Torts Part II

How are businesses affected by torts?

affected by torts in several ways, mainly through lawsuits, financial losses, and damage to reputation

Defamation

Intentional publication of false statement/fact that harms someone's character or reputation. Even includes republishing, reposting. This happens when false statements hurt a person or business's reputation.

Libel

If someone writes false claims about a business (like in a newspaper or online review

Example of Libel

A blogger falsely claims that a restaurant serves expired food, causing customers to stop eating there. The restaurant can sue for

Slander

If false statements are spoken

Example of Slander

former employee tells people that their old boss stole money from customers, even though it's not true. If the business loses customers because of this, it can sue for

"Actual Malice"

If a famous person or well-known company wants to sue for defamation, they have to prove that the false statement was made on purpose or with "reckless disregard for the truth."

Example of "Actual Malice"

A tabloid lies about a celebrity business owner, saying they scam customers. The celebrity has to prove the tabloid knew it was false or didn't care.

Absolute Privilege

Some people can say things without being sued for defamation—like government officials during trials or debates.

Example of Absolute Privilege

A senator falsely says in Congress that a company commits fraud. The company cannot sue for defamation because the senator has absolute privilege.

Conditional Privilege

Sometimes, people can make honest mistakes without being sued, as long as they don't act recklessly.

Example of Conditional Privilege

A manager tells HR they think an employee is stealing. If it turns out to be false, they won't be sued as long as they had a good reason to believe it.

Disparagement

This is like defamation, but it specifically affects a business's ability to make money.

To prove Disparagement in court business must show 1:

The statement was published (shared with others).

To prove Disparagement in court business must show 2:

The person intended to cause financial harm.

To prove Disparagement in court business must show 3:

The person knew the statement was false or ignored the truth.

Example of Disparagement

If someone writes a negative review that is false and harms the business's reputation (e.g., "This restaurant has rats, and they serve spoiled food" when that's not true), the business could sue for

Damages of Disparagement

Loss of sales due to false statements can lead to the company suing for money damages.

Unfair Competition

Happens when businesses use dishonest methods to gain an advantage. Unethical or illegal business practices

Trademark Infringement

This happens when a business copies another company's brand, logo, or product design to trick customers.

Example of Trademark Infringement

A small coffee shop uses a logo almost identical to Starbucks, confusing customers into thinking they're related. Starbucks can sue for

False Advertising

This happens when a business lies about a product's quality, features, or pricing to mislead customers.

Example of False Advertising

A company falsely advertises their juice as "100% natural" when it contains artificial ingredients. They can be sued for false advertising.

Negligence

If a business fails to act responsibly, and someone gets hurt, it can be sued for

The Four Elements of Negligence :

Duty, Breach, Causation, Damages

Duty

The business had a responsibility to act safely.

Breach

The business failed in that responsibility.

Causation

That failure directly caused harm.

Damages

The person suffered actual harm (like injuries or financial loss).

Example of Negligence

grocery store knows about a spill but doesn't clean it up. A customer slips and breaks their leg. The store owed a duty to keep floors safe, breached that duty, and caused the injury, so they can be sued.

Defenses

When someone sues for negligence, the defendant (the person or business being sued) can argue that they shouldn't be held fully responsible.

Comparative Negligence

Even if the plaintiff (injured person) is partly at fault, they can still get money. The amount they get is reduced by the % of their own fault. California rule

Example of Comparative Negligence

If a pedestrian jaywalks and gets hit by a speeding car, and the court decides the pedestrian is 30% at fault, they will only receive 70% of the damages.

Contributory Negligence

If the plaintiff is even 1% at fault, they get nothing.

This is a very harsh rule and is mostly outdated.(Used in a few states like VA & NC)

Example of Contributory Negligence

If a biker ignores a stop sign and a car that was slightly speeding hits them, the biker cannot recover damages, even if the car was also at fault.

Assumption of Risk

If someone knows something is risky and still does it, they can't sue.

Example of Assumption of Risk

A football player gets tackled and breaks a bone - they can't sue because they knew injuries were possible when they signed up. But if the football field was full of hidden potholes and the player got injured because of that, they could sue, because they didn't

Good Samaritan Statute

Protects people who try to help others in an emergency. If someone reasonably tries to save a choking person and accidentally hurts them, they can't be sued.

Example of Good Samaritan Statute

If a doctor helps someone who collapses at a restaurant, they are protected from being sued unless they acted recklessly.

"Shortcuts" for Plaintiff

Sometimes, it's hard to get direct proof of negligence. These rules help plaintiffs win cases even without strong evidence:

Res Ipsa Loquitur

Used when it's obvious someone was negligent, even if there's no direct proof. The defendant had control over the situation.

Example of Res Ipsa Loquitur

A waitress was handling a Coke bottle when it suddenly exploded, injuring her hand. She didn't shake or drop the bottle. Coke bottles don't just randomly explode, so Coca-Cola must have done something wrong (like a defect in the bottle). Escola v. Coca-Cola

Negligence Per Se

If a business violates a law meant to protect people, they are automatically guilty of negligence. The plaintiff just has to prove the defendant broke a law.

Example of Negligence Per Se

A liquor store sells alcohol to a minor. That minor then gets drunk and causes a car accident. The store automatically loses the case because they broke the law, even if there's no other proof of negligence.

Strict Liability

means that some activities are so dangerous that if something goes wrong, the person or business responsible is automatically liable—even if they were being careful.

Wild Animals as Pets

If a business keeps wild animals, it's liable for any injuries, even if it takes precautions.

Example of Wild Animals as Pets

You keep a lion as a pet. You build a strong cage, but somehow, the lion escapes and attacks someone. You are strictly liable.

Product Liability

If a company sells a defective product that harms someone, the company is automatically responsible, even if they didn't act negligently.

Example of Product Liability

A car company sells a vehicle with faulty brakes. A driver gets into an accident because the brakes fail. The car manufacturer is strictly liable.

In Liebeck v. McDonald's, McDonald's defended their practices by claiming that

other fast-food restaurants also served their coffee hot. This is known as a(n):

a) Contributory negligence

b) Good Samaritan statute

c) Industry standard

d) Absolute privilege

Industry standard