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Chapter 4 Torts and Cyber Torts Tort A wrongful act other than a breach of contract that results in harm or injury to another and leads to civil liability Species of Civil law Business Tort Wrongful inference with another s business rights and relationships Cyber Tort A tort committed in cyberspace Damages A monetary award sought as a remedy for a breach of contract or a tortious action The Purpose of Tort Law To provide remedies for the invasion of various protected interests Society recognizes an interest in protecting real and personal property Tort law provides remedies for acts that cause destruction or damage to property Society also recognizes an interest in protecting certain intangible interests such as personal privacy family relations reputation and dignity Consequently tort law provides remedies for invasion of these interests Compensatory Damages A monetary award equivalent to the actual value of injuries or damage sustained by the aggrieved party Special Damages Car accident Fenderbender out of pocket expenses exact dollar amount General Damages Pain and suffering Can t put an exact dollar sign on it Punitive Damages Monetary damages that may be awarded to a plaintiff to punish the defendant and deter similar conduct in the future Appropriate only when the defendants conduct was particularly bad unacceptable Available mainly in intentional tort actions and only rarely in negligence lawsuits Courts exercise great restraint in granting Punitive damages to plaintiffs in tort actions because punitive damages are subject to the limitations imposed by the due process clause of the U S Constitution U S Supreme Court has held that a punitive damage award that is grossly excessive furthers no legitimate purpose and violates due process requirements An appellate court will sometimes reduce the amount of punitive damages awarded to a plaintiff because the amount was excessive and thereby violates the due process clause Tort Reform 1 Limiting the amount of both punitive damages and general damages that can be awarded 2 Capping the amount that attorneys can collect in contingency fees 3 Requiring the losing party to pay both plaintiffs and the defendant s expenses In 2005 the Class Action Fairness Act CAFA shifted jurisdiction over large interstate tort and product liability class action lawsuits lawsuits filed by a large number of plaintiffs from the state courts to the federal courts More than 30 states have limited damages especially in medical malpractice Intentional Tort A wrongful act knowingly committed requires intent Non Intentional Tort Accidental Tortfeasor One who commits a tort An evil or harmful motive is not required Assault Any word or action intended to make another person fearful of immediate physical harm a reasonably believable threat Tort law aims to protect individuals from having to expect harmful or offensive contact Battery Unexcused harmful or offensive physical contact with another that is intentionally performed Defense A reason offered and alleged by a law defendant in an action or lawsuit as to why the plaintiff should not recover or establish what she or he seeks False Imprisonment The intentional confinement or restraint of another personals activities without justification Interferes with the freedom to move without restraint Can be accomplished through the use of physical barriers physical restraint or threats of physical force Example Store owners detaining suspected shoplifters allowed in most states Actionable Capable of serving as the basis of a lawsuit An actionable claim can be pursued in a lawsuit or other court action Intentional Infliction of Emotional Distress Extreme and outrageous act intentionally committed that results in severe emotional distress to another Defamation Anything published or publicly spoken that causes injury to another s good name reputation or character Libel Written such as digital recording printed statements Applies with only facts Must be published to a 3rd party o Damages are presumed Slander Spoken o Damages must be proven Defenses against Defamation Truth Privilege absolute qualified if made in good faith then they are protected Public Figures o Actual Malice A statement that is made with either knowledge of its falsity or a reckless disregard of the truth Invasion of Privacy 1 Intrusion into an individual s affairs or seclusion a Example Invading someone s home or illegally searching someone s briefcase 2 False light 3 Public disclosure of private facts a Example Publication of information that places a person in a false light a Example Occurs when a person publicly discloses private facts about an individual that an ordinary person would find objectionable or embarrassing 4 Appropriation of Identity a Example Using a person s name picture or other likeness for commercial purposes without permission is a tortious invasion of privacy Appropriation Right of publicity Fraudulent Misrepresentation Fraud intentional deceit for personal gain 1 The misrepresentation of facts or conditions with knowledge that they are false or with reckless disregard for the truth 2 An intent to induce another to rely on the misrepresentation 3 Justifiable reliance by the deceived party 4 Damage suffered as a result of the reliance 5 A causal connection between the misrepresentation and the injury suffered Puffery Sellers talk involves opinions rather than facts Statement of Fact vs Opinion Fact over opinion unless the person with the opinion has superior knowledge of the subject matter Wrongful Interference with a Contractual Relationship 1 A valid enforceable contract must exist between two parties 2 A third party must know that this contract exists 3 The third party must intentionally induce a party to breach the contract Wrongful Interference with a Business Relationship Business persons devise countless schemes to attract customers but they are prohibited from unreasonably interfering with another s business in their attempts to gain a share of the market Defenses to Wrongful Interference A person can avoid liability for the tort of wrongful interference with a contractual or business relationship by showing that the interference was justified or permissible Intentional Torts against Property Intentional Torts against property include trespass to land trespass to personal property conversion and disparagement of property Trespass to Land occurs anytime a person without permission enters onto above or below the surface of


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KSU FIN 26074 - Chapter 4 – Torts and Cyber Torts

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Midterm 2

Midterm 2

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Exam 3

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