Business Law

Civil and Criminal Liability

Class 1

What is “Business Law”?Course topics• Torts and Crimes Relating to Businesses• Overview of Contract Law, including

Contracts for the Sale of Goods (UCC 2)• Overview of Agency and Laws Affecting

the Employment Relationship• Introduction to Business Forms• Overview of Property Law: Personal,

Intellectual (Copyright) & Real• Wills and Intestate Succession

Review of the Basics Sources of Law• Constitutions (federal/state)• Legislation (federal/state/local)• Judge-made law (federal/state)• Agency regulations (federal/ state)

Review of the Basics The Court System• The 3-tiered system• Trial courts• Intermediate court of appeals• Supreme Court

What Law Applies?Primary Authority• What is it?• Why is it necessary?

Secondary Authority• What is it?• Restatements• Uniform laws

Bedrock of Legal AnalysisThe prima facie case• Elements of the case

Defenses• The basic defenses

IRAC• Issue• Rule• Application of rule to facts• Conclusion

Personal Injury Actions By and Against

Business Entities

Law of TortsLaw of Torts

Intentional Torts• Defamation• Assault/Battery• False Imprisonment• Invasion of Privacy/Commercial

Exploitation• Tort of Outrage• Fraud• Interference with contractual

relationship

Defamation• Statement• That is false• Published• Causes Injury

Defense: TRUTH

Assault• Intentional Act that• Creates reasonable

apprehension of• Immediate harmful

or offensive physical contact

Battery• An intentional act

that• Creates a harmful or

offensive contact

Defenses: Self Defense, Consent

False Imprisonment• An intentional act that• Causes actual, unlawful confinement

or restraint• Through force or threat of force• Against the will of the detainee

Defenses: Detention was justified and reasonable; Consent

Invasion of Privacy/Commercial Exploitation(1)Disclosure of

personal information;

(2)Intrusion into another’s private affairs;

(3)Appropriation of the likeness of another;

(4)Putting someone in a false light

www.youtube.com/watch?v=lEXZ2hfD3bU

Tort of Outrage• Intentional infliction of emotional

distress:– An intentional act that– Is extreme and outrageous– And causes– Severe emotional distress

Tobacco - Fraud

•False statement•As to existing fact•Intent to deceive•Justifiable reliance•Injury

Interference with Contracts

• Existence of a valid contractual relationship or business expectancy;

• Knowledge of the relationship or expectancy by the alleged interfering party;

• Intentional interference inducing or causing breach or termination of the relationship or expectancy; and

• Resultant damage.

Negligence• Four elements

1. Duty of care owed to the plaintiff

2. Breach of the duty3. Which results in (causation)4. Injury

Toyota – What Next?

Strict LiabilityIn participating in some limited activities, a business will be liable for harm even though no duty was breached; no intentional tort committed.

Damages

Criminal Law

Businesses as offenders and as victims

Business As Victim• Theft– Shoplifting

• Fraud• Embezzlement• Arson

Shoplifting costs US businesses an estimated $16 billion annually

Business as Criminal• How does a business commit

a crime?–Who forms the intent?–Who commits the act?

RICO• Prohibits two or more

“racketeering acts” to accomplish– Investing in or acquiring a legitimate

business with criminal money–Maintaining or acquiring a business

through criminal activity–Operating a business through

criminal activity

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