CHAPTER 14
Tort Law and Product Liability,
14-1
Introduction
• Torts are wrongful actions
• Through tort law, society seeks to compensate
those who have suffered injuries as a result of
the wrongful conduct of others
• Product liability is a major area of tort law
under which sellers can be held liable for
defective products
• A growing body of law is designed to protect
the health and safety and the credit of
consumers
14-2
The Basis of Tort Law
• Wrongs and Compensation
• One Person or Group Brings Suit against
Another
– Obtain compensation (money damages)
– Other relief for harm suffered
• Purpose of Tort Law Is to Provide Remedies
– Invasion of protected interests or rights
• Elements of a Tort
– Points that plaintiff must prove to succeed
14-3
Intentional Torts
• Requires Intent
• Tortfeasor: The Person Accused
– Intended the consequences of an act
– Knew or should have known that certain
consequences would result from an act
• Fall into Two Categories
– Against persons
– Against property
14-4
Intentional Torts
• Intentional Torts against Persons
– Assault
• Act intended to cause an apprehension of
harmful or offensive contact
• Act caused apprehension in the victim that
harmful or offensive contact is imminent
14-5
Intentional Torts
• Intentional Torts against Persons
– Battery
• An intent to cause an unwanted contact
• The unwanted harmful contact
• Compensation
• Defenses to assault and battery
– Consent
– Self-defense
– Defense of others
– Defense of property
14-6
Intentional Torts
• Intentional Torts against Persons
– False Imprisonment
• Intent to confine or restrain a person
• Actual confinement in boundaries not of the
plaintiff’s choosing
– Intentional Infliction of Emotional Distress
• Outrageous conduct by the defendant
• Intent
• Severe emotional distress suffered by the plaintiff
with the emotional distress being caused by the
defendant’s conduct
14-7
Intentional Torts
• Intentional Torts against Persons
– Defamation
• Wrongfully harming a person’s good reputation
– Slander: breaching this duty orally
– Libel: breaching this duty in writing
• The publication requirement
• Defenses against defamation
– Truth
– Privileged communications
– Made without actual malice
14-8
Intentional Torts
• Intentional Torts against Persons
– Invasion of the right to privacy
• Use of person’s name, picture, or likeness for
commercial purposes without permission
• Intrusion into person’s affairs or seclusion
• Publication of information that places person in
false light
• Public disclosure of private facts about individual
that ordinary person would find objectionable
14-9
Intentional Torts
• Intentional Torts against Persons
– Appropriation
• Use by one person of another person’s name,
likeness, or other identifying characteristic
without permission and for the benefit of the user
14-10
Intentional Torts
• Intentional Torts against Persons
– Misrepresentation (fraud)
• Intentional deceit for personal gain
• Elements of fraud
– Misrepresentation of facts or conditions with knowledge
that they are false or with reckless disregard for the truth
– Intent to induce another to rely on the misrepresentation
– Justifiable reliance by the deceived party
– Damages suffered as a result of the reliance
– Causal connection between the misrepresentation and
the harm suffered
• Fact versus opinion
14-11
Intentional Torts
• Intentional Torts against Persons
– Wrongful interference
• Wrongful interference with a contractual
relationship
– Valid, enforceable contract exists between two
parties
– Third party knows that this contract exists
– Third party intentionally causes either of the two
parties to breach the contract
14-12
Intentional Torts
• Intentional Torts against Persons
– Wrongful interference
• Wrongful interference with a business
relationship
– Defendant knew or had reason to know that a
third party and the plaintiff are in a business
relationship
– Defendant intentionally interfered in the
relationship
• Defenses to wrongful interference
14-13
Intentional Torts
• Intentional Torts against Property
– Trespass to land
• Trespass criteria, rights, and duties
• Defenses against trespass to land
– Trespass to personal property
– Conversion
14-14
Negligence
• Negligence occurs when someone suffers
injury because of another’s failure to live up
to required duty of care
• Elements
– Defendant owed a duty of care
– Defendant breached that duty
– Plaintiff suffered a legally recognizable
injury
– Defendant’s breach caused the injury
suffered
14-15
Negligence
• The Duty of Care and Its Breach
– Reasonable person standard
– The duty of property owners
• Duty to business invitees
• Open and obvious risks
– The duty of professionals
• Medical malpractice
• Legal malpractice
14-16
Negligence
• The Injury Requirement and Damages
– Legally recognizable injury
– Clearly establish a basis for recovery
– Compensatory damages
• Compensate or reimburse for actual losses
– Punitive damages
• Punish the wrongdoer and deter others from
similar wrongdoing
14-17
Negligence
• Causation
– Wrongful activity must have caused harm
– Court must address two questions
• Is there causation in fact?
• Was the act the proximate cause of the injury?
– Both must be answered in the affirmative for
liability in a tort to arise
14-18
Negligence
• Defenses to Negligence
– Assumption of risk
• Plaintiff voluntarily enters into a risky situation,
knowing the risk
– Superseding cause
• Unforeseeable intervening event may break the
connection between wrongful act and injury to
another
– Contributory and comparative negligence
• Contributory: plaintiff was also negligent
• Comparative: liability for injuries is shared
proportionately by all parties who were guilty of
negligence
14-19
Negligence
• Special Negligence Doctrines and Statutes
– Negligence per se
• Action or failure to act in violation of statutory
requirement
– Special negligence statutes
• Good Samaritan statutes
• Dram shop acts
14-20
Cyber Torts:
Defamation Online
• Liability of Internet Service Providers
– Communications Decency Act
– Internet service providers are not liable for
defamatory statements
• Piercing the Veil of Anonymity
– ISPs can disclose personal information
about their customers only when ordered by
a court
– Rights of plaintiffs are balanced against
defendants’ rights to free speech
14-21
Strict Liability
• Liability Is Imposed for Reasons Other Than
Fault
• Abnormally Dangerous Activities
– Potential harm of a serious nature to
persons and property
– Involves a high degree of risk
– Not commonly performed in the community
or area
• Basis of Liability
– The creation of an extraordinary risk
14-22
Product Liability
• Theories of Product Liability
– Product liability based on negligence
• Manufacturer fails to exercise due care to make
product safe
– Product liability based on misrepresentation
• Manufacturer or seller misrepresents quality,
nature, or appropriate use of a product
– Strict product liability
• Manufacturing defects
• Design defects
• Warning defects
14-23
Product Liability
• Defenses to Product Liability
– No duty to warn against obvious or
commonly
– known risks
– Assumption of risk
– Product misuse
– Comparative negligence
14-24
Summary
• Two notions serve as the basis of all torts:
wrongs and compensation.
• A tort is a civil wrong. Torts fall into two
broad classifications: intentional torts and
negligence.
• Intentional torts occur when the actor
intended to perform an act that resulted in an
injury to a protected right of another party
14-25
Summary
• Negligence is the careless performance of a
legally required duty or the failure to perform
a legally required act.
• General tort principles are extended to cover
cyber torts, or torts that occur in cyberspace,
such as online defamation.
• Under the doctrine of strict liability, a person
or company may be held liable for damages
or injuries caused by a product or activity.
14-26
Summary
• The makers of products can be liable for
injuries and damages caused by defective
products.
• Statutes, agency rules, and common law
judicial decisions that serve to protect the
interests of consumers are classified as
consumer law.

Ch 14.pptx

  • 1.
    CHAPTER 14 Tort Lawand Product Liability, 14-1
  • 2.
    Introduction • Torts arewrongful actions • Through tort law, society seeks to compensate those who have suffered injuries as a result of the wrongful conduct of others • Product liability is a major area of tort law under which sellers can be held liable for defective products • A growing body of law is designed to protect the health and safety and the credit of consumers 14-2
  • 3.
    The Basis ofTort Law • Wrongs and Compensation • One Person or Group Brings Suit against Another – Obtain compensation (money damages) – Other relief for harm suffered • Purpose of Tort Law Is to Provide Remedies – Invasion of protected interests or rights • Elements of a Tort – Points that plaintiff must prove to succeed 14-3
  • 4.
    Intentional Torts • RequiresIntent • Tortfeasor: The Person Accused – Intended the consequences of an act – Knew or should have known that certain consequences would result from an act • Fall into Two Categories – Against persons – Against property 14-4
  • 5.
    Intentional Torts • IntentionalTorts against Persons – Assault • Act intended to cause an apprehension of harmful or offensive contact • Act caused apprehension in the victim that harmful or offensive contact is imminent 14-5
  • 6.
    Intentional Torts • IntentionalTorts against Persons – Battery • An intent to cause an unwanted contact • The unwanted harmful contact • Compensation • Defenses to assault and battery – Consent – Self-defense – Defense of others – Defense of property 14-6
  • 7.
    Intentional Torts • IntentionalTorts against Persons – False Imprisonment • Intent to confine or restrain a person • Actual confinement in boundaries not of the plaintiff’s choosing – Intentional Infliction of Emotional Distress • Outrageous conduct by the defendant • Intent • Severe emotional distress suffered by the plaintiff with the emotional distress being caused by the defendant’s conduct 14-7
  • 8.
    Intentional Torts • IntentionalTorts against Persons – Defamation • Wrongfully harming a person’s good reputation – Slander: breaching this duty orally – Libel: breaching this duty in writing • The publication requirement • Defenses against defamation – Truth – Privileged communications – Made without actual malice 14-8
  • 9.
    Intentional Torts • IntentionalTorts against Persons – Invasion of the right to privacy • Use of person’s name, picture, or likeness for commercial purposes without permission • Intrusion into person’s affairs or seclusion • Publication of information that places person in false light • Public disclosure of private facts about individual that ordinary person would find objectionable 14-9
  • 10.
    Intentional Torts • IntentionalTorts against Persons – Appropriation • Use by one person of another person’s name, likeness, or other identifying characteristic without permission and for the benefit of the user 14-10
  • 11.
    Intentional Torts • IntentionalTorts against Persons – Misrepresentation (fraud) • Intentional deceit for personal gain • Elements of fraud – Misrepresentation of facts or conditions with knowledge that they are false or with reckless disregard for the truth – Intent to induce another to rely on the misrepresentation – Justifiable reliance by the deceived party – Damages suffered as a result of the reliance – Causal connection between the misrepresentation and the harm suffered • Fact versus opinion 14-11
  • 12.
    Intentional Torts • IntentionalTorts against Persons – Wrongful interference • Wrongful interference with a contractual relationship – Valid, enforceable contract exists between two parties – Third party knows that this contract exists – Third party intentionally causes either of the two parties to breach the contract 14-12
  • 13.
    Intentional Torts • IntentionalTorts against Persons – Wrongful interference • Wrongful interference with a business relationship – Defendant knew or had reason to know that a third party and the plaintiff are in a business relationship – Defendant intentionally interfered in the relationship • Defenses to wrongful interference 14-13
  • 14.
    Intentional Torts • IntentionalTorts against Property – Trespass to land • Trespass criteria, rights, and duties • Defenses against trespass to land – Trespass to personal property – Conversion 14-14
  • 15.
    Negligence • Negligence occurswhen someone suffers injury because of another’s failure to live up to required duty of care • Elements – Defendant owed a duty of care – Defendant breached that duty – Plaintiff suffered a legally recognizable injury – Defendant’s breach caused the injury suffered 14-15
  • 16.
    Negligence • The Dutyof Care and Its Breach – Reasonable person standard – The duty of property owners • Duty to business invitees • Open and obvious risks – The duty of professionals • Medical malpractice • Legal malpractice 14-16
  • 17.
    Negligence • The InjuryRequirement and Damages – Legally recognizable injury – Clearly establish a basis for recovery – Compensatory damages • Compensate or reimburse for actual losses – Punitive damages • Punish the wrongdoer and deter others from similar wrongdoing 14-17
  • 18.
    Negligence • Causation – Wrongfulactivity must have caused harm – Court must address two questions • Is there causation in fact? • Was the act the proximate cause of the injury? – Both must be answered in the affirmative for liability in a tort to arise 14-18
  • 19.
    Negligence • Defenses toNegligence – Assumption of risk • Plaintiff voluntarily enters into a risky situation, knowing the risk – Superseding cause • Unforeseeable intervening event may break the connection between wrongful act and injury to another – Contributory and comparative negligence • Contributory: plaintiff was also negligent • Comparative: liability for injuries is shared proportionately by all parties who were guilty of negligence 14-19
  • 20.
    Negligence • Special NegligenceDoctrines and Statutes – Negligence per se • Action or failure to act in violation of statutory requirement – Special negligence statutes • Good Samaritan statutes • Dram shop acts 14-20
  • 21.
    Cyber Torts: Defamation Online •Liability of Internet Service Providers – Communications Decency Act – Internet service providers are not liable for defamatory statements • Piercing the Veil of Anonymity – ISPs can disclose personal information about their customers only when ordered by a court – Rights of plaintiffs are balanced against defendants’ rights to free speech 14-21
  • 22.
    Strict Liability • LiabilityIs Imposed for Reasons Other Than Fault • Abnormally Dangerous Activities – Potential harm of a serious nature to persons and property – Involves a high degree of risk – Not commonly performed in the community or area • Basis of Liability – The creation of an extraordinary risk 14-22
  • 23.
    Product Liability • Theoriesof Product Liability – Product liability based on negligence • Manufacturer fails to exercise due care to make product safe – Product liability based on misrepresentation • Manufacturer or seller misrepresents quality, nature, or appropriate use of a product – Strict product liability • Manufacturing defects • Design defects • Warning defects 14-23
  • 24.
    Product Liability • Defensesto Product Liability – No duty to warn against obvious or commonly – known risks – Assumption of risk – Product misuse – Comparative negligence 14-24
  • 25.
    Summary • Two notionsserve as the basis of all torts: wrongs and compensation. • A tort is a civil wrong. Torts fall into two broad classifications: intentional torts and negligence. • Intentional torts occur when the actor intended to perform an act that resulted in an injury to a protected right of another party 14-25
  • 26.
    Summary • Negligence isthe careless performance of a legally required duty or the failure to perform a legally required act. • General tort principles are extended to cover cyber torts, or torts that occur in cyberspace, such as online defamation. • Under the doctrine of strict liability, a person or company may be held liable for damages or injuries caused by a product or activity. 14-26
  • 27.
    Summary • The makersof products can be liable for injuries and damages caused by defective products. • Statutes, agency rules, and common law judicial decisions that serve to protect the interests of consumers are classified as consumer law.

Editor's Notes

  • #4 Learning Objective: What a tort is, the purpose of tort law, and the basic categories of torts.
  • #16 Learning Objective: The four elements of negligence.
  • #23 Learning Objective: What is meant by strict liability and the underlying policy for imposing strict product liability.
  • #25 Learning Objective: What defenses can be raised in product liability actions.