Management and Organizational Studies 2275A/B Study Guide - Contributory Negligence, Vicarious Liability, Intentional Tort

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CHAPTER 10: INTRODUCTION TO TORT LAW
CHAPTER 10
INTRODUCTION TO TORT LAW
Objectives
After studying this chapter, you should have an understanding of:
the broad scope of tort law
the differences between a civil action and a criminal action
the purpose of tort remedies
how business can manage its potential liability in tort
Learning Outcomes
Understand the difference between intentional torts and negligence (pages 232)
Understand the difference between a civil action and a criminal action
(pages 233)
Understand the purpose of the damage award (page 234)
Understand the concept of vicarious liability
(pages 234)
Understand what is included in pecuniary and nonpecuniary damages
(pages 238)
Understand how a business can manage its tort risk (pages 242)
Chapter Summary
Tort law has a significant impact on business enterprises, particularly in the area of
negligence. Tort law permits someone who has been injured or suffered a loss to sue the
responsible person for damages. The objective of a damages award is to compensate the
plaintiff, though punitive damages are sometimes available if the defendant’s conduct has
been particularly egregious. Aggravated damages are also available to compensate the
person who suffers intangible injuries such as distress or humiliation caused by the
defendant’s reprehensible conduct. Less commonly, the injured party will seek an injunction
or other form of equitable remedy, as in a trespass-to-land scenario. Criminal law also
affects a business, though to a lesser degree. As the purpose of a criminal law is to punish
the offender – through fines and imprisonment – distinct procedures are in place to help
ensure that only guilty people are convicted. For example, in a criminal prosecution the
Crown must prove its case beyond a reasonable doubt. By way of contrast, the plaintiff in a
tort action need only demonstrate his case on the balance of probabilities. Liability in tort
can be primary or vicarious. Primary liability arises due to one’s own personal wrongdoing.
Vicarious liability arises due to the relationship one has with the actual tort-feasor, as in an
employer-employee context. Since a business may have several employees, its exposure in
this area can be considerable. When a person is injured due to the tortuous conduct of more
than one person, those culpable are known as joint tort-feasors. A court can apportion
liability between them, but the victim or plaintiff can recover 100 percent of the judgment
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PART 3: BUSINESS TORTS
from any one of them. When a tort victim is at least partially responsible for his own
injuries, he has been contributorily negligent. The amount that the plaintiff is awarded will
be reduced by the proportion for which he is responsible. Sometimes, the same set of facts
can give rise to liability in tort and in contract, particularly in the context of a professional
advice giver such as a lawyer or an accountant. The best response a business can have to its
potential liability in tort is to establish a risk management plan that reduces, eliminates, or
transfers risk.
Study Outline
Use this outline to prepare a complete set of notes for this chapter.
Tort – page 229
______________________________________________________________________
______________________________________________________________________
How torts are categorized_________________________________________________
______________________________________________________________________
Intentional tort_______________________________________________________
Assault __________________________________________________________
Battery __________________________________________________________
Negligence _________________________________________________________
Deceit or fraud _________________________________________________________
Trespass to land_________________________________________________________
Tort Law and Criminal Law – page 232
______________________________________________________________________
______________________________________________________________________
Purposes of the actions ___________________________________________________
______________________________________________________________________
Commencing the actions__________________________________________________
______________________________________________________________________
Proving the actions ______________________________________________________
______________________________________________________________________
Liability in Tort – page 234
______________________________________________________________________
______________________________________________________________________
Primary and vicarious liability _____________________________________________
______________________________________________________________________
Liability and joint tort-feasors _____________________________________________
Copyright © 2011 by Nelson Education Ltd.
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CHAPTER 10: INTRODUCTION TO TORT LAW
______________________________________________________________________
Liability and contributory negligence________________________________________
______________________________________________________________________
Joint tort-feasors ________________________________________________________
Damages in Tort – page 237
______________________________________________________________________
______________________________________________________________________
Purpose of damages _____________________________________________________
______________________________________________________________________
Workers compensation legislation __________________________________________
______________________________________________________________________
Nonpecuniary damages___________________________________________________
Pain and suffering_________________________________________________
Loss of enjoyment of life ___________________________________________
Loss of life expectancy_____________________________________________
Pecuniary damages ___________________________________________________
Cost of future care_________________________________________________
Loss of future income______________________________________________
Special damages __________________________________________________
Punitive damages ____________________________________________________
Exemplary damages __________________________________________________
Aggravated damages__________________________________________________
Tort Law and Contract – 241
______________________________________________________________________
______________________________________________________________________
Managing Tort Risk – page 242
______________________________________________________________________
______________________________________________________________________
SELF-ASSESSMENT
Key Terms
Briefly define each term in the space provided.
Tort – page 229
______________________________________________________________________
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