| Term | Definition |
| agent | Through this legal relationship the ______ becomes a representative of the principal and can bind the principal to third parties in contracts and in tort laws. |
| Agency Law | Is an extension of contract law because an agency relationsip is created when the agent agrees to act on behalf of and be under the control of a principal. They are entering into a volutary agreement, which is usually a contract. |
| Power of Attorney | An agency relationship is normally created by the agreemnt of the parties and is often a written agreement. Keep in mind that unless the facts of the agenecy relationship cause the agreement to be under the Statute of Frauds, the contract does not have to be in writing. |
| Ratification | In this situation someone without the agreement of the "principal", acts on behalf of the principal and after thefact, notifies the principal of his actions. |
| Agency by Ratification | If the principal agrees to the actions the agent has already done on his behalf, then an _______ has occured. |
| Principal | If the ______ does not agree with the "agents" actions, then the agent has bound himself to an agreement with the third party and the ____ has no liability. |
| Principals Actions | The _____can also create an agency relationship. |
| Principal | If the _____ knows that the agent is acting as his agent and this is known to other people, and does nothing about it, then the ___ has allowed the impression of an agency relation to be established. He is prevented, or estopped, from denying the agency relationship. |
| Agency by Estoppel | When a the "principal" allows an "agent" to represent him when he doesn't want him to and does nothing about it. |
| Operation of Law | The final way that an agency relationship can be created. |
| Agency of Law | This is normally in emergency situations such as medical emergencies when a decision must be made and the parents or legal guardian is not available to make the decision. |
| An agent owes the principal the following duties: | 1. Loyalty- the agent must put the principal's interest first, at all times. 2. obediance-the agent must follow the principal's instructions. 3. reasonable care- the agent must use reasonalbe care in the performance of his or her duties. 4. accounting- the agent must give an honest accoutning of hte property or money of the principal. 5. notification- the agent must keep the principal informed of all necessary information. |
| The principal owes the agent such as: | 1. cooperation with the agent so that the agent can do his duties. 2. payment, if the agent is to be compensated. 3. reimbursement of the agent's reasonable expenses. 4. providing a safe work environment. 5. indemnifying the agent for his/her losses suffere while acting withi the scope of the agency relationship. |
| Undisclosed Agency | One of the major reasons for entering into an agency relation is to hide the identity of the principal. |
| Liable to the Third Party | If the agent is acting within the scope of the agency, the principal, once he or she is disclosed is still_______. |
| Principal | If the agent disclosese or partially disclosed the _____, the only the _____ is bound to the contract assuming of course that they agent was operating within the scope of his authority. |
| Disclosed agency | A ______ is when the agent tells the third party that he is only an agent and that there is a principal and the identity of the principal. |
| Partially Disclosed Agency | When the agent tells the third party that he is just an agent and that there is a principal but does not discloe the identity of that principal. |
| Tort Liability | In _______ the main issueis did the agent act within the scope of the agency. |
| Vicarious Liability | A principal can also be liable for the unauthorized torts of the agent. This is called a ______. |
| Scope of the employment | If an gent engages in unauthorized intentional or negligent torts the principal is bound if the agent was acting with the ______. |
| Agent | If the agent is outside the scope of his authority and comitted unauthorizd, intentional or negligent torts then only the ______ is liable for those torts. |
| Agency by Agreement | a. Written or Oral Contract b. prowers given 1) express authority-agreed power 2) implied authority-power necessary to carry out express C. Power of Attorney |
| Agency by Ratification | A. Non-agent enters into contract B. Contract is entered ito by not-agent for benefit of alleged principal without real authority. C. Alleged principal can: 1) Says no, the no agency 2) ratity, after the fact, non-agent actions; if does-principal become bound to the contract D. Ratification can be alleged principal: 1) ratifyikng non-agents actions 2) failing to disaffirm non-agents actions. |
| Agency by Apparent Authority (Agency by Estoppel) | A. No actual authority B. Third Party can bind principal by actions of the principal through agent C. Alleged principal does have to know the agent is acting on their behalf. D. Third Party thinks agent represents principal. E. Principal must lead Third Party to believe agent can represent: 1) affirmative act 2) act negligently-not stop agent |
| Agency by Operation of Law | A. Law implies as agency relationship B. Arises out of necessary or emergency |
| Contractual Liability | A. Principal liable if agent has actual authority B. Principal liable if agent has apparetn authority |
| Tort Liability | A. Question is , was the agent acting within the scope of his agency duties? B. Respondeat Superior: 1) Would employer be in better postion to pay the damages to injured third party? 2) Agent would still hav duty to indemnify principal. C. Principal is liable for torts if told agent to commit tort. |
| Liability for Crimes | A. Generally principal not liable for crimes unless knew or should have known of criminal activity or due to the criminal background of agent. B. Rapidly being expanded to make employer more liable. |
| Tort | A ____ can be defined as a civil wrong other than a breach of contract for which the cours will provide a remedy in the form of damages to compensate the injured party. |
| Tort | A crime is a wrong against society, and a ____ is a wrong against a private party. |
| Tort | Are not primarily designed to punish defendeants, but to compensate injured plaintiffs through an award of monetary damages. |
| Intentional Tort | Involves deliberate action, which results in injury. |
| Intention Tort Example | When a company knowingly make false statements about the quality of a competitor's products. |
| Negligence/Negligent Tort | Is an unintentional tort that arises from the failure to use reasonable care toward one, to whom a duty is owed, which results in injury. |
| Negligence Example | A range from slip-and-fall accidents in a showroom to defectively designed products. |
| Strict Liability | Is liability without fault. You did the acts that resulted in harm. |
| Law of Torts | Provides a set of legal rule that allows parties injured as the result of the actions of others to collect damages under certain well-defined circumstances. |
| Appeasement | ______ as a goal of tort law means that the purpose of the law is to limit the negative impact of the infliction of injury to the event of the injury itself. |
| The victim is appeased in two ways: | A. Receipt of compensation B. Knowledge of the fact that the transgressor is punished by being required to pay. |
| Ethical Retribution | The principal of ______ places emphasis upon the fact that the payment of compensation is harmful to the offender and that justice requires that the offender suffer the harm. |
| Ethical Compensation | The principal of _______ looks at the same situation from the point of view of the victim. |
| Preventing Accidents, Accidental Injuries | The two types of cost associated with accients are the cost of _____, and the actual costs of _____. |
| Deterrence View | The ____ of the role of tort law not only concentrates on the altering behavior so as to avoid accidents, but also generates public policy prescriptions based on efficiency: the party who is the "least-cost avoider" of an accident should be held liable. |
| Deterrence Perspective | The _____ does not answer all of the questions about proper liability rule, however. In some instances, the costs of preventing an accident may be greater than the costs of accidents. |
| Social Insurance | According to this view, the party who is in the best position to spread the loss of the injury should be held liable. |
| Compensatory Damages | Usually consist of three major types of loss: 1) past and future medical expenses, 2) past and future economic loss, 3) past and future pain and suffereing |
| Punitive Damages | Are awards designed to punish individual defendants. |
| Punitive Damages | The typical case where _____ are awarded are for intentional torts and for negligence cases where the conduct was "gross negligence" or "willful and wanton" disregard for the plaintiff's safety. |
| Punitive Damages | A number of appeals have asked that ______ imposed by juries in federal courts be reduced because such awards violate the 8th amendment protection against excessive fines. |
| Punitive Damages | The Supreme Court has ruled that punitive damages awarded by civil juries are not "fine" within the historical context of the 8th amdendment of the U.S. Constituton. Browning-Ferris-Industries of Vermont, Inc. v. Kelco (1989) |
| A business normal becomes involved in a tort in one of three ways: | 1) due to the actions of its employees 2) due to its own actions against another business 3) due to its products |
| Assault | Is an intenional action that places a person in fear of apprehension of immediate bodily harm or offensive contact. |
| Battery | Is the intentional act of physical contact of offensive touching of someone else without his or her permission. |
| Defense | Is a legal justification to commit what would otherwise be a tort. |
| Consent | ____ can be expressed, as in signed releases or waivers or implied, as in most sporting events. |
| Tortfeasor | The person commiting the tort, goes beyond the level of consnt given, the appropriate tort would still occur. |
| Privilege | This is a defense that allows te individual to commit the tort due to who he or she is, when they are acting within the scope of their official capacity. |
| Self Defense | Is a defense if someone is hitting you, you can defend yourself and you can also go to the defense of others. |
| Infliction of Mental Distress | Is defined as the intentional suffering in another by means of extreme conduct or language. |
| Invasion of Privacy | The tort of ____ means that a person generally has the right to live his or her life privately without being subjected to unwarranted publicity. |
| Defamation | Is generally defined as publication of a false statement that tend to injure a person's reputation or good name causing the public to hold that person up hatred, contempt, or ridicule, or to cause him or her to be shunned or avoided. |
| Libel | Is defamation through some permanent form, in print or permanent recording (e.g. video tape). |
| Slander | Is defamation through some transitory means such as unrecorded speech. |
| Malice | This is a very high burden of proof and it is not eaily attained. |
| Privilege | The defense of _____ is based upon the idea that the ability to publish some defamatory statements furthers certain social interests. |
| Absolute privilege | Applies in those situations where freedom of speech is required. |
| Constitutional Privileges | Public policy dictates that such statements must be protected. |
| Hutchinson v. Proxmire, (1979) | The Supreme Court determined that Senator Proxmire's famous " Golden Fleece Award" was not protected by the absolute privilege for legislators performig their duties when published in newsletters to constituents. |
| Conditional or Qualified Privilege | Is available when a defamatory statement is pulished in good faith and with proper motives. |
| Malicious Prosecution | Is the wrong use of the legal proceedsing civil or criminal. |
| Puffery (seller's talk) | Is usually opinioni and sisnce fraduletn misrepresentation requires that the tortfeasor know that the statement is untrue, this is not fraud. |
| False Advertising | Similar to product disparagement, but is different in that false statements are being made aboutthe defendant's own products which give false impression that defendant's product are superior to plaintiffs. |
| Lanham Act | Established an action for damages for any false description or representation of one's good or services, which may damage a competitor. |
| Lumley v. Gye (1850s) | A party to a contract, under circumstances, can sue a third party for interfering with the performance of the contract. This tort was first established n an English common law case. |
| Texaco, Inc. v. Pennzoil | The TEN BILLION DOLLAR Jury Award |
| Liability Rules | Intended to deter infringement upon private property rights by making the infringer pay. |
| Property Rules | Involves an outright prohibition against interference with property rights. |
| Real Property | Is land or anything permanentily attached to the land. |
| Personal Property | Is anytihng else, such as your clothes, vehicle, money, etc. |
| Tangible Property | Included in personal property: property that you can touch. |
| Intangible Property | Included in person property; property that you cannot touch such as stocks. |
| Trespass to Land | Is any unauthorized physical intrusion or entry upon land where someone else has a superior right to the property. |
| Attrative Nuisance Doctrine | If you have something on your property that you know attracts trespassers, then you must take whatever reasonalbe steps are necessary to protect the trespasser. (e.g. swimming pool) |
| Conversion | Occurs when personal property is taken by the wrongdoer and kept from its true owner or prior possessor. |
| Nuisance | Is any conduct which unreasonably and non-contractually interferes with the enjoyment or use of land. |
| Private Nuisance | Is a nuisance that only affect one or a few people. |
| Public Nuisance | Is a nuisance that affects the community or the public at large. |
| Intellectual Property | Is property created from the ideas or thought process of the creator. |
| Infringement | Is when someone other than the owner uses those ideas without the owner's permission. |