Negligent Tort

Learning Outcomes This week students will:

1. Examine the elements of negligence and tort liability.

2. Compare appropriate punishment for corporations that commit crimes with appropriate punishment for persons who commit crimes that harm businesses.

3. Apply consumer protection law to a business situation.

Introduction

This week focuses on study of torts, criminal law, and consumer protection law (specifically, product liability). These are each different substantive areas of law that are relevant to business and business persons.

Students will distinguish between criminal law and torts, including negligence and intentional torts. Students will also compare the differences between corporations that commit crimes and persons who commit crimes that harm businesses, and they will take a position regarding which presents the greatest threat to civil society, using current events to support their positions. In addition, students will also consider product liability arising from poorly regulated imports, and the impact of potential liability on U.S. companies. Students will also consider product recalls as a preemptory measure to mitigation liability. Students will identify and discuss the elements of negligence and a consumer protection statute.

By the end of Week Two, students should understand the difference between crimes and torts, between negligence and intentional torts, and how the issue of product liability impacts businesses and consumers.

Required Resources Required Text

1. Please read the following chapters in: Business Law for Managers:

a. Chapter 6: Criminal Law

b. Chapter 7: Intentional Torts

c. Chapter 8: Negligence and Strict Liability

Multimedia

1. Chinese Imports & Food Safety - PBS Newshour - YouTube. (n.d.). YouTube - Broadcast Yourself. Retrieved  October 19, 2012, from http://www.youtube.com/watch?feature=player_embedded&v=BKe70AAU_lc

Websites

1. United States Consumer Product Safety Commission. (http://www.cpsc.gov/)

Discussions To participate in the following discussions, go to this week's Discussion link in the left navigation.

1. Crimes That Harm Business Versus Crimes Committed by Business

Which do you believe presents the greatest threat to civil society: A corporation that commits crimes (e.g., murder, environmental crimes, bribery, etc.), or persons who commit crimes that harm businesses (e.g., embezzlement, fraud, larceny, etc.)? Defend your response, using at least one example from current events.

Guided Response: Respond to at least two of your fellow students’ postings in a substantive manner. Some ways to do this include the following, though you may choose a different approach, providing your response is substantive: Review the postings made by your peers. 

In response to your peers, first identify a non-traditional or “creative” way in which a corporation, as a legal person, might be punished for committing a crime. Then discuss the consequences of implementing that punishment to the example used by your peer.

2. Product Liability

After viewing Chinese Imports & Food Safety Video, consider whether U.S. retailers that utilize products or raw ingredients that are imported from China and that are poorly regulated should be liable in tort for injuries to consumers who are harmed by those products. Answer parts 1 and 2 of the following question:

1. Answer part a or part b

a. If U.S. companies should not be liable, then they could be legally exempt from tort liability. Discuss the consequences of such a policy to U.S. consumers. b. If the U.S. companies should be liable, then those companies would not be legally exempt from tort liability. Discuss the consequences of such a policy to U.S. businesses.   

2. Regardless of your response to part 1 of this question, assume that U.S. retailers do have legal liability for defective products. What steps could U.S. retailers and manufacturers take, when using products imported from China that would minimize their liability exposure? For example, they could warn consumers about the potential, though speculative, dangers when using products comprised of poorly regulated ingredients or components. Given your strategy, what challenges would exist for U.S. businesses that implemented your strategy?

Guided Response: Respond to at least two of your fellow students’ postings in a substantive manner. Some ways to do this include the following, though you may choose a different approach, providing your response is substantive: Discuss the challenges that would exist if your employer (or a fictitious employer) were to adopt your classmate’s strategy.

Assignment To complete the following assignment, go to this week's Assignment link in the left navigation.

Negligent Tort

Visit the United States Consumer Product Safety Commission website. Click on Recalls. Choose one product that has been recalled.

1. Describe the product subject to recall, including the recall date, recall number, and the reason for the recall.

2. Analyze whether the manufacturer would be liable for negligence if the product had not been recalled and had caused harm to a consumer.

3. Discusses the following in relation to the product recall::

a. Duty of Care

b. Standard of Care

c. Breach of the Duty of Care

d. Actual Causation

e. Proximate Causation

f. Actual Injury

g. Defenses to Negligence

4. Analyze and apply a relevant consumer protection statute identified under “Consumer Protection” in Chapter 8 of your text in conjunction with the product recall that you have identified.Must address the topic of the paper with critical thought.

Submit a four- to five-page paper (not including title and reference pages). Your paper must be formatted according to APA style as outlined in the approved APA style guide and must cite at least three scholarly sources in addition to the textbook. Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.