Legal Environment of Business: Tort Law

An omission (failure to act) or a wrongful act (other than a breach of contract) against a person or his property

Tort

Is Tort Law Civil or Criminal

Civil

What is the purpose of tort law?

To compensate the innocent victim

The person who commits the tort

Tortfeasor

Two or more people going together to commit a tort

Joint Tortfeasors

Can sue both people and hold them both on the line for the damages. Usually, they go after the person with the most resources

Joint and Several Liability Theory

You are responsible for the natural probably causes of what you did, even if you couldn’t expect them

Egg-Shell Theory

The more people you sue, the more likely you are to get your money. So sue people with deep pockets

Deep-pocket theory

A tort done on purpose

Intentional tort

The type of damages for intentional torts

Punitive Damages

No physical contact

Assault

Physical contact

Battery

Physical Ailment

Mental Distress

Detaining someone without a reason

False Imprisonment

Prosecuting without a good reason or justification. Have to prove that they didn’t have information on you

Malicious Prosecution

Must be untrue. A public figure has to prove actual malice. Must be communicated to a third party. The only exception is satire.

Defamation

Written, more damages than defamation because of repetition and permanence

Libel

Verbal Defamation

Slander

Reasonable expectation of privacy, causes damages

Invasion of Privacy

What are the five elements of fraud?

Misstatement, Material Fact, Reasonably relied upon, resulted in damages, scienter (intent)

Enter on to real estate without permission

Trespass onto land

Taking personal property without permission

Trespass onto personal property

Personal property is changed and can’t be returned

Conversion

Someone conducts some act on their real estate that affects other people’s enjoyment of their own property.

Nuisance

Publish an untrue statement about untrue policies that damage the company

Injurious Falsehood or Trade Disparagement

Someone intentionally interferes with a contract

Intentional Interference with Contractual Relations

Any information you receive in the workplace (ex. Coca Cola Recipe)

Trade Secret Violations

Come from written laws

Statutory

Only good for about 20 years, then anyone can use it

Patent Infringement

You own the symbol and you will lose the trademark if it is deemed to be synonymous

Trademark Infringement and False Advertising (Lanham Act of 1946 and Trademark Law Revision Act of 1988)

Can use something if you aren’t making money from it (i.e. education purposes)

Copyright Infringement (Copyright Act of 1976)

Done by accident

Negligence

What are the four elements of negligence?

Duty of Care, Breach of Duty of Care, Causation, Injury/Damages

A relationship between defendant and plaintiff

Duty of Care

Jury is asked : what would a reasonable man have done?

Reasonable Man Doctrine

The thing speaks for itself (essentially, you can use circumstantial evidence)

Res Ipsa Loquitur Doctrine

Direct Result

Causation

What are the actual causes

Actual Causation

Proximate Cause

What are the legal causes

Passenger holding a package containing fireworks exploded and caused a woman to suffer damages from scales above her head. It ended up being the railroad company for putting the scales above her head

Palsgraf v. Long Island Railroad

Compare how negligent plaintiff was compared to defendant and allocate loss based on that. Can’t recover the loss caused by the defendant.

Comparative Negligence

Completely eliminates liability if the plaintiff contributed to their own injury

Contributory Negligence

You assume a risk when you do it

Assumption of Risk Doctrine

Barely below reasonable man standard, compensatory damages

Slight Negligence

A bit more below the reasonable man standard than slight negligence

Ordinary Negligence

WAY below the standard, punitive damages

Gross Negligence

The person that caused the damage was inherently dangerous or doing ultra hazardous activity. Easiest to Prove

Strict Liability

What are three examples of Ultra hazardous or Inherently Dangerous Activities ?

Explosives, Product liability, Wild animals

Superior is directly liable for subortinates torts

Doctrine of Respondent Superior

If the employer gives you all the materials, you are an employee. If you are your own employer, then you are an independent contractor. Doctrine of Respondent Superior only applies to employee

Employee v. Independent Contractor Status

During the course of employment AND within the scope of employee’s ability

Two requirements to superior liability

Substance is what ACTUALLY happens, form is what is written. Substance is what is important

Substance-over-Form Test

If you are injured on the job and you didn’t do it to yourself and you are doing what you are authorized to do, the employer is strictly liable for it.

State Worker Compensation Statutes

A law created to prevent unfair competition

Clayton Act