Chapter 5: Business Torts

Question 1

Tort

Answer 1

Private civil wrong which is awarded money damages, if won

Question 2

Business Tort

Answer 2

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

Question 3

Tortfeasor

Answer 3

The person who commits the tort

Question 4

The three categories of torts

Answer 4

1. 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)

Question 5

Most common unintentional tort?

Answer 5

Negligence

Question 6

Duty of care

Answer 6

A person must conform to the standard of care of a reasonable person under the circumstances

Question 7

Adult activity

Answer 7

A child is held to the standard of care of the average person/adult such as driving a car

Question 8

Good Samaritan Statutes

Answer 8

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

Question 9

Willful and wanton misconduct

Answer 9

An individual who intends his/her act, but not he resulting harm

Question 10

Business Visitor

Answer 10

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.

Question 11

Licensee

Answer 11

One who comes onto property with the owner’s consent or legal right to be on the property

Question 12

Dram Shop Liability

Answer 12

Civil liability imposed on commercial seller of alcoholic beverages for personal injury caused by an intoxicated driver

Question 13

Proximate cause

Answer 13

Reasonable connection between the negligence of defendant and harm suffered by the plaintiff

Question 14

Contributory negligence

Answer 14

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

Question 15

Comparative negligence

Answer 15

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

Question 16

Assumption of the risk

Answer 16

The plaintiff knows of danger, but voluntarily exposes himself/herself to the harm. This is a defense to a negligence action.

Question 17

Imputed negligence/vicarious liability

Answer 17

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.

Question 18

Libel

Answer 18

written or printed defamation

Question 19

Slander

Answer 19

oral or verbal defamation

Question 20

Defamation

Answer 20

A statement that is false and intends to harm the reputation of another or lower his/her estimation in the community.

Question 21

In order for defamation to be actionable…

Answer 21

The libel or slander must be conveyed to a third person- this is known as publication

Question 22

4 Types of Fraud

Answer 22

1. 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

Question 23

Products Liability

Answer 23

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.