An introduction to the fundamentals of dynamic business law and business ethics chap006

As a talk show host on her nationally-syndicated television program, “The ‘O’ Show,” Olivia reaches approximately thirty 30 million viewers each week.. Common symptom included muscle con

Chapter 6

Tort Law

Chapter 6 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?

Chapter 6 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.”

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

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

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)

Intentional Torts (Against Persons)

• Assault

• Battery

• Defamation

Definition: Situation when one

person places another in

fear/apprehension of immediate,

offensive bodily contact

Definition: An intentional, unwanted,

offensive bodily contact

Defenses Available to the

Defendant in a Battery Lawsuit

• Consent

• Self-Defense

• Defense of Others

• Defense of Property

Definition: The intentional

publication (communication to a third

party) of a false statement harmful to

an individual’s reputation

Intentional Torts (Against Property)

• Trespass to Realty

• Private Nuisance

• Trespass to Personal Property

Trespass to Realty Occurs when a person intentionally:

• Enters the land of another without

permission;

• Causes an object to be placed on the land of

another without the landowner’s permission;

• Stays on the land of another when the owner

tells him/her to depart; or

• Refuses to remove something he/she placed

on the property that the landowner asked to

Private Nuisance

Definition: A situation when a person

uses his/her property in an

unreasonable manner that harms a

neighbor’s use or enjoyment of his/her

property

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

Definition: A situation that occurs

when a person permanently removes

personal property from the owner’s

possession and control

Intentional Torts (Against

Definition: A false statement of

material fact resulting in damage to a

business or product’s reputation

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

Unfair Competition

Definition: A tort against economic

interests that occurs when the

defendant unreasonably interferes with

the plaintiff’s opportunity to earn a

profit

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

Definition: The failure to exercise

reasonable care to protect another’s

person or property, causing an

unreasonable risk of harm to others

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

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

Strict Liability

Definition: Liability without fault

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

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,