Understanding Tort Law: Definitions, Categories, and Elements, Quizzes of Credit and Risk Management

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TERM 1 Legal Wrong DEFINITION 1 violation of a persons legal rights, or a failure to perform a legal duty owed to a certain person or to society as a wholeEX: crime, breach of contract, tort TERM 2 Tort DEFINITION 2 legal wrong for which the court allows a remedy in the form of money damages.injured (plaintiff) of another (tortfeasor) can sue for damage TERM 3 3 Tort Categories DEFINITION 3 intentional (fraud, assault)strict liability: liability is imposed regardless of negligence or faultnegligence TERM 4 Negligence DEFINITION 4 Failure to exercise standard care required by law to protect others from unreasonable risk of harm- standard of care varies. based on care of reasonably prudent person TERM 5 Elements of Negligence DEFINITION 5 1) existence of a legal duty to use reasonable care2) failure to perform that duty3) damage or injury to the claimant4) proximate cause relationship between the negligent act and the infliction of damages TERM 6 Damages under Negligence DEFINITION 6 Compensatory compensate the victim for losses actually incurredex: special damages - medical expense.general damages - pain and sufferingPunitive damages- desiged to punish people/ orgs so that others are deterred from committing the same wrongful act TERM 7 Contributory negligence law DEFINITION 7 injured person can't collect damages if his/her care falls below the standard of care required for his/her protectioninjured can't collect if his/her conduct contributed in any way to injury TERM 8 comparative negligence law DEFINITION 8 financial burden of the injury is shared by both parties according to their respective degrees of faultpure rule- can collect dames even if negligent, reward reduced based on proportion of fault49% rule- you can collect damages only if your negligence is less than negligence of other partyunder 50% rule- you can recover reduced damages only if your negligence is not greater than the negligence of other party TERM 9 last clear chance rule DEFINITION 9 - states that 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 TERM 10 assumption of risk doctrine DEFINITION 10 - a person who understands and recognizes the danger inherent in a particular activity cannot recover damages in the event of an injury TERM 21 governmental functions DEFINITION 21 immunity from lawsuits for gov functions, such as the planning of a sewer system, has been eroded TERM 22 respondeat superior doctrine DEFINITION 22 an employer can be held liable for the negligent acts of employees while they are acting on the employer's behalf- must be employee, employee must be acting within scope of employment when negligent act occured- parent can be held liable for child using dangerous weapon to injure someone- most states have laws that hold parents liable for willful and malicious acts of children that result in prop damage to others-owners of wild animals are held strictly liable for injuries to others TERM 23 current tort liability probs DEFINITION 23 defective tort liability systemmedical malpractice crisiscorporate fraud and lax corporate governanceincrease in asbestos law suits TERM 24 defects in present tort liability system DEFINITION 24 rising tort liability costsinefficiency in compensating injured victimsuncertainty of legal outcomeshigher jury awardslong delays in settling lawsuits TERM 25 Federal Tort Reform DEFINITION 25 - class action fairness act, 2005- protection of lawful commerce in arms act- personal responsibility in food consumption act (cheeseburger bill)- lawsuit abuse reduction act TERM 26 class action fairness act, 2005 DEFINITION 26 moves class action suits of more than $5 million from the state to federal courts TERM 27 protection of lawful commerce in arms act DEFINITION 27 protects gun manufacturers and sellers of guns from lawsuits based on the criminal use of their products TERM 28 personal responsibility in food consumption act DEFINITION 28 "cheeseburger bill"protects food companies and fast food restaurants from lawsuits by overweight customers TERM 29 lawsuit abuse reduction act DEFINITION 29 imposes sanctions on attorneys who file frivolous lawsuits TERM 30 state tort reforms DEFINITION 30 -capping noneconomic damages, such as pain and suffering- reinstating the state-of-the-art defense for product liability cases- restricting punitive damages awards- modifying the collateral source rule- defendant cannot introduce any evidence that shows the injured party has received compensation from other collateral sources TERM 31 modified joint and several liability rule DEFINITION 31 several people may be responsible for the injury, but a defendant who is only slightly responsible may be required to pay the full amount of damages TERM 32 alternative dispute resolution DEFINITION 32 technique for resolving legal dispute without litigationarbitration- parties to a dispute agree to be bound by decision of independent 3rd partymediation- neutral third party tries to arrange settlement without resorting to litigation TERM 33 medical malpractice DEFINITION 33 negligent act by physician or other health care pro, results in injury/harm to patient TERM 34 Indicators of malpractice DEFINITION 34 - malpractice insurance premiums have soared- many physicians have abandoned high-risk areas, such as neurosurgery- malpractice insurers have incurred heavy underwriting loses; some have withdrawn from market- some physicians have formed physician-owned insurance companies (captive's) TERM 35 combined ratio DEFINITION 35 percent of each premium dollar an insurer spends on claims and expenses- med malpractice ratio was 109.2