasonable manner, and for a reasonable time. 12.What is the intentional infliction of emotional distress? Infliction of emotional distress occurs when there is extreme and outrageous conduct intentionally or recklessly causing severe emotional distress to another. 13.What are the elements of defamation? How do employers avoid defamation claims when giving references for former employees? Elements of deformation are:  Statement  Falsity of the statement  Publication/communication  Damages  Proximate causation Employers avoid defamation claims by only verifying the job and employment dates or give no information at all. 14.What is the tort of invasion of privacy? Invasion of a person’s right to privacy are:  Appropriation of person in likeness  Unreasonable intrusion of their seclusion  Unreasonable disclosure of private information  Unreasonable publicity in false light of the public 15.What is public disclosure of private facts? Public disclosure of private facts of publicity given to private information about others. 16.What is false light? False light is offensive publicity placing another in false light. 17.What is a nuisance? A nuisance is a nontrespassory invasion of another’s interest in private use and enjoyment of land. 18.What is the name of the tort where company A induces company B to breach a valid agreement with company C? If A is successful, what is C entitled to from A in such situation? When A induces B to breach a valid agreement with company C it is an interference with contractual relations. C may recover the economic loss resulting from the breach of the contract. A is liable for intentional interference with contractual relations. 19. What is disparagement? What is the key factor that makes a company liable for disparagement? Disparagement is the publication of false statements resulting in harm to another’s monetary interest. A company is liable when the publisher of false statement knows the statement is false or acts reckless disregarding the truth or falsity. 20.What element, in addition to false statement made with knowledge of its falsity and with intent to induce another to act, is needed to have a claim for fraudulent misrepresentation? For a claim of fraudulent misrepresentation there must be justifiable reliance. Chapter 8 1. What are the five elements of a claim for negligence? 5 elements of a claim for negligence are:  Duty of care  Breach of duty  Factual cause  Harm  Scope of liability 2. What standard of care is expected from those under 18 of age? The standard of care for someone under the age of 18 expects what a reasonable person of the same age, intelligence and experiences under the circumstances. 3. When is violation of statute negligence per se? A violation is negligence per se is the violation conclusive on the issue of negligent conduct (breach of duty and care). 4. What duty does the law impose on a person as to others and their property? Give examples of relations that impose a duty to aid or protect another? Duty to aid and protect another in a special relationship. Special relations include:  schools with students  innkeeper with guest  employer with employee  landlord with tenants 5. What duty is owed to a trespasser, licensee, and invitee? Duty owed to:  Trespasser: not to injure intentionally  Licensee: warn of known dangerous conditions which the licensee is unlikely to discover  Invitee: to exercise reasonable care to protect against dangerous conditions about which the possessor should know and which the invitee is unlikely to discover 6. If a business owner discovers a dangerous condition on their premises, what should they do? If there is a danger it should be barricaded guest should be warned of danger. 7. Why was the restaurant owner in Love vs. Hardee’s under a duty to use due care to guard against water on the floor of the restroom? What if another person pushed the customer and the customer slipped on the water and hurt themselves? Would Hardee’s be responsible? 8. A piece of plaster falls on the head of a hotel guest while he is sleeping. Is the hotel liable? What is the rule that permits the jury to infer both negligent conduct and causation? Due to circumstantial evidence the jury to infer both negligent conduct and causation by Res Ispa Loquitor which “speaks for itself”. 9. Many courts hold contracts for assumption of risk unenforceable as a matter of public policy, why do businesses still have customers and clients sign waivers of liability and assumption of risk forms? Courts usually interpret these exculpatory contracts strictly and will hold that the plaintiff has assumed the risk only if the terms of the agreement are clear and undeniable. 10.Give examples of instances where a person may be held liable for injuries he has caused even though he has not acted intentionally or negligently? Storing TNT Chapter 9 1. Which law governs the sale of good? The UCC (Uniform Commercial Code) is governs the sale of goods. 2. Which law would control if there is no specific provision of UCC applicable? Common law controls if it’s not specified by the UCC. 3. What is a contract? What are the four basic requirements of a contract? Do all contracts have to be in writing? A contract is a binding agreement that courts will enforce. 4 basic requirements of a contract are:  Mutual assent  Consideration  Legality of an object  Capacity It depends if the contract has to be in writing. 4. What is bilateral contract? A bilateral contract is when both parties exchange promises. 5. What is the difference between a void, voidable and an unenforceable contract? Void: agreement with no legal effect Voidable: capable of being maid void Unenforceable: breach of which law has no remedy 6. A sees B painting A’s house. A did not hire B. A says nothing. Would A be liable to pay B for the painting of his house? On what basis? Under the Quasi Contract (contract implied in law): an obligation imposed by law to avoid injustices. A would pay but not contracted amount just to cover cost. A service was performed, appreciation or knowledge of service, accept or retain service. Chapter 10 1. What is an offer? Name some of the ways in which an offer may be terminated. An offer is a proposal indicating a willingness to enter a contract.  Revocation  Counteroffer  Lapse of time  Incompetency  Destruction of property 2. Why is it a good idea to always specify clearly the duration of an offer one makes? It’s good to specify the duration of an offer due to a lapse of time, after a set or reasonable amount of time has passed the offer is no longer valid. 3. Can an offer be revoked after it has been accepted? After an offer had been accepted it cannot then be revoked due to the black letter law. 4. Offers to sell his bike for $25. B asks if A would accept $15. Did B make a counteroffer that if accepted would bind B? Is the offer terminated? A is the offer by asking $25 from B who is the offeree of the bike. With B making a counteroffer he rejects the offer ad ten would start a new offer to A of $15 that contract would then be binding. Chapter 11 1. On the eve of A’s wedding, the bride’s father B gives A a contract to sign indicating that he would owe the bride 100,000 in the event of the dissolution of the marriage. B indicates to A that if A does not sign there would be no wedding. Assuming all other formalities for a valid contract are met under that state’s law, what is A’s defense to this contract? Is this contract void or voidable? A had a defense of an improper threat, which then makes the contract voidable. 2. A is B’s attorney. B wants to see a house. A tells B that he will buy the house from him and do all the paperwork for a quit claim deed. B later finds that the house is worth a lot more than A paid. Can B back out of the contract of sale? Is the contract void? Due to undue influence of unfair persuasion of a person by a party in a dominant relationship of trust and confidence (attorney-client) the contract can be made voidable and B can get out of the contract. 3. What are the requisites for fraud in the inducement? Is a contract entered with fraud in the inducement void or voidable? The requirements for fraud in the inducement are:  False representation  Of a fact  That is material and  Made with knowledge of its falsity and intention to deceive and  Which representation is justifiably relied on A contract entered with fraud in the inducement is void. 4. List the four conducts invalidating assent and their effect on a contract? Conducts invalidating assent: Fraud in the execution Duress by physical force Fraud in the inducement Duress by improper threat Effect on the contract: Undue influence Void Voidable Void Voidable Voidable


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