Business Law - Chapter 8

A person must actually intend to cause harm to the plaintiff to be liable for an intentional tort.

False

Courts award punitive damages in most tort cases.

False

Libel

Written defamation

Can a person who commits a tort be sent to jail as a result of his conduct?

Yes

In Roe and Doe v. Mills, the Court weighed most heavily

that the defendants' conduct might be considered outrageous

The Exxon Valdez decision may not be particularly influential on future cases because

the case involves maritime law

Assault

An action that makes another person fear an imminent harmful or offensive touching

Battery

An intentional touching of another person in a way that is harmful or offensive

A political group publishes some very misleading advertisements about a senator's voting record. Why is the politician prohibited from filing suit under the Lanham Act?

Because the Act covers commercial speech only

Lucia is very interested in buying Charlotte's apartment and has toured it several times. She pays Charlotte $5,000 to hold the offer open (that is, not to sell the apartment to anyone else) for three days, so that Lucia can think it over. The next day, Lucia's realtor, Antonio, shows her an apartment that she prefers. Lucia buys it on the spot. Charlotte sues Antonio for tortious interference with a contract. What result?

Charlotte loses because she did not have a contract with Lucia for the sale of the apartment.

Which of the following are elements the plaintiff must prove in a libel per se case?

Communication Defamatory Statement Falsity

Which of the following are elements that the plaintiff must prove in a defamation suit?

Communication Injury Defamatory Statement Falsity

D'Arcy, who is not a public figure, brings a libel suit against Mary. At trial, D'Arcy fails to prove injury or actual malice, but he wins the suit anyway. Which of the following must be true?

D'Arcy sued Mary because she wrote an article that said he had been convicted of tax fraud, when he had not.

Which of the following are the major differences between conversion and theft?

Defendant can go to prison for theft Defendant may have to compensate the original property owner in a conversion suit

Which of the following are examples of what a plaintiff must show to demonstrate interference with a prospective advantage?

Defendant's conduct was independently unlawful Plaintiff had a definite expectation of obtaining an economic advantage Plaintiff had a reasonable expectation of obtaining an economic advantage

Which of the following are goals of punitive damages?

Deter similar conduct Punish the defendant

Compensatory Damages

Economic Damages -Lost earning capacity -Medical expenses Non-Economic Damages -Pain and suffering -Inability to socialize

Caldwell was shopping at T-Mart department store, carrying a large purse. A security guard observed her looking at various small items for sale. At one point, Caldwell put her reading glasses in her purse, and the guard thought she might have been shoplifting. The guard approached her in the parking lot and accused her of taking store merchandise. The guard found no stolen goods in her purse but had her return to the store with him. They walked around the store for approximately 15 minutes, while the guard said six or seven times that he saw her steal something. Another store employee indicated she could go and Caldwell later sued. What kind of suit did she file, and what should the outcome be?

False imprisonment, and she will win.

Which of the following are items for which compensatory damages may be awarded in a civil suit?

Future emotional injury and mental anguish Past emotional injury and mental anguish Future lost earning capacity Reduced ability to interact socially with family and friends Future medical expenses

Dolly has a baseball bat and a great deal of anger towards Peter. Which of the following is true:

It is possible for Dolly to batter Peter without assaulting him, and it is possible for Dolly to assault Peter without battering him.

Can the judge in a civil tort case send the defendant to jail?

No

Tammy-Lynne playfully ruffles her cousin Allan's hair at Thanksgiving. Allan hates it when people touch his hair, and he faints. Has Tammy-Lynne battered Allan?

No, because a reasonable person would not be offended by this.

You are a vice-president in charge of personnel at a large manufacturing company. In-house detectives inform you that Gates, an employee, was seen stealing valuable computer equipment. Gates denies the theft, but you believe the detectives and fire him. The detectives suggest that you post notices around the company informing all employees what happened to Gates and why. This will discourage others from stealing. Should you post the notices?

No, posting the sign could give rise to a claim of defamation.

After he is injured in an accident, Conrad successfully sues the driver and the trucking company. The jury awards him money for past lost earning capacity, past and future physical symptoms and discomfort, and past emotional injury and mental anguish. If Conrad's injuries require him to be out of work for much longer than anticipated, can he later file another suit against the driver and the trucking company for his unforeseen lost wages?

No, under the single recovery principle.

In Texaco v. Pennzoil, Texaco's position was that

Pennzoil's agreement with the Getty Museum violated SEC rules.

Punitive Damages

Punish the defendant Deter similar conduct

What general guidelines has the Supreme Court set forth for awarding punitive damages?

Punitive damages should not exceed compensatory damages by more than a factor of nine.

Punitive Damage - 3 guideposts for the amount of the award:

Reprehensibility of the defendant's conduct 9-to-1 ratio Civil penalties imposed in similar cases

Which of the following are topics that are included under slander per se?

Sexual behavior Contagious disease Professional Abilities Crimes

Slander

Spoken defamation

Taterz Potato Chip Company posted a billboard along the highway with a photo of NBA basketball superstar LeBron Smith eating their chips. Smith was furious. He did not endorse the chips, and he did not want his fans to think he ate unhealthy snacks. Smith sues Taterz. What result?

Taterz is liable for commercial exploitation.

Which of the following are examples of what a defendant may show in order to establish a defense of justification?

The existing contact could be terminated at will The defendant was protecting an economic interest The defendant was acting in the public interest

False imprisonment

The intentional restraint of another person without reasonable cause and without consent.

Which of the following are elements a plaintiff must establish to win a suit for tortious interference with a contract?

There was injury to the plaintiff The defendant knew of the contract There was a contract between the plaintiff and a third party The defendant improperly induced the third party to breach the contract or made performance of the contract impossible

Tata Consultancy of Mumbai, India, is an international computer consulting firm. It spends considerable time and effort recruiting the best personnel from India's leading technical schools and has its employees sign an initial three-year employment commitment. Desai worked for Tata, but then quit and formed a competing company, Syntel. His new company contacted Tata employees, offering a higher salary and other perks. Several Tata employees accepted Syntel's offer and did not complete their three year obligation. Tata sued Syntel. What did it claim, and what should be the result?

Tortious interference with a contract, and Tata will win.

The law expects and allows businesses to compete aggressively.

Tru

A person speaking in a legislative hearing can say whatever he wants and not be sued for defamation.

True

A tort is a violation of a duty imposed by civil law.

True

The New York Times v. Sullivan rule now includes all public figures, like actors, and professional athletes, even if they are not involved in politics.

True

Tortious interference can occur even when there is no contract.

True

Under certain circumstances, it is legal for a store employee to detain a customer in a back office of the store.

True

Miraval takes her son for a picnic. They believe the land they are on is part of a public park, but in fact it is owned by a private party. She and her son

are trespassing

In states that distinguish between economic and non-economic damages, the jury may award any amount for __________ damages but ____________ damages are generally capped.

economic non-economic

If a victim wants to be compensated for tortious conduct, how does he go about doing that?

file a civil lawsuit

Marcel sells Andrew a quarter of an acre of farm land for $7,000. Andrew is delighted. Andrew does not realize that Marcel never actually owned the land, so it was not his to sell. In fact, Marcel has already "sold" that particular parcel of land to two other unsuspecting people. Marcel has committed

fraud

Economic damages

include lost wages and medical expenses.

Non-economic damages

include pain and suffering.

One day, while drawing a patient's blood, nurse Athena accidentally pricks herself with the needle that she had just used on the patient. Rebecca, another nurse at the hospital, warns Athena that the patient has Hepatitis C, a virus that can spread through a shared needle. Athena becomes visibly distraught and Rebecca tells nurse Edwin that Athena now has Hepatitis C. In fact, Rebecca made the whole thing up. She knew the patient had no such illness and just wanted to embarrass her co-worker. Rebecca may be found liable for:

intentional infliction of emotional distress and slander.

When an award of punitive damages is made, it is generally in a case involving a(n)

intentional tort

A defendant in a suit regarding tortious interference with a contract can claim that special circumstances made its conduct fair. This is the defense of _______________.

justification

The Court's reasoning in New York Times Co. v. Sullivan emphasized the importance of

preserving free debate

It is easier for a _______________ to win a suit for defamation than it is for a _____________ to succeed in a similar suit because ____________ do not have to prove ___________.

private individual public office private individuals actual malice

Punitive damages

punish the defendant for conduct that is extreme and outrageous.

The single recovery principle

requires a court to settle the matter once and for all by awarding a lump sum for past and future expenses.

Compensatory damages

restore the plaintiff to the position he was in before the defendant's conduct caused an injury.

WingIt is a major distributer of birdseed. With promises of higher salaries and bonuses, the company lures two top executives from Starling, Inc., a much smaller competitor. Starling sues. WingIt should argue that _________________________.

the employees did not have contracts with Starling.

If a jury returns a verdict for the prosecution and the defendant is fined, the money goes to ____________.

the state