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CHAPTER 4 TORTS I Torts an omission failure to act or a wrongful act other than a breach of contract against a person or his property II Purpose of Tort Law A To compensate the innocent victim important to torts are the concepts of duty and causation One is not liable for another s injury unless he or she has duty toward the person bing injured B Civil Action III Tortfeasor or Joint Tortfeasors A Liability B Egg shell Theory C Deep pocket Theory IV Three 3 Theories of Tort Liability A Intentional Torts Intent is the desire to bring about certain results 1 Assault is the placing of another in immediate apprehension for his or her physical safety Apprehension has a broad meaning of fear 2 Battery an illegal touching of another as used here illegal means that the touching is done without justification and without the consent of the person touched 3 Mental Distress is a battery to the emotions Intentional placing someone in a reasonable fear anxious not enough if you are upset but physical manifestation 4 False Imprisonment used a lot in business Intentionally placing someone in an unreasonable area Claims of false imprisonment stem most frequently in business from instance of shoplifting This tort is the intentional unjustified confinement of a nonconsenting person 5 Malicious Prosecution False Arrest Law enforcement arrest you with no legitimate reason Malicious prosecution arises from causing someone to be arrested criminally without proper grounds 6 Defamation publishing of untrue statements about another person that holds up that individual s character or reputation to contempt and ridicule damages that personas reputation It is communicated to a third party Truth is an absolute defense a Libel written defamation anything that has a permanent form videotaping voice recording etc You can get more damages b Slander oral defamation potential for damage is forgotten Public figures have a harder time and are newsworthy They not only have to prove defamation 7 Invasion of Privacy the intrusion into the personal life of another without just cause which can give the person whose privacy has been invaded a right to bring a lawsuit for damages against the person or entity that intruded Technological times have change which also changes the invasion of privacy limits It s one that is still in the early states of legal development 8 Fraud a Definition wrongful or criminal deception intended to result in financial or personal gain A fraud is an intentional misrepresentation of a material fact that is justifiably relied upon by someone to his or her injury An intentional misrepresentation means a lie b Five 5 Elements I Misstatement II Material Fact III Reasonably Relied Upon IV Resulting in Damage Detriment or Injury V Scienter 9 Trespass to enter another land without consent or to remain there after being asked to leave A variation of trespass tort incudes as follows a To land such as particles of pollution are placed on another s land without consent Although the usual civil action for trespass asks for an injunction to restrain the trespasser the action may also ask for damages b To personal property union pickets walking on company s properties in most instances customers refusing to leave a store after being asked to do so and unauthorized persons entering restricted areas are all examples of trespass Trespass is also a crime as well as a tort Intentional wrongdoing is frequently criminal 10 Conversion is the wrongful exercise of dominion power and control over the personal nonland resources that belong to another This often occurs in business situations for example stealing etc 11 Nuisance a physical condition constituting an unreasonable and substantial interference with the rights of individuals or the public at large 12 Business Torts embraces different kinds of torts that involve intentional interference with business relations a At Common Law b Statutory I II Injurious Falsehood or Trade Disparagement is a common business tort It consists of the publication of untrue statements that disparage the business owner s product or its quality International Interference with Contractual Relations probably the most common example of this tort involves one company raiding another for employees I employees are under contract to an employer for a period of time another employer cannot induce them to break their contracts III Trade Secret Violations Trade Secret any formula pattern machine or process of manufacturing used in one s business that may give the user an opportunity to obtain an advantage over its competitors Trade secrets are legally protectable I Unfair Competition a group of statutory torts that include misappropriation of trademarks patent violations and copyright breaches One aspect of the Federal Trade Commission s authority Section 5 of the FTC act makes unfair methods of competition illegal a Clayton Act violation of antitrust laws legislation passed in 1914 that exempts labor unions from the Sherman Act This law expanded the national antitrust policy to cover price discrimination exclusive dealings tying contracts mergers and interlocking directors II Trademark Infringement and False Advertising Federal law Trademark infringement civil violation of a trademark or patent is termed infringement The violator infringes on the trademarks property right through an unintentional or willful unauthorized use misappropriating the goodwill and reputation that the trademark represents and confusing the public about the identity of the user a Lanham Act of 1946 A federal law regulating unfair methods of competition regarding trademarks b Trademark Law Revision Act of 1988 page 407 which established that dilution exists when a defendant creates a likelihood of dilution The law was designed in part to overrule and earlier Supreme Court decision Moseley v V Secret Catalogue Inc which set a higher standard of actual dilution Thus it is now slightly easer to win a dilution case trademark dilution using someone s trademark in such a way so as to reduce the value of the trademark s significance reputation and goodwill even if the public is not confused by the use III Patent Infringement IV Copyright Infringement Page 415 419 a Copyright Act of 1976 specifies that a fair use of copyrighted materials is not an infringement of the owner s property Fair Use includes copying for criticism comment news reporting teaching including multiple copies for classroom use scholarship or research B


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KSU FIN 26074 - Chapter 4

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