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Failure to observe t he standard of ca re required by law under the circumstances Negligence ○ Intentional torts ○ There are two main types of torts: To maximize social we alth for everyone in society - the allocation of scarce resources to the people that value a particular resource the most a. L(x,y) = Social cost of accidents, given x and y uni ts of precaution by A a nd B 1) Depends on many factors a) It is a function of the amount of care taken by the vi ctim and injurer b) p=proba bility of accident 2) D=Victim's damages if accident occurs 3) A(x) =Potential vi ctim' s precaution cost 4) B(y)=Potential i njurer's precauti on cost 5) C=cost of administering legal system 6) Min. L(x,y) =p(x,y)D(x,y) +A(x)+ B(y)+C a. So economic goal is to mini mize this f unction (the goal of tort law is not to eli minate all accidents because this brings an extraordinary cost) b. Economic Purpose of Tort Law, to minimize the social costs of accidents b. What is tort law designe d to do? 1. Defendant had a seizure while drivin g and drove into plaintiff's bike shop. Plaintiff was injured and property was damaged. ○ The defendant had a history of these sei zures but had complied with all of the rules of the DMV ○ The court r uled that the def endant should not be held strictly liable but that he c ould only be liable through a theory of ne gligence. ○ Hammontree v. Jenner • The traditional goal of tort law has bee n to restore a victim to the ir equivale nt condition prior to the ha rm. (Often money damages) • Beneficiaries will argue on behalf of the defendant ○ The death of a defe ndant rar ely causes the abatement of othe rwise valid lawsuits • The victim's interest in her own bodily se curity ○ Victim's de pendent s' interest in continued economi c su ○ If a victim dies, there are two separate interests: • The estate of the deceased brings suit for any harm for which the deceased cou ld have sued had she survived. ○ This would i nclude medical expenses, lost wages, and pain and suffering ○ Survival Action: • Action may be brought by and on be half of legally designated beneficiarie s, usually c lose family members or next of kin, to r ecover for the pecuniary loss that the death has caused. ○ Wrongful Death • Vicarious Liability An employer is vi cariousl y liable for torts committed by employees if the employee was ac ting in the scope of their employmen t. This is a doctrine of strict liability. ○ The employee must be about the employer's business and the duties assigne d by the employer, as opposed to being wholly involve d in a personal endeavor. The employe e's conduc t must occur within the hours and ordinary spatial boundaries of employment The employee's conduct must be motivated, at least i n part , by the purpose of serving the employer's interest Generally this causes the most controversy. For example if an empl oyee even thinks that he is serving the e mployer…employer can be liable An employee i s acting in the scope of their employment if all of the following ar e true: ○ Holding employers strictly liable for torts committed by employees shifts the loss from the victim ○ To select employe es cau tiously To effe ctively supervise employees To discipline employee s who have committed ne glig ence and thereby exposed the employer to liability To consider alternatives to employee efforts such as the mechanization of particular tasks or a reduction i n the overall scale of the employe e's activities. Vicarious l iability provides the followin g incentives for e mployers : ○ Swenson takes a 15 minute break from work and goes to café. Swenson is involved in an accident on the way back Plaintif f sues Swenson and her employer, Burns, for Swenson's negligent driving On the first te st, reasonable minds could diff er because Swenson claimed Burns told her that it was good for a security □ Summary judgment for defendant is denied because: Christensen v. Swenson ○ Respondeat superior: • Tort Outline Monday, December 01, 2008 2:02 PM Outline Page 1

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