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Engineering Law and Ethics
Mississippi State University
http://www.ie.msstate.edu/courses/L&E/
IE 4553/6553ENGINEERING LAW
AND ETHICS
Chapter 1
THE ENGINEER INMANAGEMENT
What is an Engineer?
A Thinker?
An "Action Figure?"
An Organizer?
A Pro!e #o!$er?
%hat aout "Huan" pro!e&?
What is a Manager?
'ua!itie& o( a Manager
Counication #ki!!&
Han)!ing Peop!e
#en&e o( Co&t
*no+!e)ge o( the ,a+
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Exe!ti"e #!a$ities
,ea)er&hip
-e!egating
-eci&ion&
. e!eent& o( Top Manageent -eci&ion&
-i&cip!ine
Engineering %r&'ets
Pro/ect& +e &ee 0 0 0
Pu!ic Pro/ect&
Pri$ate Pro/ect&
Pro/ect& +e )ont u&ua!!2 &ee0 0 0
Manu(acturing pro/ect&
%ho& nee)e)?
%here i& +ork )one?
Man!(at!ring Engineering
Conception o( the I)ea
Fea&ii!it2 #tu)2
Re)uction to Practice
P!anning
3i&ion
Re(ineent an) O$er&ight
La) an* Engineers
Engineers Act as Agents of Owners
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Engineers deal with rights of others
Engineers responsible for contract documents
Engineers may be mediators
. . . therefore, a knowledge of the Law isnecessary!
Cha+ter ,
ETHICS
%hat i& Ethic&?I& Ethic& !earne)?
%h2 )o Engineer& c!ai a "co)e o( ethic&?"
What is Ethis?
Hi&torica!!2 &peaking
Three Traditional Professions
The first separate calling --
o John Smeaton / 1!" / #i$il Engineering
o %nstitution of #i$il Engineers / 1&1& / 'reat (ritain
De(initi&n- %R.ESSI.NAL
%e&ter& -ictionar2) *A calling re+uiring speciali,ed nowledge and
often long and intensi$e academic preparation.*
4!ack& ,a+ -ictionar2)*A $ocation or occupation re+uiring specialusually ad$anced education and the labor and sill in$ol$ed...
La0&r Manage1ent Re$ati&ns At
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*Professional Employee* means) any employee engaged in wor
o pre)oinate!2 inte!!ectua! an) $arie)5
o in$o!$ing con&i&tent e6erci&e o( 5
o o( &uch a character that the output pro)uce)5
o re7uiring kno+!e)ge o( an a)$ance) t2pe5
any employee who
o has completed the courses of speciali,ed intellectual instructionand study described in...
o is performing related wor under the super$ision of a professionalperson to +ualify himself to become a professional employee as
defined in paragraph 0a 2abo$e3.
Plus some re+uirements. . .
other re+uirements fre+uently added
o regi&tration re7uireent& (or 5
o pro(e&&iona! &ociet2 to repre&ent 5
o pu!ic &er$ice nature o( the occupation8 an)5
o a)herence to a co)e o( ethic&5
State Registrati&n La)s
State laws in each of the states re+uire...
o -e(ine "right to practice"5
o Regi&tration in one &tate0 0 0
o Reciproca! agreeent&
Primary purpose of state laws
o te&t
o oar) o( e6ainer&
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One court decision
%r&(essi&na$ S&ieties
Accreditation (oard of Engineering and Technology
o 19:; < Engineer& Counci! (or Pro(e&&iona! -e$e!opent . enta!it2?
C&*e &( Ethis
5E8%4%T%O4
o %e&ter& -ictionar2 "the )i&cip!ine )ea!ing +ith +hat i&goo) an) a) an) +ith ora! )ut2 an) o!igation0"
Establishment of 9oral Patterns
o gro+& out o( the e6perience an) o&er$ation& o( one& !i(e
#odes of Ethics are guideposts. . .
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La) an* Ethis
Are unethical practices illegal7
o (ora! reproo( (ro engineering &ocietie&
o near!2 a!! eng0 &oc0 are concerne) +ith 0 0 0
4o A9A or A(A
Some states do and some states don:t;
%nformal sanctions can be effecti$e
People who are honest and loyal in dealing with others . . .
T)& Areas &( Dis!ssi&n
'ifts and 8a$ors
#i$il Action
#riminal statutes answer ? +uestions. . .
Physical and 9ental Element to a crime
Degrees &( a Cri1e
Treason
5efine Treason
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8elony
5efine 8elony
9isdemeanor
5efine 9isdemeanor
T& S!1 it a$$ !+2 2 2
%hat i& Ethic&?
I& Ethic& !earne)?
%h2 )o Engineer& c!ai a "co)e o( ethic&?"
Cha+ter 3De"e$&+1ent &( the La)
or
",a+& Br &D"
Wh& nee*s La)s? Alone on a desert island7
Two people interacting together7
6hat about the =rban Society7
5efine *@aw*
* A set of rules and principles set up by society to restrict the conductand protect the rights of its members.* 0p B1
eginnings &( the La)
5i$ine @aws
o #ode of Cammurabi 2c. B""" (.#.3
o Ten #ommandments
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#i$il @aw 2Dual Meaning3
o #ommon @aw
o @aw of the Twel$e Tables 2c. D!" (.#.3
En(&re1ent
Punishment
o 8ines or %mprisonment
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Stare Decisis -- Abiding by pre$ious decisions
6hen Fudged decision becomes law injurisdiction 2def ftnote p. BD3
Cenry (racton:s compilation of all decisions in 25ate73 (lacstone:s #ommentaries 25ate73
ent:s #ommentaries gi$es def. 2p. BD3
(usiness #ustom
o Trade tal *@aw 9erchants* etc.
#hanges in the law
O$erruled 5ecisions ha$e what effect7 6hat role do Statutes play in #ommon @aw7
E!it
%n the beginning #ommon @aw was administered by
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Thus new courts were #ourts of #hancery
o To)a28 in o&t &tate& 0 0 0
o To)a2 in Mi&&i&&ippi 0 0 0
nu&ua! Ree)ie&
o Coon ,a+ act& in rem
o E7uit2 act& in personem
Temporary %nFuctions 2pendente lite3
Permanent %nFunctions
Specific Performance
eat!res &( E!it
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Courts, Trial Procedure and Evidence
T+es &( C&!rts Federal Courts
o The Supreme Court
o Courts of Appeals
o District Courts
State Courts
e*era$ C&!rts
The Supree Court
o Jurisdiction limited to nine categories
Only cases in$ol$ing ambassadors etc. or to which a state is a
party may originate in Supreme #ourt
Appeals come from =.S. #ourts of Appeals or from State Supreme
#ourts.
Appeals in$ol$ing the =.S. #onstitution may come from any court
o Writ of Certiorari- only 5% successful
o Nine Justices appointed by sitting President
Courts of ppeals
o Thirteen eist
o Three !udges preside
o "stablished by Congress in #$#
o Appellate courts only & do not conduct trials
"istrict Courts ## Trial Courts of Federal Syste
o #'' ( District Courts
o No State is )ithout one*
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o Number of Judges depends on No+ of Cases
o Criteria for Case to be tried ,see p+ ./
o 0ost cases are 12ederal 3uestions1 or 1Di4ersity Cases1
o "amples p+ .-5+
State C&!rts
$ot unifor throughout states
Each state has %nal court of appeal
o Supreme court
Trial courts of general &urisdictiono Circuit courts etc+
'arious unicipal courts
7!ris*iti&n
(ight or authority
o 6gi4en by legislature or constitution7
o to hear and determine causes of action presented to it+
(elates to
o geographical region
o types of cases
o amount of money or types of relief
)urisdiction over property
)urisdiction over persons
o constructive service
Liited to types of cases handled
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%retria$ %r&e*!re
Pleadings
"iscovery
o Depositions
o 8e9uest for Production of Documents
o :nterrogatories
Pretrial *otions
)oining dditional Parties + Clais
Trial Procedure The )ury
Courtroo Procedure
$ew Trial
o =nfairness
o PreFudice
o 9isconduct
o Error by Fudge
o PerFury
o =nforeseen accident
If motion for new trial unsuccessful
o ppeal!
o :n ci4il case -- either party
o :n criminal case -- only defendant
o based on 9uestions of the la)
Euity Suits
Cases
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E"i*ene
-sed to prove uestions of fact
o
in criminal case -- al)ays assumed by State
(eal Evidence Testiony
o 8eal e4idence
Fudge Fury can see for themsel$es
o Testimony
)udicial $otice
Presuptions
o Conclusi4e e4idence
o Prima facie evidence
"irect and Circustantial Evidence
/est or Priary Evidence
0earsay Evidence
Res gestae
Parole Evidence (ule
1pinion Evidence
2itnesses
The Engineer as an Ex+ert Witness
The average witness can3t e4press an opinion
2hat is an e4pert5
E4pert ssistance
o Ad4ice and Consultation
o Trial Assistance
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o Testimony
o Depositions
o Decision to ta;e case
o 2ees
Chapter .
6ntroduction to Contracts
6ntroduction
Every transaction we ake is aC1$T(CT
"e%nition of Contract
o 4!ack& ,a+ -ictionar2- "an agreeent et+een t+o or ore
per&on& +hich create& an o!igation to )o or not to )o aparticu!ar thing0
o CC- *total legal obligation that results from the parties:agreement as affected by applicable law
"e%nition of greeent
"the argain o( the partie& in (act a& (oun) in their !anguage
or 2 ip!ication (ro other circu&tance& inc!u)ing cour&e
o( )ea!ing or u&age o( tra)e or cour&e o( per(orance5whether an agreement has legal consequences
is determined by applicable law of contracts.
Contract # 7an agreeent enforcea8leat law.7
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S1-(CES 1F C1$T(CT L2
"eveloped in Coon Law
(estateent of the Law of Contracts
(estateent 9Second:
-nifor Coercial Code
-nited $ations Convention on
Contracts for the 6nternational Sale of;oods
ELE*E$TS 1F 'L6"C1$T(CT
greeent
o O((er
O((eror
O((eree
o Acceptance
Copetent Parties Consideration
Lawful Purpose
For
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o E6ecutor2 Contract
o Partia!!2 E6ecute) Contract
o E6ecute)
Parties
o oint8 #e$era! or oint an) #e$era!
o Thir) Part2 4ene(iciarie&
*eans of cceptance
o ni!atera! or 4i!atera! reciproca!
"i
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o Foral
Negotia!e In&truent (eature&8 p0 .
or)er or earer
)ra+ee
Proi&&or2 Note
4i!! o( E6change
o $egotiation
o 4earer paper
o Or)er paper
o En)or&eent&
En)or&eent in !ank
#pecia! en)or&eent
Re&tricti$e en)or&eent
o Ho!)er in )ue cour&e
Chapter
Partie&
INANTS Age of :nfancy
o in(ant J inor
o eancipate) inor
Partnership
Agency
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Disainding Contracts
o Nece&&itie&?
Parents? @iability
0inors? Torts
.ther %arties 0arried omen
:nsane Persons
:ntoicated Persons
Corporations
o Organize) un)er &tate !a+&
o Contracting proce)ure )i((erent
Ultra-ViresContracts
o Torts and Crimes of Corporations
o
The Corporate Beil
.ther !siness Entities Sole Proprietorship
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Joint Bentures
eneral Partnerships
@imited Partnerships
.THER %ARTIES B"8N0"NTS
P82"SS:NA@ P"8SNS
Respondeat Superior
o Con&u!tant&
Chapter E
A8""0"NT
Contract Foration 1FFE(
o -e(inition > "the ani(e&tation o( +i!!ingne&&
to enter into a argain8 &o a)e a& to /u&ti(2
another per&on in un)er&tan)ing that hi&
a&&ent to that argain i& in$ite) an) +i!!
conc!u)e Kthe argainL0"
o #poken or +ritten?
o 6ntent
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Rea&ona!e Man
Court +i!! con&i)er partie& intention& 0
o 2hat a8out dvertiseents5
o Continuing 1
(eality of greeent
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Let3s talk a8out 7(EL7greeents
a 7*eeting of the *inds7 assues
o both parties "know the score"
o nobody has been prohibited from learning allof the facts
assuption especially applies to
o a contract reected by a written and signedinstrument
2hen is an greeent not
7(EL57 *istake
Fraud
6nnocent *isrepresentation
"uress
-ndue 6n?uence. . . Or when ASSE! IS O! O#$!AR%&
Types of *istakes
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$nilateral 'istake
a mistake which one party to a contract makesabout the material circumstances surrounding thetransaction
o RELIEF
not usually
o REISSI!"
one party ay take advantage
clerical error, atheatical iscalculation
'$!$A# or (I#A!ERA# 'istakes
o 2hen is a contract )oidable*
*istakes a8out identity
*istakes a8out e4istence
o 2hen the value is di
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o reliance 8y the in&ured party 9ledto:
o his or her detrient
Auestions a8out F(-"
2hat a8out oission of inforationBor facts not o8viously untrue5
Euivalent uality5 2hat is a fact5 2hat a8out opinions5 2hat a8out
7e4pert opinions57
2hat is fraudulent representation5(eckless disregard of the truth5
2hat if party doesn3t act on a
fraudulent stateent5 0ow a8out athird party5
6f in&ury doesn3t occur5
Chapter 9 > CON#I-ERATION
Engineering ,a+ an) Ethic&
!his is the tie that "inds. . .
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E&&entia!& o( Con&i)eration
Con&i)eration u&t ha$e $a!ue
Con&i)eration u&t e !ega!
Con&i)eration u&t e po&&i!e at the tie the
contract i& a)e
Con&i)eration u&t e either pre&ent or (uture
o Unli#uidated $"ligation
Seal as onsideration
o %ncient !imes . . .
o ow it may "e composed . . .
o otary seals
#heories of onsideration
o 'argain !heory
%dhesion (ontracts
o )njurious *eliance !heory
Estoppel
o Moral (onsideration !heory
o"ligation to pay
Legal Detriment
o +romisor agrees,to give up some right
Forbearance
o +romise to give up a legal right
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$ree%isting Duty
o (annot use same per-ormance as consideration in another
contract
#hapter 1"
,a+(u! #u/ect Matter
*&hen is a contractnot a contract. . . '*
,EGA, #4ECT MATTER
INTRO-CTION
o 'uaranteed
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o Intentof parties at the timeof the contract.
INTENT
o %f both parities intended illegality . . .
o %f only one party intends . . .
o 9ost contracts can be perfomed both ways
o %f one party nows that . . .
o will not (!ID the contract
o EGception) =nlawful use in$ol$es heinous crime
CONTRACT# CONTRAR TO #TATTE OR
COMMON ,A%
#ontract may be unlawful if wording either e6pre&&e&or ip!ie&illegality
o %f a law passes following contract formation
o After passage. . .
o Prior to passage . . .
TPE OF #TATTE
o @aws passed for protection of public
o Hoid and unenforceable
o @aws passed for the raising of re$enue
o Enforceable 2usually3 subFect to penalties for a$oidance of statute
o #ourts loo at primary purpose of statute
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HARM TO A THIR- PER#ON
o %f a ?rd persons would be harmed by a crime or tort in re. contract
performance
o contract will be held unlawful
o #ontract is an inducement to commit a crime or tort but
o #ommission not necessary to contract perf. . . .
o #ourts loo at strength of inducement and . . .
CONTRACT# THAT RE#TRAIN TRA-E
o #ontracts that create monopolies or main-tain price le$els areunlawful
o =nder Sherman Antitrust #layton Act S.S.
o Penalty for $iolation --
up to triple damages shown
Payment of #ourt #osts I Plaintiff legal fees
o Employment #ontracts - 4oncompetition
o *#o$enants not to compete* are considered restraints of trade
o Enforceable only to eGtent necessary to protect the legitimatebusiness interests of employer.
tra)e &ecret&
goo) +i!!
CONTRACT# FOR THE #A,E OF A 4#INE##
o #ourts will protect the purchaser of a business and the *good will*that goes with it.
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o %f restrictions 2see below3 are reasonable courts will upholdrestrictions.
t2pe o( u&ine&&8 arket area
tie o( re&triction
o #ontracts for professional employment
o 5etail obligations to employer
con(i)entia!it2
in$ention&
Some employers want A@@ in$entions
Some employers set a time restriction after employment
o Enforceability of such contracts $ary state-to-state.
#R
9ost states ha$e laws limiting the rate of interest
o 6hen laws are $iolated attitudes $ary state-to-state
o In &oe &tate&8 court& +i!! not ai) in co!!ection o( principa! or intere&t
o In &oe &tate& a!! intere&t a& a re&u!t o( u&ur2 a2 e (or(eite)
o co!!ection o( principa! an) a60 a!!o+0 Int0
CONTRACT# CONTRAR TO P4,IC
PO,IC
#ontracts 2to be lawful and enforceable3 must conform to . . .
o #ommon law and the applicable statutes
o 6ritten and unwritten laws of the community
o 5ifficult because public policy constantly . .
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o 5ef. -- #ontracts that if enforced and encouraged would beinFurious to society in some way
o 5oes a member of society ha$e to be inFured7
o
)E*il #endency) -- unenforceableE$i! Ten)enc2 - contracts in which the Fudgement or decision of publicofficials might be 2or has been3 altered by the contracts.
Any contract that tends to cause corruption of a public official may be
sub+ect to censure in the courts. So what about ,o2ing7
CON-ONE- ACT# OF ,O44ING
o 6ould impro$e or is harmless to public welfare
o 9eans used is abo$e reproach
o 4T #ontingent fees based on outcome of legislation areunlawful.
FRA- OR -ECEPTION
o #ontract which has the effect of practicing fraud or deception on athird person is against public policy and $oi).
o Employment recommendations . . .
4REACH OF TR#T OR CONFI-ENCE
o #ontracts that breach a trust or confidential relationship areagainst public policy.
o will not be supported in court
o Agency is an eGample
o agent acts for his principle while . . .
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#ORCE# OF P4,IC PO,IC
o 8ederal and State #onstitutions
o Statutes
o Judicial 5ecisions
o 5ecisions and Practices of 'o$ernment Agencies
o #ourt:s sense of moral duty and Fustice
EFFECT OF I,,EGA,IT ON CONTRACT#o 'enerally no action in law or in e+uity can succeed if it is based
on an illegal agreement.
o The 5efense of %llegality is allowed . . .
a& a )i&ai!it2 to the p!ainti((
o Public %nterest is the determining factor
5isaffirmance of an illegal contract while the illegal portion isstill eGecutory allows . .
Chapter 11
#TATTE OF FRA-#
,&hen a contract needs to be in writing
INTRO-CTION
%f an Oral #ontract is generally as binding as a 6ritten #ontract why isa written contract better7
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Terms easier to ascertain
Establishes relationship
#ontracts of more than a tri$ial nature . . .
ENG,I#H #TATTE OF FRA-#
6hy7
PerFured testimony on oral agreements
*An Act for the Pre$ention of 8rauds and PerFuries*
1K
9inimum writing re+uired
See p. 1B 2teGt3
#ECTION >> CONTRACT# %HICH M#T 4E %RITTEN TO
4E ENFORCEA4,E
Promises of eGecutor or administrator
Promises to act as surety
Promises based on marriage as consideration
Promises in$ol$ing real property
Promises taing more than a year to perform
Se$enteenth Section -- Sale of goods etc.
#ontracts will be unenforceable unless following actions taen)
o Part o( goo)&8 etc08 u&t e accepte) 2 u2er
o 4u2er u&t pa2 &oe earne&t one2 (or goo)&
o #oe note or eoran)u o( agreeent u&t e &igne)
#onsideration) 1" pounds sterling - L!""
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PROMI#E# >> MORE THAN ONE EAR
@egal %nterpretation of a *year*
Time limit should be stated - e$en orally
o %mprobable contracts7
o #ontracts for *life7*
o %ncremental additions of time7
Partial Performance7
#A,E# OF GOO-#
=## adopted 1th section and changed wording slightly
Oral agreement $alid only if
o Some goods accepted by buyer or
o (uyer pays part of purchase price in earnest or
o (uyer signs note or memorandum or
o Party to be charged admits contract or
o 'oods specially made
PROMI#E# OF EECTOR#8 ETC0
!estator Eecutor and %dministrator
PROMI#E# TO ACT A# #RET
+rimaryor SecondaryPromises
o (ollateralPromise - Oral secondary promise
o %ndemnity contracts do not ha$e to be in writing. 6hy7
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PROMI#E# IN CON#I-ERATION OF
MARRIAGE
9arriage is the highest consideration nown to law
o an agreement based on marriage settlement
o or neither is bound
Oral promises to marry are actionable under common law if. . .
REA, PROPERT TRAN#ACTION#
. . .*lands tenements and hereditaments.*
o Immo*ables -permanently attached to real property
o E$erything else is MMMMMMMMMMMM property.
6hat about *natural fruits of the land7*
o %mmediate remo$al
EFFECT OF THE #TATTE
%n some states contracts are $oid if
o in compliance with Statute of 8rauds 2S of 83
%n most states contracts not complying with S of 8 are merely $oidable
o S of 8 operates as a defense to enforcement
Performance under an oral contract
o E+uity court enforceable
#hapter 1B
THIR->PART RIGHT#
+ho bene,ts- and who is liable*
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HI#TORICA, E3O,TION
+rivity o- (ontract - the relationship between the parties to a contract
o Early English law refused to recogni,e attempts to assign contractrights
o 6ealth was tangible
o 4ow wealth is embodied in intangibles
#ourts recogni,e three eGceptions 2or third-party rights3
THIR->PART RIGHT# -e(inition0 *ights assigned by a party to a contract are enforceable by
the third party.
o
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o Assignment would materially impair . . .
6hat about rights to personal ser$ices7
Assignment of rights in nature of trust or confidence7
RIGHT# AN- -TIE#
Rightsare assignedN dutiesare delegated.
o %n absence of obligee:s assent duties 2can cannot3 be freely delegated.
o One who delegates is still responsible for performance of duties
"o*ation- rights and duties are effecti$ely transferred -- a 4E6
contract;
A##IGNEE# RIGHT#
%f the obligor has made partial payment to the assignor or has a counterclaimagainst same the right obtained by assignee may be subFect to such claims.
Assignee may ha$e rights against assignor for a breach of any eGpress orimplied warranties made by the assignor.
/ratuitous ssignment creates no rights.
NOTICE
A debtor cannot be charged with non-payment of a debt if debtorinnocently pays a creditor who has assigned the obligation.
o "otificationwill mae the assignment legally effecti$e agains debtor.
o Assignee notifies the obligor
Subse+uent assignments are unlawful.
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%AGE#
Assignment of future earnings for a present debt . . .
o 'o$erned by Statute in most states -- $ary
o PART 4ENEFICIAR CONTRACT#
9ost third-party beneficiary contracts do not recei$e uniform treatment
in all Furisdictions
Only %nsurance contracts are treated e+uitably across states
IN#RANCE
%f insured purchases the insurance then subse+uently dies . . .
o Third party has right of action
%f beneficiary purchases insurance. . .
o must show an insurable interest
I"S0R"E1 cont.
o insurable interest in property -- ownership or lien . . .
%nsurable interest is limited by an economic tie
o to the amount of economic benefit eGpected
o or ris of loss eGpected
Time as factor in insurable interest
o life ins.- eGists at time insurance contract made
o property ins. - eGists when loss is suffered
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-ONEE 4ENEFICIAR
=nsealed promise of future gift is unenforceable by donee as a contract
"ut
A donee beneficiary has the right to enforce a contract created to benefitthat person
CRE-ITOR 4ENEFICIAR
(lac owes 'ray L!"". 6hite and (lac mae a contract saying 6hite
will pay 'ray the L!"" owed by (lac.
o 6ho is the creditor beneficiary7
o 6ho can she sue7
INCI-ENTA, 4ENEFICIAR
6hen contracts indirectly benefit third parties
o The incidental beneficiary does not necessarily ha$e the right to tae legal
action
o 4o legally enforceable interest
#ontracts in which go$ernment is a party
o are citi,ens incidental beneficiaries7
4ew rule reformulates donee creditor and incidental beneficiaries into anew category--
Inten)e) ene(iciarie&- third party must show that recogni,ing a right toperformance is appropriate to gi$e effect to the parties: intentions and either
performance will satisfy obligation. . .
Promisee intended to gi$e third party . . .
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%ARRANTIE#
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o #ommercial 8rustration
Pre4ention of Performance
ai4er
Agreement
o reach2repudiation3
o #hoices for other party
o 5oes not apply to payment of a debt.
( OPEan;ruptcy
o Cistorically America was built by MMMMMMMMMM
o =.S. #onstitution
o (anruptcy Act of 1&&
o (anruptcy
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(anruptcy an;ruptcy
Chapter ## >an;ruptcy
0eeting of :nterested Parties
Chapter E >an;ruptcy
Chapter # >an;ruptcy
The "state
Discharge
o @ist of debts not dischargable 2p. 1!-1K"3
o 5ischarge denied for . . .2p. 1K"3
Creditors? Compositions
Chapter #. 8emedies
*ay8e oney isn3t enough5
:NT8DFCT:N
(euireents for foration of lawful contract "ischarge of o8ligations under contract
"e%ned a contract
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Types of 8emedies
"aages
(estitution
Speci%c Perforance
6n&unction
(escission
(eforation
DA0A"S "ef.# Copensation in oney awarded 8y a court
to one who has su
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o Attempts to compensate the plainti/ for theplainti/0s actual losses
!%1ES- 2O'1ESA!OR% 3A'A4ES
4eneral 3amage
o 3amages that logically ow from wrongfulconduct or breach
Special 3amages
o 3amages resulting from a party0s particular
circumstances Eemplary 51uniti)e6 3amages
o 'ore 3amages than "Reasonable2ompensation."
o 1rimary 1urpose 7 punishing the defendant forreprehensible conduct and addedcompensation for shame- degradation- ormental anguish su/ered by the plainti/
#i8uidated 3amages
o 3amages that are a known amount or measure59:;;
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o (ased on plainti/0s good faith parting withconsideration > defendant0s breached duty
Only restores what is lost or )alue of thing gi)en
E?$I!A(#E RE'E3IES
Speci,c 1erformance
o $ni8ue piece of property in)ol)ed
In@unction
o Originally- 1rohibiti)ein nature
o ow- also 'andatory
o $sed where irreparable in@ury toproperty is iminent- i.e. )eryprobable.
EOR2E'E! O RE'E3IES
+rit of Eecution
o Addressed to law enforcement authority
o 4i)es oBcer right to seiCe losers0 property
4arnishment
Attachment
'echanic0s #ien
2ontempt of 2ourt
C0PTE( D
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SLES $" 2(($T6ES
12$E(S06P
2hats a Sale5
Can refer to a transfer of personalproperty
2hats 1wnership5
sale involves the transfer ofownership
Then, whats (isk of Loss5
(isk of Loss can involveTitle 91wnership:
6nsurance
$egotiation
"aage to goods
Tie of Transfer
!itle
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2ho ust 6"E$T6F= thegoods5
/oth parties 98uyer + seller:
2hen can identi%cationhappen5
at any tie
in any anner
as long as there is eplicit agreement
"o goods need to 8e in a"EL6'E(/LE C1$"6T61$5
Generally, title passes in any manner and
on any conditions explicitly agreed to by
the parties
2hat if there is no e4plicitagreeent5
Title passes to 8uyer at the tie andplace at which the seller copletesperforance re. physical delivery ofgoods.
Risk of #oss
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2hat if goods are S06PPE"fro seller to 8uyer5
2hen does risk pass froseller to 8uyer5
F.1./. # Freight on /oard
F..S. # Freight a8oard Ship
C. + F. # Cost and Freight
C.6.F. # Cost, 6nsurance, + Freight
Security Interest
2hats the e
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2hat if the 8uyer cant akeall the payents5
"efault happens
"oes seller have rights5
(epossession
(esale
2hat are other types of
reedies5Court &udgeent, (epo and Lease, ...
Sale on Appro)al and Sale and
Return2hats a SLE 1$PP(1'L5
Letting the 8uyer have the goods for aperiod of tie.
Title rests with seller
pproval ay 8e e4press or iplied
2hats a SLE 1( (ET-($5
(isks of ownership pass to 8uyer
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(eturn revests title and ownership
SLES C1$T(CTS
2hen does a provisioncontrol a contract5
2hen 8oth parties agree to provision
2hen 8oth parties dontagree5
-CC rules 7%lls any gaps7 in partiesagreeent.
'any agreements under common law
of contracts would be unenforceable-but would be enf. under the $22.
2(($T6ES
2hats a 2(($T=5dded ssurance for 8uyer
re there di
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E4press 2arranties
1pinions
"escription or Saple6plied 2arranties
"isclaiers
Epress +arranties
2hy is a warranty like aproissory note5
Seller akes a contract siilar toinsurance. . .
2hats the di
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2hy is an opinion not awarranty5
2arranty is a stateent of FCT.
2hat is 2AEA! E'1!OR*
Latin phrase eaning. . .
7Let the 8uyer 8eware!7
*ore responsi8ility is placed on the
seller
2hat happens when a sellero
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2hat are the types of6*PL6E" 2(($T6ES5
;11" T6TLEF6T$ESS F1( P(ESC(6/E" P-(P1SE
*E(C0$T/6L6T=
;11"S ust at least
9D: pass without o8&ection.
9: 8e of fair or average uality
9G: 8e %t for ordinary purposes
*E(C0$T/6L6T=, cont.
9H: 8e of even kind, uality, and uantity withineach unit . . .
9: adeuately packaged . . .
9I: confor to proises or . . .
3isclaimers
2hat is a "6SCL6*E(5
Clauses that state that there are nowarranties 9e4press or iplied:, and
that 8uyer takes goods at 8uyers risk.
2hat a8out erchanta8ility5
ny disclaier a8out erchanta8ilityust 8e conspicuous
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0ow do courts construedisclaiers5
PE(F1(*$CE + /(EC0
0ow does seller 7tenderdelivery57
Seller places conforing goods at8uyers disposal...anner, tie, place
2hat, then, are the 8uyersrights5
To inspect goods in a reasona8leanner 8efore accepting or paying for
the.
6f goods dont confor, whatare the 8uyers options5
9D:ccept, Pay, then sue at his option
9: (e&ect entire shipent
9G: ccept conforing coercialunits and re&ect the rest
2hat should the 8uyer dothen5
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6nfor seller within a reasona8le tieand give reason
/-=E(S (E*E"6ES
6f seller 8reaches thecontract, what can 8uyer do5
9D:Liuidated "aages clause
9: 6f contract repudiated,
a. procure## 5damages would include price toco)er6
8. seek daages 8ased on . . .
9G: (ight to (eplevin 9recoverpossession of goods:
9H: 6f goods are uniue. . .
6f 8uyer rightfully re&ects orrevokes acceptance..
/uyer has a security interest and rights are thoseof a secured party
2hat if goods are non#conforing when delivered5
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"aages ay take for of seto< or deduction froprice to 8e paid
SELLE(S (E*E"6ES
2hat are -CC reedies forthe seller5
9D:2ithholding "elivery
9: Sellers (esale#hapter 1K
CONTRACTING PROCE-RE
%hat )o +e )o a(ter +e &hake han)&?
PA8T:"S T A CNT8ACT2ho are the parties to a contract5
TGP"S 2 CNST8FCT:N
P8:BAT" 8HS
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Def+ - those that are underta;en for an indi4idual or acompany
Pro=t moti4e is the usual reason for P
PF>@:C 8HS 0oti4e is public demand or need
o4erned by statutes
o to pre4ent d+++ c+++ and f+++ among bidders and bet)eenbidders and public o
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Antagonistic interests of )ner and Contractor
Changes can be costly
Fp-front cost to contractor
reater uncertainty reater spread+++
CST-P@FS-P"8C"NTA" CST
Ad4antagesO 0ost rapid means of starting apro!ect ,::/ and most Qeible
CST-P@FS-P"8C"NTA" CST cont+
Disad4antagesO 8is;s of construction assumed by +
C?s pro=t tied to costs so+ + +
2ed?s don?t li;e this type of contract
CST-P@FS-2:M"D-2"" CNT8ACT
Def+-C is paid a =ed fee as pro=tR pic;s up epenses for
all of contractor?s costs+
Ad4antagesO
>est for both parties
Changes )ould be )orse for C
Disad4antagesO
Precludes a timely start+ hyK
FN:T-P8:C" CNT8ACT
hat does unit-price includeK
ho 2igures the 9uantities for FP
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Ad4antagesO 2leible C?s uncertainty isrelie4ed
Disad4antagesO
Cannot begin immediately
has no precise ;no)ledge of cost until termination
BA8:AT:NS
:ncenti4e system
Pro=t-sharing
8e4erse @i9uidated Damages
0anagement Contract
STA"S 2 A P8J"CT
2easibility StudiesDesign
@egal Arrangements
Preparation of Contract Documents
Ad4ertisement
:nstructions for >iddersThe Proposal
Agreement
STA"S 2 A P8J"CT cont+
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>onds
>id >ond
Performance >ond
@abor and 0aterial Payment >ond
eneral Conditions
2inal Considerations
Collusion
@o)est 8esponsible >idder
CNT8ACT8?S CSTS
Direct @abor
Fringes
or;er?s Compensation
Social Security
oliday and Bacation Pay
0edical and @ife :nsurance
4ertime and shift premiums
8etirement 2unds
Stoc;-buying Pro=t-sharing
Availability and Transportation of Personnel
0aterials
Availability and Transportation ofMaterials
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Storage
isposal and Clean-up
4erhead Contingencies Pro=tChapter #E
SP"C:2:CAT:NSEverything you wanted to know, 8ut were afraid to ask!
INTRO-CTIONSPEC6F6CT61$S
"efJ "escription of work to 8e done or things to 8epurchased
o 1ccur in every area of engineering
o /uilding Construction
o *achinery and Euipent
2hy are specs in writing5
Create a peranent record
/ecoe part of the contract
Prevent costly lawsuits 9freuently:
ssure planning
/ased on practicality and eKciency
#PECIFICATION %RITING
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ST=LE
Should 8e written with great clarity
P(EC6SE 21("6$;
2hat if writing were reviewed in court
(EFE(E$CE SPEC6F6CT61$S
2hy are they needed5
ARRANGEMENT
;E$E(L P(1'6S61$S
Schedule of 2ork
Changes and E4tra 2ork
o 0ow to pay for E4tra 2ork5
1ther Suppliers
"rawings
;E$E(L P(1'6S61$S 9Continued:
o 6nforation ;iven
o Services Furnished
o (eceipt and Storage of *aterials
o 2age (ates
o Safety
"ET6L SPEC6F6CT61$S
o *aterials
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o A2ork Auality
o r8itrary Speci%cations
o (elations 8etween 1wnerContr.
o Eual or 7*asterServant7
#hapter 1&
A"NCG%hen 2ou act (or an) repre&ent 2our copan20
INTRO-CTION
T=PES 1F /-S6$ESS (ELT61$S06PS
"mployer-employee relationship
2Sometimes called 9aster-Ser$ant3
)ner-independent contractor relationship
Agency 8elationship
Principal
o has right to control conduct of the agent
Agent
o has authority to affect the principal:s legal relationship with others
o) does Agency diLer from the "mployer-"mployee relationshipK
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hat determines )hether the relationshipis "mployer-"mployee or )ner-:ndependent ContractorK
hy is this importantK
Are there only t)o parties in an AgencyK
CREATION OF AGENC
Agreement %ntent - eGpress or implied
Power of attorney
8ati=cation
Authority is
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bedience
Care and S;ill
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Fndisclosed Principal
TERMINATION
>y @a)
>y Acts of Parties
Agency )ith an :nterest
Notice
hat about PARTNER#HIP#K
hat about CORPORATION#K
Chapter 19
TANGIBLE PROPERTY
T=PES 1F P(1PE(T=
REAL PROPERTY
Land and anything firmly attached theret
PER!ONAL PROPERTY all prperty ther than real prperty
gd"
chattel"
choses in action
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mney
acc#nt" recei$a%le r ther e$idence" fde%t
PE(S1$L P(1PE(T= CHATTELS& "ynnym#" 'ithPer"nal Prperty
Chattels Personal in Possession
tangi%le item"
Chattels Personal in Action (Choses in
Action)
intangi%le right" ari"ing frm a trt rcntract
patent"( cpyright"( trademar)" *!eeChapter +,-
AC./I!ITION
ORIGINAL AC./I!ITION
cc#pancy
creatin
acce""in
PROCE0/RE O LA2
2hen a per"n die" 3 3 3
2hen a mrtgagr defa#lt"3 3 3
2hen prperty i" "ld t "ati"fy a 4#dgement fthe c#rt3 3 3
2hen a%andned prperty i" f#nd3 3 3
2hen prperty f a %an)r#pt indi$id#al i" "ld3 33
ACT! O OT5ER PER!ON!
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2ill
Gift
Cntract *!ee Chapter 16-
QCnf#"in
*8ungible 'oods*
A%andnment( L"t r mi"laid prpertie"
BAIL7ENT
A relatin"hip 'hich re"em%le"prperty 'ner"hip
Re8#irement" f Bailment Title remain" 'ith %ailr
P""e""in f Prp3 I" cmpletely"#rrendered t Bailee
Partie" intend ret#rn at end f %ailment
0#ty f Care
Primary Cn"ideratin"
nat#re f prperty in$l$e
p#rp"e f %ailment
2hat i" Ordinary Care:
Bailee;" Right" and 0#tie" *p3 +T/RE!
Per"nal prperty that %ecme"attached t real prperty
Generally( 'ner"hip f a fi?t#re ge" t the'ner f the real e"tate3 3 3
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Unless something appears to the contrary
*Intentin f partie" 'hen the fi?t#re i"attached3-
(EL P(1PE(T=INTRO0/CTION
*definitin( re$i"ited-&Land andanything affi?ed firmly theret3
2hat are the limitatin" t'ner"hip f real prperty:
E@OL/TION O PROPERTY RIG5T!
e#dal !y"tem and 2illiam theBa"tard
Land %elnged t 3 3 3 :
Parceled #t t Gentry
2h:
2hat 5appened at death:
Replaced 'ith pr$i"in" that 3 3 3
IN0! O E!TATE!
REE5OL0 && e"tate f #ndeterminedd#ratin in real prperty
E"tate in Fee Simple
Rights of holder in fee simple
Life E"tate
Rights of holder of life estate
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Le"" than reehld
#t#re E"tate
T($SFE( 1F (EL P(1PE(T=2AY! TO TRAN!ER
By 2ill r Inheritance
By !ale
By Gift
By Legal Actin
TRAN!ER BY 2ILL
2ill( Te"tament( *La"t- 2ill andTe"tament
Age f te"tatr
7ental Capacity f te"tatr !#fficient capacity t cmprehend prperty
Capacity t cn"ider all per"n"3 3 3
/nder"tanding that he"he i" ma)ing a 'ill
2h 7ay Inherit:
Type" f 'ill"
Ordinary 'ill 'ritten 'ith 'itne""e"
5lgraphic 'ill"
N#nc#pati$e 'ill
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2itne""e" *'h( 'hat( 'hen( 'here('hy:-
E""ential" f a @alid 2ill
In 'riting
!igned *%y 'hm and 'here- and "ealed*'here-
7#"t %e 'itne""ed *e?ceptin:-Te"tatr m#"t "ign in pre"ence f'itne""e"3
7#"t %e p#%li"hed
Cdicil" *2hen( 2hat( 2h( Legal"ignificance-
Pr%ate *2hat( 2hen( 2h( 5'lng-
TRAN!ER BY 0EE0
Cn$eying real prp3 By "ale rgift re8#ire"3 3
ind" f 0eed"
.#it&Claim
2arranty
E""ential" f a 0eed
Name grantr( grantee( and cn"ideratin
Prperty de"cri%ed r identified
2rd" f cn$eyance 'itne""ed( deli$ered(and accepted
Recrding
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*t ha$e f#ll "tanding at la'( a m#"tD-
Title !earch
2hat( 'h( h' far %ac):
Title In"#rance
2hy:
2h "earche":
O#tcme:
TRAN!ER BY 7ORTGAGE
Cntract %et'een mrtgagr*%rr'er- and mrtgagee *lender-
7rtgage Therie"
0efea"i%le cn$eyance"
E8#ity f Redemptin
Lien Thery
Title Thery
rmality *m#"t %e in 'riting"imilar t deed-
R7rtgagr;" 0#tie"
aste *'hat( 'hen( 'here( 'hat happen"-
m#"t pay all ta?e"( a""e""ment"( and
in"#rance
m#"t ma)e payment" 'hen they are d#e
2hat a%#t early payment:
7rtgagr;" right"
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Rea"na%le #"e f prperty *p3 +9-
A" lan %alance decrea"e"( right" increa"e*+91-
prperty may %e 'illed( "ld( r gi$ena'ay *"#%4ect t3 3 3-
7rtgagee;" right"
Right" f a""ignment *ntificatin-
Right t frecl"e3 !eficiency decree
*2hat( 'h( 'hat happen":-
TRAN!ER BY LAN0 CONTRACT! /nder Title Thery( re"em%le"
mrtgage 8#ite cl"ely
The p#rcha"er( ma)e" d'npayment( then agree" t a "erie" fpayment"3 2hen he red#ce" the%alance %y "me "et am#nt( the"eller 'ill deed the prperty t
the %#yer and ta)e a fir"tmrtgage3
Incl#de all payment" d#e immediately if%#yer mi""e" a payment3 n'n a" strictforeclos"re#
TRAN!ER BY E7INENT 0O7AIN
*A pri$ate party ha" a
le""er right t p""e""in and#"e f prperty than de" ap#%lic %dy-
!metime" )n'n a"condemnation#
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Cmpen"atin i"made accrding t ana""e""ment f the
mar)et $al#e f theprperty ta)en3
TRAN!ER BY 0E0ICATION
2hen 'ner" dnate pri$ate land fr p#%lic #"e3
N frmality i" re8#ired fr ffer
2hen an ffer i" e?pre""ly made(it i" #"#ally an"'ered %y e?pre""ed
acceptance3
5'e$er( maintenance fp#%lic prperty maycn"tit#te impliedacceptance
Trt lia%ility ma)e" thedeterminatin f 'h 'n" theprperty $ery imprtant3
TRAN!ER BY A0@ER!EPO!!E!!ION
Ad$er"e p""e""inre"#lt" in an entirely ne'title %eing i""#ed*in"tead f 3 3 3-
#r general re8#irement"
#.P""e""in m#"t %e pen(ntri#" act#alcc#patin3
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+ P""e""in andcc#patin m#"t %e ad$er"et 'ner;" intere"t3
+7#"t %e cntin##" $er the
"tat#try perid re8#ired3
.+7#"t %e claim of rightr color of title%y thep""e""r3
F1(*S 1F 12$E(S06P
0IERENT TYPE! O PROPERTY
O2NER!5IP
Tr#"t"
Tr#"tee r Beneficiary
2h ha" legal title( and'h ha" e8#ita%le title(and 'hat are the"e:
Right" in Cmmn Partner"hip
Fint Tenancy
Tenancy in cmmn
Tenancy %y the Entiretie"
Cmm#nity Prperty
Real Prperty Lea"e"
Creatin and Characteri"tic"
Le""r and Le""ee( rLandlrd and Tenant
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Right" t #"eand en4yment area%#t the "ame a"that f'ner"hip3
Pr$i"in" f Lea"e cntract %indthe partie"
2hat a%#t OralPrmi"e":
C$enant" e?pre""ed inlea"e agreement 'ill %eadhered t in c#rtinterpretatin
Tie liits5 0efiniteperid f time mnth tmnth( etc3 tenancy at'ill and tenancy at"#fferance3
o Tenant;" right" may %e a""igned t ther"(#nle"" 3 3 3
o Landlrd;" Right"
cmpen"atin
cme peacea%ly n premi"e"t cllect rent 'hen it i" d#e
E@ICTION
may %ring an actin fr'a"te again"t the tenant
ha" right t pre$ent third
partie" frm in4#ring prpertyr3 3 3
Tenant;" Right"
right t prperty freefrm interference %ylandlrd3
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Right tapp#rtenance" nthe prperty("#ch a"%#ilding"3
Impr$ement" n theprperty:
Lia8ility ##Tenant, usuallyB8ut what a8outtenant3s in&uries5
Ta?e" and a""e""ment"again"t the prperty:
0IERENT TYPE! OPROPERTY O2NER!5IP
EA!E7ENT!
2ATER RIG5T! *RIPARIAN RIG5T!-
/N0ERGRO/N0 2ATER
PRIOR APPROPRIATION
#hapter B"
%4TE@@E#T=A@ P
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Engineers and %n$ention
The Patent
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ASS%'49E4T 2#ont.3
Shop
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@icensing and 8ranchising
#OP
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9easures of Actual 5amages
Plaintiff:s Actual @osses
5efendant:s Profits
A reasonable royalty
Chapter 21
COMMON TORTS
NEGLIGENCE
Most torts based on NegligenceDefinition
The o!ission to do so!ething "hich a reasonable !an# g$ided
b% those ordinar% considerations# "hich ordinaril% reg$late
h$!an affairs# "o$ld do&
'laintiff needs to pro(e& & &
The e)istence of d$t%
a breach of that d$t%
a sho"ing that the breach ca$sed in*$r%
da!ages d$e to in*$r%&
Legal D$t% + I!portant ,actors
,oreseeabilit% of in*$r%
-cti(e or 'assi(e Cond$ct
Reasonable Care
Ser(ices necessar% for protection
E)istence of Contract$al Obligations
Standard of Care
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De(eloped $nder Co!!on La"
Degree of care e)ercised b% a
Reasonabl% 'r$dent 'erson
Nor!al Intelligence
Me!or%
Capacit%
S.ill
Modifications in appropriate sit$ations
See p&/02# col& 2# last paragraph
'ro)i!ate Ca$se
M$st be a s$bstantial ,actor in In*$r%
Ca$se in ,act
b$t for& & & standard
Legal Ca$sation
depends on the connection bet"een ca$se and effect&
NEGLIGENCE + Cont&
Res Ipsa Lo3$it$r
The thing spea.s for itself
'laintiff !$st sho" N& and that Defendant had control of the
instr$!entalit% ca$sing in*$r% and that 'laintiff in no "a%
contrib$tes to in*$r%&
Defense $s$all% consists of sho"ing that he or she did e)ercise
the re3$isite care&
Gross Negligence
Rec.less Disregard for conse3$ences
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'$niti(e Da!ages
Negligence Defenses
-ss$!ption of Ris.
Contrib$tor% Negligence
Co!parati(e Negligence
TORTS -G-INST - 'ERSON
-ssa$lt
Threat of 4iolence
5atter%
Intentional and $nla"f$l to$ching
,alse I!prison!ent
Malicio$s 'rosec$tion
-b$se of 'rocess
TORTS -G-INST RE'6T-TION
Defa!ation
Slander + oral defa!ation
Libel + "ritten defa!ation
Defenses
Tr$th + no defa!ation
'ri(ilege
Co!!on La" + strict liabilit%
1st -!end!ent
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're(ents Strict Liabilit% "hen s$b*ect is a p$blic fig$re or spea.er is a !edia
person
TORTS -G-INST 'RO'ERT7Trespass
Repeated
8ho controls the propert% incl$ding renters
'ersonal rights ta.e precedence o(er propert% rights&
Trespass E)ceptions + Co!!on La" in(ol(ed no
finding of intent or Negligence
Ease!ent or License
-ttracti(e N$isance
Con(ersion
Tort Co$nterpart to the cri!e of theft
8rongf$l retention of another9s personal propert%
8rongf$l alteration and "rongf$l $se of propert% b% persons
other than the o"ner&
Con(ersion !a% arise in instances of 5ail!ent
Re!edies
S$e on tort of con(ersion
Maintain an action in reple(into regain propert%
TORTS -G-INST ECONOMIC RIG:TS
Co$rts tend to enco$rage efficience lo"er cons$!er
prices e)cept in cases of ;;;;&
,ra$d
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Ele!ents of ,ra$d
Negligent Misrepresentation a tort
Ind$cing 5reach of Contract
tortio$s interference
,alse -d(ertising
6nder Co!!on La" + -ction for ,ra$d
,TC + See.s to pre(ent decepti(e ad(ertising
Lanha! -ct trade!ar. st$ff# re!e!ber
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?$stification e)ists if defendant can pro(e that an
ine(itableaccidentca$sed in*$r%&
TIME LIMIT-TIONS'ro!pt -ction is called for
Laches + definition
'laintiff slept on his rights too long
DISC:-RGE O, TORTS
Defendant !a% discharge obligation to pa% forda!ages b%
-gree!ent bet"een parties
If *$dge!ent is for defendant# tort is discharged&
-!o$nt of *$dge!ent
O$t+of+poc.et plaintiff costs
Co!pensation for pain and s$ffering
Tort feasor !a% ha(e to pa% e(en after ;;;;;&
Chapter ;;
PRO-CT# ,IA4I,IT
2IS#!R3 !F $R!D0#S LI4ILI#3
Early 1istory 2Seller3s De-enses 4a*eat Emptor
,a+ )i) not &upport 4u2er& Neg!igence
$ri*ityo( Contract
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!he 56th (entury
McPher&on $0 4uick Motor Co0
Neg!igence Theor2Producer:s duty
5uty 4eglected
4eglected duty ProGimate #ause of Pl. %nFury
%arrant2 Theor2
%mplied 9erchantability
Promise
=.S.A.-2=niform Sales Act3 - 6arranty protected thePurchaser only
=## - EGpanded protection -- howe$er the action wasbased on the contract.
S#RI# LI4ILI#3
9ost states generally follow the rule of productsliability as it appears in sec. D"BA of the
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!he +L%)!)773S (ase 2cont.4
Plaintiff:s Proof
*Out of Pocet* costs@asting effects of inFury
Producer:s neglect of safety considerations.
8888888888888888
5efecti$e Product
5esign 5efects
9anufacturing 5efects
9areting 5efects
Cidden 5efects
5isco$ery
5amages
=ser or #onsumer
!he DE7ED%!3S (ase
5efendant:s #ase
Product Alteration
Ob$iousness 2#ontributory negligence3
Abusi$e use of product
8unctional necessity of design product or warnings and state ofthe art.
#ompliance with standards
4o proGimate cause
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6ho hires the administrator after appointment7
A59%4%ST
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Procedural 8airness
Q 6hy is it needed7
Q Administrati$e Procedure Act
Q 8ederal
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Ad$isory Opinions
#O4T
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Other nin Cnstraints
e$$w +g Cntract
Lar In7&nctin
nin S#rti-e Legis$atin
0204,C$a%tn Act
0238,Nrris,LaG&ardia Act
Natina$ Lar 9e$atins Act , 0235
a:a Wagner Act
set the NL9;
secndar% %ctt? 7&risdictina$stri:es and !eatheredding a$$ &t$awed
6,da% stri:e ntice re@&ired
edera$ "ediatin and cnci$iatin ser-ice
Made &nins res#nsi$e !r trts s the% c&$d e s&ed(
S"eti"es ca$$ed the S$a-e Lar Act
nins sti$$ eB#anded 'AL and CIO)
A&si-e ractices
* the MC$e$$an C&11ittee
HI#TORICA, 4AC*GRON- cont
Landr&",Gri!!en Act ,'Lar,ManagDt 9e#rtingand +isc$s&re Act ! 0252)
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Ca&sed e"#$%ers? $ar rgani.atins? and their !!icia$st adhere t high standards ! res#nsii$it%? ethica$ cnd&ct
Had teeth '!ines and i"#risn"ent)?
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&nctins as an% ther edera$ Agenc%
&risdictinF E"#$%er in Interstate C""(
* A$s? e"#$%erDs -$&"e ! &siness eBceeds set d$$ar$i"its !r a #artic&$ar ind&str%
What ha##ens when NL9; re!&ses 7&risdictin
E1+$&ee Re+resentati&n 8ste+s in se$eting a 0argaining agent9
etitin
In-estigatin
E$ectins
&a$i!ied ters
Ca"#aigning
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Law!&$ nin Cercin
Stri:es
I! the &nin has n cntract #r-isin arring it
!r" stri:e orcntract ti"e has r&n &t? then ( ( (
Ecn"ic Stri:e
n!air Lar ractice Stri:e
Sit,dwn Stri:e
ic:eting
C&rts ha-e -iewed #ic:eting s"ewhat $ess that a
!&$$ ( ( (
;$ac:"ai$ ic:eting
Methds? Changes and rtected Wr:
reser-atin C$a&se
eatheredding
Chapter ;. %OR*ER#COMPEN#ATION
IE ..:
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Some state laws re+uire co$erage 2with *teeth*3
pro$ides employer with immunity from suits eGcept grossnegligence intentional misconduct.
6orer ne$er has to pay for co$erage
Employer may self-insure in some states
EGceptions in e$ery state
agricultural employees
domestic ser$ants
independent contractors
casual worers and/or worers in religious or charitableorgani,ations
minimum number of employees
owners as employees
@aws tend to eGpand with time
Premiums
#osts reflects employer:s insurance company:s premiumre+uirement
Premium for co$erage on a gi$en Fob in insurance company:s ratemanual
usually based on L1"" of payroll costs 2the more ha,ard thehigher the premium3
8uture Premiums may be raised or lowered according toemployer:s eGperience rating.
Second %nFury funds
6hat they are
4early all laws limit the second employer:s responsibility to theinFuries suffered in second employer:s Fob.
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#reated mostly by legislati$e appropriation
Amount of #ompensation
5epends on
nature of the inFury
specifications of worer:s compensation law
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%ntentional self-inflicted inFury
Cha+ter ,6 SAET;
IE 4553/6553Engineering Law and Ethics
AC
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!ree !r" recgni.ed ha.ards
$i:e$% t ca&se death r seri&s #h%sica$ har"
Sha$$ c"#$% with OSH standards #r"&$gated &nder thisAct(
E"#$%eeDs res#nsii$ities
t c"#$% ( ( ( With a$$ r&$es which are a##$ica$e t his wnactins and cnd&ct
A##$icai$it%
Cngress #assed OSHA ( ( (
OSHA is $i"ited in 7&risdictin t c"#anies that a!!ect
interstate c""erce(
C&rts tend t ta:e an eB#anded -iew ! what cnstit&tesinterstate c""erce
Nt intended t re#$ace c-erage % ther !edera$ acts rwr:erDs c"#ensatin
.SHA- cntin&ed
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+irectr res#nsi$e t SecD% HHS? &t is re@&ired t wr:c$se$% with SecD% Lar
9esearch and Ed&catin !&nctins
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Standards
What is sa!e en&gh
When OSHA was created? gi-en 8 %ears t eBa"ine and
ad#t cncens&s standards
wh$esa$e ad#tin ! ind&str% standards? state standards?ANSI standards? standards !r" ther s&rces(
High$% &se!&$? "di!ied? &se$ess
EBa"#$eF gr&nd,!a&$t #rtectin standard(
'see #( 446,4=)
Standard Setting and 9&$e Ma:ing
ariances
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A##ea$
ena$ties
Seri&s i$atin r Wi$$!&$ i$atin
Aate"ent erid
9ecrd Jee#ing
A$$ &t !air$% tri-ia$ wr:,re$ated in7&ries r i$$nesses "&st erecrded
9ecrds "&st e a-ai$a$e !r c"#$iance
E-en S"a$$ &sinesses "&st :ee# recrds
E-en recrd ccatina$ in7&ries res&$ting in death? $stwr:da%s? restrictin ! "tin? $ss ! cnsci&sness? 7trans!er? "edica$ treat"ent ther than !irst aid(
OSHA and the $itica$ En-irn"ent
When OSHA was rn
When the : was written
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