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LGS 200 Final: Legal Studies Exam 3 Notes
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Department
Legal Studies
Course
LGS 200
Professor
Tripp
Semester
Fall

Description
Legal Studies Exam 3 Notes Chapter 12 – Torts • Tort: a civil wrong that is not a breach of contract. ➢ Example: injured in a car accident wanting a remedy ➢ 3 types:  can try to sue for as many as possible o Intentional o Negligence o Strict Liability 1. Intentional • A clear intent to do the act (i.e. injuring someone) ➢ Subjective – definitely intended to do the act ➢ Objective – know or should have known it was going to happen ➢ Harsher punishment ➢ Punitive damages • Assault: apprehension of imminent harm or offensive contact. ➢ “Fear” ➢ No touching is necessary ➢ Has to be happening right now • Battery: harmful or offensive contact/touching of the person or extension of the person. ➢ Self Defense v. Defense of Property o Lethal force is okay if in self defense but not okay if defense of property  Katko v. Briney • False Imprisonment: confinement or restraint without consent. ➢ No physical restraint required ➢ Most common type is false accusation of shoplifting. ➢ 3 Reasonables 1) Belief 2) Detention 3) Time • Outrage/intentional infliction of emotional distress ➢ No physical touch/injury necessary ➢ “Extreme and outrageous” ➢ “Exceed bounds of human decency ➢ Ex: deceased legs being sawed off to fit into casket • Defamation 1) Defamatory statement of fact 2) Publication to a 3 party ➢ Slander: spoken ➢ Libel: written 3) Injury to reputation ➢ Per se: loathsome disease, statement involving moral, business dealings ➢ Public figure: actual malice – evil, wicked intent o Defamatory knowledge of falsity o Reckless disregard for truth • Trespass ➢ To personal property: conversion ➢ To real property/land: invasion without consent o Necessity o Actual damage o Punitive damage • Fraud ➢ Misrepresentation ➢ Material fact ➢ Reliance (reasonable) ➢ Damages 2. Negligence • Elements: 1) Duty (defendant owes duty) 2) Breach of duty 3) Causation (caused damages) 4) Damages ➢ Prima facie case: “on its face” • Duty: reasonably prudent person ➢ Under same or similar circumstances ➢ “Objective test” o What would the average person do? • Breach of Duty ➢ Res Ipsa Loquitor: “thing speaks for itself” ➢ Something so rare that it has to be due to negligence o Example: plane crash • Causation 1) In fact – actual 2) Proximate – legal Palsgraf v. Long Island Rail Road • Railroad/fireworks incident • Zone of danger ➢ Anything inside the zone is foreseeable ➢ Anything outside is unforeseeable • This incident was unforeseeable, and did not prove negligence • Plaintiff (Palgraf) lost the case Martin v. Wal-Mart • Martin slipped on shotgun shells inside the store and therefore lost permanent feeling in half of his left foot. • Wal-Mart claims to have had no Notice of Danger • Martin won ➢ Wal-Mart had constructive notice of the shells on the floor • Duties Owed to People On Property On premises for Duty Owed Licensee: Own benefit warn of damages you know about Invitee: Benefit of owner warn of damages they know/should know Trespasser: Unauthorized no duty owed • Damages ➢ Only compensatory o Not punitive unless it reaches gross negligence o Example: excessive speeding causes accident ➢ Defenses against negligence o Contributory negligence o Plaintiff partially liable; recovers nothing ➢ Comparative negligence o % of fault, reduce plaintiff’s recovery by that % o Assumption of risk • Auto Guest Statute ➢ Passenger cannot sue driver for negligence ➢ Exceptions o Compensate driver o Taxis, buses, paying for gas, money to friend o Gross negligence 3. Strict Liability • Abnormally dangerous activity • Does not matter how careful you are • Examples: ➢ Dynamite ➢ Oil/chemical spills ➢ Dangerous animals Chapter 16 - Businesses Factors to Starting a Business • Creation • Transferability • Taxes • Liability Sole Proprietorship • Creation: start work • Transferability: none • Taxes: Individual • Liability: personal responsibility and unlimited Partnership • Creation: written agreement • Transferability: some • Taxes: individual • Liability: personal – 50% or 100% LLC – Limited Liability Corporation • Creation: articles of organization • Transferability: interests • Taxes: individual • Liability: limited Limited Partnership • General Partner ➢ All management authority ➢ Unlimited risk • Limited partners ➢ No management authority ➢ Limited risk • Creation: agreement in writing • Transferability: some/interests • Taxes: ??  gets very complicated • Liability: ➢ General partner: unlimited ➢ Limited partners: limited (can only lose what was invested) Corporation • Creation: Articles of corporation – bylaws • Transferability: shares & shareholders • Taxes: corporate rates • Liability: limited • Board of Directors • Shareholders • Earnings: 2 types 1) Retained 2) Dividends • Double taxation • Either raise money from borrowing (debt) or stock Corporate Veil • Applies to corporations & LLCs • Disregarding corporate entity 1) Too thinly capitalized 2) Commingle ass
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