dynamic business law essentials 3e 2016 chapter 07

Chapter Tort Law © 2013 The McGraw-Hill Companies, Inc All rights reserved Copyright © 2016 McGraw-Hill Education.  All rights reserved Chapter Case Hypothetical Officers Jones and Henderson are well-respected police officers in the Woodlawn community They have been recognized, both within the police department and by the community, for their outstanding service While on patrol in downtown Woodlawn late one evening, Jones and Henderson observe an individual sleeping on a park bench in the town square The individual is Fred Ames, a homeless person known in the community for his trouble with alcohol and illicit substances Ames has a twenty-year history of bad choices and bad luck, and most in Woodlawn “know his story.” Woodlawn does not have a law against vagrancy or homelessness Determined to “clean up” the downtown area, the officers demand that Ames seat himself in the back of the squad car Reluctantly, and without the use of force on the part of Jones and Henderson, Ames complies Officers Jones and Henderson transport Ames to a rural area, where they release him on a dark country road, and warn him not to return to Woodlawn until he “cleans up his act once and for all.” Have Officers Jones and Henderson committed a tort against Ames? Are the officers within the “privilege of their authority” in removing Ames from the downtown area? Did the officers act unethically? Should Woodlawn implement a law against vagrancy/homelessness? © 2013 The McGraw-Hill Companies, Inc All rights reserved Chapter Case Hypothetical When Olivia P Rae talks, people listen As a talk show host on her nationally-syndicated television program, “The ‘O’ Show,” Olivia reaches approximately thirty (30) million viewers each week Her dedicated viewers are collectively referred to as “Olivia’s Militia,” and most of her viewers wait for Olivia’s on-air blessings before deciding what to read, how to vote, and more generally, how to think One of her recent programs has Olivia in “hot water.” Olivia devoted her September 30 episode to a food-borne illness commonly referred to as “crazy chicken” disease During the past two years, approximately fifty (50) people in the United States had developed physical symptoms after eating undercooked, diseased chicken Apparently, chickens had developed the disease after eating substandard feed, and consumers had been affected in the food chain Common symptom included muscle contractions, nausea and diarrhea, and less-than-caring individuals, many skeptical of the disease’s legitimacy, referred to these symptoms as “The Chicken Dance.” During the September 30 episode of “The ‘O’ Show,” Olivia interviewed a medical doctor Dr Tyson Fowler, who said that in his opinion, chicken was not safe for human consumption In response, Olivia had said “Doctor Fowler, if that is the case, I will never eat chicken again.” Hearing of this episode, the United Poultry Growers Association sued Olivia and “The ‘O’ Show,” claiming commercial disparagement (the commercial equivalent of defamation.) Are the defendants Olivia and “The ‘O’ Show” liable for commercial disparagement? © 2013 The McGraw-Hill Companies, Inc All rights reserved Tort Definition: A civil wrong or injury to another, other than breach of contract, giving the injured party the right to bring a lawsuit against the wrongdoer to recover compensation for economic and/or physical damages © 2013 The McGraw-Hill Companies, Inc All rights reserved Goals of Tort Law •Provide compensation for injured parties •Maintain order in society by discouraging private retaliation by injured parties •Give citizens a sense that they live in a just society © 2013 The McGraw-Hill Companies, Inc All rights reserved Classification of Torts •Intentional Torts—Occur when defendant takes action intending that certain consequences will result, or knowing they are likely to result •Negligent Torts—Occur when defendant acts in a careless way that subjects other people to an unreasonable risk of harm •Strict Liability Torts—Occur when defendant undertakes an “inherently dangerous” action (an action that cannot be undertaken safely, no matter what precautions the defendant takes) © 2013 The McGraw-Hill Companies, Inc All rights reserved Intentional Torts (Against Persons) •Assault •Battery •Defamation © 2013 The McGraw-Hill Companies, Inc All rights reserved Assault Definition: Situation when one person places another in fear/apprehension of immediate, offensive bodily contact © 2013 The McGraw-Hill Companies, Inc All rights reserved Battery Definition: An intentional, unwanted, offensive bodily contact © 2013 The McGraw-Hill Companies, Inc All rights reserved Defenses Available to the Defendant in a Battery Lawsuit •Consent •Self-Defense •Defense of Others •Defense of Property © 2013 The McGraw-Hill Companies, Inc All rights reserved 10 Trespass to Personal Property Definition: A temporary exercise of control over another’s personal property, or interference with the true owner’s right to use the property © 2013 The McGraw-Hill Companies, Inc All rights reserved 16 Conversion Definition: A situation that occurs when a person permanently removes personal property from the owner’s possession and control © 2013 The McGraw-Hill Companies, Inc All rights reserved 17 Intentional Torts (Against Economic Interest) •Disparagement •Intentional Interference With Contract •Unfair Competition •Fraudulent Misrepresentation © 2013 The McGraw-Hill Companies, Inc All rights reserved 18 Disparagement Definition: A false statement of material fact resulting in damage to a business’s or product’s reputation © 2013 The McGraw-Hill Companies, Inc All rights reserved 19 Intentional Interference With Contract (Elements) •A valid and enforceable contract between two parties; •Defendant knew of the existence of the contract and its terms; •Defendant intentionally undertook steps to cause one of the parties to breach the contract; and •Plaintiff injured as a result of the breach of contract © 2013 The McGraw-Hill Companies, Inc All rights reserved 20 Unfair Competition Definition: A tort against economic interests that occurs when the defendant unreasonably interferes with the plaintiff’s opportunity to earn a profit © 2013 The McGraw-Hill Companies, Inc All rights reserved 21 Fraudulent Misrepresentation (Elements) •The defendant knowingly, or with reckless disregard for the truth, misrepresented material facts and conditions; •The defendant intended to have another party rely on the misrepresentation; •The plaintiff reasonably relied on the misrepresentation; and •The plaintiff suffered damages because of reliance on the misrepresentation © 2013 The McGraw-Hill Companies, Inc All rights reserved 22 Negligence Definition: The failure to exercise reasonable care to protect another’s person or property, causing an unreasonable risk of harm to others © 2013 The McGraw-Hill Companies, Inc All rights reserved 23 Elements of Negligence •Duty •Breach of Duty •Causation (Actual and Proximate) •Damages © 2013 The McGraw-Hill Companies, Inc All rights reserved 24 Res Ipsa Loquitur (“The Thing Speaks For Itself”) Elements: •The event was a kind that ordinarily does not occur in the absence of negligence; •Other responsible causes, including the conduct of third parties and the plaintiff, have been sufficiently eliminated; and •The indicated negligence is within the scope of the defendant’s duty to the plaintiff © 2013 The McGraw-Hill Companies, Inc All rights reserved 25 Negligence Per Se (“Negligence In or Of Itself”) Applies to cases in which the defendant has violated a statute enacted to prevent a certain type of harm from befalling a specific group to which the plaintiff belongs © 2013 The McGraw-Hill Companies, Inc All rights reserved 26 Defenses to Negligence •Contributory Negligence •Comparative Negligence •Assumption of the Risk © 2013 The McGraw-Hill Companies, Inc All rights reserved 27 Strict Liability Definition: Liability without fault © 2013 The McGraw-Hill Companies, Inc All rights reserved 28 Elements of Strict Liability An activity that: •Involves a risk of serious harm to people or property; •Is so inherently dangerous that it cannot ever be safely undertaken; and •Is not usually performed in the immediate community © 2013 The McGraw-Hill Companies, Inc All rights reserved 29 Damages Available in Tort Cases •Compensatory Damages: Designed to compensate the victim for all harm caused by the defendant •Nominal Damages: Small amount of money given to recognize that defendant committed a tort, in a case where plaintiff did not experience, or failed to prove, actual damages •Punitive Damages: Imposed to punish defendant for extremely outrageous conduct, and to deter the defendant and others from committing similar future offenses © 2013 The McGraw-Hill Companies, Inc All rights reserved 30 ... has a twenty-year history of bad choices and bad luck, and most in Woodlawn “know his story.” Woodlawn does not have a law against vagrancy or homelessness Determined to “clean up” the downtown... the officers act unethically? Should Woodlawn implement a law against vagrancy/homelessness? © 2013 The McGraw-Hill Companies, Inc All rights reserved Chapter Case Hypothetical When Olivia P Rae.. .Chapter Case Hypothetical Officers Jones and Henderson are well-respected police officers in the Woodlawn community They have been recognized, both