1. Which of the statements below best describes the concept of Enterprise Risk Management?

• Management of a single function of an organization that, upon implementation and testing, is then processed entity wide

• People, systems, and processes working together across the organizations to systematically thin about and manage a wide range of risks that could impede achieving organizational objectives/opportunity

• An approach that capitalizes on human intervention as processed through real change leaders

• A process affected by an entity's leaders, management, and other personnel that is designed to identify potential events that may affect the entity, and to manage risk

2. Diane bought an action figure for her son David from Terrence's Toy Shop. The packaging did not mention that the toy contained small detachable parts. David accidentally swallowed and choked on one of the detachable parts and had to be taken to the hospital. On which of the following product liability charges can Diane sue Terrence's Toy Shop for damages?

• Nuisance

• Misrepresentation

• Fraud

• Negligence

3. Making false statements about a competitor's products, services, property, or business reputation could make a company liable for

• tort of appropriation

• intentional misrepresentation

• disparagement

• misappropriation of the right to publicity

4. A plaintiff wants to sue a defendant under the tort theory of negligence for his injuries, but the plaintiff knows he was partially at fault for his own injuries. Which of the following is true?

• A state whose law applies contributory negligence will not allow the plaintiff to recover if the plaintiff has any fault for his injuries

• If the plaintiff's fault is only 5 percent, his recovery will be the same under either pure or partial comparative negligence.

• The plaintiff will have to elect whether to sue under comparative or contributory negligence.

• Because the plaintiff is partly at fault, he will not be able to recover under either comparative or contributory negligence.

5. How does product disparagement differ from defamation of a nonpublic figure?

• Publication to a third party is required in the disparagement case, but not in the defamation case

• Malicious intent is required for a disparagement case, but is not required in the defamation case

• Malicious intent is required for the defamation case, but not in the disparagement case

• Publication to a third party is required in the defamation case, but not in the disparagement case

6. Mary was getting a ride home in John's new car. On the way, a malfunctioning brake caused an accident and both Mary and John were injured. Which of the following statements is true of this situation?

• John can file a negligence lawsuit against the dealership from which he bought the car.

• Mary can recover damages for her injury under a theory of strict liability against the manufacturer of John's car.

• Mary can file a strict liability lawsuit against John

• Mary can file a negligence lawsuit against the dealership that sold John his car.

7. Assuming that statutory requirements have been met, what is protected under merchant protection statutes?

• Merchants are protected from product disparagement claims of their competitors.

• Merchants are protected from false imprisonment claims of persons detained on suspicion of shoplifting.

• Merchants are protected from negligence claims on their business premises.

• Merchants are protected from the intentional torts of their customers.

8. John Harley was on his way home when an assailant stopped his car and threatened to physically harm him if he ever saw him drive on that street again. John can sue the assailant to recover damages for

• Disparagement

• libel

• assault

• battery

9. Dorothy purchases a chair that was made by Woode Designs, Inc. While making the chair, the legs were not fixed properly to the base. When Dorothy sits on the chair, it breaks and she is injured. In a strict liability lawsuit, which of the following can Dorothy cite as a defect in the chair?

• Failure to provide adequate instructions

• Failure to warn

• Defect in design

• Defect in manufacture

10. In order to recover in a products liability case based on strict liability, the plaintiff must prove that the product had a defect that

• the defendant was aware of

• made the product unreasonably dangerous

• affected the value of the product

• was caused by the defendant