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BLAW Notes Week 6

by: Winston

BLAW Notes Week 6 BLAW 2013

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Notes from week 6 (09/25/16 to 9/30/16)
Business Law
Class Notes
blaw, business, Law, torts, Tort Law, legal studies business law tort intro, contracts, Contract Law
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This 6 page Class Notes was uploaded by Winston on Friday September 30, 2016. The Class Notes belongs to BLAW 2013 at University of Arkansas taught by Norwood in Fall 2016. Since its upload, it has received 13 views.


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Date Created: 09/30/16
Week 6 1. Voluntary consent a. Mistake: unilateral v. bilateral b. Fraud: i. Is there a duty to speak? 1. No c. Misrepresentation i. Misstatement of fact, relied upon by the other side d. Undue influence e. Duress i. Threat 2. Conditions a. The most common “condition” specifically stated in a contract i. The “condition precedent” 1. Having to borrow money to pay for the house a. Contract void if you can’t find money to borrow b. Discharge by performance i. Substantial performance doctrine 1. Contractor acted in good faith and the difference is small a. Supposed to make a 12’ driveway, makes it 11’11” c. Satisfaction doctrine i. Don’t pay unless satisfied 1. Money back guarantee d. Time for performance i. If there’s a specific date 1. Most of the time, if it’s slightly late, that’s ok, except when it’s  essential 3. Discharge by agreement or operation of law a. Statute of limitations i. If it has run out, it’s run out b. By impossibility i. Apartment burns down c. Illegality i. It becomes illegal d. Bankruptcy i. Is bankrupt, can’t pay 4. Remedies a. Compensatory damages i. Dollar amount that will “make the victim whole” b. Understand what consequential damages are i. Read the file under “Smith v. Russ” on Blackboard 1. Not in book, Fayetteville case c. Mitigation doctrine d. Non­pecuniary (economic) damages e. Punitive damages i. Not allowed in cases for “breach of contract f. Liquidated damages i. When 2 parties enter into a contract, there are promises 1. This is an advanced agreement for what the damages will be if the contract is breached a. Only enforceable if they are reasonable 5. Equitable remedies a. No money involved i. The injunction 1. Often used with non­compete clause b. Specific performance 6. Attorney’s fees a. In the contract i. Not recoverable 1. Unless a. Stated in contract i. By statute 1. Are recoverable in Arkansas Chapters 9 and 10 7. Tort law a. A tort is a breach of duty created by law i. Where does it come from? 1. Case law b. Damages? i. Compensatory damages 1. Make the victim whole ii. Punitive damages  1. To punish the defendant 8. Tort reform a. People say tort law is “too vague” i. Federal statutory law 1. Product liability lawsuits shifted to federal courts ii. Limits on “noneconomic” damages by state legislatures  iii. Limits on punitive damages by state legislatures 1. Such limits declared unconstitutional by some state supreme  courts a. Including Arkansas iv. By the courts 1. State Farm v. Campbell a. 538 U.S. 408, U.S. Supreme Court, 2003 i. Trial court  1. $1M compensatory  2. $145M punitive  a. This was changed to “single digit”  (9M) i. That’s tort reform  Intentional torts 9. Intentional personal injury, including: a. Assault b. Battery c. Wrongful death d. Defenses i. “Reasonable force” or “deadly force” Criminal and Civil 1. If a person committing a felony  a. And they’re hurt  i. Not a trap ii. Not retreating 1. Then it’s legal a. Illegal if they’re retreating or walk  into a trap 10. False imprisonment a. Keeping someone against their will without reason i. The shopkeeper’s privilege 1. Can detain someone but: a. Reasonable period of time b. Reasonable suspicion  11. Intentional infliction of emotional distress a. “Near misses?” i. In an accident ­ barely avoiding an accident  ii. Near misses are not compensable b. Action must EITHER result in a physical injury or the action must be completely  intolerable in society   12. Defamation (aka libel and slander) a. “Defamation of character”  i. Have to communicate to a 3rd party ii. Has to be false  1. Truth is a defense iii. Has to have caused damages  a. Public figure doctrine i. N.Y. Times v. Sullivan 1. Plaintiff must prove the defendant is guilty of actual malice  2. Or they were grossly negligent  13. Five forms of invasion of privacy (p. 227) a. Appropriation of identity b. Intrusion into individual’s affairs or seclusion c. Public disclosure of private facts d. False light e. Publication of private facts  i. No communication required ii. Truth not a defense iii. Case example: Lane v. MRA Holdings “Girls Gone Wild,”242 F.Supp.2d  1205 (U.S. Dist. Court, Fla. 2002) f. Recording conversations  i. One party states 1. Only need consent from one party a. Arkansas is one of these ii. Two party states 1. Need consent from both parties  a. Florida is only SEC State that is two party g. Illegally misappropriating name or likeness  i. EA Sports 1. NCAA Football  ii. Lindsay Lohan v. makers of Grand Theft Auto V, July 2, 2014 iii. Times Square billboard ad with picture of Obama in 2010 14. Business tort: Interference with a contract (p. 229) a. A and B have a contract i. C knew this ­ 3rd party has to know 1. C sweet talks B into breaching the contract a. Alienation of affection  i. A + B are married 1. C knows this a. C conveniences B to abandon the  marriage and come with C 15. Fox v. Netflix 16. Intentional tort against property: (p. 230, 231) a. Conversion (talking)  17. Law of torts (tort law) is based primarily on case law Unintentional torts  18. A “fact oriented” area of law a. What happened? b. What is reasonable? c. These are decided by: i. Judge or Jury 19. Basic elements a. Duty i. Landlord doesn’t have duty to protect the tenants 1. Bartley v. Sweetser, Arkansas Supreme Court, 890 S.W.2d 250  (1994) a. Courts are reluctant to not follow a precedent  ii. Someone who gives alcohol to a minor is not liable  1. Sullivan v. (fraternity), 740 S.W.2d 927, Arkansas Supreme Court  (1987) iii. Shannon v. Wilson, 947 S.W.2d, 349, Arkansas Supreme Court, 1997  1. Go onto blackboard and read the summary of this case, print it off  and bring to class on 9/30/16, be ready to answer questions  a. What was law BEFORE this case? b. Where did the law come from? c. Did the majority opinion follow this law or did they change  it? i. Changed it d. What is a dissenting opinion? iv. Duty of landowners  1. “To exercise reasonable care to protect individuals coming onto  property.” a. Business invitees: i. Duty is to warn invitees of foreseeable risks ii. Duty to discover and remove hidden dangers b. Trespassers: i. Only duty is to avoid deliberate harm b. Breach of duty c. Causation  d. Damages  20. Breach of Duty a. Not exercising reasonable care i. Everyone has an obligation to exercise reasonable care 1. Reasonable care is to be decided by jury (or judge) a. Burden of proof:  i. Preponderance of evidence 1. Defenses: a. Contributory negligence 21. Defendant is also arguing that the plaintiff was also (contributory) negligent ­­ let’s say  the defendant proves that the plaintiff was 25% negligent; then the COMPENSATORY  damages would be released by 255 22. If the plaintiff knew there was a risk, the defendant is not guilty ­­ example, baseball  game a. Negligence per se: i. Automatic liability if the defendant’s act is in violation of statute  b. Good Samaritan law i. Exempts a person who ‘attempts’ a rescue 1. If the person trying to rescue someone causes more damage (in  most states) they are ok c. Ambit of foreseeable risk i. P. 235 1. If you're not in the “ambit of foreseeable risk”, then the  company/person is not responsible for the damages you occur a. New York Time, Aug. 25, 1934  d. Damages  i. Property  ii. Medical  iii. Loss of earnings 1. Wages  iv. Pain and suffering v. Punitive damages 1. Severe negligence by defendant vi. Loss of consortium  1. Guy has to stay in hospital, wife is not receiving the ‘love and  affection’ he normally gives her 23. Strict liability  a. “Strict Liability” i. Liability regardless of fault (negligence) 1. Areas where this might apply: a. Abnormally dangerous activities i. Blasting and demolition  ii. Storing explosives iii. Keeping wild animals  1. Exceptions  a. Professional malpractice  b. Dogs biting people  i. Some states give the dog 1  bite (Arkansas, Texas) ii. Some states don’t ­ “strict  liability” (California,  Oklahoma) 24. Product liability a. The basic “public policy”: Shift the risk from the victim to the seller. Negligence  not a consideration i. Tort action: requirements (Restatement 402A) 1. Professional seller 2. Defective 3. Unreasonably dangerous 4. No “privity of contract” required 5. Not liable if product changed 6. Liability cannot be waived a. Urban legends: i. No one has actually: 1. Filed a lawsuit for using a lawn mower as a  hedge fund clipper a. Normally, strict liability only deals  with products that are defective  i. On a child’s Superman  costume ­­ “this device does  not actually make you  superman”


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