© 2004 West Legal Studies in Business, a Division of Thomson Learning

10.1

Chapter 10Chapter 10

Torts: Negligence, Torts: Negligence, Strict Liability, and Strict Liability, and Intentional TortsIntentional Torts

10.2

What Is a Tort?What Is a Tort?

TortTort means “to twist,” means “to twist,” translating to “twisted translating to “twisted actions”actions”

Torts are civil wrongs such as Torts are civil wrongs such as slander, libel, negligence, and slander, libel, negligence, and fraudfraud

Torts result in individuals Torts result in individuals doing wrong to other doing wrong to other individualsindividuals

10.3

Placing Torts inPlacing Torts inGeneral Business LawGeneral Business Law

Mainly state lawMainly state law

Torts and crimes occasionally Torts and crimes occasionally overlapoverlap

Person owes tort duties to other Person owes tort duties to other persons but owes a duty to society persons but owes a duty to society not to commit crimesnot to commit crimes

Crimes and torts differ in how they Crimes and torts differ in how they are enforced and in their objectivesare enforced and in their objectives

Tort law is a legal laboratoryTort law is a legal laboratory

10.4

Tort ClassificationsTort Classifications

Type of victimType of victim

Property Property

PersonPerson

Type of wrongType of wrong

Careless (negligence)Careless (negligence)

Ultrahazardous activities (strict Ultrahazardous activities (strict liability)liability)

Intentional in natureIntentional in nature

10.5

NegligenceNegligence

Involves carelessness that Involves carelessness that injures othersinjures others

Classified into four parts:Classified into four parts:

DutyDuty

Breaking of the standard of Breaking of the standard of carecare

Proximate causeProximate cause

Damages Damages

10.6

Negligence: How Duty Negligence: How Duty Arises Arises

Operation of the law Operation of the law

ContractContract

MalpracticeMalpractice

Privity rulePrivity rule

10.7

Negligence: Standard of Negligence: Standard of CareCare

What an ordinary, reasonable, What an ordinary, reasonable, prudent person would do in the prudent person would do in the same situationsame situation

Should be objective, but takes Should be objective, but takes into account many factorsinto account many factors

Negligence per se doctrineNegligence per se doctrine

Res ipsa loquitorRes ipsa loquitor (“the thing (“the thing speaks for itself”)speaks for itself”)

10.8

Negligence: Proximate Negligence: Proximate CauseCause

Defendant’s carelessness Defendant’s carelessness caused a plaintiff’s damagecaused a plaintiff’s damage

Defendant’s carelessness Defendant’s carelessness must be close in time and must be close in time and space to have caused space to have caused plaintiff’s damagesplaintiff’s damages

ForeseeableForeseeable is a key word in is a key word in determining proximate causedetermining proximate cause

10.9

Negligence: DamagesNegligence: Damages

If defendant breaks an owed If defendant breaks an owed duty to plaintiff, that alone duty to plaintiff, that alone doesn’t let plaintiff recoverdoesn’t let plaintiff recover

Defendant must have caused Defendant must have caused damage to plaintiff’s person damage to plaintiff’s person or propertyor property

10.10

Defenses to NegligenceDefenses to Negligence

Contributory negligence Contributory negligence

Assumption of riskAssumption of risk

Comparative faultComparative fault

Damage apportionmentDamage apportionment

10.11

Strict LiabilityStrict Liability

Defendant is liable for harm Defendant is liable for harm even though no fault is showneven though no fault is shown

Ultrahazardous activities are Ultrahazardous activities are allowed because their social allowed because their social value outweighs their hazardsvalue outweighs their hazards

Assumption of risk is a Assumption of risk is a defense, but contributory defense, but contributory negligence is notnegligence is not

10.12

Intentional TortsIntentional Torts

Intentional torts compared Intentional torts compared with crimeswith crimes

Intentional torts compared Intentional torts compared with negligencewith negligence

Intentional torts compared Intentional torts compared with contractswith contracts

10.13

Remedies for Remedies for Intentional TortsIntentional Torts

Legal remediesLegal remedies

Nominal damagesNominal damages

Compensatory damagesCompensatory damages

Punitive damagesPunitive damages

Equitable damagesEquitable damages

InjunctionsInjunctions

Specific performanceSpecific performance

AccountingsAccountings

10.14

FraudFraud

Misrepresentation of Misrepresentation of material factmaterial fact

Most frequently committed Most frequently committed business tortsbusiness torts

10.15

Invasion of PrivacyInvasion of Privacy

Intrusion upon plaintiff’s Intrusion upon plaintiff’s seclusion or into plaintiff’s seclusion or into plaintiff’s private affairsprivate affairs

Public disclosure of private Public disclosure of private factsfacts

Unauthorized appropriation of Unauthorized appropriation of a person’s name or likenessa person’s name or likeness

Holding up a person in a false Holding up a person in a false lightlight

10.16

ConversionConversion

Unauthorized and unjustified Unauthorized and unjustified interference with control of interference with control of another person’s personal another person’s personal propertyproperty

Any tangible personal Any tangible personal property can be convertedproperty can be converted

Land and buildings cannot be Land and buildings cannot be convertedconverted

10.17Wrongful Interference Wrongful Interference with Contractual with Contractual

RelationsRelationsElementsElements

Valid contract exists between Valid contract exists between two partiestwo parties

A third party must know that A third party must know that contract exists between first contract exists between first two partiestwo parties

Third party must intentionally Third party must intentionally induce first two parties to induce first two parties to break contractbreak contract

10.18

DefamationDefamation

ElementsElements

Statement must be made by Statement must be made by someone about another personsomeone about another person

Favorable statements are not Favorable statements are not defamatorydefamatory

Statement must be published Statement must be published (not necessarily in written form)(not necessarily in written form)

Privilege and absolute Privilege and absolute privilege privilege

10.19

Recap – Terms to KnowRecap – Terms to Know

TortsTorts

CrimesCrimes

NegligenceNegligence

DutyDuty

Negligence per seNegligence per se

Res ipsa loquiturRes ipsa loquitur

Proximate causeProximate cause

Contributory Contributory negligencenegligence

Strict liabilityStrict liability

Intentional tortsIntentional tortsLegal remediesLegal remediesEquitable remediesEquitable remediesFraudFraudFalse imprisonmentFalse imprisonmentInvasion of privacyInvasion of privacyConversionConversionWrongful Wrongful interferenceinterferenceIntentional Intentional infliction of mental infliction of mental distressdistressDefamation Defamation