Business law unit 3 milestone Questions &

Answers

Which of the following is true of property ownership in the United

States?

CONCEPT

The Property System

2

Jenna has been employed as Rashid's personal assistant for five years. Her

job description is vague, but she helps him with many aspects of his day to

day life. Jenna knows he likes art, so every year she attends a local art

auction and purchases a painting on Rashid's behalf. This year, she buys a

painting that is twice as expensive as usual.

Is Rashid responsible for the full price of the painting?

CONCEPT

Principal's Contract Liability

3

Property ownership is primarily defined at the state level.

•

You may own property even if the legal system does not recognize your right to

do so.

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Animals and humans both have the right to own property.

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Property must be tangible in order for the legal system to recognize ownership.

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Yes, due to apparent authority.

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No, Rashid is not liable.

•

Yes, due to express authority.

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Yes, due to implied authority.

•

Wilhelm discovers that a tech company has just received a patent for a new

type of headphone that reduces the potential for hearing damage at high

volume. The existence of this new technology is not yet widely known.

However, once Wilhelm learns about it, he tells several of his friends, and

they all buy stock in the tech company.

Does Wilhelm's conduct violate trade secret law?

•

No, because the invention of this technology is publicly available information

through the issuance of the patent.

•

Yes, because Wilhelm misappropriated the tech company's trust by telling his

friends about the new technology.

•

Yes, because Wilhelm will potentially profit from his discovery.

•

No, because the company is not yet deriving value from the technology.

CONCEPT

Trade Secrets

4

Jennifer includes a copyrighted photograph in her new book without

obtaining permission from the copyright owner.

Select the correct classification for this example.

CONCEPT

Copyright Law

Direct copyright infringement

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Contributory infringement

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Fair use

•

Legal use of a copyright license

•

5

Gary (principal) hires Dawn (agent) to sell his house. Every time Dawn tries

to bring a potential buyer to see Gary's house, he asks her to reschedule for

another day. Dawn suspects that Gary does not actually want to sell his

house.

Is Gary in breach of his duty?

CONCEPT

Duties between Agent and Principal

6

If a voluntary bailment is only of benefit to the bailor, what sort of

responsibility does the bailee owe the bailor?

CONCEPT

Bailment

7

Ryan owns a Christmas tree farm that struggles to compete with the

Christmas tree farm on the other end of town. He instructs one of his

employees to set a fire at the rival farm, which destroys much of their stock

Yes, because he failed to warn Dawn of the potential for pecuniary loss.

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No, because Gary does not have a fiduciary duty to Dawn.

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No, because principals have no duties toward their agents.

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Yes, because he has a responsibility to not interfere with Dawn's task.

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Minimum duty of care

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Extraordinary duty of care

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Ordinary duty of care

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The bailee has no responsibility in this case.

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and drives up demand for Ryan's trees. Ryan's employee is arrested for

arson, and the rival farm sues for damages.

Is Ryan liable for the tort?

•

Yes, Ryan is directly liable for the tort and for the employee's criminal act of

arson.

•

Yes, Ryan is directly liable for the tort but not for the employee's criminal act of

arson.

•

Yes, Ryan is vicariously liable according to the "zone of risk" test because his

employee's actions were foreseeable.

•

No, Ryan is not liable in this case.

CONCEPT

Principal's Tort and Criminal Liability

8

Lisa is the CEO of a corporation. As such, she is authorized to make daily

operating decisions for the company on behalf of shareholders.

Which type of agent relationship does this represent?

CONCEPT

Types of Agents

9

Special agent

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Subagent

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General agent

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Independent contractor

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