Business Law Connect Questions Exam 3

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In a criminal trial, the _____ files a case against the defendant.

government

Which of the following is one of the basic elements of crime?

wrongful behavior

Which of the following defines aggravated robbery?

There is a threat to life or health.

Mrs. W worked as a personal secretary to the manager of a firm. She was caught taking away stationery from the office for personal use. It was revealed during trial that she had been doing this ever since she joined work. This is a case of:

petty larceny.

In a criminal case, a government official was convicted for providing false witness for a company in exchange for money. What sort of offense is this?

Bribery of a public official

Which of the following defines a Ponzi scheme?

An investment swindle where high profits are promised from fictitious sources.

Mr. X is an accountant in a software company. He has been buying security in his wife’s name based on inside information. This criminal activity is known as:

insider trading.

What is vicarious liability?

Employers are liable for the wrongful acts of their employees.

Which of the following defenses is tested by the ‘irresistible impulse’ test?

insanity

Mr. Z shot and killed an armed robber who had his gun pointed at him. The robber died at the scene of the crime. What defense can Mr. Z use to get acquitted?

Justifiable use of force

Which of the following is a protection offered by the Fourth Amendment?

Protection from unreasonable search and seizure.

Which of the following gives the correct sequence of events for a criminal procedure?

Arrest, booking, arraignment, trial.

Which of the following happens if the defendant is not informed of the Miranda Rights?

Any information a defendant offers at the time of arrest is inadmissible.

Which of the following comes under the RICO Act?

Racketeering.

Which of the following is true for ‘whistle blowers’?

They are worried about being fired or demoted.

The primary purpose of criminal law is to compensate a victim.

F

Commission of the offense of grand larceny involves the theft of larger items as opposed to smaller items that can be hidden, for example, in a purse.

F

Under our criminal laws that exist today, white-collar crime is not punishable by imprisonment.

F

Congress amended the Foreign Corrupt Practices Act to conform to the Anti-Bribery Convention adopted by the Organization for Economic Cooperation and Development.

T

Mail fraud is a federal crime.

T

Embezzlement is distinguished from larceny because in embezzlement, the individual does not take the property from another and is already in possession of the property.

T

China punishes embezzlement and bank fraud less severely than the U.S.

F

Under the common law, a corporation could not be considered a criminal because it was not an actual person and, thus, did not have a mind.

T

Under current law, corporations cannot be held criminally accountable for strict-liability offenses.

F

A person who is considered an infant under the law cannot be tried as an adult under any circumstances.

F

The test used to establish one’s mental state when insanity is claimed is the same regardless of the jurisdiction involved.

F

Which of the following is the term that describes wrongful behavior in a criminal action?

Actus reus.

Which of the following is a term describing the wrongful state of mind needed for a criminal action?

Mens rea.

Strict liability is a term used to describe which of the following:

Liability without fault.

Which of the following is an example of the imposition of strict liability?

A business sells cigarettes to a minor.

Which of the following is punishable by imprisonment for more than one year or death?

felony

Which of the following are less serious crimes punishable by fines or imprisonment of less than one year?

misdemeanor

Which of the following are minor offenses usually punishable by a jail sentence of less than six months or a small fine with an example being violation of a building code?

Petty offenses.

Which of the following is the forceful and unlawful taking of personal property?

Robbery

Which of the following occurs when someone unlawfully enters a building with the intent to commit a felony?

Burglary

Which of the following is the secretive and wrongful taking and carrying away of the personal property of another with the intent to permanently deprive the rightful owner of its use or possession?

Larceny

Which of the following is the intentional burning of another’s dwelling?

arson

Which of the following serves to combat bribery of foreign officials?

The Foreign Corrupt Practices Act

Which of the following is the making of threats for the purpose of obtaining money or property?

extortion

Which of the following is the making of an entry into the books of a bank or corporation that is designed to represent the existence of funds that do not exist?

false entry

Which of the following is a false document or sign of existence used to perpetrate fraud, such as making counterfeit money?

false token

Which of the following is the misappropriation of trust funds or money held in a fiduciary capacity?

Defalcation

Which of the following is an investment swindle in which high profits are promised from fictitious sources and early investors are paid off with funds raised from later investors?

Ponzi scheme

Which of the following is using fraudulent means to obtain information about someone’s phone use

pretexting

Zack, the president of ABC Company, falsified documents to make it appear as if he had been granted stock options on certain dates, and he selected the dates after the fact, picking dates on which the stock price was low. Which of the following offenses, if any, did he commit?

Stock option backdating

Ed goes door-to-door selling magazine subscriptions. Ed knows, however, that he is simply taking money for subscriptions and has absolutely no intention of ever arranging for the provision of magazines. Which of the following offenses, if any, has he committed?

False pretenses

Which of the following occurs when companies bill consumers for optional services that the consumers did not order?

cramming

In which of the following involves tricking consumers into changing their phone service to another carrier without their consent?

slamming

Bank teller Ben receives $1,000 from a customer for deposit into the customer’s bank account. Instead of placing the money into the customer’s account, Ben puts it into his pocket. Which of the following offenses has he committed?

embezzlement

Which of the following is a person who illegally accesses or enters another person’s or a company’s computer system to obtain information or to steal money?

hacker

Which of the following is true regarding corporate executives being held personally liable for business crime?

Corporate executives may be found personally liable for a business crime regardless of whether the business crime was committed for personal benefit or for the benefit of the corporation.

Which of the following are considered infants under the law in regards to criminal activity?

Any person under the age of majority.

Which of the following is generally a legitimate defense to a charge of a crime?

Mistake of fact.

Which of the following allows a defendant to be found not guilty by reason of insanity if he or she did not understand the nature of the act?

The M’Naghten test

Which of the following holds that a person may be deemed not guilty by reason of insanity even if he or she knew that a criminal act was wrong, as long as some "irresistible impulse" resulting from a mental deficiency drove the person to commit the crime?

Irresistible impulse test.

Assuming the requisite elements are proven, which of the following is a defense when it is established that a crime is committed because the person committing the act was threatened with immediate bodily harm or loss of life unless the offense was committed?

duress

A defendant can use the _____ defense if the idea for a crime originated not with the defendant but with a police officer or other government official who suggested it to the defendant, and the defendant would not otherwise have committed the crime.

entrapment

A defendant who argues that commission of a crime was necessary to prevent a more severe crime from occurring is relying upon the defense of __________.

necessity

Which amendment provides the right to a speedy and public trial?

The Sixth Amendment.

Which of the following is true regarding the Fourteenth Amendment?

It extends due process and most constitutional protections to all states.

Which of the following amendments to the U.S. Constitution specifically sets forth the exclusionary rule?

none of the abve

At trial, a defense lawyer states that evidence should not be admitted because it is "fruit of the poisonous tree." Upon which of the following is the attorney relying?

the exclusionary rule.

Ordinarily, to obtain an arrest warrant, a law enforcement agent must demonstrate that there is ________ that a suspect committed or is planning to commit a crime.

Probable cause

Which of the following is true regarding an arrest without a warrant?

A law enforcement agent can arrest a suspect without a warrant if the officer believes there is probable cause but not enough time to obtain a warrant.

Of which of the following must a defendant be informed before questioning?

That the defendant has the right to consult an attorney before speaking to the police.

Which of the following occurs when a defendant makes a first appearance?

A magistrate determines whether there was probable cause for the arrest.

Which of the following is a plea in which the defendant does not admit guilt but agrees not to contest the charges?

Nolo contendere.

A judge reports that a jury was "hung." What does the judge mean?

That the jury could not reach a decision.

Which of the following requires a "pattern"?

The Racketeer Influenced and Corruption Organizations Act.

Under the Sarbanes-Oxley Act, it is now a felony to willfully fail to maintain proper records of audits and work papers for at least ______ years.

5

Which of the following was created specifically to combat white collar crime?

The Sarbanes-Oxley Act

Carla learns that her employer, a healthcare facility, is committing fraud against the government by filing false Medicare claims. Under which of the following might she obtain a portion of any recovery obtained by the government?

The False Claims Act.

Which of the following was passed largely in response to business scandals of the early 2000’s, such as those implicated by Enron, WorldCom, Global Crossing, and Arthur Anderson?

The Sarbanes-Oxley Act.

Under the Sarbanes-Oxley Act, which of the following is true regarding the destruction of documents in a federal bankruptcy investigation?

The destruction of documents in a federal bankruptcy investigation is a felony with possible sentences of up to 20 years in jail.

Which of the following Supreme Court cases established the right to counsel before questioning by the police?

Miranda v. Arizona

What is the primary objective of tort law?

To provide compensation for injured parties.

Which of the following defines a Strict-liability tort?

he defendant takes an action that is inherently dangerous.

_____ occur(s) when the defendant acts in a way that subjects other people to an unreasonable risk of harm.

Negligent torts

On Halloween night, Rob was returning home late. A young boy dressed as Death accosted him on the street and demanded Rob handover all the money he was carrying. Rob was momentarily shaken although he was able to get away from the boy. This is an assault case because:

there was apprehension.

Which of the following defines a libel?

A permanent publishing of defamation

Which of the following is considered an absolute defense in a defamation case?

truth

In a housing committee meeting, Wayne complained to others present that he could hear his neighbor Cindy’s baby crying through most nights and suspected she left the baby home alone. This was said in the absence of Cindy who heard about it from one of her neighbors. Since Wayne’s statement made Cindy sound like a negligent parent and she wanted to sue Wayne. Which tort would she be using?

false light

A noted women’s charity sued a garment retail chain for installing hidden cameras in their fitting rooms. Which tort has been violated here?

seclusion

In which of the following situations has conversion occurred?

When a person permanently removes personal property from the owner’s possession and control.

During the swine-flu outbreak, the verbal comments of a journalist caused many people to doubt and boycott the produce of Mr. Porky’s food chain. This caused a significant reduction in sales and the firm sued the journalist. What tort is applicable in the above scenario?

Slander of quality

Which of the following constitutes fraudulent misrepresentation?

The plaintiff suffered damages because of his reliance on a misrepresentation.

Which of the following is true for compensatory damages?

It does not include attorney fees.

In which of the following cases will punitive damages most likely be the highest?

Defendant is wealthy and the act committed is highly wrongful.

A skin-care products’ company was sued by a female consumer. The defendant was found guilty of selling a new product which had resulted in severe skin damage of the plaintiff. What would the company have to do?

Pay both compensatory and punitive damages

Why was the Class Action Fairness Act (CAFA) of 2005 created?

To limit the conditions under which a class action suit can be brought.

Tort law is primarily state law.

T

When it comes to assault, apprehension and fear are considered as the same thing.

F

Consent, if proven, is a defense to battery.

T

Defense of property cannot be a defense to a claim of battery.

F

Subjective opinions are subject to an action for defamation in the same way as statements of alleged fact.

F

In China, defamation can be a civil or criminal action.

T

Privilege is an affirmative defense in a defamation action.

T

If a defamation statement was originally broadcast by a company in the United States and was re-broadcast in the United Kingdom without the consent of the originator of the broadcast, the U.S. company may still be held liable in the United Kingdom court.

T

The use of moral pressure is insufficient to establish false imprisonment.

T

Simply offering a better deal is not enough to create liability for intentional interference with contract when only a prospective contract exists.

T

Which of the following is a tort?

A wrong or injury to another, other than a breach of contract.

Which of the following is true of the term "tort"?

It is a French word meaning "wrong."

Which of the following is true regarding tort litigation?

Tort litigation has been declining gradually since 1990.

Which of the following are common classifications of torts?

Intentional, negligent, and strict-liability.

_________ torts occur when the defendant takes an action intending certain consequences will result or knowing certain consequences are likely to result.

Intentional

_____ torts occur when the defendant is careless and acts in a way that subjects other people to an unreasonable risk of harm.

Negligent

________ torts occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes.

Strict-liability

Which of the following is true regarding the intent needed for an intentional tort?

The intent at issue is not intent to harm but, rather, is intent to engage in a specific act, which ultimately results in an injury, physical or economic, to another.

Which of the following is a category into which intentional torts are divided?

Torts against persons. Torts against property. Torts against economic interests. All of the above.

A(n) _________ occurs when one person places another in fear or apprehension of an immediate, offensive bodily contact.

Assault

Which of the following is true regarding the apprehension necessary for the tort of assault?

A person may be in apprehension of physical harm, even if the same person is too courageous to be afraid of that physical harm.

Robby calls Bobby on the telephone and threatened to come over and break his nose. Which of the following is true?

Robby’s conduct does not constitute an assault because there is no question of immediate bodily harm.

Which of the following is true regarding the intent needed for a battery?

The intent of a person in making a contact is irrelevant for establishing liability.

Mike gets angry because Ben made a better grade on a test than he did. They get into an argument, and Mike takes a swing at Ben intending to hit him. Ben shoves Mike in order to avoid the blow. Which of the following is true regarding Ben’s actions?

Ben has not committed an assault or a battery because he acted in self-defense.

Which of the following gives immunity to providers of interactive computer services for liability they might otherwise incur on account of material disseminated by them but created by others?

The Communications Decency Act of 1996.

Which of the following may a person accused of defamation raise as a defense?

Truth and privilege.

When a[n] _______________ privilege exists, one cannot be sued for defamation for any false statements made, regardless of intent or knowledge of the falsity of the claim.

Absolute

Under a conditional privilege, a party will not be held liable for defamation unless the false statement was made __________.

With actual malice

Which of the following would generally be public figures for purposes of the public figure privilege to actions for defamation?

Politicians and entertainers.

Which of the following would constitute the privacy tort of false light?

Attributing characteristics or beliefs to a person that he or she does not possess.

Which of the following is true regarding the "case opener" involving the lawsuit for defamation brought by a plastic surgeon against the physician?

The verdict was upheld because the damages were proper and the plastic surgeon was not a public figure.

Without obtaining advance permission, Annie places an unflattering photograph of the president of the college which she attends on folders that she is selling outside of class for extra money. Which of the following is true?

Annie has appropriated for commercial gain the photograph which constitutes an invasion of privacy.

Which of the following are defenses to an action for libel brought by a public figure in the United Kingdom regarding a statement made in the United Kingdom?

That the statements were true, that the statements were made in Parliament, or that the statements were made in court.

Bill decides to install two-way mirrors in the dressing room of his ladies’ clothing store. He has a habit of watching ladies while they try on clothing. Which of the following has Bill committed?

Intrusion on an individual’s affairs or seclusion.

Which of the following occurs when an individual is confined or restrained against his or her will for an appreciable period of time?

False imprisonment.

Which of the following would constitute false imprisonment?

Threatening to use immediate physical force to detain someone. Refusing to release property. Physical restraint, such as tying someone to a chair. All of the above.

Which of the following is true regarding a storekeeper who detains a suspected shoplifter?

When a retailer has a reason to believe that a person is guilty of shoplifting, the store may question the person about said shoplifting in a reasonable manner and for a reasonable length of time.

Which of the following occurs when someone engages in outrageous, intentional conduct likely to cause extreme emotional distress to the party toward whom the conduct is directed?

Intentional infliction of emotional distress.

Which of the following torts seek to compensate people wrongfully charged with either criminal or civil matters?

Malicious prosecution and wrongful civil proceedings but not abuse of proceeding.

Jane is unhappy with her neighbor Sam because Sam will not allow her to swim in his swimming pool. She tells him that unless he lets her swim in the pool, she will bring an action against him for nuisance because he plays his stereo late at night at times. He refuses, and she proceeds to sue him for nuisance. Which of the following is true?

Sam can sue Jane for abuse of process and win regardless of whether or not he wins the nuisance action.

Under which of the following situations does the tort of trespass to realty occur?

A person causes an object to be placed on the land of another without the landowner’s permission. A person stays on the land of another when the owner tells him to depart. A person refuses to remove something he placed on the property that the owner of the property asked him to remove. All of the above.

Which of the following is defamation of a business product or service?

Disparagement.

A false statement of a material fact regarding ownership of business property that results in a loss of sales is referred to as __________.

Slander of title

Bob, who has a large trust fund, is angry at Alice because she stopped dating him. Alice ran a successful dog grooming shop but Bob decided to open a dog grooming shop next door solely to run her out of business because he was angry over the break up. Which of the following is correct?

Bob has committed the tort of unfair competition.

The primary type of damages in tort law is referred to as ______.

Compensatory damages

A person who commits a tort is often referred to as a ______________.

Tortfeasor

Which of the following is not a typical type of compensatory damage?

Attorney fees.

_______________ damages are a small amount of money given to recognize that a defendant did indeed commit a tort in a case in which there were no compensable damages suffered by the plaintiff.

Nominal

___________ damages are damages awarded to punish the defendant.

Punitive

Property that is primarily the result of mental creativity rather than physical effort is often called:

intellectual property.

A distinctive mark affixed to a good, its packaging, or its labeling, with a product for identifying the product with the producer such as the Nike "swoosh" is a:

product trademark.

A _____ mark identifies the producers as belonging to a larger group, such as a trade union.

collective

The term _____ means the overall appearance and image of a product.

trade dress

The main focus of a case of trade-dress infringement is usually on:

the likelihood of consumer confusion.

Which of the following is true of trademark dilution laws?

Trademark dilution laws prohibit the use of "distinctive" or "famous" trademarks, even in the absence of consumer confusion.

_____ protect the expression of creative ideas.

Copyrights

One criteria for a work to be copyrightable, is:

when it is original and creative.

The _____ doctrine provides that others may reproduce a portion of a copyrighted work for purposes of "criticism, comment, news reporting, teaching, scholarship, and research."

fair-use

A patent:

protects a product, process, invention, machine, or plant produced by asexual reproduction.

A _____ occurs when the holder issues a license to use the patented object only if the licensee agrees to buy some nonpatented product from the holder.

tying arrangement

A _____ is a process, product, method of operation, or compilation of information that gives a businessperson an advantage over his or her competitors.

trade secret

The _____ principle requires that each member nation protect artists of all signatory nations equally.

national treatment

The protection independent of protection in the country of origin principle of the Berne Convention of 1886:

allows nationals of nonsignatory countries to protect works if they are created in a member country.

Which of the following is one of the basic principles of the Paris Convention of 1883?

The right of priority

The laws of intellectual property protect property that is primarily the result of mental creativity rather than physical effort.

T

Network Solutions, Inc. is funded by the National Science Foundation and is responsible for registering domain names on the Internet.

T

A person who applies for a domain name on the Internet will be granted the domain name so long as no one else holds that name.

T

Trade dress is entitled to the same protection as a trademark.

T

Copyrights protect the expression of creative ideas.

T

Copyrights protect ideas themselves.

F

A service mark is a mark licensed by a group that has established certain criteria for use of the mark such as "U.L. Tested" or "Good Housekeeping Seal of Approval."

F

A teacher cannot be held liable for copyright infringement under the fair-use doctrine so long as copies are only used for educational purposes.

F

Tying arrangements are illegal.

T

An invention may be considered a trade secret.

T

Which of the following consists of the fruits of one’s mind?

Intellectual property

A(n) ________ is a distinctive mark, word, design, picture, or arrangement that is used by a producer in conjunction with a product and tends to cause consumers to identify the product with the producer.

Trademark

Which of the following is true regarding whether the shape of a product or package may be a trademark?

The shape of a product or package may be a trademark if it is nonfunctional.

Which of the following is an example of a product developing secondary meaning?

Customers identify a certain color as identifying a company’s product.

Under which of the following is a trademark protected under state common law?

If it is used intrastate.

To be protected in ____________ use, a trademark must be registered with the U.S. Patent Office under the Lanham Act of 1947.

Interstate

If a trademark is registered, what may the owner obtain in the event of infringement from a person who used the trademark to pass off goods as being those of the mark owner?

Damages and an injunction prohibiting the infringer from using the mark.

If a trademark is unregistered, which of the following may the holder recover when an infringer uses the mark to pass off goods as being those of the mark owner?

Only an injunction prohibiting the infringer from using the mark.

Once a trademark is registered today, when must it be renewed for the first time?

Between the fifth and sixth year.

After the initial renewal, assuming a trademark was initially registered after 1990, how often must the trademark be renewed?

Every ten years.

Which of the following is a mark used in conjunction with a service?

Service mark

Which of the following is a mark affixed to a good, its packaging, or its labeling?

Product trademark

Which of the following is a mark identifying the producers as belonging to a larger group, such as a trade union?

Collective mark

Which of the following is a mark licensed by a group that has established certain criteria for use of the mark, such as "U.L. Tested" or "Good Housekeeping Seal of Approval"?

Certification mark

In which of the following orders of ascending strength may marks fall?

Generic, descriptive, suggestive, arbitrary or fanciful.

A(n) _______________ mark identifies a significant characteristic of the product but is not the common name of the product.

Descriptive

To obtain trademark protection, a descriptive term must have attained ______________.

Secondary meaning

A(n) ____________ mark is one that requires imagination, thought, and perception to reach a conclusion as to the nature of the goods.

Suggestive

When trademark infringement is alleged, what is the effect of actual confusion?

It is not a prerequisite for the plaintiff to recover, but it is a strong indication that there is a likelihood of confusion.

Which of the following is the way people and businesses are located on the web?

Through domain names

With which of the following does a government website address end?

.gov

With which of the following does a network website address end?

.net

With which of the following does an organization website address end?

.org

With which of the following does a business website address end?

.com

Which of the following is responsible for registering domain names for Internet use?

Network Solutions, Inc.

A registrant may lose registration of a domain name for Internet usage by not using it for more than ___________ days.

90

Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarships, and research?

The Fair Use Doctrine

Which of the following is true regarding what may be the subject of a patent?

A product, a process, an invention, or a plant produced by asexual reproduction may be the subject of a patent.

Assuming the subject matter of a proposed patent is patentable, which of the following criteria must be satisfied in order for a non-design patent to be granted?

The object of the patent must be novel, useful, and non-obvious.

When a patent is issued for an object, it gives its holder the exclusive right to produce, sell, and use the object of the patent for __________ years from the date of application.

20

Which of the following is true regarding trade secret protection?

A trade secret is protected from unlawful appropriation by competitors as long as it is kept secret and consists of elements not generally known in the trade.

Which of the following is false regarding trade secret protection?

Competitors may not discover trade secrets by doing reverse engineering.

Which of the following administers international treaties pertaining to the protection of intellectual property?

The World Intellectual Property Organization

Which of the following is the oldest treaty designed to protect artistic rights?

The Berne Convention of 1886

Which of the following was developed by the United Nations as an alternative for countries who wanted to participate in some form of multilateral protection of copyrights, but did not want to agree to the terms of the Berne Convention?

The Universal Copyright Convention

Which of the following is a principle of The Paris Convention of 1883?

National treatment

Which of the following was the result in the Case Opener involving the lawsuit brought by Papa John’s International, Inc. against former franchises?

All claims were allowed to proceed except for claims of copyright infringement which were dismissed with leave to replead the claim.

Sally, a friend of yours who just finished college and was hired at the local high school, wants to copy a number of articles from her class. She heard that you are taking business law and asks if you see any problem with her copying the articles. Based on the case in the text, Princeton University Press v. Michigan Document Services, Inc., what would you tell her?

There are federal Classroom Guidelines on the issue and that you need to know more before you can advise her.

In case of the landlord-tenant law, the owner of the property is known as the:

lessor

Which of the following statements is true of landlord-tenant relationship?

The tenant has the right to exclusive possession of the property named in the lease.

A periodic-tenancy lease:

is for an indefinite time period.

What does "covenant of quiet enjoyment" mean?

It means that the landlord promises not to interfere with the tenant’s use and enjoyment of the property.

Lily’s landlord Kiara had changed the lock of her apartment and refused to give the keys of the new lock to Lily. This is an example of:

eviction.

Which of the following statements is true about eviction?

If the landlord prevents the tenant to enter any part of the premises, a full eviction has occurred.

Rudolf, a tenant, used the garden area of Rhea’s (the landlord) property as parking area without her permission, which led to damage of the grass and other plants. It can be said that Rudolf created a:

waste

_____ can be defined as the compensation paid to the landlord for the tenant’s right to possession and exclusive use of the premises.

Rent

Eva had entered into a long term lease agreement with Charles, the landlord. The agreement stated that the rent for the residential property would be $700 per month. However, after a period of 1 year of Eva’s stay at the property, Charles increased the rent to $750 per month. It is clear that the agreement consisted of a(n) _____ clause.

rent escalation

When will the landlord be liable for injuries on the premises?

When the injuries occur in the common areas like elevators.

Tulip was a tenant at Ron’s property. She has taken the ground floor of the property to open a restaurant. Ron resided at the second floor of the property. Meg, a customer at Tulip’s restaurant, slipped and fell on a wet floor inside the restaurant after entering a room that said "Employees only." Who would be responsible for Meg’s injury?

Meg herself

Which of the following statements is true?

On sale of a leased property, the new owner cannot force the tenant to move out of the property.

A tenant can transfer his or her interest in the leased property in two ways. They are subleases and:

assignments.

_____ is a mutual agreement between a landlord and a tenant to terminate the lease.

Surrender

Ryan had taken a commercial property for rent for a period of 5 years. However, after completing 2 years and 2 months, Ryan permanently left the place without informing the landlord and made no further payment of rent. Which of the following would best describe this behaviour?

Abandonment

If a landlord retains control of and access to property, the relationship is likely not a landlord-tenant relationship because the tenant does not have an exclusive right to possession of the property.

T

If an individual has a history of not paying rent or severely damaging premises, the landlord does not have to enter into an agreement with this person to lease premises.

T

A covenant of quiet enjoyment is one of the covenants made by a lessee.

F

An eviction may only be full, not partial.

F

Rent can be defined as the compensation paid to the landlord for the tenant’s right to possession and exclusive use of the premises.

T

Rent ceilings are always illegal.

F

A rent escalation clause is typically found in short-term leases.

F

By federal law, if a tenant vacates prior to the expiration of the lease term, the landlord has no duty to attempt to lease the property to another party.

F

Interference with a tenant’s quiet enjoyment of property may be in the form of an eviction.

T

If a landlord accepts surrendered property, the tenant is usually relieved of the rent obligation, and the lease is terminated.

T

In the landlord-tenant relationship, the owner of the property is called the ______.

Landlord or lessor

In the landlord-tenant relationship, the party who assumes temporary ownership of the property is the ______.

Tenant or lessee

In the landlord-tenant relationship, the property in question is called the ______.

Leasehold estate

Which of the following was created by the National Conference of Commissioners on Uniform State Laws to create more uniformity among the state laws governing the landlord-tenant relationship?

The Uniform Residential Landlord and Tenant Act

When must a lease generally be in writing?

When the lease term exceeds 1 year.

Which of the following is a type of lease?

All the above

A definite-term lease is also known as a[n] ______.

Term-for-years

A[n] ______ lease automatically expires at the end of the specified term, and the landlord is not required to give any notification of termination.

Definite-term

A[n] ______ lease is created for a recurring term, such as month to month; and it may last for an indefinite time period.

Periodic-tenancy

Parties to a[n] ______ lease may terminate the lease at any time.

Tenancy-at-will

If a tenant fails to leave the property after the termination of the lease, a[n] ______ lease is created.

Tenancy-at-sufferance

Under the Fair Housing Act, a landlord may not discriminate against a prospective tenant with regard to which of the following?

Race, color, sex, religion, national origin, or familial status.

The ______ is the promise that a landlord makes in a lease that the tenant has the right to quietly enjoy the land.

Covenant of quiet enjoyment

A[n] ______ eviction occurs when a landlord physically prevents a tenant from entering leased premises.

Actual

If leased premises become unsuitable for use because of a landlord’s wrongful or omitted act, a[n] ______ eviction has occurred.

Constructive

Which of the following was the result in the "Case Opener," the case in the text in which Roommates.com was sued for alleged violations of the Fair Housing Act and some California statutes because of its involvement in matching roommates?

That the defendant was enabling discrimination and not entitled to immunity.

Which of the following is a requirement that leased premises be fit for ordinary residential purposes?

Warranty of habitability

Historically, why was a landlord not responsible for ensuring that leased premises were tenantable?

Because land was viewed as the more important element being leased.

Any tenant conduct that causes permanent and substantial injury to the landlord’s property is considered ______.

WASTE

Which of the following identifies areas such as yards, lobbies, elevators, stairs, and hallways that are used by all tenants?

Common areas

Who is responsible for upkeep of common areas?

The lessor.

Which of the following is true regarding security deposits?

All the above

Which of the following is a clause in a lease agreement allowing the landlord to increase the rent in association with increases in costs of living, property taxes, or the tenant’s commercial business?

A rent escalation clause

Which of the following is true regarding landlord liability in England?

For a landlord to be held liable due to negligence, he or she must have created the disputed defect.

Which of the following references in some states a landlord’s right to some or all of the tenant’s personal property in the event that a tenant refuses to pay rent?

A landlord’s lien

Who is generally responsible for injuries that occur in common areas based on negligent upkeep?

The landlord

Which of the following is false regarding the liability of a landlord?

If the premises are used for commercial purposes, the landlord is responsible for maintaining the premises.

Which of the following sets forth the duties of a tenant in regards to injuries to those on the premises?

A tenant owes a duty to keep premises under which he or she is in control in a reasonably safe condition.

Which of the following is true regarding whether a landlord and tenant may transfer their interests in the property involved in the lease?

Unless prohibited by the lease agreement, both the landlord and the tenant may transfer their respective interests in the property.

Bob leases an apartment from Brenda and pays rent of two months in advance, plus a damage deposit. Unfortunately, when he attempts to move in, he finds that Connie is living in the apartment. Connie tells him that Brenda had no right to ask her to leave and that she is staying put. Which of the following is true assuming that Connie has no legal right to occupy the premises?

In the majority of states, the landlord is required to remove the previous tenant or break the agreement with the new tenant.

Which of the following is true regarding the obligations of the parties if leased premises are destroyed through a fire or other disaster and is not the fault of the landlord?

The tenant is released from paying rent and the lease is terminated. Unless the landlord could have prevented the disaster, the landlord generally has no duty to restore or repair.

Which of the following is a term referencing the failure of either the tenant or the landlord to perform a condition stated in the lease?

Forfeiture

Which of the following references the ending of a lease before its stated term by mutual agreement between the lessor and the lessee?

Surrender

Which of the following occurs if a tenant moves out of leased premises before the end of the term, has no intent to return, and had defaulted on rent payments?

Abandonment

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