Unit 3

B U S I N E S S T O RT S
LEARNING OBJECTIVES

Discuss the basis List and explain the

for intentional and generally
negligent tort recognized
liability. business torts.
W H AT I S T O R T ?
3.1 Tort: Intentional and negligence torts

INTENTIONAL
An act by the defendant
TORT S

To recover for an
intentional tort, the An intention to cause the
injured person must consequences of the act
show three things:
Causation—the injury was
caused by the defendant’s act
or something set in motion
by the act
N E G L I G E N C E TO RT S

Duty of tortfeasor

To recover for a
negligence tort, the Breach of duty
injured party must show
all these elements: Breach was the cause of
injury

Actual damage or
injury
3 . 2 B U S I N E S S TO RT A N D P R O D U C T
LIABILITY
Case happened in Nghe An – Vietnam with a 13 year old boy charging phone
while using it. Who will have the responsibility?
PRODUCT LIABILITY

Manufacturers are potentially liable for injuries

caused by the products.

Negligence

• Use or condition of the product

• Design defect
• Failure to warn
T H E FA M O U S S N A I L
T H E F A M O U S F LY
PRODUCT LIABILITY 2

• A person injured through use or condition of a product could

sue on the basis of the manufacturer’s negligence.
• The plaintiff must prove negligence.
• Unless plaintiff shows negligence, it is unlikely the plaintiff
will be able to prove negligence.
STRICT
LIABILITY
Entities in the chain of
manufacturing, as well as
the manufacturer, are
liable even without proof
of negligence.
• Includes wholesalers
or retailers
• Applies to anyone
injured because of
defects
INTERFERENCE

Interference with a
contract or economic
advantage occurs
when a business
relationship has been
formed, and a third
party causes a breach
of that business
relationship
CONFUSION

Confusion about a product looks at:

• Injurious falsehood (also called
commercial disparagement or trade
libel)
• Confusion of source
TRADEMARKS
Trademarks: words, symbols, or devices used to
distinguish one’s goods from another’s.

Includes only those marks used by a business that

distinctively differentiates it from others.

A secondary trademark has come into use through

common practice.

Trademarks may be registered or unregistered.

TRADEMARKS
DETERMINING
CONFUSION OF MARKS

Similarity of the marks

Similarity of products

Similarity of marketing and customers

Similarity and amount of advertising

Area of overlapping use

Intent of parties in adopting the marks

Strength of the marks

Actual confusion by the public

TRADEMARKS

Trademarks distinguish and identify tangible

goods; service marks identify and distinguish
services.

Trademark dilution is “lessening of the

capacity of a famous mark to identify and
distinguish goods or services.