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17 CHAPTER 3 BUSINESS TORTS AND CRIMES CHAPTER OUTLINE I. TORTS A. INTENTIONAL TORTS ? To recover, the injured party must show: (1) an act by the defendant (the tortfeasor); (2) the defendant intended to cause the consequences of the act; and (3) the injury was caused by the defendant's act. ? Examples: assault: putting a person in fear of a wrongful touching; battery: a wrongful touching; trespass: wrongfully on another’s real property; and false imprisonment: improperly confining a person. B. NEGLIGENCE TORTS To recover, the injured party must show: (1) a duty by person committing the tort; (2) breach of that duty; (3) the breach was the actual, proximate cause of the injury; and (4) injury or damage. C. BUSINESS TORTS 1. Product Liability General rule . Manufacturers may be held liable for injuries caused by their products if (1) the products were negligently designed or made, or (2) a defect in the manufacture of a product makes the product dangerous to the person using it or in the nearby vicinity. Study hints . ? The injured person need not be the purchaser to recover for product liability. ? Product liability is a type of strict liability tort.? 2. Interference with a contract or economic advantage General rules . ? Interference with contract : party wrongfully causes another to breach a contract with a third party. Elements: (1) valid contract existed; (2) defendant knew or should have known about contract; (3) defendant intentionally interfered with contract; (4) defendant caused a breach of the contract. ? Interference with economic advantage : wrongful interference with another's reasonable expectation of future economic advantage. ? Elements: (1) valid business relationship exists or is likely to develop; (2) defendant knew or should have known of relationship; (3) relationship was reasonably certain to continue or occur; (4) defendant intentionally interfered; and (5) defendant acted for improper reasons, or used improper methods to interfere. Examples . ? Fay was fired by her employer, Catering by Carine. To get back at Carine, Fay convinced a resort to breach a catering contract that it had with Carine. ? ?ABC Co. and XYZ Co. are negotiating a merger. Viper Co., a competitor, files unfounded lawsuits against ABC Co. in order to defeat the merger. Limitation. More and more courts require that an interference result from an improper motive (spite or malice), occur by improper means (violation of law), or otherwise be unjustified. Study hint . A business can use proper means (e.g., discounts) to induce a prospective customer to exercise a right to terminate a contract that the customer has with a competitor. 3. Injurious Falsehood General rules . ? Tort : malicious, false statement that degrades another's goods or services. ? Elements
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This note was uploaded on 06/05/2011 for the course ACCT 323 taught by Professor Eubanks during the Spring '11 term at Athens University of Econ and Bus.

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