Essentials Of Business Law Chapter 4 Tort Law McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Essentials of Business LawChapter 4-2 The Nature Of Torts Tort  Violation of rights of an identifiable individual or business Intentional violation Violation as a result of negligence

Essentials of Business LawChapter 4-3 Defamation Harming a person’s reputation by the communication of a false statement  Must be heard or read by others Libel  Written form Slander  Spoken words, gestures, and actions

Essentials of Business LawChapter 4-4 Defamation Holds a person up to:  Hatred  Ridicule  Contempt  Disgrace Lowers a person’s:  Esteem  Respect  Social position

Essentials of Business LawChapter 4-5 Characteristics Of Libel Unfounded gossip Thoughtless written remarks  Subtle  Direct May be published in:  Books  Newspapers  Magazines  Catalogs May be written in:  Business letters  Personal letters  Memos

Essentials of Business LawChapter 4-6 Characteristics Of Slander Thoughtless statements that reflect on another person’s good name  Spoken words  Gestures  Actions  Omissions

Essentials of Business LawChapter 4-7 Trade Libel Right to remain free from false and malicious statements that damage:  Business reputation  Owners  Products manufactured or sold

Essentials of Business LawChapter 4-8 Defenses To Defamation Truth  If statement can be proven truthful, damages can not be recovered Privilege  If person making statement has special right, damages can not be recovered

Essentials of Business LawChapter 4-9 Nuisance Unlawful interference of the enjoyment of life or property Examples include:  Loud noises  Foul odors  Bright lights  Diverting a stream Private nuisance  Affects specific person Public nuisance  Affects community or general public

Essentials of Business LawChapter 4-10 Conversion Wrongful taking, wrongful detention, or illegal assumption of ownership of property Conversion may involve property that is:  Removed  Damaged  Destroyed  Used without authorization

Essentials of Business LawChapter 4-11 Negligence Failure to exercise necessary care to protect others from unreasonable harm Unavoidable accident  Reasonable action of a responsible individual could not have avoided the accident The “reasonable person”  Ordinary prudence and judgment

Essentials of Business LawChapter 4-12 Kinds Of Negligence Vicarious  Charging a negligent act of one person to another Example: holding a company liable for its employees actions Contributory  Legal defense attributing partial fault to injured party Comparative  Court assigns damages according to degree of fault of each party

Essentials of Business LawChapter 4-13 Liability Judged legally responsible Vicarious liability  Shifting responsibility for a persons actions to another Strict liability  Liability for injuries to others regardless of fault  Three requirements: Defective product Defect caused injury Defect cause product to be unreasonably dangerous