Law 3220 Legal Environment of Business Exam 2 (Ch. 5-7, 9)

Defenses of Intentional Torts

A person accused of a tort may have a defense, a legally recognized justification for the action that relieves the defendant of liability. 4 Defenses: 1) Consent 2) Privilege 3) Self-Defense 4) Defense of Others/Property

Felony

A serious crime against persons or against property. In many states, a felony may be punished by more than a year in prison. Where physical force is used. Class A, B, or C or in degrees to denote the seriousness of a criminal charge.

Statute of Limitations

A statute setting maximum time periods from the occurence of an event, during which certain actions can be brought or rights enforced. If an action is not filed before the expiration of that time period, the statute bars the use of the courts for recovery.

False Imprisonment

A tort of intentional holding, detaining, or confining of a person that violates the protected interest in freedom from restraint of movement.

Infliction of Emotion/Mental Distress

A tort of intentional infliction of emotional/mental distress involves conduct that is so outrageous that is creates [severe] mental or emotional distress in another person. Outrageous: When so extreme it exceeds all bounds usually tolerated in a civilized community.

Invasion of Privacy

A tort that invades a person's right to solitude and to be free from unwarranted public exposure. Can be violated 4 ways: 1) Use of a person's name or picture without permission 2) Intrusion on solitude (wiretap) 3) Placing a person in false light (publishing a false story) 4) Public exposure of facts that are private in nature (debts, drug use)

Absolute Privilege

An immunity applied in those situations where public policy favors complete freedom of speech. ex) legislators in committee sessions, participants in judicial proceeding

Warrant

Before authorities may search property or persons and seize evidence, unless they are in "hot pursuit" of a suspected criminal, a warrant must be obtained first. It authorizes an officer to search for and seize property, often called personal effects, that may be evidence of a crime.

Convicted

Being found by a court to have committed a crime. The range of possible punishments is set out in the statute that declared the matter to be criminal.

Interference with Contractual Relations

Breaking the contract benefits a 3rd party Elements 1. existence of a contractual relationship 2. 3rd party knows about the contract 3. 3rd party intentionally interferes with the contractual relationship 4. Absence of justification for the interference 5. Damages as a result of the interference Motive doesn't matter. The point is that breaking the contract is done to benefit the tortfeasor.

Ch. 7

Business Torts and Product Liability

Business and Torts

Can become involved through: 1) person is harmed by actions of businesses or its employees 2) a person is harmed by a product manufactured or distributed by the business 3) a business is harmed by the wrongful actions of another business or person

Discovery

Different than civil trial discovery process. In criminal trials, parties do their own investigations and disclose only subset of what is found to the other side prior to trial. Prosecution must disclose exculpatory evidence. Defendant DOES NOT have to disclose evidence to prosecution showing guilt. (5th Amendment)

Causation

Element of Tort Based on Negligence To be held negligent, the act in question must have been the cause of the other's injury > rational relationship between action and injuries Must prove: 1) Duty of Care 2) Breach of Duty Damages have to be foreseeable

Conditional Privilege

Eliminates liability when the false statement was published in good faith and with proper motives, such as for a legitimate business purpose. ex) if there was no malice, in order to protect a person's legitimate interests

Before Trial

Misdemeanor Cases: there may be a settlement conference to save court time. The attorneys attempt to resolve the matter without trial, but under the supervision of a judge. If no agreement, trial is scheduled. Felony Cases: the judge decides at the arraignment whether there is sufficient evidence to proceed or if the matter should be reduced to a misdemeanor or dismissed. Prosecution and defense exchange witness and exhibits list.

Tortfeasors

Persons who commit torts

Evidence

The standards for proper gathering and presentation of evidence is more strict in criminal trials. It must be shown that the evidence was gathered, handled, and presented properly.

Bail

The temporary release of an accused person awaiting trial, sometimes on condition that a sum of money be lodged to guarantee their appearance in court.

Prosecution Process

1) Arraignment 2) Discovery 3) Trial Occurs when prosecuting attorney has enough evidence to make criminal charges.

Conviction

1) government must prove, beyond a reasonable doubt, that the accused committed the illegal act 2) there was necessary intent or state of mind to commit the act

Defenses of Invasion of Privacy

1) right of privacy waived by public figures, politicians, entertainers, sports personalities, etc. 2) Information about an individual taken from public files or records

Indictment

A formal, written charge issued by a grand jury asserting that the named person has committed a crime.

Intentional Misrepresentation or Fraud Elements

1. Misstatement of an important or material fact (ex. to enter into contract) [2. Scienter or intent to defraud] 3. Person knows or has reason to know that statement being made is false 4. Recipient of false information justifiably relies on the information and makes a decision to enter into the deal [5. Privity between the parties - relationship exists] 6. Proximate cause - logical link between reliance on misstatement and losses to the plaintiff 7. Damages

Defenses to Defamation

2 Types of Defenses: 1) Truth 2) Privilege

Fraud

A broad concept and may be held to be an intentional tort or to be a tort based on negligence (intentional misrepresentation) Deliberate deception Proof (relationship of parties is a factor): 1) Representation has been made knowingly OR 2) Without belief in its truth, OR 3) Recklessly and careless whether it is true or false

Arraignment

A court appearance where the accused is given a copy of the criminal charges by the district attorney. The appearance may be before a judge or a magistrate, and the defendant may plead guilty, no contest (nolo contendre) OR innocent.

Defamation

A tort that is an intentional false communication that injures a person's reputation or good name. If the defamatory communication is... Spoken = Slander Form of a printing, a writing, a picture, or radio/television broadcast = Libel Elements of Defamation 1) Making a false or defamatory statement 2) Published or communicated to a third person 3) Causing harm or injury to the plaintiff If person who has false statement said TO THEM, then tells a 3rd party > "self publication" and no tort

Mistrial

A trial rendered invalid through an error in the proceedings. If the jury cannot agree on a verdict. At that point, it's up to the prosecutor to decide if time and resources will be invested in another trial, if the matter will be dropped, or if lesser charges will be filed.

Intervening Conduct

An issue in determining proximate cause. Even if negligence occurred, if the causal connection to the resulting harm is broken by an intervening act or event, there is a superseding cause. If either exist, there is no liability.

Defenses to a Negligent Action

Any defense to an intentional tort is also available in a negligence action. 2 Types: 1) Assumption of Risk 2) Comparative Negligence

Intentional Torts

Classified on the basis of the interests the law seeks to protect: personal rights and property rights Must establish intent: 1) person knew what he/she was doing (act) 2) intent to do the act which reasonably would result in harm to the plaintiff (intent) 3) willful misconduct (motive) Examples: Assault Battery False imprisonment/arrest Invasion of privacy

Role of Tort

Compensation for injuries wrongfully inflicted by the defendant on the plaintiff Civil law Remedies should place injured party in the position he/she would have been prior to the tort.

Gross Negligence

Conscious and voluntary disregard for need to use reasonable care. More likely to lead to punitive damages. Stronger claim than ordinary negligence as it involves an assertion that the defendant was engaged in willful and wanton misconduct.

Entrapment

Conviction may be avoided also if one can show that law enforcement authorities set up a trap to lure someone into a crime there was intent to commit. On these matters, the defendant has the burden of proof.

Substantial Factor Test

Defendants could be liable even if their negligent behavior was only one factor contributing to an injury, so long as the behavior was found to be a substantive factor in causing the injury.

Privilege

Defense of Intentional Tort It can excuse what would have been a tort had the defendant not acted to further an interest of social importance hat deserves protection. ex) breaking into a burning store to rescue someone trapped inside would not be considered breaking & entering or trespassing.

Consent

Defense of Intentional Tort When the injured party gave permission to the alleged wrongdoer to interfere with a personal right.

Privilege

Defense to Defamation 3 Types: 1) Absolute 2) Conditional 3) Constitutional

Self-Defense

Defense to Intentional Tort Privilege based on the need to allow people who are attacked to take steps to protect themselves.

Comparative Negligence

Defense to Negligent Action Damages are reduced by the percent of injuries caused by the plaintiff's own negligence.

Assumption of Risk

Defense to Negligent Action The injured party knew or should have known of the risk and voluntarily assumed it. May be based on a liability waiver or exculpatory clause in a contract by which the plaintiff promised not to sue in case of injury. Ex) going to a sporting event and knowing there is risk in case a ball flies and hits you in the face

Tort

Defined as a civil wrong, other than a breach of contract, for which the law provides a remedy. A breach of a duty owed to another that causes harm, that is, liability is imposed for conduct that unreasonably interferes with the legally protected interests of another. 3 Groups of Torts: Negligence Intentional Strict Liability

Exculpatory Evidence

Evidence that might show that the defendant is not guilty

White Collar Crime

Generally refers to any criminal activity for financial advantage. Types of White Collar Crime: Antitrust Bankruptcy Fraud Bribery Counterfeiting Credit Card Fraud Computer/Internet Fraud Economic Espionage Embezzlement etc...

Actus Rea and Mens Rea

If both are present such that it is shown that the defendant caused the act involved, then guilt can be established.

Exclusionary Rule

If evidence is gathered improperly, it may be referred to as "the fruit of the poisonous tree" and may not be used at trial under this rule.

Trial

If matter goes to trial, government attorney (often district attorney) presents prosecution's case. Defendant must be found guilty "beyond a reasonable doubt". If jury can't agree on a verdict, there is a mistrial and a prosecutor will decide whether to proceed again. If found guilty... prison time jail time probation fines restitution to victim Most criminal trials are State v. or People v. because most crimes, such as embezzlement, are against the state.

After Arraignment

If the judge allows the matter to proceed, the accused is usually released and ordered to appear once a court date is set. In some cases, the defendant has to post bail to be released prior to trial. Violent criminals, who pose a threat to society, may be held without bail or at a bail so high that it is most likely unattainable.

White-collar Crimes

Include nonviolent crimes committed by corporations or individuals. Ex) embezzlement, bribery, fraud, and violations of federal and state laws regulating business, such as securities laws.

Types of Business Torts

Intentional Negligence Strict Liability

Duty of Care

Is a person's conduct negligent? Standard of Reasonableness: represents how a persons in the relevant community ought to behave. Ex) it is reasonable to expect that a doctor has the skill to perform a surgery > applies to professionals

Misdemeanor

Less serious crimes. Punished, usually, by a fine or a year or less in prison. Class A, B, or C

Proximate Cause

Limits liability to consequences that bear a reasonable relationship to the negligent conduct Consequences that are too remote or too far removed from negligent conduct will not result in liability.

Crime

May be a positive or negative act that violates a penal law; that is, it is an offense against a state or the federal government.

Criminal Negligence

Not necessarily planned or intentional. "a degree of carelessness amounting to a culpable disregard of rights and safety of others".

2nd Degree Murder

Not premeditated and generally receive lesser punishments.

Plea Bargain

Once a trial date for the felony charges is set, there is likely to be an attempt for a plea bargain to save time, and reduce cost and uncertainty of a trial. Allows the matter to be settled under supervision of a judge, by having the defendant plead guilty or plead no contest, in exchange for an agreement by the prosecutor to recommend a lesser punishment, to reduce the charges, or to make some concession to the defendant.

Alibi

Other evidence that they did not commit the crime to raise doubts in the juror's minds. Ex) a bank robbery defendant may have witnesses testify that he was away from the scene of the crime at the time of the robbery.

Defamation Per Se

Presumed by law to be harmful to the person to whom they were directed and therefore require no proof of harm or injury. ex) person has a sexually transmitted disease, has poor business practices, etc.

Criminal Law

Primarily made up of statutes passed by Congress and state legislatures. Only the federal government can bring criminal charges.

Constitutional Privilege

Protects members of the press who publish "opinion" material about public officials, figures, or person's of legitimate public interests. However, is lost if it was made with actual malice or if the statement is so false that there was a reckless disregard from the truth.

Punitive Damages

REVIEW Damages exceeding simple compensation and awarded to punish the defendant Punish malicious or extremely reckless behavior.

Racketeer Influenced and Corrupt Organization (RICO) Act

Racketeering: a pattern of illegal activity, such as bribery or extortion, which was part of an enterprise controlled by those engaged in the illegal activity. The Act provided an extra weapon against organized crime, such as the mafia. The government can seek a court order to seize a defendant's assets, prevent the transfer of assets, or require a defendant to post a performance bond.

Cause in Fact (sine qua non rule)

Shows the person's conduct is the actual cause of the event that created the injury. "But for" test Established by evidence showing that a defendant's action or inaction is the actual cause of an injury and would not have occurred but for the defendant's behavior.

Grand Jury

Sometimes used to review potential felony cases. They determine probably cause.

Case: Commonwealth v. Angelo Todesca Corporation (Criminal Negligence)

Summary: Truck driver for Corp. was operating a vehicle that he knew had a faulty backup sensor. A police officer directing traffic was ran over and killed. Result: Corporation was held criminally liable for acts performed by employees "within the scope of their employment" and "on behalf of the corporation", even though the organization itself did not engage in the activity.

Case: United States v. Young (Reasonable Expectation of Privacy)

Summary: Young was shipping large amounts of dirty money via FedEx and the IRS obtained a warrant to seize and open Young's package. Young moved to suppress the evidence during trial. Result: Trial Court rejected his motion, and he was convicted. Young signed a waiver allowing FedEx to give permission to x-ray packages. Young assumed this risk

Case: James v. Bob Ross Buick (Invasion of Privacy)

Summary: After being fired from Buick, Buick continued sending batches of letters to customers who worked with James that encouraged them to buy cars. Letters were addressed from James even though he no longer worked there. James sued for misappropriation of name. Result: Appellate court reversed trial courts initial ruling stating that this was not a mere incidental use of James's name. Appropriation occurs when there is a commercial benefit of value from the use of the name or likeness.

Case: Chambers v. Travelers (Defamation)

Summary: Chambers worked for Travelers. Chambers was a repeat offender of bad work behavior. She was fired, and she sued for defamation. Result: Courts held for Travelers (the workplace) because the statement was "made upon proper occasion, for proper motive and based upon reasonable or probably cause". There was no malice.

Case: Forgie-Bucciono v. Hannaford Brothers (False Imprisonment)

Summary: Forgie bought items, went to exchange one item after he walked to his car, was accused of stealing and was held in the store's office awaiting arrest. Result: Forgie was awarded $100,000 for false imprisonment. 1) Defendant acted with the intent to restrain or confine 2) Defendant's acts resulted in restrain/confinement 3) Plaintiff was conscious of and harmed by restraint/confinement

Case: Fuerschbach v. Southwest Airlines (Assault and Battery)

Summary: Fuerschbach was a new member to Southwest team. After probationary period, coworkers pulled prank on her by having police officers handcuff and "arrest" her and taking her to the party organized by her coworkers. Results: Case is going to trial. Jury might be able to conclude that being handcuffed and leading the person to walk 15 ft. offends a "reasonable sense of personal dignity".

Case: Geczi v. LifeTime Fitness (Exculpatory Clause in Assumption of Risk)

Summary: Geczi was using a treadmill at a LifeTime Fitness studio when it began to jerk violently causing her to fall and break her arm. LifeTime employees told her they knew it was broken, but no sign was put on the machine. Result: The judge held for LifeTime stating that the member policy extended to negligence in maintaining equipment and leaving defective equipment available to users. Gezci signed this contract and assumed risk.

Case: Lawler v. Montblanc North America, LLC (Emotional Distress)

Summary: Lawler works for Montblanc. She told them she could only work 20 hrs/week, they insisted she work the 40 hrs they originally agreed on. President of company visited her store and was "unpleasant". She sued for emotional distress. Result: The court held in favor of Montblanc considering their conduct was not outrageous.

Case: Lightle v. Real Estate Commission (Fraud)

Summary: Lightle told a client that a home was for sale without mentioning that it was under a conditional contract with another client. First client cancels lease on current rental to prepare for home purchase but finds out her contract was a back-up to the first contract. She sues. Result: Court affirms that Lightly falsely misrepresented that status of the home causing the client damages.

Case: Palsgraf v. Long Island RR Co. (Foreseeable Damages)

Summary: Palsgraf waits for train. Man carrying a box full of fireworks runs to catch train, trips, drops package, and package explodes. Train platform shifts, causing injury to Palsgraf. Result: Long Island RR Co. could not foresee that the man would be carrying a box of fireworks that he would accidentally drop. Case dismissed

Case: Slater Numismatics, LLC c. Driving Force, LLC (Interference with Contractual Relations)

Summary: Slater and ICG worked together to service a client, Cable Shopping Network. 2 employees from ICG left and started their own company, ultimately hiring on more ICG employees which drove ICG out of business. Knowing the contract between Slater/ICG and Cable, they negotiated a better contract and stole Cable away from Slater. Result: Not just the nature of competition. There is a triable claim for intentional interference with contractual relations.

Case: Squish La Fish v. Thomco Specialty Products (Duty of Care)

Summary: Squish hired ProPack to create POP display boards. Thomco suggested a specific adhesive because it will easily wash off. Turns out, it did not wash off. Large distributor cancelled their contract with Squish, costing them large amount of money. Result: There may have been reliance by Squish through ProPack on Thomco's representations. There will be a new trial at trial court level with specific instructions from appellate court.

REVIEW: "Beyond a Reasonable Doubt"

That means the evidence fully satisfies and convinces the court to a moral certainty. The facts presented at trial must, by virtue of their value when subjected to study, prove guilt.

Mens Rea

The criminal intent that must be established, the "guilty mind" or showing of wrongful purpose in the criminal act committed.

Affirmative Defense

The defendant may attempt to show that even if the prosecution's claims are true, there are other facts that prevent the claims from constituting the crime charged. Ex) Intoxication, insanity, self-defense

1st Degree Murder

The most serious. A murder that was planned or was committed with extreme cruelty.

Privity

The parties must have been in a relationship that created the legal obligation. A 3rd party observing fraud cannot sue.

Res Ipsa Loquitur ("The thing speaks for itself")

The plaintiff states a case that is so obvious. The showing is strong enough to prevent dismissal of the claim without further examination.

Double Jeopardy

The prosecution of a person twice for the same offense. However, prosecutors may not bring al possible charges against a defendant, so if they fail to obtain a conviction at trial, different charges related to the same event may be brought so the defendant is tried again.

Probable Cause

To obtain the warrant, the law enforcement officials must show probable cause to the judge. That means that they have reasonable grounds, based on knowledge, to date, to believe that a person should be searched or arrested.

Assault

Type of intentional tort Placing plaintiff in fear of immediate bodily harm. Plaintiff has imminent apprehension of fear. Examples: Pointing a gun Usually threats

Negligence

Type of tort that protects people from harm from others' unintentional but legally careless conduct. General Rule: we have a duty to conduct ourselves in all situations so as not to create an [unreasonable] risk of harm, including financial harm, or injury to others. Elements of Negligence: 1) Duty to use reasonable care 2) Breach of duty of care wrongdoer owed to injured party/plaintiff through an act or failure to act (omission) 3) Causation (causal act to the injury) and loss 4) Injury/Damages

Miranda Rights

Under the Constitution, persons accused of a crime, or held in suspicion of a crime, must be informed of their right to remain silent, or their right to be represented by counsel, and that statements they make can be used as evidence against them.

Battery

Unlawful "touching" > intentional physical contact without consent Examples: Use of hand, fist, or legs/feet Use of weapons such as gun or stick Assault and battery often linked together in lawsuit.

Manslaughter

Voluntary or involuntary. An unlawful killing committed recklessly or under the influence of extreme mental distress.

Toll

What the statute of limitations may do is when the legal clock stops running under certain circumstances. Ex) someone flees the country to avoid prosecution

Interference with Prospective Advantage

When a business attempts to improve its place in the market by interfering with another's attempt to gain new business by use of improper tactics. One party makes it difficult/impossible for another party to continue in some/all business dealings. Predatory behavior, not "merely competitive"

Before Arraignment

When criminal charges are filed, the accused is arrested by the police who have obtained a warrant. Depending on whether the matter is considered to be violent or nonviolent, the accused may have a date set which they must surrender to the court, otherwise, the suspect is booked at the police station, photographed, fingerprinted, and searched.

Actus Reus

When one commits a criminal act, they perform a wrongful deed.

Acquitted

When the accused are not found innocent, but are declared not guilty. This signifies that the state has failed in it burden of proof, not that the defendant proved they were innocent.