FI 341 Chapter 19: Liability

Question 1

Legal Wrong

Answer 1

A violation of a person’s legal rights, or a failure to perform a legal duty owed to a certain person or to society as a whole

Question 2

Contract

Answer 2

An agreement between two or more parties that is legally enforceable

Question 3

Tort

Answer 3

A legal wrong for which the court allows a remedy in the form of money damages OR a civil wrong arising out of contract

Question 4

Plaintiff

Answer 4

The person who claims injury due to the action or inaction of another; can sue for damage

Question 5

Tortfeasor or Defendant

Answer 5

Person who allegedly damages plaintiff

Question 6

Intentional Tort

Answer 6

Intentional act resulting in harm (e.g., fraud, assault, slander, libel)

Question 7

Strict Liability Tort

Answer 7

Liability is imposed without regard to fault or negligence

Question 8

Negligence

Answer 8

The failure to exercise the standard of care required by law to protect others from an unreasonable risk of harm

Question 9

Proximate Cause Relationship

Answer 9

A relationship/connection that requires an unbroken chain of events

Question 10

Compensatory Damages

Answer 10

Compensating the victim for losses actually incurred

Question 11

Special Damages (Economic)

Answer 11

Example: Medical expenses

Question 12

General Damages (Non-economic)

Answer 12

Example: Pain and Suffering

Question 13

Punitive Damages

Answer 13

Designed to punish people and organizations so that others are deterred from committing the same wrongful act

Question 14

Assumption of Risk

Answer 14

A person who understands and recognizes the danger inherent in a particular activity can’t recover damages for an injury

Question 15

Contributory Negligence (Common Law Doctrine)

Answer 15

The plaintiff can’t collect damages if his/her negligence contributed in any way to the loss

Question 16

Comparative Negligence

Answer 16

Modifies common law doctrine of contributory negligence; Financial burden of injury is shared by both parties according to their respective degrees of fault.

Question 17

Pure Rule (Comparative Negligence)

Answer 17

Plaintiff can collect damages even if negligent, but the award reward is reduced in proportion to the plaintiff’s fault

Question 18

49 Percent Rule (Comparative Negligence)

Answer 18

Plaintiff can collect (reduced) damages only if his/her negligence is less than the defendant’s negligence

Question 19

50 Percent Rule (Comparative Negligence)

Answer 19

Plaintiff can collect (reduced) damages only if his/her negligence is not greater than defendant’s negligence

Question 20

Fellow Servant Rule (Antiquated)

Answer 20

The ability to collect damages for negligence may depend on state law, which sometimes modifies common law rules

Question 21

Last Clear Chance Rule

Answer 21

Modifies contributory negligence doctrine; A plaintiff who is endangered by his/her own negligence can still recover damages from the defendant if the defendant has a last clear chance to avoid the accident but fails to do so

Question 22

Fellow Servant Rule

Answer 22

Injuries by a fellow employee are not the responsibility of the employer (antiquated)

Question 23

Imputed Negligence

Answer 23

The negligence of one person can be attributed to another person (Example: agent/principal relationships)

Question 24

Vicarious Liability Law (Imputed Negligence)

Answer 24

A motorist’s negligence is imputed to the vehicle’s owner

Question 25

Family Purpose Doctrine

Answer 25

The owner of an auto can be held liable for negligent acts committed by family members

Question 26

Dram Shop Law

Answer 26

A business that sells liquor can be held liable for damages that may result from the sale of liquor

Question 27

Res Ipsa Loquitur

Answer 27

"The thing speaks for itself"; The very fact that the injury or damage occurs establishes a presumption of negligence on behalf of the defendant (Example: A dentist extracts the wrong tooth)

Question 28

Res Ipsa Loquitur (Three Requirements)

Answer 28

The event is one that normally does not occur in the absence of negligence; The defendant has exclusive control over the instrumentality causing the accident; The injured party has not contributed to the accident in any way

Question 29

Trespasser

Answer 29

A person who enters or remains on the owner's (or occupant's) property without the owner's consent; Duty: Refrain from injuring a trespasser (sometimes referred to as The Duty of Slight Care)

Question 30

Licensee

Answer 30

A person who enters the premises with the occupant's expressed or implied permission (Example: A door-to-door salesperson, a guest at a party); Duty: Owner must warn the licensee of unsafe conditions or activities which are apparent

Question 31

Invitee

Answer 31

A person who is invited onto the premises for the benefit of the occupant (Example: Customer in a store); Duty: To inspect the premises and eliminate any dangerous conditions

Question 32

Attractive Nuisance

Answer 32

A hazardous condition that can attract and injure children; Owners/occupants of land are liable for injuries to children who may be attracted by some dangerous condition, feature, or article; (Example: A contractor leaves keys in ignition, child drives vehicle and gets injured)

Question 33

Sovereign Immunity

Answer 33

Historically, some entities were granted immunity from suit

Question 34

Governmental Entities

Answer 34

Today, can be sued in almost every aspect of governmental activity

Question 35

Proprietary Function

Answer 35

A governmental unit can be held liable if it is negligent in the performance of a proprietary function (Example: The operation of water plants)

Question 36

Governmental Function

Answer 36

Immunity from lawsuits for governmental functions, such as the planning of a sewer system, has been eroded

Question 37

Charitable Institutions

Answer 37

No longer immune from lawsuits, especially with respect to commercial activities

Question 38

Respondeat Superior

Answer 38

An employer can be held liable for the negligent acts of employees while they are acting on the employer's behalf, as long as the worker is an employee and is acting within the scope of employment when the negligent act occurred

Question 39

Collateral Source Rule

Answer 39

Under the collateral source rule, the defendant cannot introduce any evidence that shows the injured party has received compensation from other collateral sources

Question 40

Joint and Several Liability Rule

Answer 40

Under this rule, several people may be responsible for injury, but a defendant who is only slightly responsible may be required to pay the full amount of damages

Question 41

Alternative Dispute Resolution (ADR)

Answer 41

A technique for resolving a legal dispute without litigation

Question 42

Arbitration (ADR)

Answer 42

Parties to a dispute agree to be bound by the decision of an independent third party

Question 43

Mediation (ADR)

Answer 43

A neutral third party tries to arrange a settlement without resorting to litigation