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States retain the exclusive power to regulate interstate commerce

T F 1. States retain the exclusive power to regulate interstate commerce.

T F 2. Commercial speech, such as advertising, enjoys First Amendment
protection in some instances.

T F 3. The tort of disparagement includes threats of force intended to drive
away a competitor's business.

4. Monica owed Bob $500, which was more than a year overdue. Bob
got drunk at a party and told everyone there that Monica had owed him
$500 for over a year. Can Monica recover from Bob for defamation?

(A) Yes, because Bob abused his conditional privilege.
(B) No, because Bob has the defense of truth
(C) Yes, because Bob communicated the statement to third persons
(D) Yes, because many people have outstanding debts

5. Federal question jurisdiction:

(A) is a type of jurisdiction possessed by state trial courts
(B) is the most common form of U.S. Supreme Court jurisdiction
(C) requires that the amount in controversy be at least $50,000
(D) is jurisdiction over questions arising under federal laws, treaties and the U.S. Constitution
(E) both (C) and (D)

T F 6. Comparative fault refers to the amount of fault assessed to each
defendant in cases where there are more than one defendant.
T F 7. Courts have been increasingly reluctant to allow third parties to recover
for emotional distress resulting from witnessing harm caused to
another person by a defendant's negligent acts.

T F 8. Courts and judges make law by using their power to interpret statutes.

T F 9. Implied warranties are not absolute and can be imposed by law.

T F 10. Cybersquatters are on-line vendors who purchase large quantities of
products and start selling them for a reduced rate online, devaluing the
product for the original producers and distributors.

T F 11. A contract is implied when the parties directly state its terms at the
time the contract is formed.

12. To be considered a contract, a promise must be:

(A) to do a legal act
(B) by parties having capacity
(C) voluntarily entered into
(D) for an exact amount of money
(E) all of the above
(F) only (A), (B) and (C)

13. The doctrine of promissory estoppel:

(A) makes all gratuitous promises enforceable
(B) is a remedy designed to prevent unjust enrichment
(C) protects reliance, not bargains
(D) Applies only in situations where a binding contract exists

T F 14. An agent with special knowledge or expertise may not substitute
her personal judgment for that of the principal if the principal's
instructions seem unwise to the agent.

15. Duties generally imposed on the principal by the common law are:

(A) The duty to share profits and losses
(B) The duty to reimburse and indemnify
(C) The duty to compensate and keep accounts
(D) The duty to keep the principal informed at all times
(E) Both (A) and (B)
(F) Both (A) and (C)
(G) Both (B) and (C)
(H) All of the above

SHORT ANSWER QUESTION--(7.5 POINTS)

1. What must a plaintiff, in a negligence case, prove and establish in order to
recover? What are some of the common defenses available to
defendants in negligence suits? Provide an example of a negligence case
with one of the common defenses

Solution Preview

T F 1. States retain the exclusive power to regulate interstate commerce.

The Commerce Clause is a grant of power to Congress, not an express limitation on the power of the states to regulate the economy. At least four possible interpretations of the Commerce Clause have been proposed. First, it has been suggested that the Clause gives Congress the exclusive power to regulate commerce. Under this interpretation, states are divested of all power to regulate interstate commerce. Second, it has been suggested that the Clause gives Congress and the states concurrent power to regulate commerce. Under this view, state regulation of commerce is invalid only when it is preempted by federal law. Third, it has been suggested that the Clause assumes that Congress and the states each have their own mutually exclusive zones of regulatory power. Under this interpretation, it becomes the job of the courts to determine whether one sovereign has invaded the exclusive regulatory zone of the other. Finally, it has been suggested that the Clause by its own force divests states of the power to regulate commerce in certain ways, but the states and Congress retain concurrent power to regulate commerce in many other ways. This fourth interpretation, a complicated hybrid of two others, turns out to be the approach taken by the Court in its decisions interpreting the Commerce Clause.

T F 2. Commercial speech, such as advertising, enjoys First Amendment protection in some instances.

Commerical speech: Speech which appeals strictly and narrowly to the economic interests of the speaker and/or the audience. It's sole purpose is to convey information about products or services that are offered for sale in order to facilitate, promote, or encourage a purchase. Most such speech would ordinarily be classified as "advertising". When the information advertising conveyed is false, then a tort has occurred because the audience is being mislead, which constitutes and injury. Closely related to the definition of "commercial speech" is a doctrine originated by the U. S. Supreme Court called the "commercial speech doctrine" which prescribes the method by which strictly "commercial speech" may be lawfully regulated by the government. Commercial speech enjoys a more limited measure of protection, commensurate with its subordinate position in the scale of First Amendment values, and is subject to modes of regulation that might be impermissible in the realm of noncommercial expression.

T F 3. The tort of disparagement includes threats of force intended to drive away a competitor's business.

A tort is a private injury or wrong arising from a breach of duty imposed by law.

COMPETITIVE TORTS

1.Disparagement
• One who publishes a defamatory and false story about the product quality, title, or type of service provided by another business person is liable in tort for disparagement.
• Plaintiff must prove actual damages in order to win.

Note that where one makes similar remarks about an individual's personal conduct, he/she becomes liable for slander or libel.

2. Intentional Interference with Economic Expectations

One who is intentionally, with ill will, and by wrongful means interferes with and prevents another from obtaining an economic advantage is liable in tort to the injured party.

• The interference must be intended.
• It must be committed with with ill will.
• The means must be objectionable. For example: By use of lies, slander, libel or violence.
4. Monica owed Bob $500, which was more than a year overdue. Bob got drunk at a party and told everyone there that Monica had owed him $500 for over a year. Can Monica recover from Bob for defamation?

(A) Yes, because Bob abused his conditional privilege.
(B) No, because Bob has the defense of truth
(C) Yes, because Bob communicated the statement to third persons
(D) Yes, because many people have outstanding debts

A communication is defamatory if it "tends to harm the reputation of another so as to lower him in the estimation of the community or deter third persons from associating or dealing with him."
Both compensatory and punitive damages may be available for a successful defamation claim. The availability of punitive damages is determined by the level of malice toward the defamed party. Generally, punitive damages may be available if the communication was made with express malice (the defamatory communication was made with motives of ill will, envy, spite, revenge, or related motives) or actual malice (the defamatory communication was made with knowledge that the statement was false or with reckless disregard of the truth).6
Defenses to defamation claims. The two defenses to defamation claims are truth and privilege. Truth is an absolute defense to defamation claims. To establish this defense, however, one must affirmatively prove the statement or information was truthful. The plaintiff is not required to prove the statement was false.
A conditional privilege gives protection depending on the motivation. A legitimate common interest exists when "any one of several persons having a common interest in a particular subject matter correctly or reasonably believe that there is information that another sharing the common interest is entitled to know."
A conditional privilege may be lost, however, under any of the following circumstances: 1) One knows of or shows reckless disregard for the falsity ...

Solution Summary

The solution examines how states retain the exclusive power to regulate interstate commerce.

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