Law for Business, 15e by Ashcroft Chapter 3: Business Torts and Crimes Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning

3.2 Chapter 3 Objectives  Discuss the basis for intentional and negligent tort liability.  List and explain the generally recognized business torts.  Explain what business crimes are.  Describe what computer crimes are and the three types that affect business.

3.3 Torts To recover for a negligence tort, the injured party must show:  Duty of tortfeasor and breach of duty;  Breach was the cause of injury;  Actual damage or injury.

3.4 Torts To prove a breach of contract, the injured party must prove:  Defendant knew of contract  Intentional interference caused breach  Actual breach Contract

3.5 Product Liability  Manufacturers are potential liable for injuries caused by the products.  A person injured through use or condition of a product could sue on the basis of the manufacturer’s negligence.  The plaintiff must prove negligence.  Unless plaintiff shows negligence, it is unlikely the plaintiff will be able to prove negligence.

3.6 Business Torts  Interference with a contract or economic advantage occurs when a business relationship has been formed, and a third party causes a breach of that business relationship.  Confusion about a product looks at:  Injurious falsehood  Confusion of source

3.7 Trademarks  Trademarks: words, symbols, or devices used to distinguish one’s goods from another’s.  Includes only those marks used by a business that distinctively differentiates it from others.  A secondary trademark has come into use through common practice.  Trademarks may be registered or unregistered.

3.8 Determining Confusion of Marks  Similarity of the marks  Similarity of products  Similarity of marketing and customers  Similarity and amount of advertising  Area of overlapping use  Intent of parties in adopting the marks  Strength of the marks  Actual confusion by the public

3.9 Types of Business Crimes 1. Theft  Shoplifting  Embezzlement  Larceny 2. RICO cases 3. Computer crimes  Trespass  Fraud  Criminal copyright infringement

Do you have any questions? ???