Finance 240 Chapter 6

tort

civil wrong not arising from a breach of contract
- provide remedies for violations of protected interests

compensatory damages

compensate or reimburse the plantiff of actual losses
- aim to put the plantiff in the position they would have been in had the tort not occured

special damages

compensate quantifiable monetary losses
- medical expenses, lost wages

general damages

compensate for nonmonetary harm
- pain and suffering

punitive damages

money damages awarded to the plantiff to punish the defenant and set an example to deter future similar conduct

intentional tort

wrongful act knowingly committed
- assault, battery, false imprisonment, emotional distress, defamation

assault

any intentional and unexcused threat of immediate harmful or offensive contact
- no actual contact has to occur

battery

unexcused and harmful physical contact intentionally preformed

false imprisonment

the intentional confinement or restraint of another person's activities without explanation
- physical barriers / restraint, threats, or physical force

emotional distress

intentional act that amounts to extreme and outrageous conduct that creates severe emotional distress

actionable

capable of serving as grounds for a lawsuit

defemamtion

any published or publicly spoken false statement that causes injury to another's reputation
- public figures must provide evidence of malice

libel

written defamation

slander

spoken defamation

slander per se

1) falsely stating one has a disease
2) false statement of professional improprieties
3) falsely stating one has been imprisoned
4) falsely stating one has engaged in serious sexual misconduct

truth

____________ is the absolute defense against defamation

privilege

immunity to certain tort law

absolute privilege

one cannot be held liable for anything said in a certain setting
- judicial and government proceedings

general privilege

statement is made in good faith to an interested audience
- employee evaluations

invasion of privacy

1) intrusion into an individuals affairs or seclusion
2) false light
3) public disclosure of private fact
4) appropriation of identity

fraudulent misrepresentation

intentional deceit for personal gain
1) misrepresentation of known material facts or conditions
2) intent to induce an innocent party to rely on misrepresentation
3) justifiable reliance on misrepresentation by deceived party
4) damages suffered as a resu

puffery

salespersons exaggerated claims concerning the quality of goods
- not considered fraud

business torts

wrongful interference with another's business rights

interference with a contractual relationship

1) valid enforceable contract must exist
2) third party must induce a party to breach said contract

interference with a business relationship

use of predatory behaviors to intentionally harm a business relationship or economic advantage
- predatory : intent of unlawfully driving competitors out of a market

torts against property

trespass to land, personal property, conversion, and disparagement of property

conversion

the wrongful taking, using, or retaining of personal property that belongs to another
- not returning something after having borrowed it

disparagement of property

economically injurious falsehoods made about another's product or property

trade libel

(slander of quality)
publication of false information alleging a product is not what the owner claims

slander of title

publication that falsely denies another's legal ownership of property resulting in financial loss

unintentional torts

tort feasor neither wishes for nor believes consequences will occur

negligence

the failure to exercise a standard of care that a reasonable person in similar circumstances would
1) duty
2) breach
3) causation - breach caused injury
4) damages - legally recognizable injury

duty of care

people must exercise a reasonable amount of care in their dealings with others
- obligated to provide safe environment and warn of danger

reasonable person standard

evaluate how a reasonable person would have acted in similar circumstances or would consider objectionable
- based on geographic location

malpractice

professional negligence

causation in fact

an act of omission without which an event would not have occurred
- "but for" test / but for the act, the event would not have occured

liability tort

1) causation in face
2) proximate cause

proximate cause

the connection between the act and the injury is strong enough to impose liability
- must be forseeable

negligence per se

act in violation of a statute or ordinance
- do not need to prove causation as they are already breaking a statute

good samaritan statutes

protects those who provide emergency services to those in peril from being sued for negligence

affirmative defenses to negligence

1) assumption of risk
2) superceeding cause
3) contributory negligence
4) comparative negligence

assumption of risk

plantiff voluntarily entered into situation and knew the risks involved

superceeding cause

when an intervening force or event breaks the connection between a wrongful act and injury to another
- unforseeable force

contributory negligence

the complaining party's own negligence contributed to or caused their injuries

comparative negligence

negligence of plantiff and defendant are computed and damages are distributed accordingly

malicious prosecution

suit designed to harm the defendant

abuse of process

uses the court system to gain an advantage
- use of the procedures such as discovery, not necessarily a law suit