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Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor,...

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Crimes Intentional Torts Negligence & Strict Liability Intellectual Property & Unfair Competition © 2010 The McGraw-Hill Companies, Inc. All rights reserved.
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Page 1: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

CrimesIntentional Torts

Negligence & Strict LiabilityIntellectual Property & Unfair

Competition

© 2010 The McGraw-Hill Companies, Inc. All rights reserved.

Page 2: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Intentional Torts

The good have no need of an advocate.

Phocion

© 2010 The McGraw-Hill Companies, Inc. All rights reserved.

Page 3: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Definition of Tort Interference with Personal Rights Interference with Property Rights

Learning Objectives

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Page 4: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

A tort is a civil wrong that is not a breach of a contract

Four types of wrongfulness are involved: Intent Recklessness Negligence Strict liability

Definition of a Tort

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Page 5: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

The standard of proof that the plaintiff must satisfy in a tort case is the preponderance of the evidence standard

A plaintiff who wins a tort case usually recovers compensatory damages for the harm suffered as a result of defendant’s wrongful act

Particularly bad behavior may result in an award of punitive damages

The Basics

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Page 6: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Battery Assault Intentional Infliction of Emotional

Distress False Imprisonment Defamation Invasion of Privacy Misuse of Legal Proceedings Deceit (Fraud)

Interference with Personal Rights

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Page 7: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Intentional and harmful or offensive touching of another without the person’s consent No liability if person consented

Contact is harmful if it produces bodily injury, but battery includes nonharmful contact that is offensive (reasonable person standard) Example: Wishnatsky v. Huey case

Battery

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Page 8: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Assault occurs when there is an intentional attempt or threat to cause a harmful or offensive contact with another person, if the attempt causes a reasonable apprehension of imminent battery in the other person’s mind

Irrelevant whether threatened contact really occurs, as long as plaintiff had apprehension of immediate or imminent contact Plaintiff must actually see or feel the potential contact

Assault

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Page 9: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Most courts allow recovery for emotional distress even if no other tort is proven

All courts require the wrongdoer’s conduct to be outrageous before liability is imposed

Most courts apply reasonable person test Example: Lourcey v. Estate of Scarlett

Defendant’s conduct must be intentional or reckless and so outrageous as to offend a reasonable person, and plaintiff must have suffered serious mental injury

Intentional Infliction of Emotional Distress

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Page 10: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

False imprisonment is intentional confinement of another for an appreciable time without his consent confinement must be complete, though a few

minutes is enough no liability if plaintiff consented to confinement

Example: Banks v. Fritsch Defendant’s conduct must be intentional or

reckless and outrageous, and plaintiff must have suffered serious mental injury

False Imprisonment

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Page 11: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Defamation is an (1) unprivileged (2) publication of (3) false and defamatory (4) statements concerning another person

Libel refers to written defamation and slander refers to oral defamation

Truth is a complete defense in a defamation case

Defamation

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Page 12: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Another defense to defamation is privilege Examples: statements made by

participants in judicial proceedings, by officials in the course of their duties, by one spouse to the other in private, and fair and accurate media reports (fair comment) of defamatory matter that appears in proceedings of official government action or originates from public meetings

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Defamation

Page 13: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

In New York Times Co. v. Sullivan (1964), the U.S. Supreme Court held that when a public official brings a defamation case, s/he must prove the usual elements of defamation and actual malice (a First Amendment–based fault requirement) Actual malice means knowledge of falsity or

reckless disregard for the truth (See Hearst Corp. v. Skeen)

The holding of this case has been extended to include a public figure, but does not include private figures

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Defamation & Free Speech

Page 14: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Invasion of privacy refers to four distinct torts: Intrusion on Solitude or Seclusion

Applies only with a reasonable expectation of privacy

Public Disclosure of Private Facts False Light Publicity Commercial Appropriation of Name or

Likeness Example: Comedy III Productions, Inc. v.

Saderup

Invasion of Privacy

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Page 15: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Three intentional torts protect people against the harm that can result from wrongfully instituted legal proceedings: Malicious prosecution: wrongful institution

of criminal proceedings Wrongful use of civil proceedings:

wrongfully instituted civil suits Abuse of process: imposes liability on those

who initiate legal proceedings, whether criminal or civil, for a primary purpose other than the one for which the proceedings were designed

Misuse of Legal Proceedings

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Page 16: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Deceit (or fraud) is the formal name for the tort claim that is available to victims of knowing or intentional misrepresentations Often connected to a breach of contract claim Requires proof of false statement of material

fact, knowingly or recklessly made by defendant with intent to induce reliance by the plaintiff, along with actual, justifiable, and detrimental reliance on the plaintiff’s past

Deceit (Fraud)

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Page 17: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Trespass to Land Private Nuisance Conversion

Interference with Property Rights

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Page 18: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Any unauthorized or unprivileged intentional intrusion upon another’s real property, including physically entering the plaintiff’s land, causing another person or object to do so, remaining on the land after one’s right to remain has ceased, and invading airspace above land or subsurface below

Intent required for liability is simply the intent to be on the land, so a person may be liable even if the trespass resulted from a mistaken belief that entry was legally justified

Trespass to Land

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Page 19: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Involves some interference with plaintiff ’s use and enjoyment of the land

Unlike trespass to land, nuisance does not require a physical invasion of the property May include odors, noise, smoke, light,

vibration Liability requires the interference to be

intentional, substantial and unreasonable Example: Stephens v. Pillen

Private Nuisance

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Page 20: Business Law: Chapter 6, The Ethical, Global, and E-Commerce Environment, 14th ed., by Mallor, Barnes, Bowers, Langvardt

Defendant’s intentional exercise of dominion or control over plaintiff’s personal property without plaintiff’s consent through: Acquisition Removal Transfer to another Withholding possession Destruction or alteration Use

Conversion

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