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CHAPTER
PowerPoint®
Presentation Prepared By
Susan McManus, Mount Royal College
© 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
CHAPTER
PowerPoint®
Presentation Prepared By
Susan McManus, Mount Royal College
2
The Law
of Torts
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-2 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
LEARNING GOALS
 Identification of common torts (intentional and
unintentional)
 Identification of tort situations in business
 Understand principles of law imposed by the
courts to determine tort liability
 Understand how the courts apportion liability
where more than one person is responsible
 Understand how damages or compensation is
determined by a court
CH 2
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-3 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Tort Law
Tort:
 acts or omissions recognized by law as civil
wrongs causing injury to others or their property
 Actions may have:
 tort aspect = civil action by plaintiff against a
defendant based on compensation
 Criminal aspect = criminal
charges by the Crown
against an accused
based on punishment
2.1
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-4 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Tort Law
Unintentional Torts –
commit the acts without
intent, usually by accident
or carelessness
 Negligence
 Occupiers’ Liability
 Vicarious Liability
 Strict Liability
 Commercial Negligence
Intentional Torts –
decision to commit the acts,
not always intention to
harm
 Assault & Battery
 False Imprisonment
 Defamation
 Trespass
 Nuisance
2.1
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-5 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Tort Law
Torts: legal rules with individual definitions as
set out in common law and based on precedence
What torts can you identify?
2.1
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-6 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Assault and Battery
These are separate torts that usually
occur together
 Assault – threat of injury to a person, with the
intent to carry out the force
 Battery – intentional and deliberate force or
touching to a person without consent
2.3
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-7 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Assault and Battery (Cont’d)
Defences to Battery:
 Self-defense – reasonable force can be used to
stop the threat and protect a person or property,
but the force cannot be excessive
 Consent – if physical force is known and agreed to
then only if excessive would battery occur, and in
medical the consent must be for a particular
procedure
What examples of assault and battery can you
identify (include medical procedures)?
2.3
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-8 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
False Imprisonment
Comprised of two aspects:
 Imprisonment – restraint or confinement,
including remaining based on embarrassment of
public accusation
 False – no lawful right to restrain – for example no
theft committed
2.4
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-9 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
False Imprisonment (Cont’d)
Defences:
 Limited as requires lawful reason to restrain,
usually crime committed
 Best method is call the police, as they may
apprehend on ground the plaintiff may have
committed a crime
2.4
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-10 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Defamation
Defamation:
 False statement
 Publication – made to other party or parties
 Slander – verbal
 Libel – written form
 Loss reputation by person, business or service
 What forms of communication can be
defamatory?
2.5
Essentials of Canadian Business Law, 1st Canadian Edition Slide 1-11 ©
2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Defamation
Figure 2-1
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-12 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Defamation (Cont’d)
Defences
 Truth: must be proven in fact
 Absolute privilege: situations of public interest
(courts, boards, Parliament)
 Qualified privilege: made in good faith with
importance to public (letter of reference)
 Fair Comment: raised by the media based on
honest opinion with public information
2.5
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-13 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Trespass to Land and Goods
 Entry on land without permission or consent
 May have damage, but even intrusion gives rise to
the tort
 Remedies include damages or injunction (court
order to prevent to action/trespass)
2.6
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-14 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Nuisance – Private and Statutory
Private
 Undue interference with enjoyment of property
 Serious interference not mere inconvenience
 Courts will examine
 Interests of community over individual interests
 Reasonable use
2.7
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-15 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Nuisance (Cont’d)
Private Nuisance
 Remedies: damages and injunction (court order
to refrain from certain acts)
Statutory Nuisance
 Areas where governments have regulated certain
activities for the benefit of the community as a
whole
 What areas can you identify for government
regulation?
2.7
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-16 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Negligence
Most common tort
Negligence - summary
 Duty – owed to another not to cause harm
 Breach – duty is not met
 Damages – injury caused by breach
2.8
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-17 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Negligence
Duty
 Standard of care owed not to injure another
 “Reasonable person” test
 Careful and cautious in his or her conduct
 Determined by courts in each situation and varies with
Activity or action
Risk
Skill or expertise
2.8
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-18 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Negligence – Breach of Duty
After plaintiff proves duty owed then must
prove:
 Breach of duty – defendant did not meet the
standard of care for the situation
To whom do you owe a duty of care when you
drive?
What is the standard you owe?
What situations would be a breach of this duty?
2.8
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-19 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Negligence – Damages
Causation
 Proximate cause: plaintiff’s negligence is the
direct and only cause of the injury, if not plaintiff’s
liability will be limited
 Remoteness or Foreseeability Test: reasonable
person would have foreseen the damage or injury
occurring from the action taken
2.8
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-20 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Negligence (Cont’d)
Contributory Negligence
 Plaintiff is also responsible (partly or entirely) for
his or her injuries
 Court will apportion the damages based on the
extent of responsibility
Voluntary Assumption of Risk
 Person voluntarily participates in an activity which
carries a chance of risk
2.8
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-21 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Other Unintentional Torts – Occupiers’ Liability
Duty of care owed by an occupier, person in possession
of land, to others on the land
Common Law:
 Trespasser (no permission) – no duty of care, but cannot
deliberately injure
 Licensee (permission for licensee’s benefit) – duty to warn of
hidden dangers
 Invitee (permission for occupier’s benefit) – highest duty to
warn of unusual dangers that exist that a reasonable and
careful person should know; duty met if sufficient warnings
are given
Statute Law:
 Many provinces have legislation imposing a standard of care
owed to trespassers and visitors
2.9
Essentials of Canadian Business Law, 1st Canadian Edition Slide 1-22 ©
2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Defamation
Figure 2-2
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-23 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Other Unintentional Torts – Vicarious Liability
Liability for the actions of another
 Employment: Employer is liable for torts
committed by an employee while carrying out
duties assigned, as the employer exercises control
and supervision over the employee
 Partnership: Partnership is liable for torts
committed by the partner if the actions are in the
course of partnership business
2.9
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-24 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Other Unintentional Torts – Strict Liability
 Activities are so dangerous that they result in
liability regardless of care taken or duty of care
met
 Governments by laws use strict liability for
environmental damage
2.9
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-25 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Commercial Negligence
Professional Negligence
 Duty owed is that of a reasonable person who is a
fully qualified member of that profession with
standards established by a governing body or
association
 Very high standards of care
 Protection by insurance
2.10
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-26 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Commercial Negligence (Cont’d)
Negligent Statements
 Reports or advice by professionals must meet the
standard set by the profession
 Liability to others who rely on the statements and
suffer a loss
 S.C.C. test @ page 47
 Liable to foreseeable users of information
 Determination of appropriate limitation on group using
the information, therefore not liable to the world at
large
 What professions are impacted by this tort?
2.10
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-27 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Commercial Negligence (Cont’d
Manufacturers’ Negligence
 High duty of care is owed to the consumer that
they will not be injured by the product
 Donoghue v. Stevenson “snail in the bottle” case is
the leading case establishing liability to the
consumer
2.10
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-28 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Commercial Negligence (Cont’d)
Manufacturers’ Negligence
 Standard of care is required to ensure products will
not damage or injure the user or consumer
 Adequate testing is essential to avoid liability
 If a product is dangerous then adequate warnings
and proper instructions are also essential to avoid
liability
2.10
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-29 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Defences to Claims of Negligence
Act of God
 No liability for loss caused by an unanticipated
event beyond the control of plaintiff
Waiver
 Express or implied promise not to sue
 Usually in writing
 Must be brought to the attention of person waiving the
right
 Must refer to the type of injury contemplated at the
time
2.11
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-30 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Defences to Claims of Negligence
(Cont’d)
Release
 Promise to discharge a person from liability and
not to sue
 Usually written release for compensation for loss or
damage suffered
Statute of Limitations
 Legal action must begin within a reasonable time,
most provinces have statutory limits
 If action is not commenced within the set time
period the right to sue is lost
2.11
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-31 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Defences to Negligence
Lawful Right
 Person is granted the right to action under a duty
to protect the public at large, then will not be liable
When would these defences apply?
2.11
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-32 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Tort Remedies
Monetary (money) Damages to place person back in
same position
1. Special Damages
 Established by specific receipts or records
2. General Damages
 Estimated usually based on expert testimony
3. Punitive or Exemplary Damages
 Punishment for particularly reckless actions, usually
intentional torts not ordinary negligence
4. Nominal Damages
 Small amount of money to recognize violation, but
court costs may also be given adding to the cost
2.12
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-33 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Special Remedies
Special Remedies
 Injunction – court order requiring stoppage of
certain action
2.13
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-34 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
Business-Related Torts
Slander of Goods
 Untrue statement as to the nature of goods
Slander of Title
 Untrue statement with respect to ownership of goods
Fraudulent Misrepresentation
 Intentional false statement to deceive another into entering a
contract
 Allows rescission of the contract and damages
Fraudulent Conversion of goods
 False pretenses to acquire goods
2.14
Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-35 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved.
SUMMARY
Torts are civil wrongs causing injury to
another
 Intentional – often criminal association
 Assault and battery, false imprisonment, defamation,
trespass, nuisance
 Unintentional – negligence, most common type of
tort, with many aspects
 Liability by professionals, manufacturers, occupiers,
vicarious and strict liability
 Defences are available for tort actions
 Remedies are used to compensate for losses
caused by tort actions
CH 2

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Colonial Law Group | The law of torts

  • 1. CHAPTER PowerPoint® Presentation Prepared By Susan McManus, Mount Royal College © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. CHAPTER PowerPoint® Presentation Prepared By Susan McManus, Mount Royal College 2 The Law of Torts
  • 2. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-2 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. LEARNING GOALS  Identification of common torts (intentional and unintentional)  Identification of tort situations in business  Understand principles of law imposed by the courts to determine tort liability  Understand how the courts apportion liability where more than one person is responsible  Understand how damages or compensation is determined by a court CH 2
  • 3. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-3 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Tort Law Tort:  acts or omissions recognized by law as civil wrongs causing injury to others or their property  Actions may have:  tort aspect = civil action by plaintiff against a defendant based on compensation  Criminal aspect = criminal charges by the Crown against an accused based on punishment 2.1
  • 4. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-4 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Tort Law Unintentional Torts – commit the acts without intent, usually by accident or carelessness  Negligence  Occupiers’ Liability  Vicarious Liability  Strict Liability  Commercial Negligence Intentional Torts – decision to commit the acts, not always intention to harm  Assault & Battery  False Imprisonment  Defamation  Trespass  Nuisance 2.1
  • 5. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-5 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Tort Law Torts: legal rules with individual definitions as set out in common law and based on precedence What torts can you identify? 2.1
  • 6. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-6 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Assault and Battery These are separate torts that usually occur together  Assault – threat of injury to a person, with the intent to carry out the force  Battery – intentional and deliberate force or touching to a person without consent 2.3
  • 7. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-7 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Assault and Battery (Cont’d) Defences to Battery:  Self-defense – reasonable force can be used to stop the threat and protect a person or property, but the force cannot be excessive  Consent – if physical force is known and agreed to then only if excessive would battery occur, and in medical the consent must be for a particular procedure What examples of assault and battery can you identify (include medical procedures)? 2.3
  • 8. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-8 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. False Imprisonment Comprised of two aspects:  Imprisonment – restraint or confinement, including remaining based on embarrassment of public accusation  False – no lawful right to restrain – for example no theft committed 2.4
  • 9. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-9 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. False Imprisonment (Cont’d) Defences:  Limited as requires lawful reason to restrain, usually crime committed  Best method is call the police, as they may apprehend on ground the plaintiff may have committed a crime 2.4
  • 10. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-10 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Defamation Defamation:  False statement  Publication – made to other party or parties  Slander – verbal  Libel – written form  Loss reputation by person, business or service  What forms of communication can be defamatory? 2.5
  • 11. Essentials of Canadian Business Law, 1st Canadian Edition Slide 1-11 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Defamation Figure 2-1
  • 12. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-12 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Defamation (Cont’d) Defences  Truth: must be proven in fact  Absolute privilege: situations of public interest (courts, boards, Parliament)  Qualified privilege: made in good faith with importance to public (letter of reference)  Fair Comment: raised by the media based on honest opinion with public information 2.5
  • 13. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-13 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Trespass to Land and Goods  Entry on land without permission or consent  May have damage, but even intrusion gives rise to the tort  Remedies include damages or injunction (court order to prevent to action/trespass) 2.6
  • 14. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-14 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Nuisance – Private and Statutory Private  Undue interference with enjoyment of property  Serious interference not mere inconvenience  Courts will examine  Interests of community over individual interests  Reasonable use 2.7
  • 15. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-15 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Nuisance (Cont’d) Private Nuisance  Remedies: damages and injunction (court order to refrain from certain acts) Statutory Nuisance  Areas where governments have regulated certain activities for the benefit of the community as a whole  What areas can you identify for government regulation? 2.7
  • 16. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-16 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Negligence Most common tort Negligence - summary  Duty – owed to another not to cause harm  Breach – duty is not met  Damages – injury caused by breach 2.8
  • 17. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-17 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Negligence Duty  Standard of care owed not to injure another  “Reasonable person” test  Careful and cautious in his or her conduct  Determined by courts in each situation and varies with Activity or action Risk Skill or expertise 2.8
  • 18. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-18 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Negligence – Breach of Duty After plaintiff proves duty owed then must prove:  Breach of duty – defendant did not meet the standard of care for the situation To whom do you owe a duty of care when you drive? What is the standard you owe? What situations would be a breach of this duty? 2.8
  • 19. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-19 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Negligence – Damages Causation  Proximate cause: plaintiff’s negligence is the direct and only cause of the injury, if not plaintiff’s liability will be limited  Remoteness or Foreseeability Test: reasonable person would have foreseen the damage or injury occurring from the action taken 2.8
  • 20. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-20 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Negligence (Cont’d) Contributory Negligence  Plaintiff is also responsible (partly or entirely) for his or her injuries  Court will apportion the damages based on the extent of responsibility Voluntary Assumption of Risk  Person voluntarily participates in an activity which carries a chance of risk 2.8
  • 21. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-21 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Other Unintentional Torts – Occupiers’ Liability Duty of care owed by an occupier, person in possession of land, to others on the land Common Law:  Trespasser (no permission) – no duty of care, but cannot deliberately injure  Licensee (permission for licensee’s benefit) – duty to warn of hidden dangers  Invitee (permission for occupier’s benefit) – highest duty to warn of unusual dangers that exist that a reasonable and careful person should know; duty met if sufficient warnings are given Statute Law:  Many provinces have legislation imposing a standard of care owed to trespassers and visitors 2.9
  • 22. Essentials of Canadian Business Law, 1st Canadian Edition Slide 1-22 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Defamation Figure 2-2
  • 23. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-23 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Other Unintentional Torts – Vicarious Liability Liability for the actions of another  Employment: Employer is liable for torts committed by an employee while carrying out duties assigned, as the employer exercises control and supervision over the employee  Partnership: Partnership is liable for torts committed by the partner if the actions are in the course of partnership business 2.9
  • 24. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-24 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Other Unintentional Torts – Strict Liability  Activities are so dangerous that they result in liability regardless of care taken or duty of care met  Governments by laws use strict liability for environmental damage 2.9
  • 25. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-25 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Commercial Negligence Professional Negligence  Duty owed is that of a reasonable person who is a fully qualified member of that profession with standards established by a governing body or association  Very high standards of care  Protection by insurance 2.10
  • 26. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-26 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Commercial Negligence (Cont’d) Negligent Statements  Reports or advice by professionals must meet the standard set by the profession  Liability to others who rely on the statements and suffer a loss  S.C.C. test @ page 47  Liable to foreseeable users of information  Determination of appropriate limitation on group using the information, therefore not liable to the world at large  What professions are impacted by this tort? 2.10
  • 27. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-27 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Commercial Negligence (Cont’d Manufacturers’ Negligence  High duty of care is owed to the consumer that they will not be injured by the product  Donoghue v. Stevenson “snail in the bottle” case is the leading case establishing liability to the consumer 2.10
  • 28. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-28 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Commercial Negligence (Cont’d) Manufacturers’ Negligence  Standard of care is required to ensure products will not damage or injure the user or consumer  Adequate testing is essential to avoid liability  If a product is dangerous then adequate warnings and proper instructions are also essential to avoid liability 2.10
  • 29. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-29 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Defences to Claims of Negligence Act of God  No liability for loss caused by an unanticipated event beyond the control of plaintiff Waiver  Express or implied promise not to sue  Usually in writing  Must be brought to the attention of person waiving the right  Must refer to the type of injury contemplated at the time 2.11
  • 30. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-30 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Defences to Claims of Negligence (Cont’d) Release  Promise to discharge a person from liability and not to sue  Usually written release for compensation for loss or damage suffered Statute of Limitations  Legal action must begin within a reasonable time, most provinces have statutory limits  If action is not commenced within the set time period the right to sue is lost 2.11
  • 31. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-31 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Defences to Negligence Lawful Right  Person is granted the right to action under a duty to protect the public at large, then will not be liable When would these defences apply? 2.11
  • 32. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-32 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Tort Remedies Monetary (money) Damages to place person back in same position 1. Special Damages  Established by specific receipts or records 2. General Damages  Estimated usually based on expert testimony 3. Punitive or Exemplary Damages  Punishment for particularly reckless actions, usually intentional torts not ordinary negligence 4. Nominal Damages  Small amount of money to recognize violation, but court costs may also be given adding to the cost 2.12
  • 33. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-33 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Special Remedies Special Remedies  Injunction – court order requiring stoppage of certain action 2.13
  • 34. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-34 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. Business-Related Torts Slander of Goods  Untrue statement as to the nature of goods Slander of Title  Untrue statement with respect to ownership of goods Fraudulent Misrepresentation  Intentional false statement to deceive another into entering a contract  Allows rescission of the contract and damages Fraudulent Conversion of goods  False pretenses to acquire goods 2.14
  • 35. Essentials of Canadian Business Law, 1st Canadian Edition Slide 2-35 © 2005 McGraw-Hill Ryerson Ltd., All Rights Reserved. SUMMARY Torts are civil wrongs causing injury to another  Intentional – often criminal association  Assault and battery, false imprisonment, defamation, trespass, nuisance  Unintentional – negligence, most common type of tort, with many aspects  Liability by professionals, manufacturers, occupiers, vicarious and strict liability  Defences are available for tort actions  Remedies are used to compensate for losses caused by tort actions CH 2