Summary

This document provides notes for B-Law 1, covering topics such as tort liability in business, negligence, and intentional torts. The notes include definitions of key terms and explanations of various concepts in business law.

Full Transcript

B-Law 1 12/10/24, 11:25 AM B-Law 1 Tort liability in business generally arises product liability, negligence, and from intentional torts...

B-Law 1 12/10/24, 11:25 AM B-Law 1 Tort liability in business generally arises product liability, negligence, and from intentional torts liability that requires NEITHER an intent define strict liability to harm, OR harm through negligence 1. abnormally dangerous activity what are the requirements of strict 2. the abnormal danger CAUSED liability? the harm 1. product is sold in unreasonably dangerous condition what are the requirements of strict 2. seller expects product to reach product liability? consumer unchanged 3. consumer is injured failure to exercise care that a reasonable define negligence person would exercise where said failure causes injury to another about:srcdoc Page 1 of 13 B-Law 1 12/10/24, 11:25 AM what are the requirements of 1. DUTY -defendant has a duty to negligence? act as a reasonable person 2. BREACH - The defendant's conduct failed to meet the required standard of care. 3. CAUSE - defendant’s action/inaction caused injury 4. HARM -plaintiff suffered physically, financially or emotionally, must be proven (standard “DBCH” analysis) definition: to act as a reasonably prudent person 1. invitees -invited by owner for owner’s benefit. owner must make ALL defects safe, or at least warn of them (ex: store Define negligence duties, and customer) differentiate between the common law 2. licensees - invited by owner for statuses of visitors benefit of visitor, owner must take all KNOWN defectives safe (ex: social guest) 3. trespassers - not invited by owner, owner’s duty is to avoid harming them through shooting, trapping, etc. actual causation: single factor causation (ex: driver not stopping at a stopping and hitting another driver) Differentiate between the two types of causation proximate “legal” causation: was this harm foreseeable? (ex: driver failing to stop at a stop sign, causing another driver to swerve and hit a pedestrian) about:srcdoc Page 2 of 13 B-Law 1 12/10/24, 11:25 AM 1. design defects bad design shown through standard DBCH analysis shown through safer alternative hypothetical design (1.) economically feasible, (2.) produceable by manufacturer, (3.)maintains same degree of functionality) 2. manufacturing defects well designer, error only in manufacturing 3. warning defects duty to warn exists when: (1.) product is dangerous in normal use. (2.) danger is known to the seller. (3.) danger is not obvious adequately warn by: (1.) reasonable person requirements of product liability (product would notice. (2.) specific negligence) comprehensible to average user. (3.) adequately conveys the danger about:srcdoc Page 3 of 13 B-Law 1 12/10/24, 11:25 AM 1. act requirements of intentional torts 2. intent 3. cause 1. defendant is aware of contract between plaintiff and 3rd party 2. defendant’s conduct was intended to cause 3rd party to breach the contract tortious interference with contract 3. the defendant’s conduct caused the 3rd party to breach the contract 4. plaintiff suffered damage as ar result of the breached contract about:srcdoc Page 4 of 13 B-Law 1 12/10/24, 11:25 AM what are the requirements of trademark 1. unauthorized infringement? 2. use of another’s mark/similar to another’s mark 3. likely to cause confusion of the origin of the goods marked 1. unauthorized 2. use of FAMOUS mark/similair to FAMOUS mark what are the elements of trademark 3. mark associated with another dilution? enterprise (blurring) 4. mark associated with unsavory enterprise (garnishment) what are the elements of an a contract that cannot be enforced unenforceable contract? also give an ex: contract made orally example contract that gives the party/right to define a voidable contract void/cancel the contract ex: a contract made with a. minor a contract that creates no legal obligation in or out of court ex: contract to commit an illegal act define a void contract contract that states unequivocally (expressly) the following: define an express contract 1. intent of the contract 2. the terms of the contract about:srcdoc Page 5 of 13 B-Law 1 12/10/24, 11:25 AM define an implied contract legally binding agreement through action/conduct, and does not need to be written… indicated through conduct presence of an existing agreement Not all acts in contract have been What makes a contract executory? completed What makes a contract executed? all acts in contract have been completed one party makes a promise, and the other party returns favor through an What is a unilateral contract? action ex: offering a reward for finding a lost pet one party makes.a promise, and the What is a bilateral contract? other makes a return promise ex: buying a dress 1. I: intent to make the offer 2. definiteness of the terms what are the elements of an offer? 3. C: communication of offer to offeree objective: based on what a reasonable person would understand about agreement subjective: based on feelings at the time What is the difference between a ex: think about the girl who hated her car subjective offer and an objective offer? and said she’d sell for 100$, and her friend said SoLD! I’ll take it for 100$. Obviously, a reasonable person would understand the offer was not serious. about:srcdoc Page 6 of 13 B-Law 1 12/10/24, 11:25 AM 1. generally published to the elements of invitation to make an offer public 2. lacks specific terms 1. complete terms 2. made for a specific person elements of an offer 3. language that indicates there is an offer to be accepted 4. an award for an act 1. states who it is being offered to 2. price elements of definiteness of an offer 3. quantity 4. subject matter 1. revocation must be RECIEVED elements of revocation of offers? before it is EFFECTIVE 1. requires consideration (ex: buyer paying monetarily) What are the elements of option 2. agreement giving the offeree a contracts? period of time during which the offer will not be revoked 1. unequivocal What are the requirements of 2. timely acceptance? 3. in proper manner What’s the difference between an inquiry and a counter offer? about:srcdoc Page 7 of 13 B-Law 1 12/10/24, 11:25 AM A counter offer means you make alterations to initial offer, and reject initial offer. Inquiry means you suggest alterations, but do not necessarily reject the initial offer. All conditions must be met; 1. offer will preform a service or provide a product 2. offeror expects payment When is acceptance through silence 3. offeree knows payment is allowed? expected 4. offeree had a reasonable opportunity to reject the offer 5. offeree uses/accepts through conduct 1. legally sufficient value (freedom define consideration to contract) 2. bargained for exchange consideration is NOT legally sufficient.. could be a porch sold for 1 penny, which what is nominal consideration? is still legal, but is nominal and raises questions like “were they threatened"?” NOT EXCERCISING a right that you could forbearances exercise not doing something that you have the legal detriment LEGAL RIGHT to do (ex: smoking) about:srcdoc Page 8 of 13 B-Law 1 12/10/24, 11:25 AM severity of issue X probability conditional promise of event (ex: if pigs fly, I give sally 100$. If there’s a 50% chance pigs fly in my magical world, then I have an exposure of $50) some amount of exposure can be a legal detriment past performance things done in the past DOES NOT satisfy as consideration consideration rule is not necessary when you promise to do something you are obligated to do anyway (ex: agreeing to build a fence, and then changing the price later to build the same fence exception: debtor owes money that is subject to dispute, if lesser money than owed is accepted by person who is owed the debt, the lesser money counts as consideration that the debtor will pay the full amount pre existing duty rule and its exception about:srcdoc Page 9 of 13 B-Law 1 12/10/24, 11:25 AM rescission is when the parties to a contract agree to destroy the contract rescission and reformation reformation is when they make new terms or even just correct a spelling error 1. must be new consideration by the other party 2. “commercial impracticality” unforeseeable at the time contract was rules for rescinding and reforming created contracts unforeseen event makes performance expensive or infeasibly to the point of “GRAVE INJUSTICE” PROMISORY ESTOPPEL: a promise promiser knows their promise will induce action by the other when is consideration unnecessary? aprty promise actually induces action injustice results about:srcdoc Page 10 of 13 B-Law 1 12/10/24, 11:25 AM quantum merit (restitution) “as much as one desrves” only needed when the contract is unenforceable minors what institutes incapacity? drunkards mental incompetents good required for a reasonable standard of living not provided exceptions to violability of minorities by parent or legal guardian (can pay less than agreed but still must pay something) 1. after 18, minority can reinstate a previous contract oney when contract is expressed or implied through exceptions to violability (ratification) conduct retaining and using goods after reaching majority minors have a right to disaffirm their contracts given: 1. must return goods in condition given disaffirmance (minors) 2. after 18 if they keep item/live by the contract then they have ratified the contract about:srcdoc Page 11 of 13 B-Law 1 12/10/24, 11:25 AM unable to understand the nature of the mental incompetence contract and the terms of the agreement adjudicated incompetence BEFORE contract means all contracts made by said person is void ab initio addicted AFTER contract means contract is voidable at the option of the incompetent must return any consideration given (in whatever state it exists) disaffirmance (incompétent) must be done within a reasonable time after regaining competence allows the previously incompetent lucid intervals and regained competence person to ratify their previous agreement and make it enforceable unable to comprehend a contract is intoxication being made and/or the terms 1. involuntary: void ab initio 2. voluntary: voidable types of drunkards 3. adjudicated habitual drunkard: void ab initio 1. must return consideration (in whatever state it exists) dissafirmance (drunkards) 2. must be done within a reasonable time after sobering up contracts must not be illegal in either…. about:srcdoc Page 12 of 13 B-Law 1 12/10/24, 11:25 AM purpose or means of accomplishing purpose violates a statute 2 common ways contracts can be illegal violates public policy both parties must create a specific severability clause (otherwise if illegal condition is sever ability of contracts found or created due to law change the entire contract is void) if done in order to raise revenue, contract is valid, and operator may be punished contracts in violation of licensing if done to protect public, statutes contract is voidable at option of non-offending party, and operator maybe punished when an otherwise valid contract is created, and the law later changes to make the contract illegal, contract will be void quantum merit comes into play supervening illegality when 1 party has fulfilled their duty before the contract is made void about:srcdoc Page 13 of 13

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