Under one doctrine, a person who understands the danger inherent in an activity cannot recover damages in the event of injury from the activity. This doctrine is called the A) contributory negligence doctrine. B) assumption of risk doctrine. C) comparative negligence doctrine. D) fellow servant doctrine. ANSWER Answer: B
Damages awarded for losses that can be determined or measured are A) special damages. B) general damages. C) punitive damages. D) comparative damages. ANSWER Answer: A
One tort reform permits manufacturers to assert that as long as the product conformed to the prevailing technology and production methods at the time it was produced, it cannot be considered a defective product today. This defense is called the A) collateral source rule. B) state of the art defense. C) strict liability defense. D) […]
Which of the following may give rise to imputed negligence? A) employer-employee relationships B) injury to a trespasser C) sole proprietorships D) attractive nuisance situations ANSWER Answer: A
Traditionally, federal state, and local governments could not be sued. This immunity had eroded over time. Today, government units may be liable for injuries arising out of money-making activities. Such activities are called A) municipal operations. B) proprietary functions. C) commercial ventures. D) pecuniary interest. ANSWER Answer: B
A common situation involving strict liability includes which of the following? A) operating a motor vehicle B) blasting operations C) manufacturing a product D) mining operations ANSWER Answer: B
A corporation needing cash sells securities to investors in the secondary market. Indicate whether the statement is true or false ANSWER FALSE
Maximization of shareholder wealth A) provides benefits to society as scarce resources are directed to their most productive use. B) is not a practical goal since it cannot be measured effectively. C) is achieved only if cash flows exceed accounting profits. D) represents a zero sum game in which one corporation gains at the expense […]
An important current issue in state workers compensation programs is the overuse of a certain category of pain-killing drugs. These drugs have been associated with drug overdoses and drug addiction. This category of drugs is called A) hypertension drugs. B) statins. C) opiates. D) beta-blockers. ANSWER Answer: C
Common stock is considered a short-term security because it has no maturity date and a long-term security is one with a maturity date of more than one year. Indicate whether the statement is true or false ANSWER FALSE
