Exam 2 CHP 7 Flashcards
Wrongful acts committed against business entities.
Business Torts
Intentional misstatement of an entity that includes scienter, privity between parties, causation, and damages.
Fraudulent misrepresentation
What are the elements of fraud?
- Misstatement of material fact
- Scienter
- Seller must know that statement is false
- Buyer must need provided material information
- Must be privity between parties
- Must be causation
- Must be damages
Intent to defraud, the party wanted to mislead the other party and intentionally deceived them.
Scienter
A claim that another party wrongfully interfered with the injured business’s contractual relations.
Interference with contractual relations
A business attempts to improve its place in the market by interfering with another’s fair attempt to gain new business by use of improper acts.
Interference with prospective advantage
A general term that concerns the liability that producers and sellers of goods have to those injured by their products.
Product liability
A manufacturer’s assurance that a product will meet certain quality and performance standards.
Warranty
A relationship exists between contracting parties.
Privity of contract
A woman sued a company over a defective portion of a vehicle she purchased. Excluded privity of contract.
McPherson v. Buick
A doctrine that holds manufacturers liable to consumers injured by defective products regardless of whether the manufacturer had been negligent.
Strict liability
Helped bring about nationwide acceptance of the strict liability in tort rule.
Restatement 402A
Design defect, failure to warn, and manufacturing defect.
Three types of strict liability
An injury caused by the design of a product.
Design defect
An injury caused by a defect in the product from the manufacturing stage.
Manufacturing defect
Failure to instruct consumers about proper procedures in using a product, has long been actionable.
Inadequate warnings
A consumer sued a company over their product not providing adequate safety warnings. Consumer lost.
Parish v. Icon
A consumer’s husband was hurt by a defective product. The consumer sues the product’s manufacturer over its defective design. Consumer wins.
Greenman case/Strict liability doctrine
Defenses in Product Liability suits
- Assumption of Risk
- Product Misuse
- Statutory Limits
- Bulk-Supplier Doctrine
Manufacturers of products made to government specifications may be immune from product liability.
Government contractor liability
Involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care.
Ultrahazardous liability
A case between two parties over the negligent building of a reservoir over improperly built coal shafts. The contractor won the case.
Rylands v. Fletcher
A suit involving a pharmaceutical company that covered a medicine meant for pregnant women that unfortunately complicated their births, causing birth defects on the babies.
Thalidomide case
A case about a hotel not properly instilling security led to a mass shooter killing multiple people and injuring hundreds more. The hotel had to pay out 800 million to the survivors of the incident.
Las Vegas Hotel case
