Deck 3: Business Torts and Crimes

Question 1

The offering of money, entertainment, or anything of value constitutes a bribe.

Answer 1

True

Question 2

For an act to be established as a tort of injurious falsehood, the false statements of fact must be communicated by the defendant to a third person.

Answer 2

True

Question 3

Define a computer crime. What are the three types of computer crimes? List the various ways in which computer fraud can be committed.

Answer 3

Crimes committed with the aid of a computer or because computers are involved are called computer crimes. Criminal activity relating to computers can be classified as three types: trespass, fraud, and criminal copyright infringement. Computer trespass means unauthorized use of, or access to, a computer. As applied to computer crime, fraud encompasses larceny and embezzlement. The federal Computer Fraud and Abuse Act makes it an offense to, without authorization, access a computer or exceed authorized access of a computer used by or for the U.S. government or a financial institution and to (1) fraudulently obtain anything of value; (2) intentionally and without authorization obtain or destroy information; (3) affect the use of the computer; or (4) intentionally cause damage. It is also an offense to (1) deal in computer passwords and thereby affect interstate commerce; (2) knowingly access a computer, obtain national defense information, and disclose, attempt to disclose, or retain that information; or (3) transmit a threat to damage a U.S. government or financial institution computer in order to extort money.

Question 4

To recover for a tort based on negligence, the plaintiff must show:

A) an intention to cause the consequences of the act.
B) a duty of the plaintiff to the tortfeasor.
C) an act by the defendant.
D) the breach of the tortfeasor's duty to the injured party.

Question 5

The tort of product liability is also known as trade libel.

Question 6

On investigation, it was found that Ken, the bookkeeper at CL Corp., had stolen money from the company's account and recorded financial transactions inaccurately to cover up for his activities. For which of the following business crimes can Ken be prosecuted?

A) Larceny
B) Perjury
C) Embezzlement
D) Shoplifting

Question 7

An employee who picks up inventory tools from his office with the intent to deprive the owners of the property is an example of larceny.

Question 8

Which of the following is most likely to be a tort based on negligence?

A) Assault
B) Battery
C) Commercial disparagement
D) Automobile accidents

Question 9

According to law, confusion of source can be proved to be a tort only when actual confusion is shown.

Question 10

Which of the following is true of the Racketeer Influenced and Corrupt Organizations Act?

A) It requires the defendant to have been convicted in order to file a RICO case.
B) It provides the recovery of half the damage suffered as a result of the RICO violation.
C) It is easier to win a criminal RICO case than a civil one.
D) It prevents the infiltration of legitimate businesses by organized crime.

Question 11

Using a business computer to play games constitutes computer trespass.

Question 12

To establish the offense of criminal copyright infringement, a prosecutor needs to prove that the infringement was done for non-financial gain.

Question 13

The Racketeer Influenced and Corrupt Organizations Act provides for the recovery of three times the damages suffered by an injured party as a result of its violation.

Question 14

The tort of injurious falsehood occurs when:

A) there is an unauthorized use of another's mark or name.
B) a person makes false statements of fact that degrade the quality of  another's goods or services.
C) a person attempts to tarnish a trademark by using it on low-quality goods.
D) a consumer is injured through the use of a product due to negligence on the part of the product's manufacturer.

Question 15

Which of the following best defines the tort of interference of contract?

A) It occurs when the documents submitted by a party for entering into a contract are found to contain falsified information.
B) It occurs when one of the parties involved in a business relationship withdraws from the contract before the end of the contract period.
C) It refers to two parties involved in a business relationship who bring in another party to become a part of the existing business.
D) It occurs when a government agency helps establish the contractual terms of an agreement between two or more private vendors.

Question 16

The Racketeer Influenced and Corrupt Organizations Act includes civil sanctions as well as criminal ones.

Question 17

Payments made to speed up the performance of routine governmental actions are treated as bribes by the Foreign Corrupt Practices Act.

Question 18

To recover damages for an intentional tort, the plaintiff is required to prove that there was a breach of duty by the tortfeasor to the plaintiff.

Question 19

In a situation where an injured party in an accident is partly to blame for the accident, which of the following is most likely to be true under a contributory negligence system?

A) The injured party cannot recover any damages because it is partially negligent in the case.
B) The injured party can recover damages only if his fault in causing the accident is 49% or less.
C) The plaintiff can claim for three times the damage if the defendant is the only one at fault.
D) The injured party cannot claim damages unless the defendant consents to it.

Question 20

Debarment refers to:

A) the prohibition on doing business with the government.
B) the payment of any profits received as a result of fraudulent payments.
C) employees being disallowed by companies to be reimbursed.
D) employees being restricted from sharing confidential company information with outsiders.