Chapter 5: Business Torts Flashcards
Tort
Private civil wrong which is awarded money damages, if won
Business Tort
Tort that occurs in a business setting and is committed by or against a business entity: Most common are 1. Products liability 2. Defamation 3. Fraud 4. Interference w/contractual relations
Tortfeasor
The person who commits the tort
The three categories of torts
- Unintentional: not intended, negligence. 2. Intentional: purposeful= defamation, invasion of privacy, battery, and false imprisonment 3. Strict Liability: imposed on a business regardless of the care exercised or precautions taken such as selling a defective product (product liability)
Most common unintentional tort?
Negligence
Duty of care
A person must conform to the standard of care of a reasonable person under the circumstances
Adult activity
A child is held to the standard of care of the average person/adult such as driving a car
Good Samaritan Statutes
Only impose liability in the event of gross misconduct so physicians, and other volunteers during a crisis are not held liable for the results of their actions
Willful and wanton misconduct
An individual who intends his/her act, but not he resulting harm
Business Visitor
One who enters the premise for a business purpose. Ex: When you visit a department store you are a business visitor. The landowner is responsible for a defect he/she knew of or should have known of that the visitor is not likely to discover.
Licensee
One who comes onto property with the owner’s consent or legal right to be on the property
Dram Shop Liability
Civil liability imposed on commercial seller of alcoholic beverages for personal injury caused by an intoxicated driver
Proximate cause
Reasonable connection between the negligence of defendant and harm suffered by the plaintiff
Contributory negligence
A plaintiff may not recover if he/she has any degree of negligence that contributed to the harm, even if 1%. Only used in a few states like North Carolina and D.C
Comparative negligence
As long as the plaintiff’s negligence is not greater than the defendant, the plaintiff may recover damages, but the verdict will be reduced by the % of the plaintiff’s negligence. Ex: Damages worth $10,00 and plaintiff found to be 20% negligent, then damages collected will be $8,000. This structure is used in most states
Assumption of the risk
The plaintiff knows of danger, but voluntarily exposes himself/herself to the harm. This is a defense to a negligence action.
Imputed negligence/vicarious liability
If a special relationship exists between parties, one person can be held liable for the negligence of the other. Ex: Employer held responsible for the torts of employees while tort is committed within the scope of employment. However, an employer is not liable for torts of an independent contractor.
Libel
written or printed defamation
Slander
oral or verbal defamation
Defamation
A statement that is false and intends to harm the reputation of another or lower his/her estimation in the community.
In order for defamation to be actionable…
The libel or slander must be conveyed to a third person- this is known as publication
4 Types of Fraud
- Embezzlement: illegal use of funds by person who controls those funds 2. Internal theft: taking of company assets by employee 3. Payoffs/kickbacks: worker accepts money or other benefits in exchange for access to business information 4. Skimming: worker takes cash and doesn’t record it in the books
Products Liability
Holds sellers of defective products liable for harm caused to the user/consumer even though the seller exercised all possible care in preparation of the sale of the product.
