The Unit Examination
  The Unit Examination contains 25 multiple choice questions, as well as a writing assignment.
  Your grade on the examination will be determined by the percentage of correct answers. The University utilizes the following grading system:
  A = 90% – 100% correct

B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct

F = 59% and below correct

4 grade points

3 grade points

2 grade points

1 grade point

0 grade points

Completing Unit Two Examination
  Before beginning your examination, we recommend that you thoroughly review the textbook chapters and other materials covered in each Unit and follow the suggestions in the “Mastering the Course Content” section of the course Syllabus.
  This Unit Examination consists of objective test questions as well as a comprehensive writing assignment selected to reflect the Learning Objectives identified in each chapter covered so far in your textbook.
Additional detailed information on completing the examination, writing standards and how to submit your completed examination may be found in the Syllabus for this course.


( BAM 317 Business Law ) ( Unit 2 Examination )

( BAM 317 Business Law )

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1) The tort of assault differs from the tort of battery in which of the following ways?

a. Assault is an intentional tort and battery relates to negligence. b. Assault is a strict liability tort.

c. Assault requires the plaintiff to show that he or she was aware of the immediate danger. d. Assault requires proof of each of the separate elements of negligence.

e. Assault claims may be brought on future threats, whereas battery claims may not.

2) Assuming that statutory requirements are met, what is protected under merchant protection statutes?

a. Merchants are protected from the intentional torts of their customers.

b. Merchants are protected from product disparagement claims of their competitors. c. Merchants are protected from product disparagement claims of their suppliers.

d. Merchants are protected from false imprisonment claims of persons detained on suspicion of shoplifting.

e. Customers are protected from the negligent conduct of merchants.

3) Which of the following is the best description of misappropriation of the right to publicity?

a. claiming credit for the accomplishments of another

b. publishing the creative work of another and claiming that it is yours

c. publicly claiming to have accomplished something that you have not accomplished d. attempting to use another living person’s name or identity for commercial purposes without that person’s consent

e. publicizing private information about someone without that person’s consent

4) A medical doctor who amputates the wrong arm may be held liable for which of the following?

a. medical malpractice b. an intentional tort

c. strict liability

d. wrongful amputation e. breach of contract

5) What is a dram shop?

a. a house of ill repute

b. a factory that illegally uses child labor c. a bar or tavern

d. a pharmacy

e. a seller of second hand goods

BAM 317 Business Law

Unit 2 Examination

BAM 317 Business Law

Unit 2 Examination


6) The tort of palming off involves:

a. knowingly selling goods that are defective

b. blaming another for one’s own actions and communicating that blame to at least one other person

c. failing to credit another for that other person’s legal accomplishments d. making false statements about the goods of another

e. representing one’s own goods to be those of a competitor

7) Which of the following is true about the case against McDonald’s for serving very hot coffee?

a. The plaintiff was burned while driving her car.

b. McDonald’s coffee was found to be the same temperature as that served by its competitors.

c. McDonald’s had turned down a pretrial offer of settlement which was much lower than the amount awarded by the jury.

d. McDonald’s paid the amount to the plaintiff that the jury awarded.

8) Jeff was in a department store standing near a clothing rack. Store security felt that he was acting suspiciously because he was standing close to the clothing rack and looking around. Soon after, store security notices that he quickly attempts to leave the store. Does store security have a right to stop and search Jeff according to these facts?

a. Yes; shopkeepers have a privilege to protect against theft and loss. In this case, the

store security would have reasonable grounds for a stop and search.

b. No; shopkeepers have no right to stop and search a suspected thief, absent any video evidence.

c. No; the facts of this situation do not provide reasonable grounds for a stop and search. Any attempt to do so by store security could result in a claim of false imprisonment.

d. No; the facts of this situation do not provide reasonable grounds for a stop and search. Any attempt to do so by store security could result in a claim of battery.

9) A reporter appears on television and reports that a collegiate athlete is currently using steroids. The reporter has a sincere belief that the information is true. Subsequently, it is determined that the information is false and inaccurate. If the athlete files a lawsuit, most courts would find which of the following?

a. The reporter is not liable for the statements because of the sincerely held belief on behalf of the reporter.

b. The reporter is not liable because the athlete is considered a public figure. c. The reporter is liable for a claim of slander.

d. The reporter is liable for a claim of libel.

BAM 317 Business Law

Unit 2 Examination

BAM 317 Business Law

Unit 2 Examination


10) Under the judicial philosophies developed in the area of product liability:

a. it does not pay to sue because of the high cost of legal expenses b. the doctrine of privity of contract will prevent liability

c. the doctrine of privity of contract has been greatly reduced in importance

d. most consumers cannot recover because the UCC has been written to protect merchants

11) In order to recover in a products liability case based on strict liability, the plaintiff must prove that the product had a defect:

a. that was caused by the defendant b. of any type

c. that made the product unreasonably dangerous d. that affected the value of the product

e. that the defendant knew existed

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

b. only the manufacturer and wholesaler

c. the manufacturer, wholesaler, and retailer d. only the party at fault

13) In considering whether a product contains a defective design, the courts will consider the following except:

a. the degree of danger posed by the design b. the profitability of the product

c. the likelihood of injury

d. the social utility of the product

e. the cost of producing a safer design

14) Which of the following would be a supervening event from the standpoint of a car manufacturer that has been sued in strict liability for an injury caused by one of its cars?

a. A redesign of the particular model car such that the ones being currently manufactured do not have the defect which led to the injury.

b. A recall notice sent to the car owner which was ignored.

c. An enactment, after the date of the injury, of a new safety regulation that would have prevented the injury.

d. The fact that the defect was caused by the car dealer when the car dealer was installing accessories for the purchaser.

BAM 317 Business Law

Unit 2 Examination

BAM 317 Business Law

Unit 2 Examination


15) Sean has a 6-year-old car which he bought 2 years ago directly from its original owner. Eight months ago he received a recall notice about a safety problem with the brakes. He never responded to the notice. Yesterday Sean was driving when the brakes failed and caused him to strike and injure a pedestrian. Which of the following is true in lawsuits against the car’s manufacturer?

a. The pedestrian cannot recover due to the fact that the pedestrian was not using the car. b. Sean can recover despite having received the recall notice.

c. The pedestrian cannot recover because the correction of a defect defense will apply even though Sean did not take the car in for the repair.

d. Neither party can recover if Sean’s car was one of only a few of these cars that actually had a brake defect.

e. The pedestrian could not recover due to assumption of the risk.

16) One of the provisions of the American Inventors Protection Act of 1999 is that:

a. the power to regulate invention promoters was transferred to the Department of Justice b. the legal life of a patent was extended to 20 years

c. the Patent and Trademark Office must make a decision on a patent application within 5 years after its filing

d. inventors are able to file a provisional application granting provisional rights pending the filing of a final application within three months

17) Which of the following is true about copyrights?

a. Copyright protection lasts for 20 years.

b. Copyright protection is effective only if the work has been properly registered.

c. The Sonny Bono Copyright Term Extension Act grants copyright protection for the life of the author plus 70 years.

d. In order to obtain a copyright, a work must be novel, useful, and nonobvious.

e. A work cannot be copyrighted if there is a likelihood of confusion with another work.

18) Which of the following provides greater protection of the hardware components of computers?

a. the fair use doctrine

b. the Computer Software Copyright Act c. the Mask Act

d. the Semiconductor Chip Protection Act of 1984

19) United Airlines, Marriott Hotels, and Weight Watchers are examples of:

a. collective marks b. service marks


BAM 317 Business Law

Unit 2 Examination

BAM 317 Business Law

Unit 2 Examination

c. certification marks d. trademarks


20) Which of the following may not be afforded federal protection and therefore not be trade- marked?

a. cola b. south

c. the flag of the United States d. good cheese

e. All of these are correct.

21) Which of the following correctly ranks the types of crimes from most serious to least serious?

a. violations, misdemeanors, felonies b. violations, felonies, misdemeanors c. misdemeanors, felonies, violations d. felonies, violations, misdemeanors e. felonies, misdemeanors, violations

22) In a criminal trial, which of the following is true?

a. To be guilty, the defendant must have had a criminal intent at the time of the crime. b. The accused is presumed guilty once an indictment has been issued.

c. The government must prove that the accused is guilty beyond all possible doubt. d. At the trial, the grand jury listens to evidence to determine guilt or innocence.

23) Which of the following steps of a criminal case are listed in the correct order?

a. arraignment, arrest, trial, indictment b. arrest, indictment, arraignment, trial c. indictment, arraignment, arrest, trial d. arrest, arraignment, indictment, trial e. arrest, indictment, trial, arraignment

24) Which of the following is true about a hung jury in a criminal case?

a. Because it means that the jury did not find guilt beyond a reasonable doubt, it has the same result as if the jury had issued a verdict of not guilty.

b. It will automatically result in a new trial conducted before the same judge.

c. It will automatically result in a new trial, although it may be conducted before a different judge.

d. It will allow another trial of the defendant to be held, which the state might or might not choose to actually prosecute.


25) The Miranda decision requires that a criminal suspect be notified of the following EXCEPT:

a. the right to a trial by jury

b. the right to have a lawyer present during interrogation

c. the fact that anything the suspect says may be used against the suspect d. the right of the suspect to remain silent

e. the right to have an attorney appointed if the suspect cannot afford one

Written Assignment for Unit Two


• Include your name, student number, course number, course title and unit number on each page

of your written assignment (this is for your protection in case your materials become separated).


• Begin each written assignment by identifying the question number you are answering followed by the actual question itself (in bold type).


• Use a standard essay format for responses to all questions (i.e. an introduction, middle paragraphs and conclusion).


• Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.


Word count is NOT one of the criteria that is used in assigning points to written assignments. However, students who are successful in earning the maximum number of points tend to submit written assignments that fall in the following ranges:

Undergraduate courses: 350 – 500 words or 1 – 2 pages


All work must be free of any form of plagiarism. Put written answers into your own words. Do not simply cut and paste your answers from the Internet and do not copy your answers from the textbook. Be sure to refer to the course Syllabus for more details on plagiarism and proper citation styles.

Please answer ONE of the following:

1) Ray and Rayetta were on a camping vacation in Maine. They had reservations for themselves

and their car on a ferry from Bar Harbor, Maine to Nova Scotia. Because they had their two mountain bikes mounted upright on a roof rack on their car, they had to use a special line including motor homes, vans, and other high vehicles. Upon loading onto the ferry, all of these

high-profile vehicles used the rightmost of the six parallel lanes on the auto deck of the ferry. When the drivers returned to their cars upon reaching Nova Scotia, they were directed off the ferry by

ferry employees. The driver of the motor home immediately in front of their car had not returned by the time all of the cars from other lanes had exited. After waiting for another 10 minutes, one of

the ferry employees motioned Ray and Rayetta to turn to the left into the next lane rather than wait for the motor home to move. Ray and Rayetta followed the employee’s hand signals, but unfortunately their bikes struck a low clearance pipe and the frames of both bikes were destroyed. Discuss the issues and outcome of their lawsuit against the ferry company.



2) What changes should be made to copyright law to reflect the ease with which much creative

material can be reproduced and distributed over the Internet? What concerns are there with any such law?



3) Review the case of Wal-Mart Stores, Inc. v. Cockrell. What does the shopkeeper’s privilege

provide? What are the elements necessary to prove the shopkeeper’s privilege? Do you think Wal- Mart had a good chance of proving the shopkeeper’s privilege in this case?