1. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1 David P. Twomey - Boston College Marianne M. Jennings - Arizona State University

2. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 2 Chapter 9 Torts Torts

3. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 3 A.General Principles 1.What Is A Tort? 2. Tort And Crime Distinguished 3. Types Of Torts

4. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 4 A. General Principles 1.What is a Tort? –Tort is a non-criminal or civil injury to a person or her property interests. 2.Torts and Crime Distinguished. [LO.1] –Crime arises from violation of public duty, whereas tort arises from violation of private duty. –Same act can be both a crime and a tort.

5. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 5 A. General Principles 3.Types of Torts: –Intentional: substantial certainty. –Negligence: breach of standard of care. –Strict Liability: liability without fault.

6. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 6 B.Intentional Torts 4. Assault 5. Battery 6. False Imprisonment 7. Intentional Infliction Of Emotional Distress 8. Invasion Of Privacy

7. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 7 B.Intentional Torts 9. Defamation 10. Product Disparagement 11. Wrongful Interference With Contracts 12. Trespass

8. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 8 B. Intentional Torts 4.Assault: Fear of imminent harm with means to do it. [LO.2] 5.Battery: intentional, wrongful touching of another (the completion of the assault). 6.False Imprisonment. –Intentional detention without consent. –Shopkeeper’s Privilege permits detention for reasonable time with reasonable suspicion.  Dillard Department Stores case: Shopkeeper’s Privilege did not apply because the detention was not in a reasonable manner.

9. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 9 B. Intentional Torts 7.Intentional Infliction of Emotional Distress. –Outrageous conduct which goes beyond all bounds of decency. 8.Invasion of Privacy. [LO.3] (A)Intrusion into plaintiff’s private affairs. (B)Public disclosure of private facts. (C)Appropriation of another’s image or likeness for commercial advantage.  Bosley case: anchor’s wet t-shirt image was used without consent for profit.

10. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 10 B. Intentional Torts 9. Defamation. –Untrue statement published to a third party that damages a person’s property interest. –Slander is oral defamation. –Libel is written (broadcast, internet).

11. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 11 B. Intentional Torts 9.Defamation: Privilege. [ LO.4] –Absolute Privilege: when members of Congress speaking on floor of senate or House, witnesses in court proceedings. –Qualified Privilege: as long as released without malice and a retraction is made. –Qualified Privilege extends to workplace when statement is made to protect interests of private employer.

12. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 12 B. Intentional Torts 9.Defamation: Privilege. [ LO.4] –New Statutory Privilege: for truthful letters of recommendation about former employees.  Randi W. v. Muroc case: misleading letters of recommendation give rise to employer liability.

13. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 13 10.Product Disparagement. –False statement about a product. –Slander of Title/Trade Libel. 11.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. 12.Trespass. B. Intentional Torts

14. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 14 C. Negligence 13. Elements Of Negligence 14. Defenses To Negligence

15. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 15 C. Negligence Negligence exists when a person acts with less care than is reasonable, causing foreseeable injury. [LO.5] 13.Elements: (A)Duty to Exercise Reasonable Care. Professionals: Malpractice.Professionals: Malpractice. (B)Breach of Duty. By statute or reasonable person standard.By statute or reasonable person standard. May be established by an ‘expert’.May be established by an ‘expert’.

16. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 16 C. Negligence 13.Elements: (C)Causation. Connects duty with injuries to plaintiff. ‒ “But For” defendant’s action, plaintiff would not have suffered the injury. ‒ Proximate Cause: plaintiff’s injury was foreseeable. Palsgraf case: Plaintiff was too far away for injury to be foreseeable.

17. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 17 C. Negligence 13.Elements: (D)Damages. ‒ Past and future pain and suffering, physical impairment, medical care, loss of earning capacity. Experts help juries “quantify” the injuries. ‒ Joint and Several Liability: when actions of two or more defendants impose liability on all actors. Each one is responsible for all injuries.

18. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 18 C. Negligence 14.Defenses to Negligence. (A)Contributory Negligence: plaintiff’s partial negligence bars recovery for his injuries.  Hardesty v. American Seating case: plaintiff’s negligence was a bar to recovery in Maryland. (B)Comparative Negligence: determines the fault of both parties. If Plaintiff is >50% at fault, he recovers nothing.

19. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 19 C. Negligence 14.Defenses to Negligence. (continued) (C)Assumption of Risk: burden is on defendant to prove plaintiff knew about risk and chose to proceed. Express Assumption: usually exculpatory writing.Express Assumption: usually exculpatory writing. Implied Assumption: subjective, based on circumstances.Implied Assumption: subjective, based on circumstances. (D)Immunity: governments are generally immune from tort liability.

20. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 20 D. Strict Liability 15. What Is Strict Liability? 16. Imposing Strict Liability

21. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Twomey-Jennings, Anderson’s Business Law and the Legal Environment, 21 st Ed. 21 D. Strict Liability 15.What is Strict Liability? [LO.6] –Absolute liability imposed by law to protect the public or ultra-hazardous activities such as dynamite excavations. 16.Imposing Strict Liability. –Can involve transportation of toxic materials, but most common is product liability.