Business Law Flashcards
CRIME VS TORT
- A crime is an act against the general public
-A tort is a private wrong against another person- usually asking for compensation
Compensatory damages
-An amount of money the court believes will restore the plaintiff to the position they were in before the incident
-Medical expenses, lost wages, trauma
Single recovery principle
-Requires a court to settle a legal case by giving a lump sump for past and future expenses
Punitive damages
-Made to punish the defendant for conduct that is extreme and outrageous
-Society must make an example of it
3 guideposts in awarding punitive damages
- Badness of the defendants conduct
- Ratio between harm suffered and the award
- The difference between the punitive award and any civil penalties used in similar cases
The concept of rights examples:
-Be free from bodily harm
-Enjoy a good reputation
-Conduct business without interference
The law of the concept of rights imposes a duty on all of us to:
-Respect the rights of others
-TORT LAW GOVERNS THE INTERPLAY BETWEEN RIGHTS AND DUTIES!
Two categories of business tort
- Wrongful interference with a contractual relationship
- Wrongful interference with a business relationship
Wrongful interference with a contractual relationship EXAMPLE
- A competitor draws away one of a firms key employees
-It must be proven that the competitor knew of the contracts existence and intentionally induced the breach
Wrongful interference with a business relationship EXAMPLE
- Specifically targeting the customers of a competitor (intentionally driving competitors out of the market)
Intentional Torts
- Occurs when a person knows and desires the consequences of their act
Tortfeasor
- The person who commited the tort
Assault
-Any word or action intended to make another person fearful of immediate physical harm
-Must be reasonably believeable
Battery
-Harmful or offensive physical contact with another that is intentionally performed
-Can include any part of the body or anything attached
Trespass
-Wrongful damage or interference with the property of another
-Includes anything owned
Real property
Land/anything associated with it
Personal property
Owners posessions
Nuisance
-Anything that interferes with the enjoyment of life or property
Public Nuisance
Affects multiple people
Examples: Loud music, fumes
Private Nuisance
-Affects one person
Example: A tree hanging into someone elses yard
Attractive Nuisance
-A landowner may be held liable for injuries to children trespassing if the injury is caused by an object likely to attract children
-Ex: Pools, machinery, wells
False Imprisonment
-Intentional restraint of another persons activities without justification
Privilege to detain
-Granted to merchants when a person is accused of shoplifting
-Must be conducted in a reasonable manner and length of time
-Law enforcement must have probable cause or a warrant to arrest someone
Defamation
-Anything published or publicly spoken that causes injury to another’s good name or reputation
-Statements must be FALSE
-Statements of opinions are protected by the first amendment
Libel
-False statement in writing or printed form
Slander
False statement made orally to a 3rd party
Privileged statements
-Protect the open debate of legislative and judicial matters
Public limelight
-Famous people have more difficulty proving damages of defamation as they must show actual malice
Invasion of Privacy
Interfering with a persons right to be left alone
Intrusion into an individuals affairs/seclusion
Example: Searching through someones backpack/invading a home
False Light
Example: Publishing a story about a person that attributes ideas/opinions not held by that person
Public Disclosure of Private Facts
Example: Disclosing someones information about their sex life
Appropriation of Identiy
Example: Using someone’s picture without permission for commercial purposes
Deceit/Fraud
-False statement/deceptive practice intending to injure another or for personal gain
Conversion
-Unauthorized taking or borrowing of personal property of another for the use of the taker
-Often a tress pass to personal property also occurs
Difference between trespass and conversion
Taking property: Trespass
Retaining property: Conversion
Infliction of emotional distress
-Intentionally committed act that results in emotional or mental suffering to others
-Must exceed the bounds of decency
Misuse of legal procedures
-Use of the legal system simply to harass others
-If a person initiates a lawsuit out of malice, they will lose the case / can be sued for malicious prosecution
Abuse of process
-A person using legal process against another in an improper manner/to accomplish a purpose for which it was not designed
Unintentional torts
-When a person acts in a careless manner that results in an injury to a person, damage to property, or both
Two components of unintentional torts
Negligence
Strict Liability
Negligence
-An accidental or unintentional tort resulting from the failure to exercise the degree of care that a reasonable person would.
Strict Liability
-A doctrine; states that people doing ultra-hazardous activities will be held liable, regardless of how careful they were/their intent
Four elements of negligence
- Duty of Care
- Breach of Duty
- Proximate Cause
- Actual Harm
Duty of Care
All of us have a duty not to violate certain rights of others
Breach of Duty
- The failure to use the degree of care that a reasonable person would use in that same situation
Proximate Cause
-The legal connection between unreasonable conduct and resulting harm
Foreseeability test under Proximate Cause
Could you foresee the accident?
Actual Harm
The plaintiff must have actually suffered physical injury, property damage or financial loss
Defenses to Negligence: Contributory Negligence
-Behavior by the plaintiff that causes their injuries
-Plaintiff will receive NOTHING and loses the case
Defenses to Negligence: Comparative Negligence
-The negligence of each party is compared under this doctrine
-The amount of the plaintiffs recovery is reduced by the perfect of their negligence
Assumption of Risk
-If the defendant can show the plaintiff knew of the risk involved and still took the chance of being injured
Strict Liability
-Some activities are so dangerous that the law will not apply principles of negligence/rules of intentional torts to them
-If these activities injure someone or damage property, the people engaged in the activities will be held liable
-Regardless of how carefulness/intent
