Business Law Chapter 6

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Chapter 6 Slide 1
CHAPTER 6
Personal Injury Laws
Lessons
6-1 Offenses Against Individuals
6-2 Intentional Torts, Negligence,
and Strict Liability
6-3 Civil Procedure
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Chapter 6 Slide 2
LESSON 6-1
Offenses Against
Individuals
GOALS
 Distinguish a crime from a tort
 Discuss the elements of a tort
 Explain when a person is responsible for
another’s tort
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Chapter 6 Slide 3
HOT
DEBATE
Your neighbor Shana is using a multipurpose
woodcutting machine in her basement hobby
shop.
Suddenly, because of a defect in the two-year-old
machine, a metal clamp from the machine
breaks. The metal strikes Shana’s left eye,
badly injuring it. The manufacturer had
provided a one-year warranty against defects
on the machine.
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Chapter 6 Slide 4
Do you think the manufacturer
should be responsible for
Shana’s medical expenses?
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Chapter 6 Slide 5
If the machine was defectively
manufactured or designed 
Manufacturer is strictly liable for injuries
Warranty expired  does not matter,
manufacturer still liable
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Chapter 6 Slide 6
What defense(s) does the
manufacturer have against a
suit for damages for her
injury?
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Chapter 6 Slide 7
If Shana had made “material”
modifications to the machinery, the
manufacturer may be successful
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Chapter 6 Slide 8
HOW DO CRIMES
AND TORTS DIFFER?
A crime is an offense against society—
a public wrong.
A tort is a private or civil wrong—an
offense against an individual
injured can sue for money damages
(compensate for the injury)
acts can be torts and crime
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Chapter 6 Slide 9
What’s Your Verdict?
 Josephina skied all day & was driving
home near sunset
She dozed off momentarily and crossed
the highway dividing line
Crashed head-on into John’s truck
Both drivers seriously injured
Both vehicles “totaled”
Any crime committed?
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Chapter 6 Slide 10
What’s Your Verdict?
 Crime of reckless driving
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Chapter 6 Slide 11
ELEMENTS OF A TORT
 Duty - to respect the rights of others
 Violation of the duty
 Injury – (no injury = no case)
 Causation  Proximate Cause – legally recognizable cause of
harm
 Strict Liability - liability is imposed even
though intent & carelessness may be lacking
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Chapter 6 Slide 12
No Injury = No Lawsuit
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Chapter 6 Slide 13
ELEMENTS OF A TORT
Read What’s Your Verdict (beginning of
Chapter 6-1) Did Mason commit a tort??
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Chapter 6 Slide 14
ELEMENTS OF A TORT
 Yes - owed a duty to NOT injure neighbors’
property
 Breached duty when he left fire unattended
(on a windy day)
 Negligence – most common tort based on
carelessness
 Injury – neighbor’s house burned down
 Proximate Cause - leaving fire unattended
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Chapter 6 Slide 15
Neighbor who was injured is entitled to
DAMAGES – monetary award to
compensate for the loss caused by a
tort
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Chapter 6 Slide 16
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Chapter 6 Slide 17
RESPONSIBILITY FOR
THE TORTS OF ANOTHER
In general, all persons are responsible
for their conduct and therefore liable for
their torts.
Vicarious liability is when one person is
liable for the torts of another.
Parents may be liable if they give their children
“dangerous instrumentalities”
 Guns without proper instruction
 Established patterns of dangerous behavior
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Chapter 6 Slide 18
RESPONSIBILITY FOR
THE TORTS OF ANOTHER
 Parents are not liable for the torts of
their children unless a statute exists that
says otherwise.
i.e. Some states hold parents liable, by statute,
up to a specified amount of money for property
damage caused by the minor child
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Chapter 6 Slide 19
What if someone sues you?
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Chapter 6 Slide 20
Offenses Against Individuals
A tort is considered to be an offense
against society
TRUE / FALSE
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Chapter 6 Slide 21
Offenses Against Individuals
F A L S E
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Chapter 6 Slide 22
Offenses Against Individuals
A single act can be both a tort and a
crime.
TRUE / FALSE
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Chapter 6 Slide 23
Offenses Against Individuals
 TRUE
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Chapter 6 Slide 24
Offenses Against Individuals
Degree of causation of a tort great
enough to be recognized by law is
called
a) proximate cause
b) intimate cause
c) incidental cause
d) none of the above
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Chapter 6 Slide 25
Offenses Against Individuals
 A - proximate cause
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Chapter 6 Slide 26
Offenses Against Individuals
In order to establish liability for a tort, all
of the following must be proved except:
a) duty
b) breach of duty
c) harm recognized by law
d) vicarious liability
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Chapter 6 Slide 27
Offenses Against Individuals
 D - vicarious liability
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Chapter 6 Slide 28
Offenses Against Individuals
An insane person cannot be held liable
for a tort.
TRUE / FALSE
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Chapter 6 Slide 29
Offenses Against Individuals
F A L S E
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Chapter 6 Slide 30
Offenses Against Individuals
When one party is held responsible for
the tort of another, the liability is called
__________________ liability
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Chapter 6 Slide 31
Offenses Against Individuals
 vicarious
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Chapter 6 Slide 32
Offenses Against Individuals
Which of the following types of torts are
based on carelessness?
A) intentional torts
B) strict liability torts
C) negligence
D) none of the above
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Chapter 6 Slide 33
Offenses Against Individuals
 C - negligence
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Chapter 6 Slide 34
Offenses Against Individuals
If you act recklessly, but do not harm
anyone, there is usually no tort
TRUE / FALSE
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Chapter 6 Slide 35
Offenses Against Individuals
 TRUE
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Chapter 6 Slide 36
Offenses Against Individuals
Parents generally are held liable for the
torts of their children
TRUE / FALSE
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Chapter 6 Slide 37
Offenses Against Individuals
 FALSE
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Chapter 6 Slide 38
LESSON 6-2
Intentional Torts, Negligence,
and Strict Liability
GOALS
 Identify nine common intentional torts
 Define negligence and strict liability
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Chapter 6 Slide 39
COMMON
INTENTIONAL TORTS
Intentional torts - torts for which the defendant intended either the
injury or the act
 Assault
 Battery
 False imprisonment
 Defamation
 Invasion of privacy
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 Trespass to land
 Conversion
 Interference with
contractual relations
 Fraud
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Chapter 6 Slide 40
ASSAULT
The tort of assault occurs when one
person intentionally threatens to
physically or offensively injure another.
 threat must be believable & person
must have ability to carry it out
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Just pointing the
gun at someone is
assault
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Chapter 6 Slide 41
BATTERY
An intentional breach of the duty to refrain
from harmful or offensive touching of
another is battery.
(shooting / pushing in anger / spitting on / throwing pie
in face)
-- self defense is not battery
-- consenting to contact (sports)
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Chapter 6 Slide 42
FALSE IMPRISONMENT
False imprisonment is depriving a
person of freedom of movement without
the person’s consent and without
privilege.
Probable cause – privileged to imprison
Merchants allowed to detain (reasonable basis
for believing person shoplifted)
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Chapter 6 Slide 43
DEFAMATION
If a false statement injures a person’s reputation,
it may constitute the tort of defamation. To be
legally defamatory, the statement must be false,
be communicated to a third person, and bring the
victim into disrepute, contempt, or ridicule by
others.
 If defamation is spoken, it is slander.
 If the defamation is written or printed, it is libel.
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Chapter 6 Slide 44
DEFAMATION
Exception: statements about public
officials or prominent personalities
No liability unless statement is made with
malice (known to be false when made)
Judges, lawyers, jurors, witnesses & other
parties in judicial proceedings are also
immune for statements made during the
trial/hearing
Truth is a defense to a defamation charge
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Chapter 6 Slide 45
INVASION OF PRIVACY
Invasion of privacy is defined as the
unwelcome and unlawful intrusion into
one’s private life so as to cause outrage,
mental suffering, or humiliation.
two-way mirrors (violates expectation of privacy)
Politicians, actors & people in the news give up much of
their right to privacy when they step into the public
domain
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Chapter 6 Slide 46
TRESPASS TO LAND
 The tort of trespass to land is entry onto the
property of another without the owner’s
consent.
 Trespass may consist of other forms of
interference with the possession of property.
 Dumping rubbish on someone else’s property
 Breaking someone’s window
 Intent is required to commit the tort of
trespass
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Chapter 6 Slide 47
Trespass Case
Edward and Bertha Briney, a decent,
hard-working, God-fearing couple sought
only what everyone seeks -- to
PROTECT THEIR PROPERTY !!
-- owned an old, abandoned farmhouse
tried posting “No Trepassing” signs
tried boarding up the house
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Chapter 6 Slide 48
A series of break-ins and trespassing
incidents had occurred over the past ten
years; most recent one month ago
Mr. Briney rigged a spring-gun to a bed
frame to protect the premises from
intruders
Marvin E. Katko and his friends went to
the farmhouse looking for antique jars
(he was there weeks before and got away)
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Chapter 6 Slide 49
 They entered the house by removing a
board from a porch window
Marvin went into the bedroom and as he
opened the bedroom door, a shot-gun
discharged, blowing away a substantial
portion of his leg
 Marvin sued the Brineys for battery
What do you think happened??
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Chapter 6 Slide 50
Marvin won a jury verdict of $30,000
Brineys had to sell off 80 acres to satisfy
judgment
 WHY??
Our society values life more than property!
Photos of Parties 
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Chapter 6 Slide 51
Marvin E. Katko
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Chapter 6 Slide 52
Edward and Bertha Briney
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Chapter 6 Slide 53
CONVERSION
 Conversion occurs when someone’s right to
control the possession and use of personal
property are violated.
 Conversion occurs if the property is stolen,
destroyed, or used in a manner inconsistent
with the owner’s rights.
 A thief is always a converter.
 Conversion occurs even when the converter
does not know that there is a conversion.
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Chapter 6 Slide 54
INTERFERENCE WITH
CONTRACTUAL RELATIONS
Interference with contractual relations
occurs when a third party entices or
encourages a breach of contract.
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Chapter 6 Slide 55
FRAUD
Fraud occurs when there is an
intentional misrepresentation of an
existing important fact.
The misrepresentation must be relied
on and cause financial injury.
 Not personal opinions/views
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Chapter 6 Slide 56
WHAT IS NEGLIGENCE?
 Duty and negligence -- intent to injure someone
is NOT necessary
 Reasonable- person standard – act with care,
prudence and good judgment
 Standard is different for certain individuals
 Under age 7 – incapable of negligence
 If child undertakes “adult activity” – held to adult standard
 Professionals & Tradespeople – held to higher standard
 Negligence (most common tort); various degrees
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Chapter 6 Slide 57
WHAT IS NEGLIGENCE?
Breach of duty in negligence – the reasonable
person standard defines the duty
Causation and injury in negligence –
proximate cause (violation of duty must have
caused injury)
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Chapter 6 Slide 58
WHAT IS NEGLIGENCE?
Defenses to negligence – contributory
negligence (cannot recover);
comparative negligence (partial
recovery)
Assumption of Risk – aware of danger, but
decides to subject themselves to the risk
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Chapter 6 Slide 59
WHAT IS STRICT LIABILITY?
Strict liability means holding a defendant
liable without a showing of negligence.
Strict liability makes the defendant liable if
he or she engaged in a particular activity that
resulted in injury.
Target practice / blasting / crop dusting with
dangerous chemicals / storing flammable liquids
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Chapter 6 Slide 60
STRICT LIABILITY
Ownership of dangerous animals also
subjects you to strict liability
 Bears
 Tigers
 Snakes
 Elephants
 Monkeys
 Sale of goods that are unreasonably
dangerous (seller & manufacturer of defective goods are
responsible)
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LESSON 6-3
Chapter 6 Slide 61
Civil Procedure
GOALS
 Discuss what damages are available to victims
of torts
 Explain the various stages of a civil suit
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Chapter 6 Slide 62
WHAT CAN A TORT
VICTIM COLLECT?
Two types of remedies generally
available for civil lawsuits:
An injunction (court order) may be
issued to prevent a tort or stop it from
continuing.
The usual remedy for a tort is damages
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Chapter 6 Slide 63
DAMAGES
Damages are a monetary award to the
injured party to compensate for loss.
Actual or compensatory damages are
intended to compensate the plaintiff for
loss.
Punitive damages are intended to
punish the defendant. – jury decides
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Chapter 6 Slide 64
Attorney Fees
Contingency Fee Basis – lawyer takes a
percentage of the recovery
25% - if settled before trial
33% - if won at trial
40% - if won on appeal
In all cases  plus filing fees, expert
witness reports, etc.
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Chapter 6 Slide 65
What’s Your Verdict?
 Horsley, the owner of a dry cleaning store, lived next
door to Eardly, who was editor of a small newspaper
in their town. The two quarreled frequently and
became enemies. As a consequence, when Eardly
published a story on the drug problem in the town, he
identified Horsley as a “drug dealer.” This statement
was untrue and defamatory.
 What kind of damages could Horsley collect from
Eardly in a lawsuit?
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Chapter 6 Slide 66
What’s Your Verdict?
If Horsley could prove injury to her
business  damages
If Horsley could prove Eardly acted with
malice  punitive damages
 usually available where intentional
torts are committed (not contract law or
other torts)
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Chapter 6 Slide 67
KFC --
Is it slander?
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Chapter 6 Slide 68
HOW IS A CIVIL
CASE TRIED?
 Judges always
decide issues of law.
 Juries decide issues
of fact.
 1) Jury selected
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Chapter 6 Slide 69
HOW IS A CIVIL
CASE TRIED?
2) Opening statements – what each
party will attempt to prove
3) Evidence presented – documents,
charts, sobriety test results, photos, etc.
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Chapter 6 Slide 70
HOW IS A CIVIL
CASE TRIED?
4) Closing arguments and instructions
to jury
5) Jury deliberation
6) Verdict - Jury
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Chapter 6 Slide 71
HOW IS A CIVIL
CASE TRIED?
 7) Judgment Judge
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Chapter 6 Slide 72
KEY TERMS USED
IN A CIVIL CASE
You’re the Judge –
who should win
the ball:
Alex or Patrick
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Chapter 6 Slide 73
KEY TERMS USED
IN A CIVIL CASE
Evidence – materials to
prove/disprove alleged
facts

ITEMS OF EVIDENCE/PROPERTY
RECOVERED (1) Type
___ Damaged
___ Lost
___ Recovered
___ Stolen
_X_ Taken into Evidence Item Description
001567-01 One (1) small skull apparently
human (2) Type
___ Damaged
___ Lost
___ Recovered
___ Stolen
_X_ Taken into Evidence Item Description
001567-02 One (1) small bone possibly human (3)
Type
___ Damaged
___ Lost
___ Recovered
___ Stolen
_X_ Taken into Evidence
Item Description
001567-03 One (1) student backpack and assorted
contents
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Chapter 6 Slide 74
KEY TERMS USED
IN A CIVIL CASE
Testimony – most common form of evidence
– statements by witnesses under oath
Witness – personal knowledge
Subpoena – written court order
Verdict – jury’s decision
Judgment – final result of trial
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Chapter 6 Slide 75
HOW IS A
JUDGMENT SATISFIED?
Ordinarily, when a civil judgment for the
plaintiff becomes final, the defendant
will pay the judgment.
If the defendant does not pay, the
plaintiff may obtain a writ of execution.
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Chapter 6 Slide 76
Writ may be for:
Money – (payment,
garnish paycheck, etc.)
Property
– may be forced to sell
to pay debt
-- lien may exist until
property is sold
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Chapter 6 Slide 77
Can you sue if someone steals your
idea and it proves to be a very
profitable undertaking?
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