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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.
§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.
§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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
§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.
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.
§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.
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.
§ 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.
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.
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.

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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.