Principles of Risk Management Chapter 19 Key Terms

Alternative dispute resolution (ADR)

a technique for resolving a legal dispute without litigation

Arbitration

a technique by which parties in a dispute agree to be bound by the decision of an independent third party

Assumption of risk

Under this doctrine, a person who understands and recognizes the danger inherent in a particular activity cannot recover damages in the event of an injury

Attractive nuisance

a condition that can attract and injure children

Class action lawsuit

a plaintiff pursues damages from a defendant or a group of defendants on behalf of a group of individuals (the class) who have also been harmed.

Collateral source rule

the defendant cannot introduce any evidence that shows the injured party has received compensation from other collateral sources

Comparative negligence law

if both the plaintiff (injured person) and the defendant (party accused of negligence) contribute to the plaintiff's injury, the financial burden of the injury is shared by both parties according to their respective degrees of fault.

Compensatory damages

awards that compensate injured victims for the losses actually incurred

Contributory negligence

if the injured person's conduct falls below the standard of care required for his or her protection, and such conduct contributed to the injury, the injured person cannot collect damages

Dram shop law

a final example of imputed negligence. Under such a law, a business that sells liquor can be held liable for damages that may result from the sale of liquor

Elements of negligence

- Existence of a legal duty

- Failure to perform that duty

- Damage or injury to the claimant

- Proximate cause relationship between the negligent act and the infliction of damage

Existence of a Legal Duty

protect others from harm

Family purpose doctrine

the owner of an automobile can be held liable for the negligent acts committed by immediate family members while they are operating the family car

General damages

awards for losses that cannot be specifically measured or itemized, such as compensation for pain and suffering, disfigurement, or loss of companionship of a spouse

Governmental function

operations performed by government units

Imputed negligence

under certain conditions, the negligence of one person can be attributed to another person or organization

Invitee

a person who is invited onto the premises for the benefit of the occupant

Joint and several liability rule

several people may be responsible for the injury, but a defendant who is only slightly responsible may be required to pay the full amount of damages

Last clear chance rule

a plaintiff who is endangered by his or her own negligence can still recover damages from the defendant if the defendant has a last clear chance to avoid the accident but fails to do so

Legal Wrong

a violation of a person's legal rights, or a failure to perform a legal duty owed to a certain person or to society as a whole

Licensee

a person who enters or remains on the premises with the occupant's expressed or implied permission

Mediation

a technique by which a neutral third party tries to arrange a settlement without resorting to litigation.

Medical malpractice

occurs when a negligent act or omission by a physician or other healthcare professional results in injury or harm to the patient

Negligence

the failure to exercise the standard of care required by law to protect others from an unreasonable risk of harm

Plaintiff

The person who is injured or harmed or claimant in a legal action

Proprietary function

include the operation of water plants; electrical, transportation, and telephone systems; municipal auditoriums; and similar money-making activities

Proximate cause

a cause unbroken by any new and independent cause, which produces an event that otherwise would not have occurred

Punitive damages

awards designed to punish people and organizations for egregious acts so that others are deterred from committing the same wrongful act

Res ipsa loquitur

"the thing speaks for itself." Under this doctrine, the very fact that the injury or damage occurred establishes a presumption of negligence on behalf of the defendant. It is then up to the defendant to refute the presumption of negligence.

Respondeat superior

an employer can be held liable for the negligent acts of employees while they are acting on the employer's behalf

Sovereign immunity

the king or queen can do no wrong

Special damages

awards for losses that can be determined and documented, such as medical expenses, lost earnings, or property damage

Strict liability (absolute liability)

liability is imposed regardless of negligence or fault

Tort

a legal wrong for which the law allows a remedy in the form of money damages

Tortfeasor (alleged wrongdoer)

defendant in a legal action

Trespasser

a person who enters or remains on the owner's property without the owner's consent

Vicarious liability law

a motorist's negligence is imputed to the vehicle's owner