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Chapter 4

BUSINESS LAW TODAY Essentials 8 th Ed. Roger LeRoy Miller - Institute for University Studies, Arlington, Texas Gaylord A. Jentz - University of Texas at Austin, Emeritus. Torts and Cyber Torts. Chapter 4. Learning Objectives. What is a tort?

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Chapter 4

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  1. BUSINESS LAW TODAYEssentials 8th Ed.Roger LeRoy Miller - Institute for University Studies, Arlington, TexasGaylord A. Jentz - University of Texas at Austin, Emeritus Torts andCyber Torts Chapter 4

  2. Learning Objectives • What is a tort? • What is the purpose of tort law? What are the two basic categories of torts? • What are the four elements of negligence? • What is meant by strict liability? In what circumstances is strict liability applied? • What is a cyber tort, and how are tort theories being applied in cyberspace?

  3. Basics of Tort Law • A tort is a civil, legal injury to a person or property caused by a breach of a legal duty. • Plaintiff (the injured party) sues the Defendant (the Tortfeasor) for damages: • Compensatory damages. • Punitive Damages.

  4. Classification of Torts • Intentional. • Unintentional (negligence-no fault). • Strict Liability (absolute liability).

  5. Intentional Torts Against Persons • Assault and Battery. • Assault: the reasonable apprehension or fear of immediate contact. • Battery: completion (contact) of the assault. • Defenses: • Consent. • Self-Defense and Others. • Defense of Property.

  6. Intentional Torts Against Persons • False Imprisonment. • Confinement or restraint of another person’s activities without justification. • Merchants can detain a suspected shoplifter as long as there is probable cause. • Infliction of Emotional Distress. • Extreme and outrageous conduct. • Some courts require physical symptoms.

  7. Defamation • Defamation. • Publication of a false statement (oral or written) that injures a person’s good reputation. • Publication: third party must hear or see statement • Statements made on the internet may be actionable. • An individual who re-publishes the statement will be liable. • Statement must hold someone up to contempt, ridicule or hatred in the community.

  8. Defamation • Slander per se (no proof of damages is required): • Loathsome communicable disease. • Professional impropriety. • Imprisonment for a serious crime. • Unmarried woman is unchaste.

  9. Defamation • Defenses: • Truth is normally an absolute defense. • Statement was Privileged: • Absolute: judicial and legislative proceedings. • Qualified: good faith, limited. • Public Figures: plaintiff must show statement made with “actual malice.”

  10. Invasion of Privacy • Person has the right to solitude. Breach of that duty is a tort. • Tort of Appropriation. • Tort of False Light. • Public Disclosure of Private Facts. • Rights of Internet users?

  11. Fraudulent Misrepresentation • Fraudulent Misrepresentation. • Intentionally deceive another to believe in a condition that is different from the condition that already exists. • Knowing misrepresentation of fact. • Intent to induce innocent party to rely. • Justifiable reliance by innocent party. • Causation and Damages. • Contrast: “puffery” or statements of opinion.

  12. Wrongful Interference • Wrongful Interference with Contracts. • Valid, enforceable contract exists between two parties. • Third party knows about contract. • Third party intentionally causes either party to breach the original contract. • Mathis v. Liu (2002).

  13. Wrongful Interference • Wrongful Interference with Business Relationship. • Distinguish competition vs. predatory behavior. Predatory behavior is unlawfully driving competitors out of market. • To prevail, Plaintiff must show Defendant targeted only Plaintiff’s customers and product. • Defenses to Wrongful Interference: Interference was justified or permissible.

  14. Intentional Torts Against Property • Trespass to Land. • Trespass to Personal Property. • Conversion. • Disparagement of Property. • Slander of Quality. • Slander of Title.

  15. Negligence • Negligence is an unintentional tort. • Occurs when someone suffers injury because of the defendant’s failure to comply with a legal duty. • Defendant (tortfeasor) creates foreseeable risk of injury.

  16. Negligence--Analysis • Did the Defendant owe the Plaintiff a legal duty of care? • Did the Defendant breach that duty? • Did the Plaintiff suffer a legal injury? • Did the Defendant’s breach of duty cause the Plaintiff’s injury?

  17. Negligence: Duty of Care • Duty of Care and Breach. • Duty is based on reasonable person standard. • How would a reasonable person have acted under the circumstances? • Duty of Landowners to warn business invitees of risks, and keep common areas safe. • Exception: Obvious risks. • CASE 4.1Izquierdo v. Gyroscope, Inc. (2007). • Duty of Professionals to clients (attorneys, CPA’s, doctors).

  18. Negligence: Injury Requirement • Injury Requirement and Damages • Plaintiff must suffer a legally recognizable injury. • Not all injuries can be compensated. • Causation • Causation in Fact (“but for” test). • Proximate Cause (foreseeably strong connection). • Palsgraf v. Long Island Railroad (1928).

  19. Defenses to Negligence • Assumption of the Risk. • CASE 4.2Sutton v. Eastern New York Soccer Association, Inc. (2004). • Superceding Intervening Cause. • Event must be unforeseeable.

  20. Defenses to Negligence • Contributory Negligence (few jurisdictions). • Plaintiff recovers nothing if he is at fault. • Comparative Negligence (more common). • As long as Plaintiff is less than 50% at fault he can recover a pro-rata share of the verdict.

  21. Special Negligence Doctrines • Res Ipsa Loquitur. • Negligence Per Se. Violation of law is legal breach of duty. Plaintiff must show: • Defendant broke a law/statute. • Plaintiff is in special class to be protected; and • Statute designed to prevent injury to Plaintiff. • “Danger Invites Rescue” doctrine. • Dram Shop Acts.

  22. Strict Liability • Does not require fault, intent or breach of duty. • Usually involves ‘abnormally dangerous’ activities and risk cannot be prevented. • Dangerous Animals. • Product Liability—manufacturers and sellers of harmful or defective products.

  23. Cyber Torts • Defamation Online. • Can a person be liable for a defamation tort committed in cyberspace? • CASE 4.3Carafano v. Metrosplash.com, Inc. (2003). • Should an Internet Service Provider (ISP) be liable for the actions of its subscriber? • Who should be liable for “spam” and computer viruses that cause injury? • Federal CAN-SPAM Act 2003.

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