Chapter 3: Introduction to Torts

Question 1

What are the two main sources of obligations in private law?

Answer 1

Torts and contracts.

Question 2

Tort

Answer 2

Failure to fulfill a private obligation that was imposed by law.

Question 3

Tortfeasor

Answer 3

A person who has committed a tort.

Question 4

A tort occurs when a person breaks a ___ obligation, while a crime occurs when a person breaks a ___ obligation.

Answer 4

Private, public.

Question 5

Blood Feud

Answer 5

Allowed the family of a murder victim to take revenge by killing the murderer or someone in the murderer’s family.

Question 6

Primary Obligations

Answer 6

Tell people how they ought to act.

Question 7

Secondary Obligations

Answer 7

Remedies that tell people how they must act after primary obligations have been broken.

Question 8

How is the source of primary obligations different in tort and contract law?

Answer 8

In tort law, you never have to agree to anything; obligations in tort are simply imposed by law. However, in contract law, you must voluntary agree to something.

Question 9

Doctrine of Privity

Answer 9

States that the only people who can sue, or be sued, on a contract are the parties themselves.

Question 10

What is the purpose of creating compensation in torts?

Answer 10

To restore you to the state you were in before the tortfeasor committed the action.

Question 11

What is the purpose of creating compensation in contracts?

Answer 11

To restore you to the state you would be in if the promise had not been broken.

Question 12

Which type of obligation (tort or contract) is more likely to catch a person by surprise?

Answer 12

Tort.

Question 13

Do all torts have to prove “guilty mind”?

Answer 13

No, some do and some don’t.

Question 14

Intentional Torts

Answer 14

Occur when a person intentionally acts in certain ways.

Question 15

Negligence Torts

Answer 15

Occur when a person acts carelessly.

Question 16

Strict Liability Torts

Answer 16

Occur when a person does something wrong without intending to do so and without acting carelessly. It is enough that the defendant was responsible for the situation that resulted in the plaintiff’s injury.

Question 17

True or false? Strict liability torts are common.

Answer 17

False.

Question 18

Why do strict liability torts create special problems for risk management?

Answer 18

Because they do not require proof of any sort of intentional or careless wrongdoing.

Question 19

Liability Insurance

Answer 19

A contract in which an insurance company agrees, in exchange for a price, to pay damages on behalf of a person who incurs liability.

Question 20

Duty to Defend

Answer 20

Requires the insurance company to pay the expenses that are associated with lawsuit brought against the insured party.

Question 21

Compensatory Function

Answer 21

Aims to fully compensate people who are wrongfully injured.

Question 22

Deterrence Function

Answer 22

Discourages people from committing torts by threatening to hold them liable for the losses they cause.

Question 23

Why does tort law have surprisingly little deterrence effect?

Answer 23

Insurance companies will pay if something goes wrong.

Question 24

Vicarious Liability

Answer 24

Occurs when one person is held liable for a tort that was committed by another person.

Question 25

Independent Contractor

Answer 25

A worker who is not as closely connected to the employer’s business as is an employee.

Question 26

Can you simply label someone as an independent contractor?

Answer 26

No, the wording does not change whether they are an employee or an independent contractor.

Question 27

Can an employer be both vicariously and personally liable for a tort?

Answer 27

Yes.

Question 28

What are the 4 most important possibilities for remedies in the case of a tort?

Answer 28

1. Compensatory damages.
2. Punitive damages.
3. Nominal damages.
4. Injunctions.

Question 29

Compensatory Damages

Answer 29

When the defendant is required to pay for the losses that they caused the plaintiff to suffer.

Question 30

Remote Loss

Answer 30

When it is unfair to hold the defendant responsible for the loss.

Question 31

Does remoteness play a role in intentional torts?

Answer 31

No.

Question 32

Mitigation

Answer 32

Occurs when the plaintiff takes steps to minimize the losses that result from the defendant’s tort.

Question 33

Punitive Damages

Answer 33

Intended to punish the defendant.

Question 34

Nominal Damages

Answer 34

Symbolically recognize that the defendant committed a tort even though the plaintiff did not suffer any loss.

Question 35

Injunction

Answer 35

A court order that requires the defendant to do something or refrain from doing something.

Question 36

Alternate Compensation Scheme

Answer 36

A system that allows a person who has suffering an injury to receive compensation without bringing an action in tort.

Question 37

Worker’s Compensation Scheme

Answer 37

Workers lose the right to sue in tort for workplace injuries, but in exchange they gain the right to claim compensation from a fund without having to prove that anyone was at fault for their injuries.

Question 38

No-Fault Insurance

Answer 38

Victims of traffic accident cannot sue in court, but are entitled to receive compensation from the scheme without having to prove that another driver was at fault.