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BUSINESS LAW
Alternate Edition 11thEd.
Jentz  Miller  Cross
Chapter 6: Intentional Torts
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
§1: Basis of Tort Law
 Doing business today involves risks, both legal
and financial.
 A tort is a civil injury designed to provide a
remedy (damages) for injury to a protected
interest.
 Damages.
– Compensatory: reimburse plaintiff for actual losses.
– Special: quantifiable losses, such as medical
expenses, lost wages, and benefits.
– General: non-monetary, such as pain and suffering,
reputation.
– Punitive: punish the wrongdoer. CASE 6.1:
Buell-Wilson v. Ford Motor Co. (2008).
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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§2: Intentional Torts
Against Persons
 The person committing the tort, the
Tortfeasor or Defendant, must “intend” to
commit the act. Intend means:
– Tortfeasor intended the consequences of
her act; or
– She knew with substantial certainty that
certain consequences would result.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Types of Intentional Torts
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Assault and Battery.
False Imprisonment.
Infliction of Emotional Distress.
Defamation.
Invasion of Privacy.
Business Torts.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Assault and Battery
 ASSAULT is an intentional, unexcused act
that:
– Creates a reasonable apprehension or fear of,
– Immediate harmful or offensive contact.
– NO CONTACT NECESSARY.
 BATTERY is the completion of the Assault:
– Intentional or Unexcused.
– Harmful, Offensive or Unwelcome.
– Physical Contact.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Defenses to Assault & Battery
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Consent.
Self-Defense (reasonable force).
Defense of Others (reasonable force).
Defense of Property.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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False Imprisonment
 False Imprisonment is the intentional:
– Confinement or restraint.
– Of another person’s activities.
– Without justification.
 Merchants may reasonably detain
customers if there is probable cause.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Intentional Infliction of
Emotional Distress
 An intentional act that is:
– Extreme and outrageous, that
– Results in severe emotional distress in
another.
 Most courts require some physical
symptom or illness.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Defamation
 Right to free speech is constrained by duty
we owe each other to refrain from making
false statements.
 Orally breaching this duty is slander;
breaching it in print or media (and internet)
is libel.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Defamation
 Publication Requirement: gravamen of
defamation is the “publication” of a false
statement that holds an individual up to
hatred, contempt or ridicule in the
community.
 Publication requires communication to a
3rd party.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Damages for Libel
 General Damages are presumed; Plaintiff
does not have to show actual injury.
 General damages include compensation
for disgrace, dishonor, humiliation, injury to
reputation and emotional distress.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Damages for Slander
 General Rule: Plaintiff must prove
“special damages” (actual economic
loss).
– Exception: Slander Per Se. No proof of
damages is necessary when the
statement is involves:
• Loathsome disease,
• Business improprieties,
• Serious crime,
• Woman is non-chaste.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Defenses to Defamation
 Truth is generally an absolute defense.
 Privileged (or Immune) Speech.
– Absolute: judicial & legislative proceedings.
– Qualified: Employee Evaluations.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Defamation-Public Figures
 Public figures exercise substantial
governmental power or are otherwise in
the public limelight.
 To prevail, they must show “actual malice”:
statement was made with either
knowledge of falsity or reckless disregard
for the truth.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Invasion of Privacy
 Every person has a fundamental right to
solitude freedom from public scrutiny.
– Use of Person’s Name or Likeness.
– Intrusion on Individual’s Affairs or Seclusion.
– Publication of Information that Places a
Person in False Light.
– Public Disclosure of Private Facts.
 CASE 6.2 Anderson v. Michigan (2007).
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Appropriation
 Use of another’s name, likeness or other
identifying characteristic for commercial
purposes without the owner’s consent.
– Issues:
• Degree of Likeness.
• Right of Publicity as a Property Right.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Fraudulent Misrepresentation
 Fraud is intentional deceit. Elements:
– Misrepresentation of material fact;
– Intent to induce another to rely;
– Justifiable reliance by innocent party;
– Damages as a result of reliance;
– Causal connection.
 Fact vs. Opinion (not puffery).
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Frivolous Litigation
 Generally, each of us has the right to sue
when we have been legally injured.
 Torts related to abusive or frivolous
litigation include:
– Malicious prosecution, and
– Abuse of process.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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§3: Business TortsWrongful Interference
 Tort involving a contractual relationship.
 Occurs when:
– Defendant knows about contract between A
and B;
– Intentionally induces either A or B to breach
the contract; and
– Defendant benefits from breach.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Business TortsWrongful Interference
 In a business relationship occurs when:
– There is an established business relationship;
– The Tortfeasor, using predatory methods,
causes relationship to end; and
– Plaintiff suffers damages.
 Permissible behavior (bona fide
competition) or justified behavior are
defenses to this tort.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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§4: Intentional Torts
Against Property
 Trespass to land occurs when a
person, without permission:
– Physically enters onto, above or below the
surface of another’s land; or
– Causes anything to enter onto the land; or
– Remains, or permits anything to remain,
on the land.
– Defenses: trespass is necessary, or
trespasser is a licensee.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Intentional Torts
Against Property
 Trespass to personal property is the
Intentional interference with another’s use
or enjoyment of personal property without
consent or privilege.
 Conversion.
 Disparagement of Property.
 Slander of Quality or Title.
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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§ 5: Cyber Torts
 Defamation Online.
– Immunity of Internet Service Providers.
– Piercing the Veil of Anonymity.
 CASE 6.3 Fair Housing Council of San
Fernando Valley vs. Roommate.com,
LLC (2007).
Copyright © 2009 South-Western Legal Studies in Business,
a part of South-Western Cengage Learning.
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Cyber Torts
 Spam (unsolicited email).
– Spam as Trespass to Personal Property.
 Statutory Regulation of Spam.
– Minnesota requires unsolicited email to state
“ADV” in the subject line.
– California has a stringent “opt-in” requirement.
Copyright © 2009 South-Western Legal Studies in Business,
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Cyber Torts
 Federal CAN-SPAM Act (2004) applies
primarily to commercial emails.
 Requirements:
– Return email address.
– Clear notice the email is an AD.
– Provide “opt out” mechanism (10 days to act).
– Label sexually explicit emails.
 Does it work--Problems???
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a part of South-Western Cengage Learning.
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