ETH 321 Week 2 Knowledge Check

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Identify the true statement about a claim of defamation
A statement must have the ability to hurt the reputation of an individual in order to qualify as
defamatory.
A statement does not have to be heard by a third party in order to qualify as defamatory.
An unkind statement made against a profession as a whole is also considered defamatory.
A statement should be based on pure opinion to qualify as defamatory
Who among the following is given absolute privilege or immunity against defamation?
Journalists while covering the news
Employers while recruiting new employees
Business owners during press conferences
Congress members during congressional debates
Delta Inc. has filed a lawsuit against one of its new franchisees for providing false information about
the amount of its profits it would give to Delta every month. Delta has also ascertained that the
incorrect information caused pecuniary damages to Delta as well as damages to its reputation. What
type of business tort is illustrated in the scenario?
Fraudulent misrepresentation
Slander
Battery
Tortious interference with existing contractual relationship
What is likely to make a plaintiff's case stronger in a negligence lawsuit?
Use of the assumption of risk
Absence of a safety statute
Occurrence of misfeasance
Absence of proximate cause
In cases of negligence, what is one problem in applying the but for test?
It may result in holding a tortfeasor responsible for injuries that were not foreseeable.
It relieves a defendant of all liabilities, ruling that the defendant did not owe a duty of care to the
plaintiff.
It may result in limiting the liability on a defendant in cases where the plaintiff, in some way, was also
responsible for the damages.
It limits the liability on the defendant in cases where a superseding event caused more damages

Which doctrine allows a plaintiff to presume that a defendant caused certain damages without
describing exactly how the defendant behaved?
Comparative negligence
Res ipsa loquiter
Assumption of the risk
Actus Reus
What is true about strict liability?
It places emphasis on the intent of the tortfeasor.
It requires the plaintiff to prove duty of care and negligence.
It applies primarily to abnormally dangerous activities
It does not apply to defective products
Venus Corp. is a building demolition company that produces large quantities of plastic explosives,
which are stored in its warehouses. These warehouses are typically insulated and protected against
damage. However, one day, a worker unintentionally causes an explosion in one of the warehouses,
damaging buildings around it and causing injury to some individuals in the area. Which type of
liability will a court most likely impose on Venus Corp.?
Strict liability
Assumption of the risk
Libel
Defamation liability
Identify the basis upon which strict liability is imposed on a company for damages caused in the
event of an incident.
The nature of the activity of the company
The intentions of the company
The net worth of the company
The amount of resources used by the company
Omega Inc. has filed a lawsuit against one of its employees. This employee has been transferring
monthly sums of company money into his personal account. He has been simultaneously altering the
company's financial records to indicate that the money is still in the company account. What kind of
white collar crime is illustrated in the scenario?
Battery
Ponzi scheme
Embezzlement
Theft
Identify the white collar crime that involves a fraudulent entity attracting investors, offering them high
returns, and paying these returns, not from profits, but from investments made by subsequent
investors.
Ponzi scheme

Embezzlement
Bribery
Battery
Choose the correct statement about white collar crimes in the United States.
Conspiracy requires a criminal act to be carried out, not just agreed upon.
Insider trading activities can no longer by pursued by the government.
An obstruction of justice charge can stand independently
Bribery is an offense that requires that a transaction has actually taken place, not just that money
has been offered