McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. 6-2 Learning Objectives Define what torts are and who commits them. Recite the different categories of torts Provide the requirements for a valid contract Discuss the underlying basis for the different categories of torts Discuss a business owner’s responsibility for torts committed by employees Define strict liability and give its defense Recognize negligence actions and list the requirements and their defenses List the intentional torts and give the requirements for each well as defenses Define appropriate ethical considerations regarding torts 6-3 Torts - Definition A Tort is a civil wrong. Civil violations of law instead of criminal. The plaintiff (injured party) sues defendant (tortfeasor) to receive compensation for losses suffered by the tort being committed against him or her. 6-4 Tort Categories 6-5 Intentional Torts Intentional Torts Against the Person Battery Assault False Imprisonment Defamation Intentional Infliction of Emotional Distress (IIED) Invasion of Privacy 6-6 Intentional Torts – Invasion of Privacy Intrusion upon seclusion Appropriation of name or likeness False Light Publication of private facts 6-7 Intentional Torts Against Business Disparagement Intentional Interference with contractual relations Theft of Trade Secrets Palming off Infringements of trademark, trade name, patents, copyrights (discussed in ch. 15) 6-8 General Defenses to Intentional Torts Lack of Intent Consent Defense of Self or Others 6-9 Negligence • When a tortfeasor fails to meet a standard of reasonable care and another is forseeably subjected to an unreasonable risk of harm and is injured as a result, the tortfeasor can be sued by the injured party for negligence. 6-10 Negligence Elements: Duty Breach Causation Damages Actual Cause Proximate Cause 6-11 Defenses to Negligence 6-12 Strict Liability Strict liability is liability regardless of fault Imposed on tortfeasors for engaging in activity deemed by statute to be so dangerous that the tortfeasors must take responsibility for all harm that arises therefrom, even if the tortfeasor was as careful as possible. Defense: Voluntary assumption of the risk 6-13 Product Liability Liability imposed on product makers and distributors for harm caused to people and property by defective, unreasonably dangerous products. Theories for recovery: Negligence Strict Liability Breach of Warranty 6-14 Product Liability Recovery under Negligence and Strict Liability: • Design Defect • Manufacturing Defect • Failure to warn • Failure to adequately package 6-15 Product Liability Recovery under Warranties: Express Warranties Implied Warranties Warranty of Merchantability Warranty of fitness for a particular purpose 6-16