Business Law Final Exam Review.docx - Business Law Final...

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Business Law Final Exam Review Week 7- The Law of Torts Module 4A Nature of a tort: Behaviour that breaches a recognized private law legal obligation usually resulting in economic or physical harm to another person or their property. Tortfeasor : a person who has committed or is alleged to have committed a tort Three kinds of torts The common law of tort recognizes three (3) different types or kinds of torts, namely: 1. Intentional torts : Occur when a person intentionally acts in certain ways. Meaning of “intention” differs depending on the tort. Some require the intention to harm others (e.g., tort of inducing breach of K). Some require the intention to act a certain way (e.g., tort of battery when striking a person) 2. Careless torts : Occurs when a person acts carelessly (e.g., negligent production of a defective good). Activity is permitted but has been done in an inappropriate way. 3. Strict liability torts : Occur when a person does something the law deems wrong without intending to do so or without acting carelessly. An example is livestock escaping onto a roadway causing injury to the driver of a car who struck the livestock. The mere fact of owning the livestock and having it on the property is enough to trigger liability if the livestock escapes and causes injury to a third party regardless of carelessness or intention. Risk management for strict liability torts - Strict liability torts create special problems for legal risk management in business - Liability is imposed simply because the business is responsible for the creation of a situation that injured the victim. Thus, special precautions may reduce the risk of harm, but liability can never be fully avoided unless the business activity is ended Risk management in tort law - Because tort obligations are imposed by law and not created voluntarily like in contracts, businesses are more likely to be taken by surprise with tort liability than with contract liability. The challenge of risk management for torts - Legal risk management for torts is very challenging. - Tort legal obligations on a business are imposed by the law in contrast to contract where the obligations are assumed voluntarily
- Difficult to foresee and plan for, thus, often a strategy when available is liability insurance (risk shifting) Vicarious Liability: When the common law or statute law holds one person legally responsible for the misconduct of another person, even though the former person did nothing wrong Vicarious liability for the actions of employees and agents - In law, businesses are legally liable for the torts of their employees and agents in many situations - That means the person who suffered harm due to the tort of the employee or agent, can sue the business employer or principal for the damages caused by the behaviour of the employee or agent - Independent contractors and the Uber saga ************This are all INTENTIONAL TORTS************** Tort of assault The tort of assault occurs when the person to whom the behaviour is directed has a (1)

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