Chapter 6 lecture slides
- 1. BUSINESS LAW: Text & Cases —
Legal, Ethical, International, and
E-Commerce Environment 11th Ed.
Chapter 6
Intentional Torts
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
- 2. §1: Basis of Tort Law
Doing business today involves risks, both legal
and financial.
A tort is a civil injury designed to provide a
remedy (damages) for injury to a protected
interest.
Damages.
– Compensatory: reimburse plaintiff for actual losses.
– Special: quantifiable losses, such as medical
expenses, lost wages, and benefits.
– General: non-monetary, such as pain and suffering,
reputation.
– Punitive: punish the wrongdoer.
Copyright © 2009 South-Western Legal Studies in Business,
2
a part of South-Western Cengage Learning.
- 3. §2: Intentional Torts
Against Persons
The person committing the tort, the
Tortfeasor or Defendant, must “ intend” to
commit the act. Intend means:
– Tortfeasor intended the consequences of
her act; or
– She knew with substantial certainty that
certain consequences would result.
Copyright © 2009 South-Western Legal Studies in Business,
3
a part of South-Western Cengage Learning.
- 4. Types of Intentional Torts
Assault and Battery.
False Imprisonment.
Infliction of Emotional Distress.
Defamation.
Invasion of Privacy.
Business Torts.
Copyright © 2009 South-Western Legal Studies in Business,
4
a part of South-Western Cengage Learning.
- 5. Assault and Battery
ASSAULT is an intentional, unexcused act
that:
– Creates a reasonable apprehension or fear of,
– Immediate harmful or offensive contact.
– NO CONTACT NECESSARY.
BATTERY is the completion of the Assault:
– Intentional or Unexcused.
– Harmful, Offensive or Unwelcome.
– Physical Contact.
Copyright © 2009 South-Western Legal Studies in Business,
5
a part of South-Western Cengage Learning.
- 6. Defenses to Assault & Battery
Consent.
Self-Defense (reasonable force).
Defense of Others (reasonable force).
Defense of Property.
Copyright © 2009 South-Western Legal Studies in Business,
6
a part of South-Western Cengage Learning.
- 7. False Imprisonment
False Imprisonment is the intentional:
– Confinement or restraint.
– Of another person’s activities.
– Without justification.
Merchants may reasonably detain
customers if there is probable cause.
Copyright © 2009 South-Western Legal Studies in Business,
7
a part of South-Western Cengage Learning.
- 8. Intentional Infliction of
Emotional Distress
An intentional act that is:
– Extreme and outrageous, that
– Results in severe emotional distress in
another.
Most courts require some physical
symptom or illness.
Copyright © 2009 South-Western Legal Studies in Business,
8
a part of South-Western Cengage Learning.
- 9. Defamation
Right to free speech is constrained by duty
we owe each other to refrain from making
false statements.
Orally breaching this duty is slander;
breaching it in print or media (and internet)
is libel.
Copyright © 2009 South-Western Legal Studies in Business,
9
a part of South-Western Cengage Learning.
- 10. Defamation
Publication Requirement: gravamen of
defamation is the “publication” of a false
statement that holds an individual up to
hatred, contempt or ridicule in the
community.
Publication requires communication to a 3 rd
party.
Copyright © 2009 South-Western Legal Studies in Business,
10
a part of South-Western Cengage Learning.
- 11. Damages for Libel
General Damages are presumed; Plaintiff
does not have to show actual injury.
General damages include compensation
for disgrace, dishonor, humiliation, injury
to reputation and emotional distress.
Copyright © 2009 South-Western Legal Studies in Business,
11
a part of South-Western Cengage Learning.
- 12. Damages for Slander
General Rule: Plaintiff must prove
“special damages” (actual economic
loss).
– Exception: Slander Per Se. No proof of
damages is necessary when the
statement is involves:
• Loathsome disease,
• Business improprieties,
• Serious crime,
• Woman is non-chaste.
Copyright © 2009 South-Western Legal Studies in Business,
12
a part of South-Western Cengage Learning.
- 13. Defenses to Defamation
Truth is generally an absolute defense.
Privileged (or Immune) Speech.
– Absolute: judicial & legislative proceedings.
– Qualified: Employee Evaluations.
Copyright © 2009 South-Western Legal Studies in Business,
13
a part of South-Western Cengage Learning.
- 14. Defamation-Public Figures
Public figures exercise substantial
governmental power or are otherwise in
the public limelight.
To prevail, they must show “actual malice”:
statement was made with either
knowledge of falsity or reckless disregard
for the truth.
Copyright © 2009 South-Western Legal Studies in Business,
14
a part of South-Western Cengage Learning.
- 15. Invasion of Privacy
Every person has a fundamental right to
solitude freedom from public scrutiny.
– Use of Person’s Name or Likeness.
– Intrusion on Individual’s Affairs or Seclusion.
– Publication of Information that Places a
Person in False Light.
– Public Disclosure of Private Facts.
CASE 6.1 Anderson v. Michigan (2007).
Copyright © 2009 South-Western Legal Studies in Business,
15
a part of South-Western Cengage Learning.
- 16. Appropriation
Use of another’s name, likeness or other
identifying characteristic for commercial
purposes without the owner’s consent.
– Issues:
• Degree of Likeness.
• Right of Publicity as a Property Right.
Copyright © 2009 South-Western Legal Studies in Business,
16
a part of South-Western Cengage Learning.
- 17. Fraudulent Misrepresentation
Fraud is intentional deceit. Elements:
– Misrepresentation of material fact;
– Intent to induce another to rely;
– Justifiable reliance by innocent party;
– Damages as a result of reliance;
– Causal connection.
Fact vs. Opinion (not puffery).
Copyright © 2009 South-Western Legal Studies in Business,
17
a part of South-Western Cengage Learning.
- 18. Frivolous Litigation
Generally, each of us has the right to sue
when we have been legally injured.
Torts related to abusive or frivolous
litigation include:
– Malicious prosecution, and
– Abuse of process.
Copyright © 2009 South-Western Legal Studies in Business,
18
a part of South-Western Cengage Learning.
- 19. §3: Business Torts-
Wrongful Interference
Tort involving a contractual relationship.
Occurs when:
– Defendant knows about contract between A
and B;
– Intentionally induces either A or B to breach
the contract; and
– Defendant benefits from breach.
Copyright © 2009 South-Western Legal Studies in Business,
19
a part of South-Western Cengage Learning.
- 20. Business Torts-
Wrongful Interference
In a business relationship occurs when:
– There is an established business relationship;
– The Tortfeasor, using predatory methods,
causes relationship to end; and
– Plaintiff suffers damages.
Permissible behavior (bona fide
competition) or justified behavior are
defenses to this tort.
Copyright © 2009 South-Western Legal Studies in Business,
20
a part of South-Western Cengage Learning.
- 21. §4: Intentional Torts
Against Property
Trespass to land occurs when a
person, without permission:
– Physically enters onto, above or below the
surface of another’s land; or
– Causes anything to enter onto the land; or
– Remains, or permits anything to remain,
on the land.
– Defenses: trespass is necessary, or
trespasser is a licensee.
Copyright © 2009 South-Western Legal Studies in Business,
21
a part of South-Western Cengage Learning.
- 22. Intentional Torts
Against Property
Trespass to personal property is the
Intentional interference with another’s use
or enjoyment of personal property without
consent or privilege.
– CASE 6.2 Register.com, Inc. v. Verio, Inc.
(2003).
Conversion.
Disparagement of Property.
Slander of Quality or Title.
Copyright © 2009 South-Western Legal Studies in Business,
22
a part of South-Western Cengage Learning.
- 23. § 5: Cyber Torts
Defamation Online.
– Immunity of Internet Service Providers.
– Piercing the Veil of Anonymity.
CASE 6.3 Fair Housing Council of San
Fernando Valley vs. Roommate.com,
LLC (2007).
Copyright © 2009 South-Western Legal Studies in Business,
23
a part of South-Western Cengage Learning.
- 24. Cyber Torts
Spam (unsolicited email).
– Spam as Trespass to Personal Property.
Statutory Regulation of Spam.
– Minnesota requires unsolicited email to state
“ADV” in the subject line.
– California has a stringent “opt-in” requirement.
Copyright © 2009 South-Western Legal Studies in Business,
24
a part of South-Western Cengage Learning.
- 25. Cyber Torts
Federal CAN-SPAM Act (2004) applies
primarily to commercial emails.
Requirements:
– Return email address.
– Clear notice the email is an AD.
– Provide “opt out” mechanism (10 days to act).
– Label sexually explicit emails.
Does it work--Problems???
Copyright © 2009 South-Western Legal Studies in Business,
25
a part of South-Western Cengage Learning.