Torts and Tort Law

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Questions and Answers

In the context of intentional torts, which of the following deeply distinguishes a 'business tort' from other types of intentional torts?

  • Business torts are exclusively predicated on malice aforethought, requiring proof that the defendant acted with specific intent to cause harm, a standard not applicable to other intentional torts.
  • Business torts involve actions that directly result in physical harm to individuals, whereas other intentional torts primarily concern economic damages.
  • Business torts are uniquely defined by their capacity to invoke strict liability standards, unlike other intentional torts that necessitate proving a breach of a specific duty of care.
  • Business torts characteristically occur predominantly, if not entirely, within the domain of commercial entities, a setting less relevant for other forms of intentional torts. (correct)

In defamation law, the 'actual malice' standard applicable to public figures requires proving merely that the defendant's defamatory statement was negligently false.

False (B)

Explain the doctrine of the 'single recovery principle' in the context of tort law and detail its implications for a plaintiff seeking damages for a complex, long-term injury.

The 'single recovery principle' mandates that a court must determine all damages—past, present, and future—at one time, settling the matter completely. This implies the plaintiff bears the responsibility of projecting future medical expenses, lost wages, and pain and suffering accurately during the initial trial, as no subsequent claims for the same injury are permissible regardless of unforeseen complications or expenses.

The critical distinction between 'battery' and 'assault' lies in the element of ______; while assault necessitates apprehension of imminent harmful or offensive contact, battery requires actual contact.

<p>contact</p> Signup and view all the answers

Match the torts with the corresponding, most critical element required for a successful claim:

<p>Defamation = Falsity of the statement False Imprisonment = Unreasonable restraint without cause Battery = Offensive or unwanted touching Intentional Infliction of Emotional Distress = Extreme and outrageous conduct</p> Signup and view all the answers

Which of the following scenarios most definitively constitutes 'interference with a contract,' assuming all other elements are met?

<p>A defendant actively persuades a key employee of the plaintiff, who possesses critical knowledge necessary for fulfilling a specific contract, to resign and join their company, rendering the plaintiff incapable of performing the contract. (A)</p> Signup and view all the answers

Under the doctrine of 'strict liability,' a plaintiff must demonstrate the defendant's actions were both the factual and proximate cause of the harm, similar to negligence claims.

<p>False (B)</p> Signup and view all the answers

Elaborate on the distinction between 'factual cause' and 'proximate cause' in the context of a negligence claim, and provide a hypothetical scenario illustrating a situation where factual cause exists but proximate cause does not.

<p>Factual cause means the defendant's breach led to the injury, representing a direct line of causation. Proximate cause requires the harm to be a foreseeable result of the defendant's actions. Scenario: A factory negligently releases pollutants into a river (factual cause). While this leads to a local fishing industry decline, impacting a distant restaurant's supply chain and profits, the restaurant's economic loss may not be a foreseeable consequence, thus lacking proximate cause.</p> Signup and view all the answers

In product liability cases predicated on negligence, a claim of ______ specifically addresses defects arising during the manufacturing process, distinct from flaws in the design or a failure to provide adequate warnings.

<p>negligent manufacture</p> Signup and view all the answers

Match the legal defense in tort law to its respective principle:

<p>Assumption of Risk = Plaintiff knowingly and voluntarily engaged in a risky activity Contributory Negligence = Plaintiff's negligence completely bars recovery (in some states) Comparative Negligence = Damages are reduced proportionally to the plaintiff's negligence</p> Signup and view all the answers

Which statement accurately captures the legal threshold for 'intentional infliction of emotional distress'?

<p>Necessitates proof of conduct that is extreme and outrageous, exceeding the bounds of societal decency, and causing severe emotional distress. (C)</p> Signup and view all the answers

Commercial exploitation, as a business tort related to privacy, occurs exclusively when a person's name or likeness is used without permission for advertising purposes.

<p>False (B)</p> Signup and view all the answers

Describe the 'duty of due care' owed by a landowner to invitees, and contrast it with the duty owed to trespassers, highlighting the rationale for the differing standards.

<p>Landowners owe invitees a duty to exercise reasonable care to protect them against dangerous conditions they should know of but invitees are unlikely to discover. In contrast, the duty to trespassers is only to avoid intentional injury. The rationale is that invitees are on the property for the landowner's benefit (business or social), thus warranting a higher standard of care, whereas trespassers are unauthorized entrants, deserving less protection.</p> Signup and view all the answers

An express warranty is created by a seller's words or actions; specifically, any ______ of fact or promise about the goods can establish such a warranty.

<p>affirmation</p> Signup and view all the answers

Match the examples with the type of tort:

<p>Company A spreads false rumors about Company B's financial instability, causing their stock prices to plummet. = Defamation A security guard detains a customer suspected of shoplifting without reasonable cause or conducting a reasonable investigation. = False Imprisonment A disgruntled employee intentionally sabotages a production line, causing significant damages to a company's equipment. = Intentional Tort A manufacturer fails to properly test a product, leading to consumer injuries. = Negligence</p> Signup and view all the answers

In a jurisdiction adhering strictly to 'contributory negligence,' under what circumstances can a plaintiff recover damages?

<p>Under no circumstances can the plaintiff recover damages if they were at all negligent. (D)</p> Signup and view all the answers

The 'implied warranty of merchantability' applies universally to all sales of goods, regardless of the seller's status or expertise in the goods sold.

<p>False (B)</p> Signup and view all the answers

Explain the requirements for disclaiming the 'implied warranty of merchantability', and detail why a seller might still face liability even with a seemingly valid disclaimer.

<p>To disclaim the implied warranty of merchantability, the disclaimer must use the word 'merchantability' and be conspicuous. However, a seller might still face liability if the disclaimer is deemed unconscionable, violates consumer protection laws (which often prohibit disclaimers in consumer sales), or if the disclaimer is contradicted by the seller's express warranties.</p> Signup and view all the answers

In the context of 'negligent design,' a key element a plaintiff must demonstrate is that a ______ design existed at the time of manufacture that was both economically and technologically feasible.

<p>safer alternative</p> Signup and view all the answers

Given each scenario, determine the extent to which punitive damages would be allowable:

<p>A company knowingly marketed a product with a known, but statistically small, chance of causing severe injury, prioritizing profits over safety. = Allowable, as the conduct was reckless and prioritized profit over known safety risks. A manufacturer utilized a slightly cheaper, but industry-standard, component, resulting in a minor product defect that caused negligible inconvenience. = Not Allowable, as conduct did not rise to outrageous and extreme to warrant punitive damages. A landlord failed to repair a known safety hazard on their property, leading to significant injury to a tenant and subsequent code violations. = Allowable, if conduct meets the threshold of being outrageous and not merely negligent.</p> Signup and view all the answers

Which of the following statements accurately describes the scope of liability exposure for a defendant engaged in 'ultrahazardous activities'?

<p>The defendant is virtually always held liable for any harm resulting from the ultrahazardous activity, regardless of fault or adherence to safety precautions, and comparative negligence does not apply. (D)</p> Signup and view all the answers

A social host who serves alcohol to an adult can never be held liable for harm caused by the intoxicated guest in any jurisdiction.

<p>False (B)</p> Signup and view all the answers

Explain the concept of 'intrusion' as it pertains to the tort of privacy, detailing the factors courts consider when determining whether an intrusion is 'offensive to a reasonable person'.

<p>'Intrusion' involves prying into someone's private life, becoming a tort if a reasonable person would find it offensive. Courts consider factors such as the degree of intrusion, the context of the intrusion, the intent of the intruder, societal expectations of privacy, and whether the intrusion occurred in a private or public space when determining offensiveness.</p> Signup and view all the answers

An ______ warranty is created by the Code itself, automatically, not by any act or statement of the seller, given the seller meets certain predefined qualities such as their expertise.

<p>implied</p> Signup and view all the answers

Match this scenario with the correct cause under Product Liability law:

<p>A company makes claims that their new health product will cure all disease, and it turns out there is no scientific back up, and it does not. = Express Warranty A business sells knives, without making any claims, that break upon first use under normal conditions. = Implied Warranty of Merchantability A company sells a ladder and assures its strength for a specific project, when it cannot hold and breaks.. = Implied Warranty - Fitness for Particular Purpose</p> Signup and view all the answers

What must a Public Figure show, when suing for Defamation (Libel / Slander)?

<p>The defendant acted with actual malice about the truth, or reckless disregard for whether it was true or false. (A)</p> Signup and view all the answers

Does intentional tort require that there was intention to harm the victim.?

<p>False (B)</p> Signup and view all the answers

Outline the main differences that exist between ‘Tort Law’ and ‘Criminal Law’.

<p>Criminal law is dangerous to society and is prosecuted by the state. Tort law is based on an obligation imposed by law and is prsecuted by victim.</p> Signup and view all the answers

Written defamation is known as ______.

<p>Libel</p> Signup and view all the answers

How do tort laws primarily differ from criminal laws in terms of who prosecutes the case and where the monetary award goes?

<p>Tort law is prosecuted by the victim and awards compensation to the victim, while criminal law is prosecuted by the government and money goes to the government. (D)</p> Signup and view all the answers

In the context of intentional torts, what differentiates them from actions based on negligence?

<p>Intentional torts require an intent to perform the act that caused the injury but not necessarily an intention to harm, whereas negligence involves a failure in duty of care. (A)</p> Signup and view all the answers

Which scenario constitutes defamation involving a public figure, considering the specific legal standards that apply?

<p>A television network knowingly broadcasts false allegations about a celebrity's drug use, with reckless disregard for the truth. (D)</p> Signup and view all the answers

What legal recourse might a business owner pursue if a competitor is actively trying to damage their reputation through false statements?

<p>Sue for defamation, provided the statements are false, communicated to a third party, and cause harm. (A)</p> Signup and view all the answers

How does the element of 'reasonable cause' affect claims of false imprisonment?

<p>It provides a defense for detaining someone if there is a reasonable basis for suspicion and the detention is conducted reasonably. (D)</p> Signup and view all the answers

In a situation where a person fears an imminent, unwanted touching but no actual contact occurs, what tort has likely been committed?

<p>Assault, as it involves causing the fear of immediate battery. (C)</p> Signup and view all the answers

What condition is typically necessary for a plaintiff to successfully recover damages for intentional infliction of emotional distress?

<p>Evidence that the defendant's conduct was extreme and outrageous and caused severe emotional harm. (D)</p> Signup and view all the answers

What principle dictates that a court must settle all past, present, and future damages at one time in a civil suit?

<p>The single recovery principle. (A)</p> Signup and view all the answers

For what type of conduct are punitive damages typically intended?

<p>To punish the defendant for conduct that is outrageous and extreme and to deter similar actions by others. (C)</p> Signup and view all the answers

What elements must be proven by a plaintiff to assert a claim of interference with a contract?

<p>There was a contract between the plaintiff and a third party, the defendant knew of the contract, and the defendant induced the third party to breach the contract, causing injury to the plaintiff. (A)</p> Signup and view all the answers

What constitutes 'intrusion' in the context of privacy torts?

<p>Prying into someone's private life in a way that a reasonable person would find offensive. (B)</p> Signup and view all the answers

Which of the following best describes 'commercial exploitation' as a business tort related to privacy?

<p>Using a person's name or image for commercial purposes without permission. (D)</p> Signup and view all the answers

What duty of care does a landowner owe to a trespasser?

<p>Not to injure the trespasser intentionally. (D)</p> Signup and view all the answers

In the context of negligence, what does 'proximate cause' primarily determine?

<p>Whether the type of harm was a foreseeable result of the defendant's actions. (B)</p> Signup and view all the answers

Under what circumstance might a plaintiff be barred from recovery due to contributory negligence?

<p>Only in jurisdictions that strictly adhere to contributory negligence, if the plaintiff is at all negligent. (A)</p> Signup and view all the answers

What happens in a 'comparative negligence' jurisdiction when it's determined the plaintiff is partially responsible for their injuries?

<p>The plaintiff's damages are reduced by their percentage of fault. (D)</p> Signup and view all the answers

What condition defines an activity as 'ultrahazardous' for the purposes of strict liability?

<p>Activities that are inherently dangerous, regardless of the care taken, such as using explosives or keeping wild animals. (C)</p> Signup and view all the answers

What must a plaintiff generally prove to succeed in a negligence claim related to a defective product?

<p>The defendant acted unreasonably in the design, manufacture, or warning of the product, causing injury. (D)</p> Signup and view all the answers

How does an 'express warranty' typically arise in a sales transaction?

<p>It is created through a seller's words or actions, such as an affirmation of fact or a promise about the goods. (D)</p> Signup and view all the answers

Under what conditions can a seller effectively disclaim implied warranties of merchantability?

<p>By using specific language such as 'merchantability' and making the disclaimer conspicuous. (D)</p> Signup and view all the answers

Flashcards

Tort

A violation of a duty imposed by a civil law.

Defamation

Making a false statement about someone, harming their reputation.

Negligence

Failure to exercise the care that a reasonably prudent person would exercise under the same circumstances.

Interference with Contract

Intentionally persuading someone to break a contract.

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Fraud

Intentional deception to secure unfair or unlawful gain.

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Criminal Law

Behavior classified as dangerous to society; prosecuted by the government; money award goes to the government.

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Tort Law

Based on an obligation imposed by law; victim prosecutes and receives compensation.

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Negligence and Strict Liability

Tort injuries caused by neglect.

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Libel

Written defamation.

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Slander

Verbal defamation.

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False Imprisonment

Restraint of someone against their will and without reasonable cause.

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Battery

Touching of another person in an unwanted or offensive way.

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Assault

An action that causes the victim to fear an imminent battery.

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Intentional Infliction of Emotional Distress

Intentionally causing emotional injury through extreme and outrageous conduct.

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Compensatory Damages

Payment for injury awarded to a plaintiff who wins a civil suit.

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Consequential Damages

Damages resulting from unique circumstances of the injured party.

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Punitive Damages

Damages intended to punish the guilty party.

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Business Torts

Intentional torts that occur almost exclusively in a business setting.

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Interference with a contract

Exists if there was a contract, the defendant knew of it, induced a breach, and caused injury.

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Intrusion

Prying into someone’s private life in an offensive way.

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Commercial Exploitation

Using someone’s image or voice for commercial purposes without permission.

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Duty of Due Care

There must be a duty owed to the plaintiff.

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Factual Cause

The injury must have been caused by the defendant's actions.

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Proximate Cause

Requires foreseeability that the action would cause this kind of harm.

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Damages

Designed to restore what was lost.

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Assumption of the Risk

A person who voluntarily engages in a risky activity cannot recover if injured.

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Contributory Negligence

If the plaintiff is at all negligent, they cannot recover damages (minority rule).

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Comparative Negligence

Percentage of negligence is applied to both parties.

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Ultrahazardous Activities

Defendants are virtually always held liable for harm.

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Warranty

Contractual assurance that goods will meet certain standards.

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Assumption of Risk

Defense where plaintiff knew risks.

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Strict Liability

Policy holds the defendant liable regardless of behavior.

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Express Warranty

A seller creates this with words or actions.

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Product liability

When goods cause injury, there is a question of it

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Strict liability

Holds defendant liable regardless of their behavior.

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Study Notes

  • A sales contract with proper disclaimers or remedy limitations may bar a buyer from remedy in a negligence case.

Strict Liability Conditions

  • Strict liability is imposed if:
    • A defective condition is unreasonably dangerous to the user
    • The seller is in business to sell the product
    • The product reaches the user without substantial change
  • Strict liability may be imposed even if the seller exercised all reasonable care and there is no contractual relationship.
  • Strict liability may be imposed based on design, manufacture, or failure to warn.
  • Tests to measure design and warning cases:
    • Consumer expectation – design causes the product to be less safe.
    • Risk-utility tests – weighing the product’s value, danger, feasibility of a safer design, and consequences of a safer design.

Accountants’ Liability: Audits

  • Accountants conduct audits and verify samples of transactions.
    • Verification includes:
      • Vouching: tracing back to ensure the original idea supports the transaction.
      • Tracing: tracing forward to ensure data is properly recorded.

Accountants’ Liability: Opinions

  • After an audit, the accountant issues an opinion.
    • Unqualified opinion is the most favorable, indicating the financial statement matches the true condition.
    • Qualified opinion indicates the financial statement is generally accurate.

Sarbanes-Oxley Act of 2002

  • Established the Public Company Accounting Oversight Board for accurate financial information.
  • Requires auditors to communicate regularly with audit committees.
  • Prohibits accounting firms from providing consulting services (e.g., bookkeeping) to audit clients.
  • Prevents accounting firms from auditing companies with officers who previously worked for the firm.
  • Imposes term limits on audit partners.

Liability to Clients

  • An accountant is liable for negligence if they breach their duty and cause harm to the client.
  • An accountant is liable for fraud if they make a false statement, know it's untrue, and the client relies on it.
  • Accountants must keep client information confidential and use it only for the client's benefit.

Liability to Third Party

  • Accountants failing to exercise due care are liable to those they knew would rely on the information and others in the same class.

Securities Act of 1933

  • Auditors are liable for material misstatements or omissions in financial statements they prepare.
  • Auditors can avoid liability by showing they made a reasonable investigation (due diligence).

Securities Act of 1934

  • An auditor is liable for material misstatements or omissions knowingly or recklessly made if the plaintiff relies on it.
  • Auditors suspecting a client of illegal acts must notify the client's board of directors.

Type of Liability

  • Accountants are jointly and severally liable only if they knowingly violate the law; otherwise, they are proportionally liable.
  • Criminal liability offenses: willful violations of the 1933 or 1934 acts, errors in income tax returns, violations of state securities statutes.

The Accountant-Client Relationship

  • An accountant may be banned for unethical practices.
  • The SEC prohibits auditors from owning stock or having a financial interest in client companies.
  • The Sarbanes-Oxley Act prohibits accounting firms from providing consulting services separate from auditing services to public companies.

Accountant-Client Privilege

  • Information shared between an accountant and client may be protected from disclosure.
    • Accountants own the draft materials, but the client controls them.
    • An Accountant cannot show the working papers to anyone without the client's permission and must allow the client access to the working papers

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