1 How does product disparagement differ from defamation of a nonpublic figure? [removed] Publication to a third party is required in the disparagement case, but not in the defamation case [removed] Malicious intent is required for the defamation case, but not in the disparagement case [removed] Publication to a third party is required in the defamation case, but not in the disparagement case [removed] Malicious intent is required for a disparagement case, but is not required in the defamation case 2 Which of the following is a defect in manufacture? [removed] Failure to properly design the product [removed] Failure to include adequate instructions for the product [removed] Failure to properly package the product [removed] Failure to properly test the product 3 The failure to design an automobile that will properly protect the occupants from a person’s body striking something inside their automobile is known as the  [removed] quality control doctrine [removed] crashworthiness doctrine  [removed] failure to design doctrine [removed] defective design doctrine 4 Making false statements about a competitor’s products, services, property, or business reputation could make a company liable for  [removed] disparagement [removed] intentional misrepresentation [removed] misappropriation of the right to publicity [removed] tort of appropriation 5 Mary was getting a ride home in John’s new car. On the way, a malfunctioning brake caused an accident and both Mary and John were injured. Which of the following statements is true of this situation? [removed] Mary can file a strict liability lawsuit against John. [removed] Mary can recover damages for her injury under a theory of strict liability against the manufacturer of John’s car. [removed] John can file a negligence lawsuit against the dealership from which he bought the car. [removed] Mary can file a negligence lawsuit against the dealership that sold John his car. 6 John Harley was on his way home when an assailant stopped his car and threatened to physically harm him if he ever saw him drive on that street again. John can sue the assailant to recover damages for [removed] libel [removed] disparagement [removed] assault [removed] battery 7 Which of the statements below best describes the concept of Enterprise Risk Management?   [removed] Management of a single function of an organization that, upon implementation and testing, is then processed entity wide [removed] A process affected by an entity’s leaders, management, and other personnel that is designed to identify potential events that may affect the entity, and to manage risk [removed] People, systems, and processes working together across the organizations to systematically thin about and manage a wide range of risks that could impede achieving organizational objectives/opportunity [removed] An approach that capitalizes on human intervention as processed through real change leaders 8 Diane bought an action figure for her son David.

1. 1
How does product disparagement differ from defamation of a
nonpublic figure?
[removed]
Publication to a third party is required in the disparagement
case, but not in the defamation case
[removed]
Malicious intent is required for the defamation case, but not in
the disparagement case
[removed]
Publication to a third party is required in the defamation case,
but not in the disparagement case
[removed]
Malicious intent is required for a disparagement case, but is not
required in the defamation case
2
Which of the following is a defect in manufacture?
[removed]
Failure to properly design the product
[removed]
Failure to include adequate instructions for the product
[removed]
Failure to properly package the product
[removed]
Failure to properly test the product
3
The failure to design an automobile that will properly protect
the occupants from a person’s body striking something inside
their automobile is known as the
[removed]
quality control doctrine
[removed]
crashworthiness doctrine

2. [removed]
failure to design doctrine
[removed]
defective design doctrine
4
Making false statements about a competitor’s products,
services, property, or business reputation could make a company
liable for
[removed]
disparagement
[removed]
intentional misrepresentation
[removed]
misappropriation of the right to publicity
[removed]
tort of appropriation
5
Mary was getting a ride home in John’s new car. On the way, a
malfunctioning brake caused an accident and both Mary and
John were injured. Which of the following statements is true of
this situation?
[removed]
Mary can file a strict liability lawsuit against John.
[removed]
Mary can recover damages for her injury under a theory of strict
liability against the manufacturer of John’s car.
[removed]
John can file a negligence lawsuit against the dealership from
which he bought the car.
[removed]
Mary can file a negligence lawsuit against the dealership that
sold John his car.

3. 6
John Harley was on his way home when an assailant stopped his
car and threatened to physically harm him if he ever saw him
drive on that street again. John can sue the assailant to recover
damages for
[removed]
libel
[removed]
disparagement
[removed]
assault
[removed]
battery
7
Which of the statements below best describes the concept of
Enterprise Risk Management?
[removed]
Management of a single function of an organization that, upon
implementation and testing, is then processed entity wide
[removed]
A process affected by an entity’s leaders, management, and
other personnel that is designed to identify potential events that
may affect the entity, and to manage risk
[removed]
People, systems, and processes working together across the
organizations to systematically thin about and manage a wide
range of risks that could impede achieving organizational
objectives/opportunity
[removed]
An approach that capitalizes on human intervention as
processed through real change leaders
8
Diane bought an action figure for her son David from

4. Terrence’s Toy Shop. The packaging did not mention that the
toy contained small detachable parts. David accidentally
swallowed and choked on one of the detachable parts and had to
be taken to the hospital. On which of the following product
liability charges can Diane sue Terrence’s Toy Shop for
damages?
[removed]
Negligence
[removed]
Fraud
[removed]
Nuisance
[removed]
Misrepresentation
9
In order to recover in a products liability case based on strict
liability, the plaintiff must prove that the product had a defect
that
[removed]
was caused by the defendant
[removed]
made the product unreasonably dangerous
[removed]
the defendant was aware of
[removed]
affected the value of the product
10
Gary Govetty is a famous movie star. A tabloid published an
interview with his ex-girlfriend in which she falsely claimed
that Gary was completely bald and had been wearing a wig for
several years. Gary can sue his ex-girlfriend for
[removed]
libel
[removed]

5. invasion of privacy
[removed]
disparagement
[removed]
slander
11
A plaintiff wants to sue a defendant under the tort theory of
negligence for his injuries, but the plaintiff knows he was
partially at fault for his own injuries. Which of the following is
true?
[removed]
If the plaintiff's fault is only 5 percent, his recovery will be the
same under either pure or partial comparative negligence.
[removed]
A state whose law applies contributory negligence will not
allow the plaintiff to recover if the plaintiff has any fault for his
injuries
[removed]
The plaintiff will have to elect whether to sue under
comparative or contributory negligence.
[removed]
Because the plaintiff is partly at fault, he will not be able to
recover under either comparative or contributory negligence.
12
Assuming that statutory requirements have been met, what is
protected under merchant protection statutes?
[removed]
Merchants are protected from the intentional torts of their
customers.
[removed]
Merchants are protected from negligence claims on their
business premises.
[removed]

6. Merchants are protected from false imprisonment claims of
persons detained on suspicion of shoplifting.
[removed]
Merchants are protected from product disparagement claims of
their competitors.
13
According to the doctrine of ________, the plaintiff is not
required to prove that the defendant breached a duty of care.
[removed]
contributive negligence
[removed]
assumption of risk
[removed]
comparative negligence
[removed]
strict liability
14
Which of the following is a key element of successful
Enterprise Risk Management?
[removed]
Strong investment strategies
[removed]
Nondisclosure agreements
[removed]
Legal counsel
[removed]
Management commitment
15
Which of the following is the best statement of the test applied
in determining if a defendant’s actions were the proximate
cause of the plaintiff’s injuries?
[removed]
Was it foreseeable to the plaintiff that the defendant would

7. engage in this conduct?
[removed]
Was it foreseeable that the defendant was the cause of the
plaintiff’s injuries given the nature of those injuries?
[removed]
Was the injury foreseeable to the plaintiff prior to the injury’s
occurrence?
[removed]
Was it foreseeable that the defendant’s conduct would lead to
the kind of injury that the plaintiff suffered?
16
Select the option which best completes this statement:
Enterprise Risk Management is most effective when it is a(n)
_________ process.
[removed]
ongoing
[removed]
informal
[removed]
one-time
[removed]
static
17
Dorothy purchases a chair that was made by Woode Designs,
Inc. While making the chair, the legs were not fixed properly to
the base. When Dorothy sits on the chair, it breaks and she is
injured. In a strict liability lawsuit, which of the following can
Dorothy cite as a defect in the chair?
[removed]
Failure to warn
[removed]
Defect in manufacture
[removed]
Failure to provide adequate instructions

8. [removed]
Defect in design
18
Which best describes assumption of the risk in a negligence
case?
[removed]
The defendant gave advance warning to the plaintiff that an
injury would occur.
[removed]
The plaintiff is more at fault than the defendant in causing the
accident.
[removed]
The plaintiff was involved in an abnormally dangerous activity.
[removed]
The plaintiff knowingly and willingly subjected herself to a
risky activity.
19
George, Jerry, and Harry are passengers on a flight from
Chicago to New York. They injure their legs when their
seatbelts do not fasten during takeoff. The airline is sued by all
three together for injuries caused and the airline is found to be
negligent and is directed by the court to pay damages to the
injured parties. Which of the following parties is entitled to
recover maximum damages?
[removed]
All the men recover the same amount of damages, irrespective
of their income or profession
[removed]
Jerry, a professional football player who earns $2 million a year
[removed]
George, a retired professor who gets a pension of $50,000 a
year
[removed]
Harry, a chartered accountant who earns $200,000 a year

9. 20
Bartie’s, Inc. sells watercolors and pastels that are marketed as
safe for use by children. However, several accounts of lead
poisoning were reported in children who used the products. An
investigation revealed that the company was knowingly
manufacturing colors that contained toxic amounts of the heavy
metal. Which of the following torts has Bartie’s, Inc.
committed?
[removed]
Professional malpractice
[removed]
Assault
[removed]
Disparagement
[removed]
Intentional misrepresentation