Chapter 6 Vocab - Business Law

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1
Tort
Violation of a duty imposed by civil law
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Intentional Tort
Harmed by a deliberate action
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Defamation
false statements that harms someone's reputation
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4 Defamation Elements:
-Defamatory Statement: FACTUAL statement that is likely to harm a person's reputation.

-Falsity: Statement must be false.

-Communicated: must be communicated to at least one other person.

-Injury: Plaintiff must show injury
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Libel
Written Defamation
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Slander
Oral Defamation
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Slander per se
Slander involving false statements about sexual behavior, crimes, contagious diseases, and professional abilities
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Libel per se
When written statements relate to sexual behavior, crimes, contagious diseases, and professional abilities.
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Actual Malice
-Knowledge that the information is false.
-can win a defamation case if proven
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Actual Privilege
A witness testifying may never be sued for defamation
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False Imprisonment
-The intentional restraint of another person without reasonable cause and without consent.

-A store may detain a customer or worker if the detention is reasonably done and suspicion of shoplifting
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Intentional Infliction of Emotional Distress
An intentional tort in which the harm results from extreme and outrageous conduct that causes serious emotional harm
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Battery
Intentional touching of another person in which a way that is harmful or offensive.

-reasonable person would not be offended
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Assault
An act that makes a person reasonably fear an imminent battery

-threat
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Fraud
Injuring another person by deliberate deception

-Lie
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Compensatory Damages
Money intended to restore a plaintiff to the position he was in before the injury.
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How are damages calculated?
1. plaintiff receives money for medical damages

2. defendants are liable for lost wages

3. plaintiff is paid for pain and suffering

-awards for future suffering involve an estimate of hardships by the court
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Single Recovery Principle
requires a court to settle the matter once and for all by awarding a lump sum for past and future expenses
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Punitive Damages
Damages that are intended to punish the defendant for conduct that is extreme and outrageous

-Verdict must be reasonable
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Punitive Damages 3 Guideposts
1. How bad (reprehensible) is the defendant's conduct

2. The ratio between harm suffered and the award

3. Difference of punitive award and any civil penalties used in similar cases
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Tortious Interference with a contract
An intentional tort in which the defendant improperly induced a third party to breach a contract with the plaintiff
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4 elements of tortious interference with a contract
1. Contract between plaintiff and a third party

2. Defendant knew of the contract

3. Defendant improperly induced third party to breach contract or made the contract impossible

4. injury to the plaintiff
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Justification
claim that special circumstances made its conduct unfair.
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To establish jurisdiction, defendant must show:
1. acting to protect an existing economic interest.

2. acting in public interest.

3. Existing contract could be terminated at any time

-Will try to show the plaintiff had no contract
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Tortious Interference with a Prospective Advantage
Malicious interference with a developing economic relationship

-no contract
-Plaintiff must show more than just hope of profit
-Blocking of a developing relationship
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Negliegence
"unintentional tort," It concerns harm that arises by accident
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Plaintiff must prove 5 elements of Negligence:
1. Duty of Care- legal responsibility

2. Breach- The defendant breach duty or failed to meet legal obligations

3. Factual Cause- defendant's conduct actually caused the injury

4. Proximate Cause- harm was foreseeable from defendant's conduct

5. Damages- Plaintiff has actually been hurt or has actually suffered a measurable loss.
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Duty of Care
Each of us has a duty to behave as a reasonable person would under the circumstances.

-If the defendant could have foreseen injury to a particular person, she has a duty to him.

Example: Owner of party house allowing drunk driving
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Special Duty: Landowners Liability from Lowest to Highest
Lowest: Trespassing Adults
Mid-Level: Trespassing Children
Higher: Licensee
Highest: Invitee
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Trespassing Adults
Lowest Liability
-The landowner is not liable to a trespasser for mere negligence
.
-Ex: vagrant wanders on land and is burned by wires: NOT liable
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Trespassing Children
Mid-Level Liability
If there is some manmade thing on the land that may attract children, the landowner is probably liable for injury.

Ex: Kid comes on land and falls out of treehouse: probably liable
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Licensee
is anyone on the land for their own purposes but with the owner's permission

ex: social guest
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Licensee Liability
Higher Liability
-A licensee is entitled to a warning of hidden dangers that the owner knows about. NO DUTY to warn about obvious dangers.

ex: Romeo falls off balcony that has rotting wood.= liable
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Invitee
is someone who has a right to be on the property because it is a public space or a business open to the public.

Ex: Perry going to the beach
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Invitee Liability
Highest Liability
-The owner has a duty of reasonable care to an invitee even if you had no idea of danger.

Ex: Beach has had riptides for years and fails to post warning signs, Perry drowns= liable
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Special Duty: Professionals
While on the job, she must act as a reasonable person in her profession.

ex: A taxi driver must drive reasonably.
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Breach of Duty
If a legal duty of care exists, then a plaintiff must show that the defendant did not meet it.
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Negligence Per Se
-Legislature sets a minimum standard of care for a particular activity to protect a certain group

-a violation of the statue injures a member of that group is a vilolation.

ex: Legislature passed a statue prohibiting the sale of glue with toulene so kids didn't sniff glue.

Store clerk sold glue to kid but didn't realize it was dangerous. (doesn't matter if he knew or not)

Kid dies and the store is liable
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Causation
Plaintiff must show that the defendant's breach of duty caused the plaintiff's harm.

-Factual and Proximate Cause
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Factual Cause
The defendant's breach led to the ultimate harm.

ex: Bike worker sells faulty brakes, Customer can't stop and crashes, Bike worker is liable
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Proximate Cause
The type of harm must have been reasonably forseeable.

ex: Bike worker can forsee that a crash could happen b/c of faulty brakes= he is liable
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Res Ipsa Loquitor
The facts imply that the defendant's negligence caused the accident.

Defendant must prove he did not cause harm.

Ex: Air conditioning unit falls from 3rd story apartment and injures a man. Apartment owner is liable if they cannot prove they did not cause it.
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Res Ipsa Loquitor applies only when:
1. defendant had control of the thing that caused the harm.

2. Harm would not have occurred without negligence

3. The Plaintiff had no role in causing the harm
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Damages. Plaintiff must prove:
Must persuade the court that he has suffered harm that is genuine, not speculative.
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Contributory Negligence
If the plaintiff is slightly negligent, she recovers nothing.

- Many states threw out this rule because a plaintiff 1% responsible could get nothing.
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Comparative Negligence
A plaintiff may generally recover even if she is partially responsible.

-Jury assesses the negligence of the 2 parties.

-Some comparative negligence states do not permit a plaintiff to recover anything if he was more than 50% responsible
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Assumption of the Risk
A person who voluntarily enters a situation that has an obvious danger cannot complain if she is injured.
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Strict Liability
-Translated to "defendant is liable"

-Higher burden

- Ultrahazardous activity and defective products
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Ultrahazardous Activity
Almost always liable for any harm
-Using chemicals, operating explosives, keeping wild animals, dangerous substances on property
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Defective Product
-When a product causes harm.

-someone who is injured may have claims in negligence and strict liability

ex: coke bottle explodes
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Negligence cases dealing with goods, Plaintiffs can use:
1. Negligent Design: Product designed poorly.
ex: pinto

2. Negligent Manufacture: Failure for inspection
ex: batteries in coke

3. Failure to warn: failing to warn the purchaser or user about the warnings of normal use and also foreseeable misuse.
ex: Batman costume cape doesn't make you fly
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To win a Strict Liability for Defective Products case:
-must show only the defendant manufactured or sold a product that was defective

-The defect caused harm
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