engineering law and ethics mississippi state university

8/10/2019 Engineering Law and Ethics Mississippi State University

1/106

Engineering Law and Ethics

Mississippi State University

http://www.ie.msstate.edu/courses/L&E/

IE 4553/6553ENGINEERING LAW

AND ETHICS

Chapter 1

THE ENGINEER INMANAGEMENT

What is an Engineer?

A Thinker?

An "Action Figure?"

An Organizer?

A Pro!e #o!$er?

%hat aout "Huan" pro!e&?

What is a Manager?

'ua!itie& o( a Manager

Counication #ki!!&

Han)!ing Peop!e

#en&e o( Co&t

*no+!e)ge o( the ,a+
http://www.ie.msstate.edu/courses/L&E/http://www.ie.msstate.edu/courses/L&E/


2/106

Exe!ti"e #!a$ities

,ea)er&hip

-e!egating

-eci&ion&

. e!eent& o( Top Manageent -eci&ion&

-i&cip!ine

Engineering %r&'ets

Pro/ect& +e &ee 0 0 0

Pu!ic Pro/ect&

Pri$ate Pro/ect&

Pro/ect& +e )ont u&ua!!2 &ee0 0 0

Manu(acturing pro/ect&

%ho& nee)e)?

%here i& +ork )one?

Man!(at!ring Engineering

Conception o( the I)ea

Fea&ii!it2 #tu)2

Re)uction to Practice

P!anning

3i&ion

Re(ineent an) O$er&ight

La) an* Engineers

Engineers Act as Agents of Owners


3/106

Engineers deal with rights of others

Engineers responsible for contract documents

Engineers may be mediators

. . . therefore, a knowledge of the Law isnecessary!

Cha+ter ,

ETHICS

%hat i& Ethic&?I& Ethic& !earne)?

%h2 )o Engineer& c!ai a "co)e o( ethic&?"

What is Ethis?

Hi&torica!!2 &peaking

Three Traditional Professions

The first separate calling --

o John Smeaton / 1!" / #i$il Engineering

o %nstitution of #i$il Engineers / 1&1& / 'reat (ritain

De(initi&n- %R.ESSI.NAL

%e&ter& -ictionar2) *A calling re+uiring speciali,ed nowledge and

often long and intensi$e academic preparation.*

4!ack& ,a+ -ictionar2)*A $ocation or occupation re+uiring specialusually ad$anced education and the labor and sill in$ol$ed...

La0&r Manage1ent Re$ati&ns At


4/106

*Professional Employee* means) any employee engaged in wor

o pre)oinate!2 inte!!ectua! an) $arie)5

o in$o!$ing con&i&tent e6erci&e o( 5

o o( &uch a character that the output pro)uce)5

o re7uiring kno+!e)ge o( an a)$ance) t2pe5

any employee who

o has completed the courses of speciali,ed intellectual instructionand study described in...

o is performing related wor under the super$ision of a professionalperson to +ualify himself to become a professional employee as

defined in paragraph 0a 2abo$e3.

Plus some re+uirements. . .

other re+uirements fre+uently added

o regi&tration re7uireent& (or 5

o pro(e&&iona! &ociet2 to repre&ent 5

o pu!ic &er$ice nature o( the occupation8 an)5

o a)herence to a co)e o( ethic&5

State Registrati&n La)s

State laws in each of the states re+uire...

o -e(ine "right to practice"5

o Regi&tration in one &tate0 0 0

o Reciproca! agreeent&

Primary purpose of state laws

o te&t

o oar) o( e6ainer&


5/106

One court decision

%r&(essi&na$ S&ieties

Accreditation (oard of Engineering and Technology

o 19:; < Engineer& Counci! (or Pro(e&&iona! -e$e!opent . enta!it2?

C&*e &( Ethis

5E8%4%T%O4

o %e&ter& -ictionar2 "the )i&cip!ine )ea!ing +ith +hat i&goo) an) a) an) +ith ora! )ut2 an) o!igation0"

Establishment of 9oral Patterns

o gro+& out o( the e6perience an) o&er$ation& o( one& !i(e

#odes of Ethics are guideposts. . .


6/106

La) an* Ethis

Are unethical practices illegal7

o (ora! reproo( (ro engineering &ocietie&

o near!2 a!! eng0 &oc0 are concerne) +ith 0 0 0

4o A9A or A(A

Some states do and some states don:t;

%nformal sanctions can be effecti$e

People who are honest and loyal in dealing with others . . .

T)& Areas &( Dis!ssi&n

'ifts and 8a$ors

#i$il Action

#riminal statutes answer ? +uestions. . .

Physical and 9ental Element to a crime

Degrees &( a Cri1e

Treason

5efine Treason


7/106

8elony

5efine 8elony

9isdemeanor

5efine 9isdemeanor

T& S!1 it a$$ !+2 2 2

%hat i& Ethic&?

I& Ethic& !earne)?

%h2 )o Engineer& c!ai a "co)e o( ethic&?"

Cha+ter 3De"e$&+1ent &( the La)

or

",a+& Br &D"

Wh& nee*s La)s? Alone on a desert island7

Two people interacting together7

6hat about the =rban Society7

5efine *@aw*

* A set of rules and principles set up by society to restrict the conductand protect the rights of its members.* 0p B1

eginnings &( the La)

5i$ine @aws

o #ode of Cammurabi 2c. B""" (.#.3

o Ten #ommandments


8/106

#i$il @aw 2Dual Meaning3

o #ommon @aw

o @aw of the Twel$e Tables 2c. D!" (.#.3

En(&re1ent

Punishment

o 8ines or %mprisonment


9/106

Stare Decisis -- Abiding by pre$ious decisions

6hen Fudged decision becomes law injurisdiction 2def ftnote p. BD3

Cenry (racton:s compilation of all decisions in 25ate73 (lacstone:s #ommentaries 25ate73

ent:s #ommentaries gi$es def. 2p. BD3

(usiness #ustom

o Trade tal *@aw 9erchants* etc.

#hanges in the law

O$erruled 5ecisions ha$e what effect7 6hat role do Statutes play in #ommon @aw7

E!it

%n the beginning #ommon @aw was administered by


10/106

Thus new courts were #ourts of #hancery

o To)a28 in o&t &tate& 0 0 0

o To)a2 in Mi&&i&&ippi 0 0 0

nu&ua! Ree)ie&

o Coon ,a+ act& in rem

o E7uit2 act& in personem

Temporary %nFuctions 2pendente lite3

Permanent %nFunctions

Specific Performance

eat!res &( E!it


11/106

Courts, Trial Procedure and Evidence

T+es &( C&!rts Federal Courts

o The Supreme Court

o Courts of Appeals

o District Courts

State Courts

e*era$ C&!rts

The Supree Court

o Jurisdiction limited to nine categories

Only cases in$ol$ing ambassadors etc. or to which a state is a

party may originate in Supreme #ourt

Appeals come from =.S. #ourts of Appeals or from State Supreme

#ourts.

Appeals in$ol$ing the =.S. #onstitution may come from any court

o Writ of Certiorari- only 5% successful

o Nine Justices appointed by sitting President

Courts of ppeals

o Thirteen eist

o Three !udges preside

o "stablished by Congress in #$#

o Appellate courts only & do not conduct trials

"istrict Courts ## Trial Courts of Federal Syste

o #'' ( District Courts

o No State is )ithout one*


12/106

o Number of Judges depends on No+ of Cases

o Criteria for Case to be tried ,see p+ ./

o 0ost cases are 12ederal 3uestions1 or 1Di4ersity Cases1

o "amples p+ .-5+

State C&!rts

$ot unifor throughout states

Each state has %nal court of appeal

o Supreme court

Trial courts of general &urisdictiono Circuit courts etc+

'arious unicipal courts

7!ris*iti&n

(ight or authority

o 6gi4en by legislature or constitution7

o to hear and determine causes of action presented to it+

(elates to

o geographical region

o types of cases

o amount of money or types of relief

)urisdiction over property

)urisdiction over persons

o constructive service

Liited to types of cases handled


13/106

%retria$ %r&e*!re

Pleadings

"iscovery

o Depositions

o 8e9uest for Production of Documents

o :nterrogatories

Pretrial *otions

)oining dditional Parties + Clais

Trial Procedure The )ury

Courtroo Procedure

$ew Trial

o =nfairness

o PreFudice

o 9isconduct

o Error by Fudge

o PerFury

o =nforeseen accident

If motion for new trial unsuccessful

o ppeal!

o :n ci4il case -- either party

o :n criminal case -- only defendant

o based on 9uestions of the la)

Euity Suits

Cases


14/106

E"i*ene

-sed to prove uestions of fact

o

in criminal case -- al)ays assumed by State

(eal Evidence Testiony

o 8eal e4idence

Fudge Fury can see for themsel$es

o Testimony

)udicial $otice

Presuptions

o Conclusi4e e4idence

o Prima facie evidence

"irect and Circustantial Evidence

/est or Priary Evidence

0earsay Evidence

Res gestae

Parole Evidence (ule

1pinion Evidence

2itnesses

The Engineer as an Ex+ert Witness

The average witness can3t e4press an opinion

2hat is an e4pert5

E4pert ssistance

o Ad4ice and Consultation

o Trial Assistance


15/106

o Testimony

o Depositions

o Decision to ta;e case

o 2ees

Chapter .

6ntroduction to Contracts

6ntroduction

Every transaction we ake is aC1$T(CT

"e%nition of Contract

o 4!ack& ,a+ -ictionar2- "an agreeent et+een t+o or ore

per&on& +hich create& an o!igation to )o or not to )o aparticu!ar thing0

o CC- *total legal obligation that results from the parties:agreement as affected by applicable law

"e%nition of greeent

"the argain o( the partie& in (act a& (oun) in their !anguage

or 2 ip!ication (ro other circu&tance& inc!u)ing cour&e

o( )ea!ing or u&age o( tra)e or cour&e o( per(orance5whether an agreement has legal consequences

is determined by applicable law of contracts.

Contract # 7an agreeent enforcea8leat law.7


16/106

S1-(CES 1F C1$T(CT L2

"eveloped in Coon Law

(estateent of the Law of Contracts

(estateent 9Second:

-nifor Coercial Code

-nited $ations Convention on

Contracts for the 6nternational Sale of;oods

ELE*E$TS 1F 'L6"C1$T(CT

greeent

o O((er

O((eror

O((eree

o Acceptance

Copetent Parties Consideration

Lawful Purpose

For


17/106

o E6ecutor2 Contract

o Partia!!2 E6ecute) Contract

o E6ecute)

Parties

o oint8 #e$era! or oint an) #e$era!

o Thir) Part2 4ene(iciarie&

*eans of cceptance

o ni!atera! or 4i!atera! reciproca!

"i


18/106

o Foral

Negotia!e In&truent (eature&8 p0 .

or)er or earer

)ra+ee

Proi&&or2 Note

4i!! o( E6change

o $egotiation

o 4earer paper

o Or)er paper

o En)or&eent&

En)or&eent in !ank

#pecia! en)or&eent

Re&tricti$e en)or&eent

o Ho!)er in )ue cour&e

Chapter

Partie&

INANTS Age of :nfancy

o in(ant J inor

o eancipate) inor

Partnership

Agency


19/106

Disainding Contracts

o Nece&&itie&?

Parents? @iability

0inors? Torts

.ther %arties 0arried omen

:nsane Persons

:ntoicated Persons

Corporations

o Organize) un)er &tate !a+&

o Contracting proce)ure )i((erent

Ultra-ViresContracts

o Torts and Crimes of Corporations

o

The Corporate Beil

.ther !siness Entities Sole Proprietorship


20/106

Joint Bentures

eneral Partnerships

@imited Partnerships

.THER %ARTIES B"8N0"NTS

P82"SS:NA@ P"8SNS

Respondeat Superior

o Con&u!tant&

Chapter E

A8""0"NT

Contract Foration 1FFE(

o -e(inition > "the ani(e&tation o( +i!!ingne&&

to enter into a argain8 &o a)e a& to /u&ti(2

another per&on in un)er&tan)ing that hi&

a&&ent to that argain i& in$ite) an) +i!!

conc!u)e Kthe argainL0"

o #poken or +ritten?

o 6ntent


21/106

Rea&ona!e Man

Court +i!! con&i)er partie& intention& 0

o 2hat a8out dvertiseents5

o Continuing 1

(eality of greeent


22/106

Let3s talk a8out 7(EL7greeents

a 7*eeting of the *inds7 assues

o both parties "know the score"

o nobody has been prohibited from learning allof the facts

assuption especially applies to

o a contract reected by a written and signedinstrument

2hen is an greeent not

7(EL57 *istake

Fraud

6nnocent *isrepresentation

"uress

-ndue 6n?uence. . . Or when ASSE! IS O! O#$!AR%&

Types of *istakes


23/106

$nilateral 'istake

a mistake which one party to a contract makesabout the material circumstances surrounding thetransaction

o RELIEF

not usually

o REISSI!"

one party ay take advantage

clerical error, atheatical iscalculation

'$!$A# or (I#A!ERA# 'istakes

o 2hen is a contract )oidable*

*istakes a8out identity

*istakes a8out e4istence

o 2hen the value is di


24/106

o reliance 8y the in&ured party 9ledto:

o his or her detrient

Auestions a8out F(-"

2hat a8out oission of inforationBor facts not o8viously untrue5

Euivalent uality5 2hat is a fact5 2hat a8out opinions5 2hat a8out

7e4pert opinions57

2hat is fraudulent representation5(eckless disregard of the truth5

2hat if party doesn3t act on a

fraudulent stateent5 0ow a8out athird party5

6f in&ury doesn3t occur5

Chapter 9 > CON#I-ERATION

Engineering ,a+ an) Ethic&

!his is the tie that "inds. . .


25/106

E&&entia!& o( Con&i)eration

Con&i)eration u&t ha$e $a!ue

Con&i)eration u&t e !ega!

Con&i)eration u&t e po&&i!e at the tie the

contract i& a)e

Con&i)eration u&t e either pre&ent or (uture

o Unli#uidated $"ligation

Seal as onsideration

o %ncient !imes . . .

o ow it may "e composed . . .

o otary seals

#heories of onsideration

o 'argain !heory

%dhesion (ontracts

o )njurious *eliance !heory

Estoppel

o Moral (onsideration !heory

o"ligation to pay

Legal Detriment

o +romisor agrees,to give up some right

Forbearance

o +romise to give up a legal right


26/106

$ree%isting Duty

o (annot use same per-ormance as consideration in another

contract

#hapter 1"

,a+(u! #u/ect Matter

*&hen is a contractnot a contract. . . '*

,EGA, #4ECT MATTER

INTRO-CTION

o 'uaranteed


27/106

o Intentof parties at the timeof the contract.

INTENT

o %f both parities intended illegality . . .

o %f only one party intends . . .

o 9ost contracts can be perfomed both ways

o %f one party nows that . . .

o will not (!ID the contract

o EGception) =nlawful use in$ol$es heinous crime

CONTRACT# CONTRAR TO #TATTE OR

COMMON ,A%

#ontract may be unlawful if wording either e6pre&&e&or ip!ie&illegality

o %f a law passes following contract formation

o After passage. . .

o Prior to passage . . .

TPE OF #TATTE

o @aws passed for protection of public

o Hoid and unenforceable

o @aws passed for the raising of re$enue

o Enforceable 2usually3 subFect to penalties for a$oidance of statute

o #ourts loo at primary purpose of statute


28/106

HARM TO A THIR- PER#ON

o %f a ?rd persons would be harmed by a crime or tort in re. contract

performance

o contract will be held unlawful

o #ontract is an inducement to commit a crime or tort but

o #ommission not necessary to contract perf. . . .

o #ourts loo at strength of inducement and . . .

CONTRACT# THAT RE#TRAIN TRA-E

o #ontracts that create monopolies or main-tain price le$els areunlawful

o =nder Sherman Antitrust #layton Act S.S.

o Penalty for $iolation --

up to triple damages shown

Payment of #ourt #osts I Plaintiff legal fees

o Employment #ontracts - 4oncompetition

o *#o$enants not to compete* are considered restraints of trade

o Enforceable only to eGtent necessary to protect the legitimatebusiness interests of employer.

tra)e &ecret&

goo) +i!!

CONTRACT# FOR THE #A,E OF A 4#INE##

o #ourts will protect the purchaser of a business and the *good will*that goes with it.


29/106

o %f restrictions 2see below3 are reasonable courts will upholdrestrictions.

t2pe o( u&ine&&8 arket area

tie o( re&triction

o #ontracts for professional employment

o 5etail obligations to employer

con(i)entia!it2

in$ention&

Some employers want A@@ in$entions

Some employers set a time restriction after employment

o Enforceability of such contracts $ary state-to-state.

#R

9ost states ha$e laws limiting the rate of interest

o 6hen laws are $iolated attitudes $ary state-to-state

o In &oe &tate&8 court& +i!! not ai) in co!!ection o( principa! or intere&t

o In &oe &tate& a!! intere&t a& a re&u!t o( u&ur2 a2 e (or(eite)

o co!!ection o( principa! an) a60 a!!o+0 Int0

CONTRACT# CONTRAR TO P4,IC

PO,IC

#ontracts 2to be lawful and enforceable3 must conform to . . .

o #ommon law and the applicable statutes

o 6ritten and unwritten laws of the community

o 5ifficult because public policy constantly . .


30/106

o 5ef. -- #ontracts that if enforced and encouraged would beinFurious to society in some way

o 5oes a member of society ha$e to be inFured7

o

)E*il #endency) -- unenforceableE$i! Ten)enc2 - contracts in which the Fudgement or decision of publicofficials might be 2or has been3 altered by the contracts.

Any contract that tends to cause corruption of a public official may be

sub+ect to censure in the courts. So what about ,o2ing7

CON-ONE- ACT# OF ,O44ING

o 6ould impro$e or is harmless to public welfare

o 9eans used is abo$e reproach

o 4T #ontingent fees based on outcome of legislation areunlawful.

FRA- OR -ECEPTION

o #ontract which has the effect of practicing fraud or deception on athird person is against public policy and $oi).

o Employment recommendations . . .

4REACH OF TR#T OR CONFI-ENCE

o #ontracts that breach a trust or confidential relationship areagainst public policy.

o will not be supported in court

o Agency is an eGample

o agent acts for his principle while . . .


31/106

#ORCE# OF P4,IC PO,IC

o 8ederal and State #onstitutions

o Statutes

o Judicial 5ecisions

o 5ecisions and Practices of 'o$ernment Agencies

o #ourt:s sense of moral duty and Fustice

EFFECT OF I,,EGA,IT ON CONTRACT#o 'enerally no action in law or in e+uity can succeed if it is based

on an illegal agreement.

o The 5efense of %llegality is allowed . . .

a& a )i&ai!it2 to the p!ainti((

o Public %nterest is the determining factor

5isaffirmance of an illegal contract while the illegal portion isstill eGecutory allows . .

Chapter 11

#TATTE OF FRA-#

,&hen a contract needs to be in writing

INTRO-CTION

%f an Oral #ontract is generally as binding as a 6ritten #ontract why isa written contract better7


32/106

Terms easier to ascertain

Establishes relationship

#ontracts of more than a tri$ial nature . . .

ENG,I#H #TATTE OF FRA-#

6hy7

PerFured testimony on oral agreements

*An Act for the Pre$ention of 8rauds and PerFuries*

1K

9inimum writing re+uired

See p. 1B 2teGt3

#ECTION >> CONTRACT# %HICH M#T 4E %RITTEN TO

4E ENFORCEA4,E

Promises of eGecutor or administrator

Promises to act as surety

Promises based on marriage as consideration

Promises in$ol$ing real property

Promises taing more than a year to perform

Se$enteenth Section -- Sale of goods etc.

#ontracts will be unenforceable unless following actions taen)

o Part o( goo)&8 etc08 u&t e accepte) 2 u2er

o 4u2er u&t pa2 &oe earne&t one2 (or goo)&

o #oe note or eoran)u o( agreeent u&t e &igne)

#onsideration) 1" pounds sterling - L!""


33/106

PROMI#E# >> MORE THAN ONE EAR

@egal %nterpretation of a *year*

Time limit should be stated - e$en orally

o %mprobable contracts7

o #ontracts for *life7*

o %ncremental additions of time7

Partial Performance7

#A,E# OF GOO-#

=## adopted 1th section and changed wording slightly

Oral agreement $alid only if

o Some goods accepted by buyer or

o (uyer pays part of purchase price in earnest or

o (uyer signs note or memorandum or

o Party to be charged admits contract or

o 'oods specially made

PROMI#E# OF EECTOR#8 ETC0

!estator Eecutor and %dministrator

PROMI#E# TO ACT A# #RET

+rimaryor SecondaryPromises

o (ollateralPromise - Oral secondary promise

o %ndemnity contracts do not ha$e to be in writing. 6hy7


34/106

PROMI#E# IN CON#I-ERATION OF

MARRIAGE

9arriage is the highest consideration nown to law

o an agreement based on marriage settlement

o or neither is bound

Oral promises to marry are actionable under common law if. . .

REA, PROPERT TRAN#ACTION#

. . .*lands tenements and hereditaments.*

o Immo*ables -permanently attached to real property

o E$erything else is MMMMMMMMMMMM property.

6hat about *natural fruits of the land7*

o %mmediate remo$al

EFFECT OF THE #TATTE

%n some states contracts are $oid if

o in compliance with Statute of 8rauds 2S of 83

%n most states contracts not complying with S of 8 are merely $oidable

o S of 8 operates as a defense to enforcement

Performance under an oral contract

o E+uity court enforceable

#hapter 1B

THIR->PART RIGHT#

+ho bene,ts- and who is liable*


35/106

HI#TORICA, E3O,TION

+rivity o- (ontract - the relationship between the parties to a contract

o Early English law refused to recogni,e attempts to assign contractrights

o 6ealth was tangible

o 4ow wealth is embodied in intangibles

#ourts recogni,e three eGceptions 2or third-party rights3

THIR->PART RIGHT# -e(inition0 *ights assigned by a party to a contract are enforceable by

the third party.

o


36/106

o Assignment would materially impair . . .

6hat about rights to personal ser$ices7

Assignment of rights in nature of trust or confidence7

RIGHT# AN- -TIE#

Rightsare assignedN dutiesare delegated.

o %n absence of obligee:s assent duties 2can cannot3 be freely delegated.

o One who delegates is still responsible for performance of duties

"o*ation- rights and duties are effecti$ely transferred -- a 4E6

contract;

A##IGNEE# RIGHT#

%f the obligor has made partial payment to the assignor or has a counterclaimagainst same the right obtained by assignee may be subFect to such claims.

Assignee may ha$e rights against assignor for a breach of any eGpress orimplied warranties made by the assignor.

/ratuitous ssignment creates no rights.

NOTICE

A debtor cannot be charged with non-payment of a debt if debtorinnocently pays a creditor who has assigned the obligation.

o "otificationwill mae the assignment legally effecti$e agains debtor.

o Assignee notifies the obligor

Subse+uent assignments are unlawful.


37/106

%AGE#

Assignment of future earnings for a present debt . . .

o 'o$erned by Statute in most states -- $ary

o PART 4ENEFICIAR CONTRACT#

9ost third-party beneficiary contracts do not recei$e uniform treatment

in all Furisdictions

Only %nsurance contracts are treated e+uitably across states

IN#RANCE

%f insured purchases the insurance then subse+uently dies . . .

o Third party has right of action

%f beneficiary purchases insurance. . .

o must show an insurable interest

I"S0R"E1 cont.

o insurable interest in property -- ownership or lien . . .

%nsurable interest is limited by an economic tie

o to the amount of economic benefit eGpected

o or ris of loss eGpected

Time as factor in insurable interest

o life ins.- eGists at time insurance contract made

o property ins. - eGists when loss is suffered


38/106

-ONEE 4ENEFICIAR

=nsealed promise of future gift is unenforceable by donee as a contract

"ut

A donee beneficiary has the right to enforce a contract created to benefitthat person

CRE-ITOR 4ENEFICIAR

(lac owes 'ray L!"". 6hite and (lac mae a contract saying 6hite

will pay 'ray the L!"" owed by (lac.

o 6ho is the creditor beneficiary7

o 6ho can she sue7

INCI-ENTA, 4ENEFICIAR

6hen contracts indirectly benefit third parties

o The incidental beneficiary does not necessarily ha$e the right to tae legal

action

o 4o legally enforceable interest

#ontracts in which go$ernment is a party

o are citi,ens incidental beneficiaries7

4ew rule reformulates donee creditor and incidental beneficiaries into anew category--

Inten)e) ene(iciarie&- third party must show that recogni,ing a right toperformance is appropriate to gi$e effect to the parties: intentions and either

performance will satisfy obligation. . .

Promisee intended to gi$e third party . . .


39/106

%ARRANTIE#


40/106

o #ommercial 8rustration

Pre4ention of Performance

ai4er

Agreement

o reach2repudiation3

o #hoices for other party

o 5oes not apply to payment of a debt.

( OPEan;ruptcy

o Cistorically America was built by MMMMMMMMMM

o =.S. #onstitution

o (anruptcy Act of 1&&

o (anruptcy


41/106

(anruptcy an;ruptcy

Chapter ## >an;ruptcy

0eeting of :nterested Parties

Chapter E >an;ruptcy

Chapter # >an;ruptcy

The "state

Discharge

o @ist of debts not dischargable 2p. 1!-1K"3

o 5ischarge denied for . . .2p. 1K"3

Creditors? Compositions

Chapter #. 8emedies

*ay8e oney isn3t enough5

:NT8DFCT:N

(euireents for foration of lawful contract "ischarge of o8ligations under contract

"e%ned a contract


42/106

Types of 8emedies

"aages

(estitution

Speci%c Perforance

6n&unction

(escission

(eforation

DA0A"S "ef.# Copensation in oney awarded 8y a court

to one who has su


43/106

o Attempts to compensate the plainti/ for theplainti/0s actual losses

!%1ES- 2O'1ESA!OR% 3A'A4ES

4eneral 3amage

o 3amages that logically ow from wrongfulconduct or breach

Special 3amages

o 3amages resulting from a party0s particular

circumstances Eemplary 51uniti)e6 3amages

o 'ore 3amages than "Reasonable2ompensation."

o 1rimary 1urpose 7 punishing the defendant forreprehensible conduct and addedcompensation for shame- degradation- ormental anguish su/ered by the plainti/

#i8uidated 3amages

o 3amages that are a known amount or measure59:;;


44/106

o (ased on plainti/0s good faith parting withconsideration > defendant0s breached duty

Only restores what is lost or )alue of thing gi)en

E?$I!A(#E RE'E3IES

Speci,c 1erformance

o $ni8ue piece of property in)ol)ed

In@unction

o Originally- 1rohibiti)ein nature

o ow- also 'andatory

o $sed where irreparable in@ury toproperty is iminent- i.e. )eryprobable.

EOR2E'E! O RE'E3IES

+rit of Eecution

o Addressed to law enforcement authority

o 4i)es oBcer right to seiCe losers0 property

4arnishment

Attachment

'echanic0s #ien

2ontempt of 2ourt

C0PTE( D


45/106

SLES $" 2(($T6ES

12$E(S06P

2hats a Sale5

Can refer to a transfer of personalproperty

2hats 1wnership5

sale involves the transfer ofownership

Then, whats (isk of Loss5

(isk of Loss can involveTitle 91wnership:

6nsurance

$egotiation

"aage to goods

Tie of Transfer

!itle


46/106

2ho ust 6"E$T6F= thegoods5

/oth parties 98uyer + seller:

2hen can identi%cationhappen5

at any tie

in any anner

as long as there is eplicit agreement

"o goods need to 8e in a"EL6'E(/LE C1$"6T61$5

Generally, title passes in any manner and

on any conditions explicitly agreed to by

the parties

2hat if there is no e4plicitagreeent5

Title passes to 8uyer at the tie andplace at which the seller copletesperforance re. physical delivery ofgoods.

Risk of #oss


47/106

2hat if goods are S06PPE"fro seller to 8uyer5

2hen does risk pass froseller to 8uyer5

F.1./. # Freight on /oard

F..S. # Freight a8oard Ship

C. + F. # Cost and Freight

C.6.F. # Cost, 6nsurance, + Freight

Security Interest

2hats the e


48/106

2hat if the 8uyer cant akeall the payents5

"efault happens

"oes seller have rights5

(epossession

(esale

2hat are other types of

reedies5Court &udgeent, (epo and Lease, ...

Sale on Appro)al and Sale and

Return2hats a SLE 1$PP(1'L5

Letting the 8uyer have the goods for aperiod of tie.

Title rests with seller

pproval ay 8e e4press or iplied

2hats a SLE 1( (ET-($5

(isks of ownership pass to 8uyer


49/106

(eturn revests title and ownership

SLES C1$T(CTS

2hen does a provisioncontrol a contract5

2hen 8oth parties agree to provision

2hen 8oth parties dontagree5

-CC rules 7%lls any gaps7 in partiesagreeent.

'any agreements under common law

of contracts would be unenforceable-but would be enf. under the $22.

2(($T6ES

2hats a 2(($T=5dded ssurance for 8uyer

re there di


50/106

E4press 2arranties

1pinions

"escription or Saple6plied 2arranties

"isclaiers

Epress +arranties

2hy is a warranty like aproissory note5

Seller akes a contract siilar toinsurance. . .

2hats the di


51/106

2hy is an opinion not awarranty5

2arranty is a stateent of FCT.

2hat is 2AEA! E'1!OR*

Latin phrase eaning. . .

7Let the 8uyer 8eware!7

*ore responsi8ility is placed on the

seller

2hat happens when a sellero


52/106

2hat are the types of6*PL6E" 2(($T6ES5

;11" T6TLEF6T$ESS F1( P(ESC(6/E" P-(P1SE

*E(C0$T/6L6T=

;11"S ust at least

9D: pass without o8&ection.

9: 8e of fair or average uality

9G: 8e %t for ordinary purposes

*E(C0$T/6L6T=, cont.

9H: 8e of even kind, uality, and uantity withineach unit . . .

9: adeuately packaged . . .

9I: confor to proises or . . .

3isclaimers

2hat is a "6SCL6*E(5

Clauses that state that there are nowarranties 9e4press or iplied:, and

that 8uyer takes goods at 8uyers risk.

2hat a8out erchanta8ility5

ny disclaier a8out erchanta8ilityust 8e conspicuous


53/106

0ow do courts construedisclaiers5

PE(F1(*$CE + /(EC0

0ow does seller 7tenderdelivery57

Seller places conforing goods at8uyers disposal...anner, tie, place

2hat, then, are the 8uyersrights5

To inspect goods in a reasona8leanner 8efore accepting or paying for

the.

6f goods dont confor, whatare the 8uyers options5

9D:ccept, Pay, then sue at his option

9: (e&ect entire shipent

9G: ccept conforing coercialunits and re&ect the rest

2hat should the 8uyer dothen5


54/106

6nfor seller within a reasona8le tieand give reason

/-=E(S (E*E"6ES

6f seller 8reaches thecontract, what can 8uyer do5

9D:Liuidated "aages clause

9: 6f contract repudiated,

a. procure## 5damages would include price toco)er6

8. seek daages 8ased on . . .

9G: (ight to (eplevin 9recoverpossession of goods:

9H: 6f goods are uniue. . .

6f 8uyer rightfully re&ects orrevokes acceptance..

/uyer has a security interest and rights are thoseof a secured party

2hat if goods are non#conforing when delivered5


55/106

"aages ay take for of seto< or deduction froprice to 8e paid

SELLE(S (E*E"6ES

2hat are -CC reedies forthe seller5

9D:2ithholding "elivery

9: Sellers (esale#hapter 1K

CONTRACTING PROCE-RE

%hat )o +e )o a(ter +e &hake han)&?

PA8T:"S T A CNT8ACT2ho are the parties to a contract5

TGP"S 2 CNST8FCT:N

P8:BAT" 8HS


56/106

Def+ - those that are underta;en for an indi4idual or acompany

Pro=t moti4e is the usual reason for P

PF>@:C 8HS 0oti4e is public demand or need

o4erned by statutes

o to pre4ent d+++ c+++ and f+++ among bidders and bet)eenbidders and public o


57/106


58/106

Antagonistic interests of )ner and Contractor

Changes can be costly

Fp-front cost to contractor

reater uncertainty reater spread+++

CST-P@FS-P"8C"NTA" CST

Ad4antagesO 0ost rapid means of starting apro!ect ,::/ and most Qeible

CST-P@FS-P"8C"NTA" CST cont+

Disad4antagesO 8is;s of construction assumed by +

C?s pro=t tied to costs so+ + +

2ed?s don?t li;e this type of contract

CST-P@FS-2:M"D-2"" CNT8ACT

Def+-C is paid a =ed fee as pro=tR pic;s up epenses for

all of contractor?s costs+

Ad4antagesO

>est for both parties

Changes )ould be )orse for C

Disad4antagesO

Precludes a timely start+ hyK

FN:T-P8:C" CNT8ACT

hat does unit-price includeK

ho 2igures the 9uantities for FP


59/106

Ad4antagesO 2leible C?s uncertainty isrelie4ed

Disad4antagesO

Cannot begin immediately

has no precise ;no)ledge of cost until termination

BA8:AT:NS

:ncenti4e system

Pro=t-sharing

8e4erse @i9uidated Damages

0anagement Contract

STA"S 2 A P8J"CT

2easibility StudiesDesign

@egal Arrangements

Preparation of Contract Documents

Ad4ertisement

:nstructions for >iddersThe Proposal

Agreement

STA"S 2 A P8J"CT cont+


60/106

>onds

>id >ond

Performance >ond

@abor and 0aterial Payment >ond

eneral Conditions

2inal Considerations

Collusion

@o)est 8esponsible >idder

CNT8ACT8?S CSTS

Direct @abor

Fringes

or;er?s Compensation

Social Security

oliday and Bacation Pay

0edical and @ife :nsurance

4ertime and shift premiums

8etirement 2unds

Stoc;-buying Pro=t-sharing

Availability and Transportation of Personnel

0aterials

Availability and Transportation ofMaterials


61/106

Storage

isposal and Clean-up

4erhead Contingencies Pro=tChapter #E

SP"C:2:CAT:NSEverything you wanted to know, 8ut were afraid to ask!

INTRO-CTIONSPEC6F6CT61$S

"efJ "escription of work to 8e done or things to 8epurchased

o 1ccur in every area of engineering

o /uilding Construction

o *achinery and Euipent

2hy are specs in writing5

Create a peranent record

/ecoe part of the contract

Prevent costly lawsuits 9freuently:

ssure planning

/ased on practicality and eKciency

#PECIFICATION %RITING


62/106

ST=LE

Should 8e written with great clarity

P(EC6SE 21("6$;

2hat if writing were reviewed in court

(EFE(E$CE SPEC6F6CT61$S

2hy are they needed5

ARRANGEMENT

;E$E(L P(1'6S61$S

Schedule of 2ork

Changes and E4tra 2ork

o 0ow to pay for E4tra 2ork5

1ther Suppliers

"rawings

;E$E(L P(1'6S61$S 9Continued:

o 6nforation ;iven

o Services Furnished

o (eceipt and Storage of *aterials

o 2age (ates

o Safety

"ET6L SPEC6F6CT61$S

o *aterials


63/106

o A2ork Auality

o r8itrary Speci%cations

o (elations 8etween 1wnerContr.

o Eual or 7*asterServant7

#hapter 1&

A"NCG%hen 2ou act (or an) repre&ent 2our copan20

INTRO-CTION

T=PES 1F /-S6$ESS (ELT61$S06PS

"mployer-employee relationship

2Sometimes called 9aster-Ser$ant3

)ner-independent contractor relationship

Agency 8elationship

Principal

o has right to control conduct of the agent

Agent

o has authority to affect the principal:s legal relationship with others

o) does Agency diLer from the "mployer-"mployee relationshipK


64/106

hat determines )hether the relationshipis "mployer-"mployee or )ner-:ndependent ContractorK

hy is this importantK

Are there only t)o parties in an AgencyK

CREATION OF AGENC

Agreement %ntent - eGpress or implied

Power of attorney

8ati=cation

Authority is


65/106

bedience

Care and S;ill


66/106

Fndisclosed Principal

TERMINATION

>y @a)

>y Acts of Parties

Agency )ith an :nterest

Notice

hat about PARTNER#HIP#K

hat about CORPORATION#K

Chapter 19

TANGIBLE PROPERTY

T=PES 1F P(1PE(T=

REAL PROPERTY

Land and anything firmly attached theret

PER!ONAL PROPERTY all prperty ther than real prperty

gd"

chattel"

choses in action


67/106

mney

acc#nt" recei$a%le r ther e$idence" fde%t

PE(S1$L P(1PE(T= CHATTELS& "ynnym#" 'ithPer"nal Prperty

Chattels Personal in Possession

tangi%le item"

Chattels Personal in Action (Choses in

Action)

intangi%le right" ari"ing frm a trt rcntract

patent"( cpyright"( trademar)" *!eeChapter +,-

AC./I!ITION

ORIGINAL AC./I!ITION

cc#pancy

creatin

acce""in

PROCE0/RE O LA2

2hen a per"n die" 3 3 3

2hen a mrtgagr defa#lt"3 3 3

2hen prperty i" "ld t "ati"fy a 4#dgement fthe c#rt3 3 3

2hen a%andned prperty i" f#nd3 3 3

2hen prperty f a %an)r#pt indi$id#al i" "ld3 33

ACT! O OT5ER PER!ON!


68/106

2ill

Gift

Cntract *!ee Chapter 16-

QCnf#"in

*8ungible 'oods*

A%andnment( L"t r mi"laid prpertie"

BAIL7ENT

A relatin"hip 'hich re"em%le"prperty 'ner"hip

Re8#irement" f Bailment Title remain" 'ith %ailr

P""e""in f Prp3 I" cmpletely"#rrendered t Bailee

Partie" intend ret#rn at end f %ailment

0#ty f Care

Primary Cn"ideratin"

nat#re f prperty in$l$e

p#rp"e f %ailment

2hat i" Ordinary Care:

Bailee;" Right" and 0#tie" *p3 +T/RE!

Per"nal prperty that %ecme"attached t real prperty

Generally( 'ner"hip f a fi?t#re ge" t the'ner f the real e"tate3 3 3


69/106

Unless something appears to the contrary

*Intentin f partie" 'hen the fi?t#re i"attached3-

(EL P(1PE(T=INTRO0/CTION

*definitin( re$i"ited-&Land andanything affi?ed firmly theret3

2hat are the limitatin" t'ner"hip f real prperty:

E@OL/TION O PROPERTY RIG5T!

e#dal !y"tem and 2illiam theBa"tard

Land %elnged t 3 3 3 :

Parceled #t t Gentry

2h:

2hat 5appened at death:

Replaced 'ith pr$i"in" that 3 3 3

IN0! O E!TATE!

REE5OL0 && e"tate f #ndeterminedd#ratin in real prperty

E"tate in Fee Simple

Rights of holder in fee simple

Life E"tate

Rights of holder of life estate


70/106

Le"" than reehld

#t#re E"tate

T($SFE( 1F (EL P(1PE(T=2AY! TO TRAN!ER

By 2ill r Inheritance

By !ale

By Gift

By Legal Actin

TRAN!ER BY 2ILL

2ill( Te"tament( *La"t- 2ill andTe"tament

Age f te"tatr

7ental Capacity f te"tatr !#fficient capacity t cmprehend prperty

Capacity t cn"ider all per"n"3 3 3

/nder"tanding that he"he i" ma)ing a 'ill

2h 7ay Inherit:

Type" f 'ill"

Ordinary 'ill 'ritten 'ith 'itne""e"

5lgraphic 'ill"

N#nc#pati$e 'ill


71/106

2itne""e" *'h( 'hat( 'hen( 'here('hy:-

E""ential" f a @alid 2ill

In 'riting

!igned *%y 'hm and 'here- and "ealed*'here-

7#"t %e 'itne""ed *e?ceptin:-Te"tatr m#"t "ign in pre"ence f'itne""e"3

7#"t %e p#%li"hed

Cdicil" *2hen( 2hat( 2h( Legal"ignificance-

Pr%ate *2hat( 2hen( 2h( 5'lng-

TRAN!ER BY 0EE0

Cn$eying real prp3 By "ale rgift re8#ire"3 3

ind" f 0eed"

.#it&Claim

2arranty

E""ential" f a 0eed

Name grantr( grantee( and cn"ideratin

Prperty de"cri%ed r identified

2rd" f cn$eyance 'itne""ed( deli$ered(and accepted

Recrding


72/106

*t ha$e f#ll "tanding at la'( a m#"tD-

Title !earch

2hat( 'h( h' far %ac):

Title In"#rance

2hy:

2h "earche":

O#tcme:

TRAN!ER BY 7ORTGAGE

Cntract %et'een mrtgagr*%rr'er- and mrtgagee *lender-

7rtgage Therie"

0efea"i%le cn$eyance"

E8#ity f Redemptin

Lien Thery

Title Thery

rmality *m#"t %e in 'riting"imilar t deed-

R7rtgagr;" 0#tie"

aste *'hat( 'hen( 'here( 'hat happen"-

m#"t pay all ta?e"( a""e""ment"( and

in"#rance

m#"t ma)e payment" 'hen they are d#e

2hat a%#t early payment:

7rtgagr;" right"


73/106

Rea"na%le #"e f prperty *p3 +9-

A" lan %alance decrea"e"( right" increa"e*+91-

prperty may %e 'illed( "ld( r gi$ena'ay *"#%4ect t3 3 3-

7rtgagee;" right"

Right" f a""ignment *ntificatin-

Right t frecl"e3 !eficiency decree

*2hat( 'h( 'hat happen":-

TRAN!ER BY LAN0 CONTRACT! /nder Title Thery( re"em%le"

mrtgage 8#ite cl"ely

The p#rcha"er( ma)e" d'npayment( then agree" t a "erie" fpayment"3 2hen he red#ce" the%alance %y "me "et am#nt( the"eller 'ill deed the prperty t

the %#yer and ta)e a fir"tmrtgage3

Incl#de all payment" d#e immediately if%#yer mi""e" a payment3 n'n a" strictforeclos"re#

TRAN!ER BY E7INENT 0O7AIN

*A pri$ate party ha" a

le""er right t p""e""in and#"e f prperty than de" ap#%lic %dy-

!metime" )n'n a"condemnation#


74/106

Cmpen"atin i"made accrding t ana""e""ment f the

mar)et $al#e f theprperty ta)en3

TRAN!ER BY 0E0ICATION

2hen 'ner" dnate pri$ate land fr p#%lic #"e3

N frmality i" re8#ired fr ffer

2hen an ffer i" e?pre""ly made(it i" #"#ally an"'ered %y e?pre""ed

acceptance3

5'e$er( maintenance fp#%lic prperty maycn"tit#te impliedacceptance

Trt lia%ility ma)e" thedeterminatin f 'h 'n" theprperty $ery imprtant3

TRAN!ER BY A0@ER!EPO!!E!!ION

Ad$er"e p""e""inre"#lt" in an entirely ne'title %eing i""#ed*in"tead f 3 3 3-

#r general re8#irement"

#.P""e""in m#"t %e pen(ntri#" act#alcc#patin3


75/106

+ P""e""in andcc#patin m#"t %e ad$er"et 'ner;" intere"t3

+7#"t %e cntin##" $er the

"tat#try perid re8#ired3

.+7#"t %e claim of rightr color of title%y thep""e""r3

F1(*S 1F 12$E(S06P

0IERENT TYPE! O PROPERTY

O2NER!5IP

Tr#"t"

Tr#"tee r Beneficiary

2h ha" legal title( and'h ha" e8#ita%le title(and 'hat are the"e:

Right" in Cmmn Partner"hip

Fint Tenancy

Tenancy in cmmn

Tenancy %y the Entiretie"

Cmm#nity Prperty

Real Prperty Lea"e"

Creatin and Characteri"tic"

Le""r and Le""ee( rLandlrd and Tenant


76/106

Right" t #"eand en4yment area%#t the "ame a"that f'ner"hip3

Pr$i"in" f Lea"e cntract %indthe partie"

2hat a%#t OralPrmi"e":

C$enant" e?pre""ed inlea"e agreement 'ill %eadhered t in c#rtinterpretatin

Tie liits5 0efiniteperid f time mnth tmnth( etc3 tenancy at'ill and tenancy at"#fferance3

o Tenant;" right" may %e a""igned t ther"(#nle"" 3 3 3

o Landlrd;" Right"

cmpen"atin

cme peacea%ly n premi"e"t cllect rent 'hen it i" d#e

E@ICTION

may %ring an actin fr'a"te again"t the tenant

ha" right t pre$ent third

partie" frm in4#ring prpertyr3 3 3

Tenant;" Right"

right t prperty freefrm interference %ylandlrd3


77/106

Right tapp#rtenance" nthe prperty("#ch a"%#ilding"3

Impr$ement" n theprperty:

Lia8ility ##Tenant, usuallyB8ut what a8outtenant3s in&uries5

Ta?e" and a""e""ment"again"t the prperty:

0IERENT TYPE! OPROPERTY O2NER!5IP

EA!E7ENT!

2ATER RIG5T! *RIPARIAN RIG5T!-

/N0ERGRO/N0 2ATER

PRIOR APPROPRIATION

#hapter B"

%4TE@@E#T=A@ P


78/106

Engineers and %n$ention

The Patent


79/106

ASS%'49E4T 2#ont.3

Shop


80/106


81/106

@icensing and 8ranchising

#OP


82/106

9easures of Actual 5amages

Plaintiff:s Actual @osses

5efendant:s Profits

A reasonable royalty

Chapter 21

COMMON TORTS

NEGLIGENCE

Most torts based on NegligenceDefinition

The o!ission to do so!ething "hich a reasonable !an# g$ided

b% those ordinar% considerations# "hich ordinaril% reg$late

h$!an affairs# "o$ld do&

'laintiff needs to pro(e& & &

The e)istence of d$t%

a breach of that d$t%

a sho"ing that the breach ca$sed in*$r%

da!ages d$e to in*$r%&

Legal D$t% + I!portant ,actors

,oreseeabilit% of in*$r%

-cti(e or 'assi(e Cond$ct

Reasonable Care

Ser(ices necessar% for protection

E)istence of Contract$al Obligations

Standard of Care


83/106

De(eloped $nder Co!!on La"

Degree of care e)ercised b% a

Reasonabl% 'r$dent 'erson

Nor!al Intelligence

Me!or%

Capacit%

S.ill

Modifications in appropriate sit$ations

See p&/02# col& 2# last paragraph

'ro)i!ate Ca$se

M$st be a s$bstantial ,actor in In*$r%

Ca$se in ,act

b$t for& & & standard

Legal Ca$sation

depends on the connection bet"een ca$se and effect&

NEGLIGENCE + Cont&

Res Ipsa Lo3$it$r

The thing spea.s for itself

'laintiff !$st sho" N& and that Defendant had control of the

instr$!entalit% ca$sing in*$r% and that 'laintiff in no "a%

contrib$tes to in*$r%&

Defense $s$all% consists of sho"ing that he or she did e)ercise

the re3$isite care&

Gross Negligence

Rec.less Disregard for conse3$ences


84/106

'$niti(e Da!ages

Negligence Defenses

-ss$!ption of Ris.

Contrib$tor% Negligence

Co!parati(e Negligence

TORTS -G-INST - 'ERSON

-ssa$lt

Threat of 4iolence

5atter%

Intentional and $nla"f$l to$ching

,alse I!prison!ent

Malicio$s 'rosec$tion

-b$se of 'rocess

TORTS -G-INST RE'6T-TION

Defa!ation

Slander + oral defa!ation

Libel + "ritten defa!ation

Defenses

Tr$th + no defa!ation

'ri(ilege

Co!!on La" + strict liabilit%

1st -!end!ent


85/106

're(ents Strict Liabilit% "hen s$b*ect is a p$blic fig$re or spea.er is a !edia

person

TORTS -G-INST 'RO'ERT7Trespass

Repeated

8ho controls the propert% incl$ding renters

'ersonal rights ta.e precedence o(er propert% rights&

Trespass E)ceptions + Co!!on La" in(ol(ed no

finding of intent or Negligence

Ease!ent or License

-ttracti(e N$isance

Con(ersion

Tort Co$nterpart to the cri!e of theft

8rongf$l retention of another9s personal propert%

8rongf$l alteration and "rongf$l $se of propert% b% persons

other than the o"ner&

Con(ersion !a% arise in instances of 5ail!ent

Re!edies

S$e on tort of con(ersion

Maintain an action in reple(into regain propert%

TORTS -G-INST ECONOMIC RIG:TS

Co$rts tend to enco$rage efficience lo"er cons$!er

prices e)cept in cases of ;;;;&

,ra$d


86/106

Ele!ents of ,ra$d

Negligent Misrepresentation a tort

Ind$cing 5reach of Contract

tortio$s interference

,alse -d(ertising

6nder Co!!on La" + -ction for ,ra$d

,TC + See.s to pre(ent decepti(e ad(ertising

Lanha! -ct trade!ar. st$ff# re!e!ber


87/106

?$stification e)ists if defendant can pro(e that an

ine(itableaccidentca$sed in*$r%&

TIME LIMIT-TIONS'ro!pt -ction is called for

Laches + definition

'laintiff slept on his rights too long

DISC:-RGE O, TORTS

Defendant !a% discharge obligation to pa% forda!ages b%

-gree!ent bet"een parties

If *$dge!ent is for defendant# tort is discharged&

-!o$nt of *$dge!ent

O$t+of+poc.et plaintiff costs

Co!pensation for pain and s$ffering

Tort feasor !a% ha(e to pa% e(en after ;;;;;&

Chapter ;;

PRO-CT# ,IA4I,IT

2IS#!R3 !F $R!D0#S LI4ILI#3

Early 1istory 2Seller3s De-enses 4a*eat Emptor

,a+ )i) not &upport 4u2er& Neg!igence

$ri*ityo( Contract


88/106

!he 56th (entury

McPher&on $0 4uick Motor Co0

Neg!igence Theor2Producer:s duty

5uty 4eglected

4eglected duty ProGimate #ause of Pl. %nFury

%arrant2 Theor2

%mplied 9erchantability

Promise

=.S.A.-2=niform Sales Act3 - 6arranty protected thePurchaser only

=## - EGpanded protection -- howe$er the action wasbased on the contract.

S#RI# LI4ILI#3

9ost states generally follow the rule of productsliability as it appears in sec. D"BA of the


89/106

!he +L%)!)773S (ase 2cont.4

Plaintiff:s Proof

*Out of Pocet* costs@asting effects of inFury

Producer:s neglect of safety considerations.

8888888888888888

5efecti$e Product

5esign 5efects

9anufacturing 5efects

9areting 5efects

Cidden 5efects

5isco$ery

5amages

=ser or #onsumer

!he DE7ED%!3S (ase

5efendant:s #ase

Product Alteration

Ob$iousness 2#ontributory negligence3

Abusi$e use of product

8unctional necessity of design product or warnings and state ofthe art.

#ompliance with standards

4o proGimate cause


90/106


91/106


92/106

6ho hires the administrator after appointment7

A59%4%ST


93/106

Procedural 8airness

Q 6hy is it needed7

Q Administrati$e Procedure Act

Q 8ederal


94/106

Ad$isory Opinions

#O4T


95/106

Other nin Cnstraints

e$$w +g Cntract

Lar In7&nctin

nin S#rti-e Legis$atin

0204,C$a%tn Act

0238,Nrris,LaG&ardia Act

Natina$ Lar 9e$atins Act , 0235

a:a Wagner Act

set the NL9;

secndar% %ctt? 7&risdictina$stri:es and !eatheredding a$$ &t$awed

6,da% stri:e ntice re@&ired

edera$ "ediatin and cnci$iatin ser-ice

Made &nins res#nsi$e !r trts s the% c&$d e s&ed(

S"eti"es ca$$ed the S$a-e Lar Act

nins sti$$ eB#anded 'AL and CIO)

A&si-e ractices

* the MC$e$$an C&11ittee

HI#TORICA, 4AC*GRON- cont

Landr&",Gri!!en Act ,'Lar,ManagDt 9e#rtingand +isc$s&re Act ! 0252)


96/106

Ca&sed e"#$%ers? $ar rgani.atins? and their !!icia$st adhere t high standards ! res#nsii$it%? ethica$ cnd&ct

Had teeth '!ines and i"#risn"ent)?


97/106

&nctins as an% ther edera$ Agenc%

&risdictinF E"#$%er in Interstate C""(

* A$s? e"#$%erDs -$&"e ! &siness eBceeds set d$$ar$i"its !r a #artic&$ar ind&str%

What ha##ens when NL9; re!&ses 7&risdictin

E1+$&ee Re+resentati&n 8ste+s in se$eting a 0argaining agent9

etitin

In-estigatin

E$ectins

&a$i!ied ters

Ca"#aigning


98/106

Law!&$ nin Cercin

Stri:es

I! the &nin has n cntract #r-isin arring it

!r" stri:e orcntract ti"e has r&n &t? then ( ( (

Ecn"ic Stri:e

n!air Lar ractice Stri:e

Sit,dwn Stri:e

ic:eting

C&rts ha-e -iewed #ic:eting s"ewhat $ess that a

!&$$ ( ( (

;$ac:"ai$ ic:eting

Methds? Changes and rtected Wr:

reser-atin C$a&se

eatheredding

Chapter ;. %OR*ER#COMPEN#ATION

IE ..:


99/106


100/106

Some state laws re+uire co$erage 2with *teeth*3

pro$ides employer with immunity from suits eGcept grossnegligence intentional misconduct.

6orer ne$er has to pay for co$erage

Employer may self-insure in some states

EGceptions in e$ery state

agricultural employees

domestic ser$ants

independent contractors

casual worers and/or worers in religious or charitableorgani,ations

minimum number of employees

owners as employees

@aws tend to eGpand with time

Premiums

#osts reflects employer:s insurance company:s premiumre+uirement

Premium for co$erage on a gi$en Fob in insurance company:s ratemanual

usually based on L1"" of payroll costs 2the more ha,ard thehigher the premium3

8uture Premiums may be raised or lowered according toemployer:s eGperience rating.

Second %nFury funds

6hat they are

4early all laws limit the second employer:s responsibility to theinFuries suffered in second employer:s Fob.


101/106

#reated mostly by legislati$e appropriation

Amount of #ompensation

5epends on

nature of the inFury

specifications of worer:s compensation law


102/106

%ntentional self-inflicted inFury

Cha+ter ,6 SAET;

IE 4553/6553Engineering Law and Ethics

AC


103/106

!ree !r" recgni.ed ha.ards

$i:e$% t ca&se death r seri&s #h%sica$ har"

Sha$$ c"#$% with OSH standards #r"&$gated &nder thisAct(

E"#$%eeDs res#nsii$ities

t c"#$% ( ( ( With a$$ r&$es which are a##$ica$e t his wnactins and cnd&ct

A##$icai$it%

Cngress #assed OSHA ( ( (

OSHA is $i"ited in 7&risdictin t c"#anies that a!!ect

interstate c""erce(

C&rts tend t ta:e an eB#anded -iew ! what cnstit&tesinterstate c""erce

Nt intended t re#$ace c-erage % ther !edera$ acts rwr:erDs c"#ensatin

.SHA- cntin&ed


104/106

+irectr res#nsi$e t SecD% HHS? &t is re@&ired t wr:c$se$% with SecD% Lar

9esearch and Ed&catin !&nctins


105/106

Standards

What is sa!e en&gh

When OSHA was created? gi-en 8 %ears t eBa"ine and

ad#t cncens&s standards

wh$esa$e ad#tin ! ind&str% standards? state standards?ANSI standards? standards !r" ther s&rces(

High$% &se!&$? "di!ied? &se$ess

EBa"#$eF gr&nd,!a&$t #rtectin standard(

'see #( 446,4=)

Standard Setting and 9&$e Ma:ing

ariances


106/106

A##ea$

ena$ties

Seri&s i$atin r Wi$$!&$ i$atin

Aate"ent erid

9ecrd Jee#ing

A$$ &t !air$% tri-ia$ wr:,re$ated in7&ries r i$$nesses "&st erecrded

9ecrds "&st e a-ai$a$e !r c"#$iance

E-en S"a$$ &sinesses "&st :ee# recrds

E-en recrd ccatina$ in7&ries res&$ting in death? $stwr:da%s? restrictin ! "tin? $ss ! cnsci&sness? 7trans!er? "edica$ treat"ent ther than !irst aid(

OSHA and the $itica$ En-irn"ent

When OSHA was rn

When the : was written