LEGS 3010 Exam 2

Question 1

“Let the buyer beware”; summarizes an attitude that once prevailed in contract law of a lack of protection for a buyer of defective goods

Answer 1

Caveat Emptor

Question 2

Expressed promise by seller as to the quality, abilities, or performance of a product

Answer 2

Express Warranty

Question 3

Federal law establishing the FTC and its regulatory role

Answer 3

Federal Trade Commission Act

Question 4

Federal agency responsible for regulation of unfair and deceptive trade practices, including deceptive advertisements

Answer 4

Federal Trade Commission

Question 5

Amendment to the FTC Act that permits prosecution under section 5 if a consumer is injured, even though there is no injury to a competitor

Answer 5

Wheeler-Lea Act of 1938

Question 6

Potential FTC remedy required when ads run by a firm have been deceptive; requires company to run ads explaining previous ads or run a new statement in future ads

Answer 6

Corrective Advertising

Question 7

Public figures advertising products on the basis of their personal use

Answer 7

Celebrity Endorsements

Question 8

Term given to advertising technique in which a low-price product is advertised and then the customer is told that the product is unavailable or is talked into a higher-priced product; prohibited by the FTC

Answer 8

Bait & Switch

Question 9

For administrative agencies, a type of plea bargain; a settlement document for an administrative agency’s charges

Answer 9

Consent Decree

Question 10

Under the UCC, Article 2, Sales, a warranty that the goods are of average quality; given in every sale of goods by a merchant

Answer 10

Implied Warranty of Merchantability

Question 11

Warranty given by seller to buyer that promises goods will meet the buyer’s specified needs

Answer 11

Implied Warranty of Fitness for a Particular Purpose

Question 12

A provision in a contract that eliminates liability such as a warranty disclaimer or a disclaimer of tort liability

Answer 12

Disclaimers

Question 13

Term used to describe contracts that are grossly unfair to one side in the contract; a defense to an otherwise valid contract

Answer 13

Unconscionable

Question 14

Direct contractual relationship

Answer 14

Privity

Question 15

In product liability, a defense based on the plaintiff’s failure to follow instructions or use of a product for improper purposes

Answer 15

Misuse

Question 16

Private intentional or negligent wrong against an individual

Answer 16

Tort

Question 17

Civil wrongs against individuals that are committed with a requisite state of mind and intent to harm; includes defamation, false imprisonment, battery, assault, and intentional infliction of emotional distress

Answer 17

Intentional Tort

Question 18

Tort of accidental wrong committed by oversight or failure to take precautions or corrective action

Answer 18

Negligence

Question 19

Standard established under the Restatement of Torts that holds product manufacturers and sellers liable for injuries resulting from their products regardless of whether they knew of the danger that caused the injury

Answer 19

Strict Tort Liability

Question 20

Defamation of a product

Answer 20

Product Disparagement

Question 21

A defense to defamation; a protection given to legislators and courtroom participants for statements made relating to the proceedings; encourages people to come forward & speak without fear of liability

Answer 21

Absolute Privilege

Question 22

A defense to defamation available to the media that permits retraction and no liability so long as the information is not printed or given with malice or with reckless disregard for whether it is true

Answer 22

Qualified Privilege

Question 23

Tort involving a third party’s actions resulting in a valid contract being lost or invalidated; an unfair method of competition

Answer 23

Contract Interference

Question 24

The intentional tort of retaining someone against that person’s will

Answer 24

False Imprisonment

Question 25

A defense to the tort of false imprisonment for storeowners; allows reasonable detention of shoppers upon reasonable suspicion of shoplifting

Answer 25

Shopkeeper's Privilege

Question 26

Intentional tort in which the defendant engages in outrageous conduct that is psychologically damaging to the plaintiff

Answer 26

Intentional Infliction of Emotional Distress

Question 27

Federal law that provides protections and procedures for patient privacy

Answer 27

Health Insurance Portability and Accountability Act of 1996 (HIPAA)

Question 28

He use of someone’s name, likeness, or voice without permission for commercial advantage

Answer 28

Unauthorized Appropriation

Question 29

In negligence, standard used for determining the level of care required in any given situation

Answer 29

Ordinary and Reasonably Prudent Person

Question 30

In negligence, an element that requires the plaintiff to show that the defendant’s lack of care cause the plaintiff’s injury

Answer 30

Causation

Question 31

In negligence, the standard used for determining whether the defendant’s negligence caused the plaintiff’s injury; “but for” the fact that the defendant was negligent, the plaintiff would not have been injured

Answer 31

"But For" Test

Question 32

An element of negligence that requires a connection between the breach of duty and the type of form of injury/damages that resulted

Answer 32

Proximate Cause

Question 33

Negligence defense that results when the injured party acted in a negligent way and contributed to her own injuries

Answer 33

Contributory Negligence

Question 34

In negligence, a defense that allocates responsibility for an accident between the plaintiff and defendant when both were negligent and determines liability accordingly

Answer 34

Comparative Negligence

Question 35

Defense in negligence cases that prevents an injured party from recovering if it can be established that the injured party realized the risk and engaged in the conduct anyway

Answer 35

Assumption of Risk

Question 36

Crimes committed in business administration and/or professional capacity; the so-called paperwork crimes

Answer 36

White-Collar Crime

Question 37

The requirements for proof of a crime

Answer 37

Elements

Question 38

A wrong against society that carries penalties of imprisonment and/or fines

Answer 38

Crime

Question 39

Mental intent or state of mind necessary for the commission of a crime

Answer 39

Mens Rea

Question 40

Term used to apply to CEO and CFO of a company trying to avoid criminal culpability for financial fraud by choosing to avoid understanding or examing the financial statements prepared by others in their companies

Answer 40

Conscious Avoidance

Question 41

Latin term for the criminal act or conduct required for proof of a crime

Answer 41

Actus Reus

Question 42

Crime of taking property away from another permanently

Answer 42

Theft

Question 43

Name for the crime of an employee stealing funds, property or services from his employer

Answer 43

Embezzlement

Question 44

A crime in which the victim is defrauded by an intentional act of the perpetrator

Answer 44

Criminal Fraud

Question 45

Provides protection and assurance of privacy; the search and seizure amendment

Answer 45

Fourth Amendment

Question 46

Provides protection against self-incrimination and ensuring due process

Answer 46

Fifth Amendment

Question 47

Guarantees the right to a jury trial in criminal cases

Answer 47

Sixth Amendment

Question 48

Judicially authorized document allowing the search of individuals’ or businesses’ premises

Answer 48

Search Warrant

Question 49

Statement required to be given to individuals when taken into custody to alert them to their right to remain silent, the fact that statements can be used against them, their right to an attorney, and the right to an appointed attorney if they cannot afford one

Answer 49

Miranda Warnings

Question 50

Constitutional protection ensuring notice and a fair trial or hearing in all judicial proceedings

Answer 50

Due Process

Question 51

The speech of business in the form of advertising, political endorsements, or comments on social issues

Answer 51

Commercial Speech

Question 52

Term given to speech of business related to political candidates or issues; given First Amendment protection

Answer 52

Corporate Political Speech

Question 53

In constitutional law, the taking of private property by a government entity for a public purpose, with compensation paid to the owner

Answer 53

Eminent Domain

Question 54

Principle in eminent domain that requires the government entity taking private property to pay the owner a fair amount

Answer 54

Just Compensation

Question 55

Constitutional protection that gives litigants in civil cases and defendants in criminal cases the right to notice in all steps in the process and the right of participation

Answer 55

Procedural Due Process

Question 56

Laws that give rights and responsibilities to individuals

Answer 56

Substantive Law

Question 57

Constitutional right of all citizens to be treated in the same manner and afforded the same rights under law regardless of sex, race, color, or national origin

Answer 57

Equal Protection

Question 58

In discrimination law, the application of different rules or standards to people of different races, genders, or national origins

Answer 58

Disparate Treatment