1) Persons found to have committed a tort usually must either pay a fine or serve time in prison.
2) Physical contact is not necessary to be liable for the tort of assault.
3) Assumption of the risk, if present, prevents a plaintiff from recovering for negligence even if the plaintiff has proven all the required elements of negligence.
4) How is false imprisonment defined?
A) A confinement caused when one accidentally causes another to be confined without that person's consent.
B) being held in jail when no formal charges have been filed
C) the intentional confinement or restraint of another without authority of justification and without that person's consent
D) the holding in prison of one who was convicted of crime that the person did not commit
5) What differs in a defamation suit when the plaintiff is a public figure, as opposed to when the plaintiff is not a public figure?
A) Punitive damages are available.
B) The plaintiff can recover even when the statement is a mere opinion.
C) The plaintiff must prove that the statement was made in writing.
D) The plaintiff need not prove actual injury to the reputation.
E) The plaintiff must prove that the statement was made with malice.
6) Assuming that statutory requirements are met, what is protected under merchant protection statutes?
A) Merchants are protected from product disparagement claims of their suppliers.
B) Merchants are protected from false imprisonment claims of persons detained on suspicion of shoplifting.
C) Customers are protected from the negligent conduct of merchants.
D) Merchants are protected from the intentional torts of their customers.
E) Merchants are protected from product disparagement claims of their competitors.
7) Which of the following is true?
A) Slander and libel are two terms for the same tort, and defamation is a different tort altogether.
B) Slander, libel and defamation are three terms with the same meaning.
C) Slander and libel are two kinds of defamation.
D) Defamation and slander are two kinds of libel.
E) Defamation and libel are two kinds of slander.
8) If a plaintiff knows of and voluntarily enters into or participates in a risky activity that results in injury, what is the most likely defense that can be raised by a defendant?
A) comparative negligence
B) superseding event
C) assumption of the risk
D) negligence per se
E) contributory negligence
9) The customer of a store who is at the store for purposes of doing business would be classified as what type of visitor while on the store's premises?
A) a licensee B) a trespasser C) a guest D) an invitee
10) The tort of palming off involves:
A) failing to credit another for that other person's legal accomplishments.
B) making false statements about the goods of another.
C) blaming another for one's own actions and communicating that blame to at least one other person.
D) knowingly selling goods that are defective.
E) representing one's own goods to be those of a competitor.
11) The failure of the manufacturer of a product to warn users of the dangerous propensities of a product can be negligence.
12) If a manufacturer produces a defective product, sells it to a wholesaler, who sells it to a retailer, who sells it to a consumer, who is injured, which parties in the chain of distribution are potentially liable under strict liability?
A) only the manufacturer and wholesaler
B) only the manufacturer
C) only the party at fault
D) the manufacturer, wholesaler, and retailer
13) The doctrine that imposes liability on a seller of a product only if the seller sold the defective product directly to the injured party is known as:
A) resolution of contractual relationships.
B) privity of contract.
C) doctrine of merchants' liability limitations.
D) doctrine of direct commercial contacts.
14) Who can recover for their injuries under product liability law?
A) someone who uses a product with the owner's permission
B) someone who purchases a product new
C) a nonuser such as a bystander
D) A and B only.
E) A, B, and C.
15) What test do the courts apply in determining the adequacy of a product's design?
A) the contributory negligence test
B) the comparative negligence test
C) the crashworthiness doctrine
D) the doctrine of strict liability
E) risk-utility analysis
16) What is the significance of a "defect" in a products liability case based on strict liability?
A) Its presence would eliminate liability for the defendant.
B) It is not necessary, but can be used to eliminate the need to prove that there was an injury.
C) Its presence would allow punitive damages to be awarded.
D) The party who caused the defect is the only one who can be held liable.
E) It is a required element in the proof of such a case.
17) Which of the following is correct with regard to the crashworthiness doctrine?
A) Car manufacturers should make cars that are designed so that the risk of injury arising from striking the interior of the car in an accident is minimized.
B) Car manufacturers should make cars with a minimal chance of being involved in an accident.
C) Car manufacturers should design cars to minimize their repair costs in the event of an accident.
D) Car dealers should train car buyers in order to minimize their chances of being involved in an accident.
18) Based on the law of products liability, which of the following is correct?
A) A manufacturer should design its products to take into account foreseeable misuse.
B) A manufacturer need only take into account the intended use of its products.
C) A manufacturer should design its products to take into account all possible misuse.
D) A manufacturer should design its products to take into account all possible misuse by the initial purchaser, but need not worry about misuse by other users.
19) An insurance contract is one where one party indemnifies another against loss from an unknown event.
20) Insurance cannot be sold directly to the insured by the insurer.
21) Insurance premiums are set based on the expected claims that the company expects to pay, the insurance company's cost of doing business, and a provision for profit to the company.
22) An insurance agent is the agent of the insurance company.
23) An insurance broker is the agent of the insurance company.
24) Modification of an existing insurance contract is usually accomplished by means of a(n):
D) A or B only
E) A or C only
25) Which of the following is true about the parties to a life insurance policy?
A) The owner and beneficiary can be the same person.
B) The insurer and the insured can be the same person.
C) The beneficiary cannot be changed during the period that the policy is in effect.
D) The insured and the owner can be the same person.
E) both A and D
26) Which of the following is not one of the common causes of death for which a life insurance policy will exclude coverage?
A) accident involving a private airplane
B) government execution
C) incurable illness
D) suicide within a limited time after the policy becomes effective
E) military action
27) In addition to the coverages provided in a policy of fire insurance, homeowners insurance provides coverage for:
A) disability of the homeowner.
B) personal liability.
C) an annuity component.
D) private mortgage insurance.
E) flood insurance.
28) The type of auto insurance coverage that pays for the damage caused by the insured to the car of the other driver in an accident is:
B) no fault.
C) medical payments.
29) Which of the following is not one of the common types of insurance coverage that a corporation might purchase in connection with its business?
A) product obsolescence insurance
B) business interruption insurance
C) directors' and officers' insurance
D) product liability insurance
E) fidelity insurance
30) Which of the following is not one of the typical duties of an insured in connection with an insurance policy?
A) duty to notify insurer promptly of claims
B) duty to cooperate with the insurer in the investigation of claims
C) duty to pay premiums
D) duty to provide complete and accurate information in the application for insurance
E) duty to exercise reasonable care in connection with the risks insured against