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CHAPTER 7 TORTS. DAVIDSON, KNOWLES & FORSYTHE Business Law: Cases and Principles in the Legal Environment (8 th Ed.). OBJECTIVES OF TORT LAW. Tort Law: a body of law concerning “private” wrongs. Protects an individual’s right to his/her property and person. Based on common law.
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CHAPTER 7TORTS DAVIDSON, KNOWLES & FORSYTHE Business Law: Cases and Principles in the Legal Environment (8th Ed.)
OBJECTIVES OFTORT LAW • Tort Law: a body of law concerning “private” wrongs. • Protects an individual’s right to his/her property and person. • Based on common law. • Provides a mechanism for persons who have been wronged to seek remedies in the court system. • Resolves social and economic policy questions.
THEORIES OF TORT LIABILITY • Intentional Torts: actions intended or known to harm someone. • Negligence: activities not necessarily intended to harm. • Strict Liability: situation whereby public trust is such that neither intent or negligence is an issue. • Duty and Foreseeability Standards of Tort Liability.
THEORIES OF TORT LIABILITY • Duty: responsibility to protect others from harm. • Foreseeability: knowledge or notice that something will occur in the future.
INTENTIONAL TORTS • Assault: wrongful, intentional threat that would put a reasonable person in apprehension or fear of offensive, nonconsensual touching. • Battery: consummated assault; nonconsensual touching or striking of the victim.
INTENTIONAL TORTS • Defamation: an actor intentionally makes an untrue statement that injures the victim’s reputation. • Through slander (spoken) or libel (written). • Disparagement: false statement about a business’s product, services, reputation, honesty or integrity. • Trade libel (written) or slander of title (oral).
INTENTIONAL TORTS • False Imprisonment: unlawful detention without just cause. • Emotional Distress: actions inflicting severe emotional harm; suffer serious indignity. • Invasion of Privacy: use someone else’s name, likeness of gain or discloses to the public private facts.
INTENTIONAL TORTS • Trespass: nonconsensual infringement. • Conversion: intentional exclusive control over anther's property without permission • Misappropriation of Trade Secrets: unlawful use of trade secrets of another business.
INTENTIONAL TORTS • Fraud: misrepresentation of material fact with intent to deceive. Involves five elements: • Material fact not opinion is involved. • The fact was misrepresented. • Falsehood was made with intent to deceive. • The falsehood was relied on by other party. • Person was injured as a result of fraud.
INTERNATIONAL TORTS • Civil RICO Violations: directed at a pattern of racketeering activity. • Defenses to International Torts: • Consent. • Privilege. • Necessity. • Truth.
NEGLIGENCE • Four conditions are met: • Duty: to protect others from harm based on reasonable-and-prudent person rule. • Foreseeability. • Knowledge. • Investigation. • Judgment. • Statutory Standard. • Breach of Duty: negligence cause injury
NEGLIGENCE • Causation: heart of the law of negligence. • Actual Cause. • Proximate Cause. • Harm: injury occurred.
NEGLIGENCE • Defenses to Negligence: • Assumption of Risk. • Contributory Negligence. • Comparative Negligence.
STRICT LIABILITY • Duty to reimburse for losses is absolute. • Imposed without regard to fault. • Foreseeable that injury may result from extreme hazardous activity. • Set out in the applicable statutes and court precedents.
PRODUCT LIABILITY • Manufacturers and distributors may be held liable for harm caused by defective products. • Common theories for imposing liability: • Fraud in marketing product. • Breach of implied or expressed warranties. • Negligence. • Strict liability.
TORT LIABITY OF BUSINESS ENTITIES • Businesses can be held liable for the torts of their employees. • Liability imposed through respondeat superior: • Superior should answer or pay for torts of employees. • Torts that occur in the course and scope of employment.