1. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning Chapter 9 Torts Twomey Jennings Anderson’s Business Law and the Legal Environment, Comprehensive 20e Anderson’s Business Law and the Legal Environment, Standard 20e Business Law: Principles for Today’s Commercial Environment 2e

2. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 2 General Principles Tort is a non-criminal or civil injury to a person or her property interests. Torts and Crimes Distinguished. Types of Torts: –Intentional: substantial certainty. –Negligence: breach of standard of care. –Strict Liability: liability without fault.

3. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 3 Intentional Torts False Imprisonment. –Intentional detention without consent. –Shopkeeper’s Privilege permits detention for reasonable time with reasonable suspicion. Intentional Infliction of Emotional Distress. –Goes beyond all bounds of decency. –Outrageous conduct.

4. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 4 Intentional Torts Invasion of Privacy. –Intrusion into Private Affairs. –Public Disclosure of Private Facts. –Appropriation. Defamation. –Untrue statement published to a third party that damages a person’s property interest. –Slander is oral defamation. –Libel is written (broadcast, internet).

5. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 5 Product Disparagement. –False statement about a product. –Slander of Title/Trade Libel. Wrongful Interference with Contracts. –Third party (A) substantially interferes with a contract between B and C, causing either B or C to break the contract. Trespass. Intentional Torts

6. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 6 Negligence Exists when a person acts with less care than is reasonable, causing foreseeable injury. Elements: Is There a Duty? Is There a Breach of Duty. Is There Causation? Was the Plaintiff Damaged?

7. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 7 Defenses to Negligence Contributory Negligence. –Plaintiff’s partial negligence for his own injury that bars recovery. Comparative Negligence. –Determines the fault of both parties. –If Plaintiff is >50% at fault, he recovers nothing. Assumption of Risk. –Burden is on Defendant to prove Plaintiff knew about risk and chose to proceed.

8. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 8 Liability for Negligence Immunity. Negligently Caused Mental Distress. Bystander Recovery. –Limited to spectators who are closely related to plaintiff.

9. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 9 Strict Liability Absolute standard of liability. There are few defenses. Example: ultra hazardous activities such as dynamite excavations.