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Law 322 Exam 2 Study Guide

by: Stephanie Notetaker

Law 322 Exam 2 Study Guide LAW 3220

Marketplace > Clemson University > Law and Legal Studies > LAW 3220 > Law 322 Exam 2 Study Guide
Stephanie Notetaker
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These notes cover everything that will be on exam 2.
Legal Environment of Business
Edward R. Claggett
Study Guide
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This 8 page Study Guide was uploaded by Stephanie Notetaker on Wednesday March 2, 2016. The Study Guide belongs to LAW 3220 at Clemson University taught by Edward R. Claggett in Fall 2015. Since its upload, it has received 100 views. For similar materials see Legal Environment of Business in Law and Legal Studies at Clemson University.

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Date Created: 03/02/16
Law  322   Exam  2  Study  Guide   Chapter  6     • If  there  is  a  superseding  cause  then  it  cuts  off  your  liability   • Definition  of  tort   o Breach  or  duty  of  care  that  causes  harm  to  another  person   • Two  types  of  torts   o Negligence  and  intentional   • Tort  law  is  intended  to  put  the  injured  party  back  into  the  same  economic   position  as  they  were  had  the  tort  not  been  committed   • Tort  law  is  private  law,  you  can  sue   • Definition  of  negligence   o  You  didn’t  exercise  reasonable  care,  there  is  a  way  reasonable  people   act   • Definition  of  criminal  negligence   o Culpable  disregard  of  the  rights  and  safety  of  others   • Causation-­‐Two  types,  actual  and  proximate   • Cause  is  important  because  if  your  negligence  causes  harm  to  someone  else   than  that  means  you  are  reliable  for  their  injuries   • Cause  and  fact-­‐direct  action,  direct  result   • Proximate-­‐  chain  of  events  have  to  be  foreseeable,  not  the  direct  cause,   leaving  an  open  trench  open  at  night  and  someone  comes  along  and  falls  into   it,  you  didn’t  directly  hurt  them  but  the  negligent  act  is  the  cause  of  their   injury  so  they  are  reasonable  for  the  injuries   • Intervening  conduct  and  superseding  cause-­‐if  there  is  an  intervening  conduct   that  they  might  relieve  you  from  liability,  if  two  people  come  along  and   pushes  the  second  into  the  trench   • Defenses  to  negligence  torts   o Assumption  of  risk   o Comparative  negligence   o Liability  waver     § They  are  only  effective  against  negligence  based  torts  if  they   are  in  writing  and  the  waver  is  clear  and  the  person  signs  it   • Major  categories  of  torts   o Assault   § Action  or  words  that  put  someone  in  fear  of  bodily  harm   § Not  actual  touching  or  contact   o Battery   § Unlawful  touching  of  your  person   o Defenses:   § Consent   • Want  to  box,  play  football,  you  can’t  sue  them  for   battery,  you  have  consented  to  it   § Privilege   • Emergency  situations   • If  someone  needs  CPR  you  can  touch  them,  it  won’t  be   considered  battery   § Self-­‐defense   • If  someone  starts  punching  you  can  fight  back   o False  imprisonment     § If  someone  restrains  you  without  your  consent   § Happens  a  lot  with  shoplifters     • If  it  turns  out  you  didn’t  shoplift,  you  can  sue  but  you   have  to  look  at  the  state  laws   o Infliction  of  emotional  distress   § Has  to  be  severe  or  outrageous  conduct  that  would  create   severe  mental  or  emotional  stress   • Bill  collector  hounding  you  24/7,  you  can  sue  for   damages   o Invasion  of  privacy   § We  all  have  expectations  that  our  private  life  will  stay  private,   if  someone  tries  to  change  that  and  make  your  private  life   public,  you  can  sue  for  damages   § If  someone  makes  something  public  that  is  already  on  the   public  record  that  doesn’t  pass   § Hard  to  prove  for  movie  stars  and  famous  people   o Defamation   § Knowingly  communicating  false  information  to  a  3  party  that   injures  somebody’s  reputation  or  goodwill   • Types:   o Slander-­‐verbal  defamation,  telling  a  lie   o Liable-­‐written  defamation   o Defamation  Per  Se-­‐if  you  said  someone  was  a   child  molester  and  it  is  clearly  not  true,  the  court   will  just  say  lets  just  move  on  and  talk  about   damages   § Defenses  against  defamation:   • Truth-­‐absolute  defense   • Privilege-­‐  in  certain  circumstances  if  politicians  are  in   session  doing  their  job,  they  can  say  whatever  they   want   Chapter  7     • 3  different  business  torts   o Fraud   § Lying  about  someone  to  someone  else  to  try  and  hurt  their   business   § Sienter-­‐knowledge,  one  of  the  elements  required     • You  knew  the  information  you  were  communicating   was  false   o Interference  with  contractual  relations   § Anytime  a  business  has  a  contract  in  place,  whether  it  is  verbal   or  written,  if  a  third  party  comes  along  and  tries  to  interfere   with  that  contract   § A  and  B  can  sue  the  3  party  for  trying  to  interfere  with  that   contract   o Interference  with  prospective  advantage   § Any  business  arrangement  that  has  not  been  reduced  to  a   contract  but  gives  you  an  edge  with  competitors   • Customer  list,  trained  workforce,  if  anybody  tries  to   steal  those  from  you,  you  can  sue  for  interference  with   prospective  advantage   • Product  Liability   o Consumer  products  generally  carry  strict  liability  with  them   o Started  with  the  food  industry,  started  out  as  a  contract  based  cause   of  action   o Looking  for  the  existence  of  a  warranty   § Warranty-­‐a  statement  about  a  manufacturer  as  to  the   performance  and  quality  of  the  product   • Express-­‐  arises  because  of  statements  made  by  the   manufacturer  or  marketing  literature  about  their   product,  they  have  said  that  this  product  has  an     • Implied-­‐  one  that  the  court  creates,  started  in  the  food   industry,  if  you  go  to  the  restaurant  and  get  sick,  you   can  sue  for  breach  of  implied  warranty   • A  warranty  is  a  contract   o Tort  cause  of  action   § Design  your  product  as  safely  as  you  can  within  economic   reason   o There  is  a  strict  liability,  unless  there  is  a  defense   § Product  Misuse-­‐misusing  the  product,  there  is  only  strict   liability  if  you  are  using  the  product  for  its  intended  use   § Comparative  Negligence   § Assumption  of  risk   • If  the  manufacturer  warns  of  possible  side  effects,  and   you  still  choose  to  use  the  product  then  you  have  given   up  your  rights  to  sue  for  damages   § Bulk  Supplier  Doctrine   • As  long  as  you  told  them  how  to  use  your  input,  you   aren’t  liable   • If  you  supply  raw  material  to  a  manufacturer,  you  aren’t   liable  for  injuries  because  all  you  were  was  a  bulk   supplier   § Professional  user   • If  you  are  in  the  trade  of  business  where  you  use  this   type  of  product  all  the  time,  you  know  the  risks  before   you  are  using  them,  like  construction  workers  using  a   drill   • 3  statutory  limits-­‐to  try  to  limit  amount  of  damages   § Workers  compensation   • Employee  injured  at  work  from  a  negligence  based  tort,   workers  compensation  says  you  cannot  sue  in  a  tort   cause  of  action,  you  can’t  get  to  a  jury   • Is  considered  a  potential  limit  on  tort  liability   § State  laws-­‐States  have  put  caps  on  damages  you  can  get   • The  jury  might  only  be  able  to  award  a  certain  amount   of  damages  based  on  state  laws   § If  you  manufacture  your  product  to  government   regulations/standards,  you  have  no  liability  if  someone  gets   hurt  by  it  (defense  or  cap  of  liability)  cap  is  0   • Alter  Hazardous  Activity   § Dynamiting     § If  you  are  engaged  in  this,  there  is  strict  liability  and  absolute   liability,  no  defenses  are  available  to  you   § You  are  liable,  no  defenses   Chapter  8   • Real  vs.  personal  property   o Real-­‐anything  growing  on  land   o Personal-­‐pick  it  up  and  move  it   • Deeds   o Recorded  with  county  recorded,  tells  you  who  the  owner  is   o 3  types:   § Most  risky  to  least  risky   • Quick  claim   o Seller  tells  you  now  own  whatever  I  own   • Special  warranty   o Seller  warrants  to  you  that  during  the  period  of   time  that  they  own  the  property,  no  leans  or   encumbrances  were  put  on  the  property   • Warranty   o Easiest  to  take   o I  warrant  that  I  own  good  and  free  title,  there  are   no  leans  or  encumbrances   o If  the  warranty  is  NOT  true,  you  can  sue  for   breach  of  contract   • Title   o Legal  concept,  if  you  are  the  owner  you  have  the  right  to  use  and  enjoy   your  property   o You  own  3  rights,  to  the  land,  the  mineral  rights  and  the  air  rights   § Separable   § You  can  sell  them  separately     • 3  Ways  to  own  property  jointly-­‐2  or  more  owners   o Rights  of  survivorship   o Tenets  in  common   § No  right  of  survivorship   o Joint  tenants   § Right  of  survivorship   o Tenants  by  the  entirety     § Right  of  survivorship     § Only  if  you  are  married,  otherwise  it’s  just  like  joint  tenants   • Trust   o Separates  the  legal  ownership  from  the  beneficiary  ownership   • Servitude   o Limitations  or  restrictions  on  the  use  of  your  property  even  though   you  own  it   § Easements   • Gives  someone  the  legal  right  to  be  on  your  property  for   a  specific  use   • To  put  in  telephone  lines,  sewers,  etc.   • They  are  not  trespassing  on  your  property   § Covenants   • More  of  a  limitation  about  what  can  be  on  your  property   • “No  building  higher  than  2  stories  can  be  built  on  this   property”   • “A  certain  portion  of  this  property  has  to  consist  of  a   park”   § Look  at  the  deed  to  tell  if  any  of  these  are  listed   • Adverse  possession   o State  laws   o If  someone  uses  a  part  of  your  property  open  and  notoriously  under  a   certain  amount  of  years,  they  become  the  new  owners  of  that   property   • Landlords  and  Tenants   o Basic  rights  and  duties  of  each   o Tenants   § Right  of  possession  to  the  property  and  to  use  it   § If  you  lease  a  property,  there  is  an  implied  warranty  that  it  is   suitable  for  your  business   § If  it  is  not  habitable  to  live  in,  landlords  must  change  it  or  they   can  become  constructively  evicted   § Constructively  evicted-­‐  you  do  not  have  to  make  any  more   rental  payments   • Eminent  Doman   o Can  take  private  property  for  public  use  but  must  pay  reasonable   amount   o If  they  change  the  environmental  laws  and  the  value  of  your  property   drops  a  little  bit,  they  are  not  suitable  for  compensation  unless  it   drives  your  property  value  to  0   • Torts  against  real  property   o Trespassing  and  nuisance   o Someone  is  on  your  property  without  your  permission   o You  can  sue  if  they  cause  damages   o Or  sue  for  injunction  to  make  it  so  they  can’t  come  back   o If  you  have  an  attractive  nuisance  like  a  pool  and  children  come  by     • Private  Nuisance   o Between  your  neighbor  and  yourself   • Public  Nuisance   o Interference  with  the  public  to  use  and  enjoy  property   o Can  sue  for  damages  and/or  injunction   • Torts  against  personal  property   o Trespass   § When  someone  deprives  you  the  use  of  your  property  for  a   short  period  of  time   o Conversion   § Longer  period  of  time,  and  sometimes  when  you  get  it  back  it   has  been  damaged     o Misappropriation   § If  someone  uses  your  intangible,  intellectual  property  without   your  permission  like  your  trademark   § You  can  sue  for  damages  and  injunction  to  stop  using  it   • Premise  Liability   o If  you  own  a  business,  you  have  the  duty  to  make  it  safe  for  customers   o Security,  lighting   o No  duty  to  protect  trespassers     • Intellectual  Property   o Trade  name-­‐name  of  company,  protected  under  common  law,  first   person  to  use  it  has  protection   o Trade  mark-­‐  logo,  symbol  that  you  associate  to  the  company,  can   register  under  federal  act,  protection  good  for  10  years,  renewal  not   guaranteed   § Examples  of  suggestive  trademarks  and  generic  trademarks     o Trade  dress-­‐look,  feel,  packaging  of  product   § You  can  register  trade  dress  under  Lanham  Act  and  get  same   10  year  protection   o Good  will-­‐  ongoing,  profitable  business   o Certification  mark-­‐certifies  as  to  the  geographic  area  that  the  product   was  made   o Copyrights-­‐artists  or  authors,  if  you  create  an  original  work  of  art  like   a  book  or  song,  you  can  file  for  copyright  protection  under  the  Federal   Copyright  Law,  the  protection  period  is  the  life  of  the  artist  plus  70   years   o Does  not  give  you  any  domain  rights,  not  for  the  internet   • Patents-­‐inventions   o New  manufacturing  process   o Good  for  20  years  and  that’s  it,  you  can’t  renew  it   o Public  filing     • Trade  secrets   o Anything  that  gives  your  business  an  advantage  over  your   competitors   o Like  the  formula  for  Coke,  or  Chikfila   o You  don’t  register  under  any  act   o Protection  is  unlimited,  forever   Contracts   • Definition  of  a  contract-­‐rights  and  obligations  of  the  parties   • Must  be  a  binding  promise  to  be  enforceable   • Nonbinding  is  not  enforceable   • The  5  elements  of  a  contract,  all  5  must  be  there  in  writing  or  verbal  or  it  is   not  enforceable   o Agreement-­‐consists  of  an  offer  and  acceptance   § Can  withdraw  an  offer  before  it  is  accepted   § Counter  offer  terminates  original  offer   o Consideration-­‐something  of  value  bargained  for   § Both  parties  have  something  of  value   o Legal  capacity  of  contract   § Law  says  that  minors  under  18  and  people  intoxicated     § Voidable  contracts-­‐it  is  enforceable,  but  the  minors  or   intoxicated  can  cancel  the  contract  and  void  it  or  choose  to  go   ahead  with  it   o Subject  matter  must  be  legal   § If  its  illegal,  then  it  is  a  void  contract   o Genuine  Consent   § Both  parties  understood  the  material  terms  that  they  were   agreeing  to     § Know  all  the  material  facts   o Statute  of  Frauds   § Must  be  in  writing  to  be  enforceable     § There  are  certain  contracts  that  must  be  writing  to  be   enforceable   • Parole  of  evidence  rule   o If  there  is  a  written  contract,  you  cannot  introduce  oral  evidence  or   testimony  if  it  contradicts  the  written  words,  it  must  be  put  in  writing   o If  the  contract  is  vague  or  ambiguous,  or  you  are  trying  to  say  they   committed  fraud,  they  will  listen  to  you   • Home  Solicitation  statues   o State  laws  that  say  if  you  buy  something  from  a  door  to  door  sales   person  you  have  3  days  to  void  that   • If  both  parties  say  they  are  going  to  do  what  they  are  going  to  do,  the  contract   can  be  discharged   • Material  breach-­‐not  substantial  performance   o Non  breaching  party  may  be  entitled  to  sue  for  damages   • Damages   o Monetary  damages     § Compensatory  damages-­‐meant  to  compensate  for  any  actual   loses  or  costs  you  incurred  due  to  the  breach   § Expectancy  damages-­‐equal  your  expected  profits  had  the   contract  been  fulfilled   § Liquidated  damages-­‐specified  in  the  contract,  both  parties  put   it  in  there,  courts  will  generally  enforce  that  unless  it  is  grossly   excessive   • Contract  law  is  designed  to  put  the  non  breaching  party  back  in  the  same   economic  position  had  the  action  not  been  performed   • Will  not  get  specific  performance  if  the  subject  matter  is  service   • There  are  certain  contracts  that  have  all  5  elements  are  legal  but  there  are  3   types  they  will  look  at  if  they  are  in  accordance  to  public  policy,  if  they  are   then  they  won’t  enforce  them   o Exculpatory  contract   § One  party  tries  to  release  themselves  from  liability   § Arise  in  employment  situation   o Contracts  in  restrain  of  trade   § Non  compete  agreements   • Reasonable  if  its  for  a  year  or  less  in  the  geographic  area   o Unconscionable  contract   § So  grossly  unfair  to  an  innocent  party   § So  one-­‐sided   § Ask  the  court  to  rule  it  unfair      


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"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

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