Business Law 210 – Sections 3 & 5 April 2016Dr. Smith-Hill – Spring 2016Examination #3: Study GuideCHAPTER 12: Torts –What is a tort, and, what are the main categories of torts? A tort- A civil wrong not arising from a breach of contract. A breach of a legal duty that proximately causes harm or injury to another. Wrongs and compensation serve as the basis of notions for torts. Two classifications of torts; Intentional torts and unintentional torts. What are the main intentional torts we studied? Intentional- a wrongful act knowingly committed. Case12.1 McKee V. Lauurion Palsgraf v. Long Island Railroad:Business Torts? Involve wrongful interference with another’s business rights. Involving wrongful interference generally fall into two categories: interference with a contractual relationship or business. What are the elements of negligence (unintentional torts)? Occurs when someone suffers injury because of another’s failure to live up to a required duty of care. injury was not intended or desired--conduct has just created a foreseeable RISK.What is a Good Samaritan statute?Someone who is aided voluntarily by another cannot turn around and sue the “good Samaritan” for negligence. What are the various defensesto the different torts? Defendant can raise a number of legally recognized defenses. Intentional torts- common defense is consent (explicit or implied). When a person consents to the act that damages them, there is generally no liability. Negligence- comparative negligence. A successful defense releases the defendant from partial or fully liability for the tortious act. What is foreseeability in tort law (i.e. the famous Palsgraf case)? Ask the question: Does a defendants duty of care extend only to those who may be injured as a result of aforeseeable risk, or does it also extend to a person whose injury could not be reasonably foreseen? Case Palsgraf-established foreseeability as the test for proximate cause.What are the different categories of available damages in tort cases trespass, assault, battery, defamation, conversion, trade libel, fraudulent misrepresentation?Compensatory damages- A plaintiff is awarded to compensate or reimburse a plaintiff for actual losses. Is broken into:1) special damages- compensate the plaintiff for quantifiable monetary losses. (Slander2) General- compensate individuals for the nonmonetary aspects of harm suffered, such as painand suffering.( Lible)Punitive Damages- punish the wrongdoer and deter others from similar wrong-doing. Only appropriate when the defendant’s conduct was particularly egregious (reprehensible). Trespass- attractive nuisance doctrine What is negligence per se? Occurs if an individual violates a statute or an ordinance providing for criminal penalty and that violation causes to be injured.CHAPTER 13: Strict Liability and Product Liability – Strict liability and abnormally dangerous activitiesStrict liability- liability without fault. Under the doctrine of strict liability, a person who engages in certain activates can be held responsible for any hard that results to others, even if the person used the utmost care Abnormally dangerous- although there is no fault, there is still responsibility because of the dangerous nature of the undertaking. owners of wild animals and strict liabilityOwners are strictly liable for any harm inflicted by the animals.Negligence theoryDefined as the failure to exercise the degree of care that a reasonable, prudent person would haveexercised under the circumstances. If an manufacturer fails to exercise “due care: to make the product safe, a person who is injured by the product may sue the manufacturer for negligence. Product liability action based on negligence does not require privity of contract ( refers to the relationship that exists between the parties to a contract) product liabilityThe legal liability of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods.In a product liability situation, who can be liable in the chain of distributionThose who make, sell or lease goods can be held liable for physical harm or property damages caused by those goods to a consumer, user orbystander. Manufacturers: Product defectsThree types of product defects: manufacturing defects, design defects and inadequate warnings. Manufacturing defects- According to section 2(a) of the Restatement (Third) of Torts a manufacturingdefect is a departure from a products unit design specifications that result in products that are physically flawed, damaged or incorrectly assembled. This happens with manufacture fails to assemble, test or adequately check the quality of a product. Liability is imposed on the manufacture regardless of whether the quality control efforts were “reasonable” Design Defects- a product with a design defect is made in conformity with the manufactures design specifications. A plaintiff must show a reasonable alternative design was available and the defendants failure to adopt alterative design rendered the product not reasonably safe. Manufacturer is liable only when the harm was reasonably preventable. Use: risk-utility analysis and comsumer-expecation test.Inadequate warnings- or instructions. Important factors for a court to consider include the risks of a product, the content and comprehensibility, intensity of expression of warnings and instructions, and the characteristics of the expected user groups. Courts apply a resonablness test to determine. Manufactures: fraud When a user or consumer is injured a a result of a manufacturer’s or sellers fraudulent misrepresentationManufactures: duty to check out components parts made by other sub-contractors/ manufacturersManufactures: duties to inspect and test products? Risk- utility analysis- user and public and consumer-expectations- design was defictiveManufactures: products fit for their intended use? Not liable if product was not used for intended use. Abuse of products by consumers Product misuse- occurs when a product is used for a purpose for which it was not intended. It is only recognized as a defense when the particular use was not foreseeable. What kind of damages are available? Market-share liability, a court can hold each manufacturer responsible for a percentage of the plaintiffs damages that is equal to the percentageof its market share. CHAPTER 14: Intellectual Property Rights Broad definition of intellectual