Week 2 Knowledge Check Study Guide

1. Identify the true statement about a claim of defamation.

2. Who among the following is given absolute privilege or immunity against defamation?

3. Delta Inc. has filed a lawsuit against one of its new franchisees for providing false

information about the amount of its profits it would give to Delta every month. Delta has

also ascertained that the incorrect information caused pecuniary damages to Delta as

well as damages to its reputation. What type of business tort is illustrated in the scenario?

4. What is likely to make a plaintiff's case stronger in a negligence lawsuit?

5. In cases of negligence, what is one problem in applying the but for test?

6. Which doctrine allows a plaintiff to presume that a defendant caused certain damages

without describing exactly how the defendant behaved?

7. What is true about strict liability?

8. Venus Corp. is a building demolition company that produces large quantities of plastic

explosives, which are stored in its warehouses. These warehouses are typically insulated

and protected against damage. However, one day, a worker unintentionally causes an

explosion in one of the warehouses, damaging buildings around it and causing injury to

some individuals in the area. Which type of liability will a court most likely impose on

Venus Corp.?

9. Identify the basis upon which strict liability is imposed on a company for damages caused

in the event of an incident.

10. Omega Inc. has filed a lawsuit against one of its employees. This employee has been

transferring monthly sums of company money into his personal account. He has been

simultaneously altering the company's financial records to indicate that the money is still

in the company account. What kind of white collar crime is illustrated in the scenario?

11. Identify the white collar crime that involves a fraudulent entity attracting investors, offering

them high returns, and paying these returns, not from profits, but from investments made

by subsequent investors.

12. Choose the correct statement about white collar crimes in the United States.