COB 318 EXAM #2 | COMPREHENSIVE BUSINESS STUDY GUIDE, PRACTICE
QUESTIONS & ANSWERS 2026/2027
intentional tort - ANS ✔✔A wrongful act knowingly committed.
tortfeasor - ANS ✔✔one who commits a tort
transferred intent - ANS ✔✔when a defendant intends to harm one individual, but unintentionally harms
a second person
assault - ANS ✔✔any word or action intended to make another person fearful of immediate physical
harm -- a reasonable believable threat
battery - ANS ✔✔unexcused, harmful or offensive, physical contact with another that is intentionally
performed.
actionable - ANS ✔✔capable of serving as the basis of a lawsuit
defamation - ANS ✔✔anything published or publicly spoken that causes injury to another's good name,
reputation, or character.
libel - ANS ✔✔defamation by written or printed words, pictures, or in any form other than by spoken
words or gestures.
slander - ANS ✔✔spoken defamation
privilege - ANS ✔✔a special right, advantage, or immunity granted or available only to a particular
person or group of people.
actual malice - ANS ✔✔the deliberate intent to cause harm that exists when a person makes a statement
with either knowledge of its falsity or reckless disregard of the truth. Actual malice is required to
establish defamation against public figures.
appropriation - ANS ✔✔In tort law, the use by one person of another person's name, likeness, or other
identifying characteristic without permission and for the benefit of the user.
fraudulent misrepresentation - ANS ✔✔any misrepresentation, either by misstatement or by omission of
a material fact, knowingly made with the intention of deceiving another and on which a reasonable
person would and does rely to his or her detriment.
puffery - ANS ✔✔a salesperson's exaggerated claims concerning the quality of goods offered for sale.
Such claims involve opinions rather than facts and are not considered to be legally binding promises or
warranties.
business tort - ANS ✔✔wrongful interference with another's business rights and relationships
, trespass to land - ANS ✔✔the entry onto, above, or below the surface of land owned by another without
the owner's permission or legal authorization.
license - ANS ✔✔a revocable right or privilege of a person to come on another person's land.
trespass to personal property - ANS ✔✔wrongfully taking or harming the personal property of another
or otherwise interfering with the lawful owner's possession of personal property.
conversion - ANS ✔✔wrongfully taking or retaining possession of an individual's personal property and
placing it in the service of another.
disparagement of property - ANS ✔✔an economically injurious falsehood about another's product or
property.
slander of quality (trade libel) - ANS ✔✔the publication of false information about another's product,
alleging that it is not what its seller claims.
slander of title - ANS ✔✔the publication of a statement that denies or casts doubt on another's legal
ownership of any property, causing financial loss to that property's owner.
negligence - ANS ✔✔the failure to exercise the standard of care that a reasonable person would exercise
in similar circumstances.
McKee v. Laurion - ANS ✔✔-Defamation
-Laurion made defamatory statements against Mckee
Had truth in the matter
Court ruled in favor of Mckee
Welco Electronics Inc. v. Mora - ANS ✔✔the tort of conversion has been adapted to new property rights
and modern means of commercial transactions
duty of care - ANS ✔✔the duty of all persons, as established by tort law, to exercise a reasonable
amount of care in their dealings with others. Failure to exercise due care, which is normally determined
by the reasonable person standard, constitutes the tort of negligence.
reasonable person standard - ANS ✔✔the standard of behavior expected of a hypothetical "reasonable
person." The standard against which negligence is measured and that must be observed to avoid liability
for negligence.
business invitee - ANS ✔✔a person, such as a customer or a client, who is invited onto business premises
by the owner of those premises for business purposes.
malpractice - ANS ✔✔negligence on the part of a professional
causation in fact - ANS ✔✔An act or omission without which an event would not have occurred.
proximate cause - ANS ✔✔Legal cause; exists when the connection between an act and an injury is
strong enough to justify imposing liability.
QUESTIONS & ANSWERS 2026/2027
intentional tort - ANS ✔✔A wrongful act knowingly committed.
tortfeasor - ANS ✔✔one who commits a tort
transferred intent - ANS ✔✔when a defendant intends to harm one individual, but unintentionally harms
a second person
assault - ANS ✔✔any word or action intended to make another person fearful of immediate physical
harm -- a reasonable believable threat
battery - ANS ✔✔unexcused, harmful or offensive, physical contact with another that is intentionally
performed.
actionable - ANS ✔✔capable of serving as the basis of a lawsuit
defamation - ANS ✔✔anything published or publicly spoken that causes injury to another's good name,
reputation, or character.
libel - ANS ✔✔defamation by written or printed words, pictures, or in any form other than by spoken
words or gestures.
slander - ANS ✔✔spoken defamation
privilege - ANS ✔✔a special right, advantage, or immunity granted or available only to a particular
person or group of people.
actual malice - ANS ✔✔the deliberate intent to cause harm that exists when a person makes a statement
with either knowledge of its falsity or reckless disregard of the truth. Actual malice is required to
establish defamation against public figures.
appropriation - ANS ✔✔In tort law, the use by one person of another person's name, likeness, or other
identifying characteristic without permission and for the benefit of the user.
fraudulent misrepresentation - ANS ✔✔any misrepresentation, either by misstatement or by omission of
a material fact, knowingly made with the intention of deceiving another and on which a reasonable
person would and does rely to his or her detriment.
puffery - ANS ✔✔a salesperson's exaggerated claims concerning the quality of goods offered for sale.
Such claims involve opinions rather than facts and are not considered to be legally binding promises or
warranties.
business tort - ANS ✔✔wrongful interference with another's business rights and relationships
, trespass to land - ANS ✔✔the entry onto, above, or below the surface of land owned by another without
the owner's permission or legal authorization.
license - ANS ✔✔a revocable right or privilege of a person to come on another person's land.
trespass to personal property - ANS ✔✔wrongfully taking or harming the personal property of another
or otherwise interfering with the lawful owner's possession of personal property.
conversion - ANS ✔✔wrongfully taking or retaining possession of an individual's personal property and
placing it in the service of another.
disparagement of property - ANS ✔✔an economically injurious falsehood about another's product or
property.
slander of quality (trade libel) - ANS ✔✔the publication of false information about another's product,
alleging that it is not what its seller claims.
slander of title - ANS ✔✔the publication of a statement that denies or casts doubt on another's legal
ownership of any property, causing financial loss to that property's owner.
negligence - ANS ✔✔the failure to exercise the standard of care that a reasonable person would exercise
in similar circumstances.
McKee v. Laurion - ANS ✔✔-Defamation
-Laurion made defamatory statements against Mckee
Had truth in the matter
Court ruled in favor of Mckee
Welco Electronics Inc. v. Mora - ANS ✔✔the tort of conversion has been adapted to new property rights
and modern means of commercial transactions
duty of care - ANS ✔✔the duty of all persons, as established by tort law, to exercise a reasonable
amount of care in their dealings with others. Failure to exercise due care, which is normally determined
by the reasonable person standard, constitutes the tort of negligence.
reasonable person standard - ANS ✔✔the standard of behavior expected of a hypothetical "reasonable
person." The standard against which negligence is measured and that must be observed to avoid liability
for negligence.
business invitee - ANS ✔✔a person, such as a customer or a client, who is invited onto business premises
by the owner of those premises for business purposes.
malpractice - ANS ✔✔negligence on the part of a professional
causation in fact - ANS ✔✔An act or omission without which an event would not have occurred.
proximate cause - ANS ✔✔Legal cause; exists when the connection between an act and an injury is
strong enough to justify imposing liability.
