David P. Twomey - Boston College Marianne M. Jennings - Arizona State University 1 © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for certain product or service or otherwise on a password-protected website for classroom use. use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Chapter 9 Torts Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 A. General Principles 1. What Is A Tort? 2. Tort And Crime Distinguished 3. Types Of Torts Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 A. General Principles 1. What is a Tort? – Tort is a non-criminal or civil injury to a person or her property interests. 2. Torts and Crime Distinguished. [LO.1] – – Crime arises from violation of public duty, whereas tort arises from violation of private duty. Same act can be both a crime and a tort. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 A. General Principles 3. Types of Torts: – – – Intentional: substantial certainty. Negligence: breach of standard of care. Strict Liability: liability without fault. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 B. Intentional Torts 4. Assault 5. Battery 6. False Imprisonment 7. Intentional Infliction Of Emotional Distress 8. Invasion Of Privacy Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 B. Intentional Torts 9. Defamation 10. Product Disparagement 11. Wrongful Interference With Contracts 12. Trespass Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 B. Intentional Torts 4. Assault: Fear of imminent harm with means to do it. [LO.2] 5. Battery: intentional, wrongful touching of another (the completion of the assault). 6. False Imprisonment. – – Intentional detention without consent. Shopkeeper’s Privilege permits detention for reasonable time with reasonable suspicion. Dillard Department Stores case: Shopkeeper’s Privilege did not apply because the detention was not in a reasonable manner. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 B. Intentional Torts 7. Intentional Infliction of Emotional Distress. – Outrageous conduct which goes beyond all bounds of decency. 8. Invasion of Privacy. [LO.3] (A) Intrusion into plaintiff’s private affairs. (B) Public disclosure of private facts. (C) Appropriation of another’s image or likeness for commercial advantage. Bosley case: anchor’s wet t-shirt image was used without consent for profit. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 B. Intentional Torts 9. Defamation. – – – Untrue statement published to a third party that damages a person’s property interest. Slander is oral defamation. Libel is written (broadcast, internet). Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 B. Intentional Torts 9. Defamation: Privilege. [LO.4] – – – Absolute Privilege: when members of Congress speaking on floor of senate or House, witnesses in court proceedings. Qualified Privilege: as long as released without malice and a retraction is made. Qualified Privilege extends to workplace when statement is made to protect interests of private employer. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 B. Intentional Torts 9. Defamation: Privilege. [LO.4] – New Statutory Privilege: for truthful letters of recommendation about former employees. Randi W. v. Muroc case: misleading letters of recommendation give rise to employer liability. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 B. Intentional Torts 10. Product Disparagement. – – False statement about a product. Slander of Title/Trade Libel. 11. Wrongful Interference with Contracts. – Third party (A) substantially interferes with a contract between B and C, causing either B or C to break the contract. 12. Trespass. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 C. Negligence 13. Elements Of Negligence 14. Defenses To Negligence Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 C. Negligence Negligence exists when a person acts with less care than is reasonable, causing foreseeable injury. [LO.5] 13. Elements: (A) Duty to Exercise Reasonable Care. • Professionals: Malpractice. (B) Breach of Duty. • • By statute or reasonable person standard. May be established by an ‘expert’. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 C. Negligence 13. Elements: (C) Causation. Connects duty with injuries to plaintiff. ‒ “But For” defendant’s action, plaintiff would not have suffered the injury. ‒ Proximate Cause: plaintiff’s injury was foreseeable. Palsgraf case: Plaintiff was too far away for injury to be foreseeable. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 C. Negligence 13. Elements: (D) Damages. ‒ Past and future pain and suffering, physical impairment, medical care, loss of earning capacity. Experts help juries “quantify” the injuries. ‒ Joint and Several Liability: when actions of two or more defendants impose liability on all actors. Each one is responsible for all injuries. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 C. Negligence 14. Defenses to Negligence. (A) Contributory Negligence: plaintiff’s partial negligence bars recovery for his injuries. Hardesty v. American Seating case: plaintiff’s negligence was a bar to recovery in Maryland. (B) Comparative Negligence: determines the fault of both parties. If Plaintiff is >50% at fault, he recovers nothing. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 C. Negligence 14. Defenses to Negligence. (continued) (C) Assumption of Risk: burden is on defendant to prove plaintiff knew about risk and chose to proceed. • Express Assumption: usually exculpatory writing. • Implied Assumption: subjective, based on circumstances. (D) Immunity: governments are generally immune from tort liability. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 D. Strict Liability 15. What Is Strict Liability? 16. Imposing Strict Liability Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 D. Strict Liability 15. What is Strict Liability? [LO.6] – Absolute liability imposed by law to protect the public or ultra-hazardous activities such as dynamite excavations. 16. Imposing Strict Liability. – Can involve transportation of toxic materials, but most common is product liability. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21st Ed. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21