Essentials Of Business Law
Chapter 4
Tort Law
McGraw-Hill/Irwin
Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
The Nature Of Torts
Tort
 Violation of rights of an identifiable individual
or business
• Intentional violation
• Violation as a result of negligence
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Defamation
Harming a person’s reputation by the
communication of a false statement
 Must be heard or read by others
Libel
 Written form
Slander
 Spoken words, gestures, and actions
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Defamation
Holds a person up to:
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Hatred
Ridicule
Contempt
Disgrace
Lowers a person’s:
 Esteem
 Respect
 Social position
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Characteristics Of Libel
Unfounded gossip
Thoughtless written remarks
 Subtle
 Direct
May be published in:
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Books
Newspapers
Magazines
Catalogs
May be written in:
 Business letters
 Personal letters
 Memos
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Characteristics Of Slander
Thoughtless statements that reflect on
another person’s good name
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Spoken words
Gestures
Actions
Omissions
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Trade Libel
Right to remain free from false and
malicious statements that damage:
 Business reputation
 Owners
 Products manufactured or sold
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Defenses To Defamation
Truth
 If statement can be proven truthful, damages
can not be recovered
Privilege
 If person making statement has special right,
damages can not be recovered
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Nuisance
Unlawful interference of the enjoyment of life or
property
Private nuisance
Examples include:
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Loud noises
Foul odors
Bright lights
Diverting a stream
 Affects specific person
Public nuisance
 Affects community or
general public
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Conversion
Wrongful taking, wrongful detention, or
illegal assumption of ownership of property
Conversion may involve property that is:
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Removed
Damaged
Destroyed
Used without authorization
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Negligence
Failure to exercise necessary care to
protect others from unreasonable harm
Unavoidable accident
 Reasonable action of a responsible individual
could not have avoided the accident
The “reasonable person”
 Ordinary prudence and judgment
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Kinds Of Negligence
Vicarious
 Charging a negligent act of one person to another
• Example: holding a company liable for its employees actions
Contributory
 Legal defense attributing partial fault to injured party
Comparative
 Court assigns damages according to degree of fault
of each party
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Liability
Judged legally responsible
Vicarious liability
 Shifting responsibility for a persons actions to another
Strict liability
 Liability for injuries to others regardless of fault
 Three requirements:
• Defective product
• Defect caused injury
• Defect cause product to be unreasonably dangerous
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