TEST BANK FOR BUSINESS LAW AND THE LEGAL ENVIRONMENT 9TH EDITION

Indicate whether the statement is true or false. 1. Ahmi was a witness in a lawsuit. When asked why he fired Rana, Ahmi replied, "Rana was fired for willful misconduct." Indeed, Rana had not engaged in any misconduct. Rana will be able to successfully sue Ahmi for defamation based on what Ahmi said in court. a. True b. False 2. Public officials can win a defamation case only by proving the defendant's actual malice. a. True b. False 3. A witness testifying in a court or legislature may never be sued for defamation. a. True b. False 4. Working out some frustrations after a bad game, Jessica angrily hits a baseball and then sees it is flying toward the umpire. She yells, “Watch out!” The umpire ducks and the ball misses him. Since there was no physical contact, no assault or battery occurred. a. True b. False 5. The First Amendment guarantee of freedom of speech is an absolute right. a. True b. False 6. In an advertisement, FreshAir, Inc. stated that its air freshener lasted for 3 hours while the competitor's Smell Sweet lasted for only 36 minutes. In fact, Smell Sweet freshens the air for more than 2 hours. FreshAir has not violated the Lanham Act because the First Amendment's guarantee of freedom of speech applies. a. True b. False 7. Lori works for Big Corporation. The existing contract between Lori and Big Corporation can be terminated at will by either party. Richard, the owner of a small store, offers to pay Lori much more money if she will leave Big Corporation and work for his store. When Lori starts to work for Richard, Big Corporation correctly claims Richard is liable for tortious interference with a contract. a. True b. False 8. Dewayne sold a space heater to Vivian, telling her it would heat a 200-square-foot area, even though he knew it would effectively heat only about one-third of that space. Dewayne is liable for the intentional tort of fraud.