Chapter 10: Torts Affecting Business PDF

Chapter 10: Torts Affecting Business Intentional Torts  Intentional Torts Assault & Battery An assault is placing another in immediate apprehension for his or her physical safety  “Apprehension” means the expectation of being physically injured A battery is an il...

Chapter 10: Torts Affecting Business Intentional Torts  Intentional Torts Assault & Battery An assault is placing another in immediate apprehension for his or her physical safety  “Apprehension” means the expectation of being physically injured A battery is an illegal touching of another  “Illegal” means that touching is done without justification or consent 3 Intentional Torts Invasion of Privacy 1. Appropriating one’s name or likeness 2. Intruding upon one’s solitude 3. Disclosing highly objectionable, private information to the public 4 Intentional Torts Examples of Invasion of Privacy  McDonald’s puts up a billboard with a picture of Barack Obama eating a Big Mac and giving a thumbs up. McDonald’s did not have President Obama’s permission. Appropriating one’s likeness  Your boss sneaks into your home and looks through your medicine cabinet. Intruding upon solitude  Your ex publishes an editorial in the AJC, stating you have diabetes, gout and halitosis. The information is true. Disclosing private info 5 Intentional Torts Trespass The act of entering one’s land without consent or remaining there after being asked to leave  Placing an object on land counts 6 Intentional Torts Conversion The wrongful exercise of dominion and control over the resources of another  Deprivation may be temporary or permanent  Must constitute a detriment to the owner  Mistakes count 7 Intentional Torts Examples You pour hot coffee all over your classmate’s iPhone. You take your classmate’s iPhone without permission. You buy an iPhone from a classmate that he stole from another classmate. You borrow your classmate’s iPhone and 8 fail to return it at the agreed upon time. Intentional Torts Defamation The publication of untrue statements about another that hold up that individual’s character or reputation to contempt and ridicule There are two defenses to defamation  Statements are true  Statements are privileged 9 Intentional Torts Fraud An intentional misrepresentation of a material fact that is justifiably relied upon by someone to his or her injury Remaining silent may count 10 Intentional Torts Business Torts Injurious falsehood consists of publishing untrue statements that disparage another’s business or product Intentional Interference with Contractual Relations occurs when a business damages another’s business relationships 11 Negligence Negligence Negligence occurs when one, who has a duty to act reasonably, acts carelessly and causes injury to another 1. Duty of care 2. Breach of duty 3. Cause in fact 4. Proximate cause 5. Injury - Damages 13 Negligence Duty of Care Any person doing something has a duty to use reasonable skill and care around others to avoid injuring them Standard is that of a reasonable person 14 Negligence Breach of Duty One has breached their duty when they act unreasonably The level of caution one must exercise has to do with:  Probability of harm  Gravity of harm 15 Negligence Cause in Fact The defendant’s unreasonable conduct must actually cause the injury If multiple parties act unreasonably and cause an injury, they are jointly and severally liable 16 Negligence Proximate Cause A defendant is legally liable only…  For the foreseeable risk their behavior creates  When their behavior directly causes injury 17  Negligence A defendant has two defenses that will excuse negligence: Contributory Negligence and Assumption of the Risk 18 Negligence Contributory Negligence A plaintiff is barred from recovering damages if they have contributed to their own injury Comparative negligence is the new rule  Recovery allowed, but it is reduced by the plaintiff’s share of fault 19 Negligence Assumption of Risk A plaintiff assumes the risk of an activity when they knowingly and willingly engage in it May be an express or implied agreement 20 Negligence  Francis messes up Wade Wilson's face.  Wade Wilson buys a Stark Industries bike.  Bruce Banner designed the gear system on the bike to make it easier to ride.  Wade uses the bike to chase down Francis.  Gearsystem fails and Wade crashes into Matt Murdock, attorney at law.  Who should Matt Murdock sue? 21  Strict Liability Strict Liability Strict products liability arises upon the commercial sale of dangerous and defective products Applies to all parties in supply chain 23 Strict Liability Strict products liability may occur in two forms: A product defect arises when a product is not made up to the manufacturer’s own standards  E.g., Finding a condom in your clam chowder A design defect occurs when a product is made up to standards, but it causes injuries due to an unsafe design 24 Strict Liability Defenses to strict products liability may include:  Assumption of the risk  E.g. you assume risk of horrible injury when you ride a rollercoaster  Removal of safeguards  E.g.you remove the guard on a chainsaw before operating it  Meeting federal standards  E.g.product fails and injures someone, but since it meets minimum federal safety guidelines, it is not strict liability 25 Strict Liability Strict liability applies to the conduct of anyone engaged in ultrahazardous activities  Transporting and using explosives or poisons  Keeping dangerous animals  Storing large quantities of liquid E.g., The great molasses flood of 1919 “The dead were like candy statues” 26 Strict Liability Dram shop acts impose strict liability on tavern owners for injuries to third parties caused by intoxicated patrons 27 Damages Damages Compensatory damages compensate a plaintiff for injuries suffered Past and future medical expenses, economic loss, and pain and suffering Loss of limb Loss of consortium Mental distress Calculation of awards is problematic 29 Damages Punitive damages are aimed at punishing the defendant for participating in intentional or grossly negligent behavior Highly controversial  Defendants have insurance  What about shareholders?  Windfall to plaintiff 30 Damages State Farm v. Campbell (SCOTUS 2003)  Ruled that excessive punitive damage awards violated due process  Courts should consider  The egregiousness of the defendant’s conduct  The ratio of punitive to actual damages Ratio should be less than 10:1  Howpunitive damages compare to civil or criminal penalty 31