Business Law Question

Please help me with finishing this, I’m putting the chapters needed for start and finish it up and summarizing chapters 7,8,9,10,11,12

FINAL EXAM
Course Name:
________________________________
School Name:
________________________________
Any words, works, or statement are solely my own,
and I shall not cheat, take another words, plagiarize or commit any violations of this
course, this Professor’s rules, or the University’s Polices,
otherwise seek the consequences of a failure and possible suspension or expulsion.
________________________________________________________
Date
______________________________________________________
Student Name (Print)
__________________________________________________________
Student Name (Signature)
1
25 Possible Points
Answer each question in entirety of you will lose points.
The lines provided are for essay type responses. YOU DO NOT NEED TO USE
LINES YOU CAN DELETE THEM
The essays are about
QUALITY not QUANTITY!
IMPORTANT NOTES:
NO ATTACHMENTS, PLEASE COPY AND PASTE THE WORK ONLY!
IF YOUR CLASS HAS A DROPBOX THAT IS THE MAIN AREA TO SUBMIT THE
EXAM, IF WE HAVE AN IN CLASS EMAIL PLEASE USE THAT BUT DROPBOX
IS THE MAIN SUBMISSION. Emailed papers to my private email will not count. NO
ATTACHMENTS, please copy and paste all work. If I cannot open it I will not
GRADE IT. I will not accept ANY late work.
Grades will be final and I will not discuss the grade or
change a grade under any circumstances.
Work alone.
CHAPTERS 7 through 12
2
1) PLEASE SELECT 1 (ONE) END OF CHAPTER QUESTION FROM CHAPTER 7. RESPOND
TO THE QUESTION IN DEPTH. Choose a question that you did not choose throughout the
term for the discussion Board questions. Apply them to your real life experiences, society
or how you may act in that case. Please go in depth with responses.
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4
2) PLEASE SELECT 1 (ONE) END OF CHAPTER QUESTION FROM CHAPTER 8. RESPOND
TO THE QUESTION IN DEPTH. Choose a question that you did not choose throughout the
term for the discussion Board questions. Apply them to your real life experiences, society
or how you may act in that case. Please go in depth with responses.
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6
3) PLEASE SELECT 1 (ONE) END OF CHAPTER QUESTION FROM CHAPTER 9. RESPOND
TO THE QUESTION IN DEPTH. Choose a question that you did not choose throughout the
term for the discussion Board questions. Apply them to your real life experiences, society
or how you may act in that case. Please go in depth with responses.
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7
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8
4) PLEASE SELECT 1 (ONE) END OF CHAPTER QUESTION FROM CHAPTER 10.
RESPOND TO THE QUESTION IN DEPTH. Choose a question that you did not choose
throughout the term for the discussion Board questions. Apply them to your real life
experiences, society or how you may act in that case. Please go in depth with responses.
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10
5) PLEASE SELECT 1 (ONE) END OF CHAPTER QUESTION FROM CHAPTER 11.
RESPOND TO THE QUESTION IN DEPTH. Choose a question that you did not choose
throughout the term for the discussion Board questions. Apply them to your real life
experiences, society or how you may act in that case. Please go in depth with responses.
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12
6) PLEASE SELECT 1 (ONE) END OF CHAPTER QUESTION FROM CHAPTER 12.
RESPOND TO THE QUESTION IN DEPTH. Choose a question that you did not choose
throughout the term for the discussion Board questions. Apply them to your real life
experiences, society or how you may act in that case. Please go in depth with responses.
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14
EXTRA CREDIT
What was your favorite topic so far this term? Why did you enjoy it and what topic
would you like to learn as we move further into the course?
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15
THOUGHTS ON THIS TERM………
REMEMBER TO REACH FOR THE STARS
AND YOUR DREAMS WILL COME TRUE!
Good luck in your endeavors.
You worked hard and it will pay off!
I wish you the best and brightest future!
George Ackerman
16
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 8:
Intentional Torts and Business Torts.
Instructor Manual
Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465;
Chapter 8: Intentional Torts and Business Torts.
Table of Contents
Purpose and Perspective of the Chapter…………………………………………………………………………. 2
Cengage Supplements …………………………………………………………………………………………………… 2
Chapter Objectives ………………………………………………………………………………………………………… 2
Key Terms ……………………………………………………………………………………………………………………… 2
What’s New in This Chapter ……………………………………………………………………………………………. 4
Chapter Outline …………………………………………………………………………………………………………….. 4
Discussion Questions …………………………………………………………………………………………………….. 7
Additional Activities and Assignments …………………………………………………………………………….. 8
Additional Resources……………………………………………………………………………………………………… 9
Cengage Video Resource …………………………………………………………………………………………………………… 9
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
1
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 8:
Intentional Torts and Business Torts.
Purpose and Perspective of the Chapter
In this chapter, the reader will learn about several intentional and business torts, as well as
how damages are awarded.
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Center.
•
•
•
•
•
•
Transition Guide (provides information about what’s new from edition to edition)
Test Bank (contains assessment questions and problems)
Solution and Answer Guide (offers textbook solutions and feedback)
PowerPoint (provides text-based lectures and presentations)
Guide to Teaching Online (provides technological and pedagogical considerations
and resources for teaching online)
MindTap Educator Guide (describes assets in the MindTap platform with a detailed
breakdown of activities by chapter with seat time)
Chapter Objectives
The following objectives are addressed in this chapter:
1. Identify damages available for intentional torts.
2. Explain whether an employer can be held vicariously liable for the torts an
employee committed.
3. Explain intent.
4. Determine whether the elements for various intentional torts have been met.
5. Identify common business torts.
6. Distinguish between disparagement and injurious falsehood.
7. Summarize the public policy reasons behind business torts.
8. Differentiate between interference with a contractual relation and interference with
a prospective business advantage.
9. Define bad faith as it relates to intentional torts.
10. Describe the goal of tort law.
11. Explain the defenses available for an intentional tort action.
[return to top]
Key Terms
Tort: A violation of a duty imposed by the civil law
Intentional torts: Harm caused by a deliberate action
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
2
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 8:
Intentional Torts and Business Torts.
Libel: Written defamation
Slander: Oral defamation
Slander per se: When oral statements relate to criminal or sexual conduct, contagious
diseases, or professional abilities, they are assumed to be harmful to the subject’s
reputation
Libel per se: When written statements relate to criminal or sexual conduct, contagious
diseases, or professional abilities, they are assumed to be harmful to the subject’s
reputation
Absolute privilege: A witness testifying in a court or legislature may never be sued for
defamation
False imprisonment: The intentional restraint of another person without reasonable
cause and without consent
Intentional infliction of emotional distress: An intentional tort in which the harm results
from extreme and outrageous conduct that causes serious emotional harm
Battery: An intentional touching of another person in a way that is harmful or offensive
Assault: An act that makes a person reasonably fear an imminent battery
Trespass: Intentionally entering land that belongs to someone else or remaining on the
land after being asked to leave
Conversion: Taking or using someone’s personal property without consent
Fraud: Injuring another person by deliberate deception
Compensatory damages: Money intended to restore a plaintiff to the position he was in
before the injury
Single recovery principle: Requires a court to settle the matter once and for all by
awarding a lump sum for past and future expenses
Punitive damages: Damages that are intended to punish the defendant for conduct that is
extreme and outrageous
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
3
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 8:
Intentional Torts and Business Torts.
Tortious interference with a contract: An intentional tort in which the defendant
improperly induced a third party to breach a contract with the plaintiff
Tortious interference with a prospective advantage: Malicious interference with a
developing economic relationship
[return to top]
What’s New in This Chapter
The following elements are improvements in this chapter from the previous edition:
•
•
NEW case: Molson Coors Beverage Company USA LLC v. Anheuser-Busch
Companies, LLC (2020).
New section on false advertising.
[return to top]
Chapter Outline
I.
INTENTIONAL TORTS (8-1)
a. A tort is a violation of a duty imposed by the civil law.
b. An intentional tort is harm caused by a deliberate action.
c. Defamation (8-1a)
i. Defamation refers to false statements that harm someone’s
reputation.
ii. Libel is written defamation.
iii. Slander is oral defamation.
iv. Defamation has four elements:
(1) Defamatory statement. This is a factual statement that is likely
to harm another person’s reputation.
(2) Falsity. The statement must be false.
(3) Communicated. The statement must be communicated to at
least one person other than the plaintiff.
(4) Injury. The plaintiff must show some injury, unless the case
involves false statements about sexual behavior, crimes,
contagious diseases, and professional abilities.
(a) Slander per se: When oral statements relate to criminal
or sexual conduct, contagious diseases, or professional
abilities, they are assumed to be harmful to the
subject’s reputation.
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
4
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 8:
Intentional Torts and Business Torts.
(b) Libel per se: When written statements relate to
criminal or sexual conduct, contagious diseases, or
professional abilities, they are assumed to be harmful
to the subject’s reputation.
v. The rule from the New York Times case is that a public official can win a
defamation case only by proving the defendant’s actual malice, that is,
that the defendant knew the statement was false or acted with
reckless disregard of the truth.
vi. Privilege
(1) Defendants receive additional protection from defamation
cases when it is important for them to speak freely. Absolute
privilege exists in courtrooms and legislative hearings.
d. False Imprisonment (8-1b)
i. False imprisonment is the intentional restraint of another person
without reasonable cause and without consent.
ii. Generally, a store may detain a customer or worker for alleged
shoplifting provided there is a reasonable basis for the suspicion and
the detention is done reasonably.
e. Intentional Infliction of Emotional Distress (8-1c)
i. Intentional infliction of emotional distress is an intentional tort in
which the harm results from extreme and outrageous conduct that
causes serious emotional harm.
f. Battery and Assault (8-1d)
i. Battery is an intentional touching of another person in a way that is
harmful or offensive.
ii. Assault is an act that makes a person reasonably fear an imminent
battery.
g. Trespass, Conversion, and Fraud (8-1e)
i. Trespass
(1) Trespass is intentionally entering land that belongs to
someone else or remaining on the land after being asked to
leave.
ii. Conversion
(1) Conversion is taking or using someone’s personal property
without consent.
iii. Fraud
(1) Fraud is injuring another person by deliberate deception.
II.
DAMAGES (8-2)
a. Compensatory Damages (8-2a)
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
5
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 8:
Intentional Torts and Business Torts.
i. Compensatory damages is money intended to restore a plaintiff to
the position he was in before the injury.
ii. The single recovery principle requires a court to settle the matter
once and for all by awarding a lump sum for past and future
expenses.
b. Punitive Damages (8-2b)
i. Punitive damages are damages that are intended to punish the
defendant for conduct that is extreme and outrageous.
ii. The Supreme Court held that in awarding punitive damages, a court
must consider three factors:
(1) The reprehensibility of the defendant’s conduct,
(2) The ratio between the harm suffered and the award, and
(3) The difference between the punitive award and any civil
penalties used in similar cases.
III.
BUSINESS TORTS (8-3)
a. Tortious Interference with Business Relations (8-3a)
i. Tortious Interference with a Contract
(1) Tortious interference with a contract exists if the plaintiff
can establish the following four elements:
(a) There was a contract between the plaintiff and a third
party;
(b) The defendant knew of the contract;
(c) The defendant improperly induced the third party to
breach the contract or made performance of the
contract impossible; and
(d) There was injury to the plaintiff.
(2) A defendant may also rely on the defense of justification, that
is, a claim that special circumstances made its conduct fair. To
establish justification, a defendant must show one of the
following:
(a) It was acting to protect an existing economic interest,
such as its own contract with the third party;
(b) It was acting in the public interest, for example, by
reporting to a government agency that a corporation
was overbilling for government services; or
(c) The existing contract could be terminated at will by
either party, meaning that although the plaintiff had a
contract, the plaintiff had no long-term assurances
because the other side could end it at any time.
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
6
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 8:
Intentional Torts and Business Torts.
ii. Tortious Interference with a Prospective Advantage
(1) Tortious interference with a prospective advantage is
malicious interference with a developing economic
relationship.
(2) A plaintiff who has a definite and reasonable expectation of
obtaining an economic advantage may sue a corporation that
maliciously interferes and prevents the relationship from
developing.
b. False Advertising (8-3b)
i. The plaintiff must prove four elements:
(1) The defendants made false or misleading fact statements
about its products or those of a competitor.
(2) The statements were material and likely to influence
purchasing decisions.
(3) The defendants used the statements in commercial advertising
or promotion.
(4) The statements created the likelihood of harm.
[return to top]
Discussion Questions
You can assign these questions several ways: in a discussion forum in your LMS, as wholeclass discussions in person, or as a partner or group activity in class.
1. Discussion: Trespass and intention ([Intentional Torts (8-1)], Duration 20 minutes.
a. Writing prompt asking students to analyze the following fact pattern.
b. Alan spends the weekend hiking in the woods that are behind his new home.
Alan believes the woods are part of a public park. Later in the week, he
receives notice of suit for trespassing on Rob’s property. Alan defends by
arguing he did not know the property belonged to Rob. Therefore, he did not
commit a trespass. What is the likely outcome and why?
i. Answer: Alan is still liable for trespass because the intentional act of
walking into Rob’s property is enough to trigger liability. The focus is
not on the belief that Alan has.
2. Discussion: False advertising and free speech. ([Business Torts (8-3)], Duration 20
minutes.
a. Students examine the rationale behind false adverting and free speech.
b. What is the public policy behind false advertising? How does this make sense
when compared with free speech?
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
7
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 8:
Intentional Torts and Business Torts.
i. Answer: The public policy behind making false advertising actionable
is that there is value on one hand in the marketplace where different
producers of products and services compete. However, the tort of
false advertising is narrowly drawn to not ban any and all possible
misleading advertising. Only through all four elements can a
particular form of advertising be actionable as false. The filter of the
four elements distills down extreme false advertising from what could
be called misleading or ordinary marketing strategies in the free
market.
[return to top]
Additional Activities and Assignments
1. MindTap: Why Do Business Torts Matter to Me?
a. Consider your perspective on key legal concepts.
2. MindTap: Reading: Intentional Torts and Business Torts
a. Read the chapter here. Highlight and make notes to help you study for an
exam.
3. MindTap: Learn It: Common Business Torts
a. Get familiar with one of the key concepts from the chapter.
4. MindTap: Learn It: Difference Between Interference with a Contract and
Interference with a Prospective Advantage
a. Get familiar with one of the key concepts from the chapter.
5. MindTap: Learn It: Tort Law – Intent
a. Get familiar with one of the key concepts from the chapter.
6. MindTap: Learn It: Elements of Intentional Torts
a. Get familiar with one of the key concepts from the chapter.
7. MindTap: Check Your Understanding: International and Business Torts
a. Test your understanding of the facts, themes, and concepts covered in the
chapter.
8. MindTap: Case Problem Analysis: Wrongful Interference
a. Read a short scenario case, analyze fact patterns, and answer questions to
gain a deeper level of critical analysis and understanding.
9. MindTap: Brief Hypotheticals: International Torts and Business Torts
a. Assess your ability to apply legal concepts to hypothetical scenarios.
10. Research Project:
a. Ask students to create their own hypotheticals involving intentional torts.
b. Ask students to research tort cases.
[return to top]
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
8
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 8:
Intentional Torts and Business Torts.
Additional Resources
Cengage Video Resource
•
MindTap Quick Lesson Video:
o Intentional Torts: https://geyser.clcms.com/assets/blaw_clarkson_cla/video/intentional_torts_edit_2/inten
tional_torts_edit_2
o The Difference Between Assault and Battery: https://geyser.clcms.com/assets/blaw_clarkson_cla/video/blaw_ql_bird_assault_vs_batte
ry/blaw_ql_bird_assault_vs_battery
[return to top]
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
9
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
Instructor Manual
Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465;
Chapter 9: Negligence, Strict Liability, and Product Liability.
Table of Contents
Purpose and Perspective of the Chapter…………………………………………………………………………. 2
Cengage Supplements …………………………………………………………………………………………………… 2
Chapter Objectives ………………………………………………………………………………………………………… 2
Key Terms ……………………………………………………………………………………………………………………… 3
What’s New in This Chapter ……………………………………………………………………………………………. 3
Chapter Outline …………………………………………………………………………………………………………….. 3
Discussion Questions …………………………………………………………………………………………………….. 8
Additional Activities and Assignments …………………………………………………………………………….. 9
Additional Resources……………………………………………………………………………………………………. 10
Cengage Video Resource …………………………………………………………………………………………………………. 10
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
1
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
Purpose and Perspective of the Chapter
In this chapter, all the different forms of negligence are described, including the elements
and different forms, including strict and product liability.
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Center.
•
•
•
•
•
•
Transition Guide (provides information about what’s new from edition to edition)
Test Bank (contains assessment questions and problems)
Solution and Answer Guide (offers textbook solutions and feedback)
PowerPoint (provides text-based lectures and presentations)
Guide to Teaching Online (provides technological and pedagogical considerations
and resources for teaching online)
MindTap Educator Guide (describes assets in the MindTap platform with a detailed
breakdown of activities by chapter with seat time)
Chapter Objectives
The following objectives are addressed in this chapter:
1. Define class action.
2. Describe the defenses available for a strict liability action.
3. Explain market share liability.
4. Identify the tort liability of a professional.
5. Describe the reasonable person standard.
6. Differentiate between duty of care imposed on different classes of people.
7. Explain negligence per se.
8. Summarize the types of damages available in a negligence action.
9. Explain, for a given case, whether the elements for negligence are satisfied.
10. Explain the public policy reason behind the different duties of care owed by
landowners.
11. Identify whether a person qualifies as a trespasser, invitee, or licensee.
12. Identify the defenses available for a negligence action.
13. Differentiate between contributory and comparative negligence.
14. Explain why a superseding cause will relieve a defendant of liability.
15. Outline the reasoning behind strict liability.
16. Compare strict liability arising from abnormally dangerous conditions and ultrahazardous activities.
17. Identify whether a product is unreasonably dangerous to a consumer.
18. Define merchant seller under the Restatement of Torts.
19. Define defective condition.
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website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
20. Define state of the art.
21. Explain whether the elements that are needed to bring a product warranty action
have been satisfied.
22. Explain whether the elements that are needed to bring a product liability warranty
action have been satisfied.
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Key Terms
Trespasser: A person on another’s property without consent
Licensee: A person on another’s land for her own purposes but with the owner’s
permission
Invitee: A person who has a right to enter another’s property because it is a public place or
a business open to the public
Res ipsa loquitur: The facts imply that the defendant’s negligence caused the accident
Strict liability: A branch of tort law that imposes a much higher level of liability when harm
results from ultrahazardous acts or defective products
[return to top]
What’s New in This Chapter
The following elements are improvements in this chapter from the previous edition:
•
•
Expanded coverage of duty of care.
NEW case: The Regents of the University of California v. Superior Court of Los
Angeles County (2018).
[return to top]
Chapter Outline
I.
NEGLIGENCE (9-1)
a. To win a negligence case, a plaintiff must prove all of the following five
elements:
i. Duty of due care. The defendant had a legal responsibility to the
plaintiff. This is the point from the Palsgraf case.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
ii. Breach. The defendant breached her duty of care or failed to meet
her legal obligations.
iii. Factual cause. The defendant’s conduct actually caused the injury.
iv. Proximate cause. It was foreseeable that conduct like the defendant’s
might cause this type of harm.
v. Damages. The plaintiff has actually been hurt or has actually suffered
a measurable loss.
b. Duty of Due Care (9-1a)
i. Each of us has a duty to behave as a reasonable person would under
the circumstances.
(1) Foreseeability is the guide to determine the extent of a
person’s duty of care. If a defendant could foresee injury to a
person, she has a duty to him.
ii. Special Duty: Professionals
(1) People at work have a heightened level of duty of care. The
standard is that a professional must act as a reasonable
person in her profession.
iii. Special Duty: Landowners
(1) The duty owed depends on the type of person injured.
(2) Lowest Liability: Trespassing Adults. A trespasser (person
on another’s property without consent) is only owed a duty of
care regarding gross misconduct, but not for a plain negligence
claim.
(3) Mid-Level Liability: Trespassing Children. Landowners are
liable for a child’s injuries if there is anything on the property
that may be reasonably expected to attract children.
(4) Higher Liability: Licensee. A licensee is a person on another’s
land for her own purposes but with the owner’s permission.
(a) Landowners who have actual knowledge of a hidden
danger must warn licensees of it, but not for obvious
ones.
(5) Highest Liability: Invitee. An invitee is a person who has a
right to enter another’s property because it is a public place or
a business open to the public.
(a) A duty of reasonable care is owed to invitees. A
landowner is liable even for unknown or hidden
dangers that causes an invitee injury. (Inspections of
businesses and other property is a way to make sure
dangers are taken care of.)
iv. Special Duty: Universities
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
(1) Colleges and universities owe students a duty of care to
protect them from violent acts on campus.
c. Breach of Duty (9-1b)
i. This is shown with evidence a defendant did not meet this standard,
such as arguing the defendant did not act like a reasonable person or
professional, or there was a failure to warn of danger.
ii. Negligence Per Se
(1) When a legislature sets a minimum standard of care for a
particular activity, in order to protect a certain group of people,
and a violation of the statute injures a member of that group,
the defendant has committed negligence per se. This
automatically establishes that the defendant breached his duty
of care.
d. Causation (9-1c)
i. It must be proven that defendant’s breach of duty caused plaintiff
harm. Both of the following types must be proven by the plaintiff.
ii. Factual Cause
(1) But for the defendant’s act, the plaintiff would not be injured.
iii. Proximate Cause
(1) This shows that the type of harm is foreseeable. For example, if
a mechanic fails to fix the plaintiff’s brakes, harm is
foreseeable. Foreseeability is a limit on factual causation.
(2) When an action is not foreseeable and leads to plaintiff’s injury,
this type is called a superseding cause and breaks the chain of
causation.
iv. Res Ipsa Loquitur
(1) Res ipsa loquitur (“the thing speaks for itself”) shifts the
burden of proof from plaintiff to defendant. It applies only
when:
(a) The defendant had exclusive control of the thing that
caused the harm,
(b) The harm normally would not have occurred without
negligence, and
(c) The plaintiff had no role in causing the harm.
(2) Ex. The plaintiff is injured by an air conditioner that fell from a
hotel. The defendant hotel’s negligence caused the accident.
Now the burden is on the defendant to counter that it did not
cause the harm. Here, the plaintiff does not need to prove
causation because, by res ipsa loquitur, it is already established.
e. Damages (9-1d)
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website, in whole or in part.
5
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
f.
II.
i. It must be proven that damages from an injury or a measurable loss
are genuine, not speculative harm.
Defenses (9-1e)
i. Contributory Negligence
(1) If a state follows this theory, a plaintiff who is even 1 percent
negligent will not recover from a defendant who is 99 percent
responsible.
ii. Comparative Negligence
(1) Plaintiffs can recover even if they are at fault.
(a) Ex: If there is a $1 million award divided by fault of the
parties, and the defendant is 60 percent responsible
and the plaintiff is 40 percent, the plaintiff will recover
$600,000.
(2) Some states will bar the plaintiff from recovery if the party is
deemed more than 50 percent responsible.
iii. Assumption of Risk
(1) A person who voluntarily enters a situation that has an obvious
danger cannot complain if she is injured.
(2) It does not apply if someone is injured in a way that is not an
inherent part of the dangerous activity, such as the impacts
from sports.
STRICT LIABILITY AND PRODUCT LIABILITY (9-2)
a. Strict Liability (9-2a)
i. Strict liability is a branch of tort law that imposes a much higher
level of liability when harm results from ultrahazardous acts or
defective products.
ii. Ultrahazardous Activity
(1) A defendant engaging in an ultrahazardous activity is almost
always liable for any harm that results. If an injury to plaintiff is
from ultrahazardous activity then, duty, breach, or foreseeable
harm are instantly established.
(2) Ultrahazardous activity includes working with radioactive
materials, toxic chemicals, dynamiting, etc.
b. Product Liability (9-2b)
i. Negligence
(1) Negligent design. The manufacturer’s poor design caused the
injury, making it unreasonably unsafe.
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website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
(2) Negligent manufacture. The design is adequate but the failure
to inspect or other careless conduct caused the product to
leave the plant.
(3) Failure to warn. The manufacturer is liable for failing to warn
the buyer or users about both dangers of normal and
foreseeable misuse. There is no duty to warn for obvious
dangers.
ii. Strict Liability for Defective Products
(1) In strict liability, the injured person need not prove that the
defendant’s conduct was unreasonable. The injured person
must show only that the defendant manufactured or sold a
product that was defective and that the defect caused harm.
(2) One who sells any product in a defective condition
unreasonably dangerous to the user or consumer or to his
property is subject to liability for physical harm thereby caused
to the ultimate user or consumer, or to his property, if:
(a) The seller is engaged in the business of selling such a
product, and
(b) It is expected to and does reach the user or consumer
without substantial change in the condition in which it is
sold.
(3) It does not matter if the user or consumer did not buy the
product from or even enter into a contractual relation with the
seller.
(a) Defective condition is unreasonably dangerous to the
user.
(b) In the business of selling.
(i) Ex. Manufacturers, grocery stores, etc.
(c) Reaches the user without substantial change.
(i) The product is not substantially changed along
its way to the plaintiff.
(d) Has exercised all possible care is no defense.
(e) No contractual relation. Privity, or the relationship
between the person selling the product and the one
who purchased it, is not required.
c. Contemporary Trends (9-2c)
i. Most courts have adopted one of two tests for design and warning
cases:
(1) Consumer expectation test.
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website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
(a) A manufacturer is liable for defective design if the
product is less safe than a reasonable consumer would
expect.
(2) Risk utility test.
(a) Multiple factors are considered, including:
(i) Product’s value.
(ii) Gravity/seriousness of danger.
(iii) Likelihood the danger would occur.
(iv) If a safer design is mechanically feasible.
(v) Adverse consequences of an alternative design.
ii. Tort Reform
(1) Pro-tort reform: Jury awards are excessive and should be
capped.
(2) Anti-tort reform: Corporations that harm plaintiffs should not
be protected from paying for the harm they caused.
iii. Time Limits: Statutes of Limitations and Statutes of Repose
(1) Statute of limitation: Lawsuits must be brought within a certain
time period, such as 1-year, 5-years, etc.
(2) Statute of repose: Limits suits from when the product at issue
is sold, regardless of when the defect was discovered.
[return to top]
Discussion Questions
You can assign these questions several ways: in a discussion forum in your LMS, as wholeclass discussions in person, or as a partner or group activity in class.
1. Discussion: Tale of two fires. ([Negligence (9-1)], Duration 20 minutes.
a. Asking students to analyze negligence causation.
b. Amanda is enjoying the use of her newly acquired barn. While she is making
some repairs, she notices smoke. Amanda moves to investigate and sees
that the barn is on fire. She runs and calls for help. At the same time, Brian’s
home is also on fire. Brian luckily escapes and gets help. Both fires spread
out of control and combine into a large one. This larger fire ignites Cory’s
home. Cory brings suit against both Amanda and Brian for damages to his
home in negligence. Amanda and Brian both point to the other as the real
cause of the damage. What are the factual and proximate causes of the
damage? Who is responsible?
i. Answer: The factual causes are with fires from each home, it is
foreseeable that a fire could combine with another and therefore
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website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
cause greater destruction. Both Amanda and Brian are responsible. A
court would likely divide damages between each.
2. Discussion: Is Sophie a wolf or not? ([Strict Liability and Product Liability (9-2)],
Duration 20 minutes.
a. Analyze the fact pattern and apply the proper theory.
b. Paul is walking his new dog, Sophie. Paul traced Sophie’s lineage and she is
99 percent German Shepard and 1 percent Eurasian Wolf. Paul looks at his
smartphone to check the time and then decides to send a few text messages.
While he is doing so, Sophie sees a squirrel and takes off running, snapping
the leash from Paul’s hand. Paul calls for Sophie and eventually finds her, but
not until Don is bitten by her. Don brings suit against Paul. What legal theory
will Don’s attorney use? What defense, if any, does Paul have?
i. Answer: Don will claim that Sophie is 1 percent Eurasian Wolf,
meaning that she is a wild animal. The owners of wild animals are
strictly liable for any injury they cause. Paul can try to argue that a 1
percent Eurasian Wolf heritage is too little for Sophie to be considered
a wild animal.
[return to top]
Additional Activities and Assignments
1. MindTap: Why Does Negligence Matter to Me?
a. Consider your perspective on key legal concepts.
2. MindTap: Reading: Negligence, Strict Liability, and Product Liability
a. Read the chapter here. Highlight and make notes to help you study for an
exam.
3. MindTap: Learn It: Reasonable Person Standard
a. Get familiar with one of the key concepts from the chapter.
4. MindTap: Learn It: Negligence – Elements
a. Get familiar with one of the key concepts from the chapter.
5. MindTap: Learn It: Superseding Cause to Relieve a Defendant of Liability
a. Get familiar with one of the key concepts from the chapter.
6. MindTap: Learn It: Product Liability Claims Under Strict Liability
a. Get familiar with one of the key concepts from the chapter.
7. MindTap: Check Your Understanding: Negligence, Strict Liability, and Product
Liability
a. Test your understanding of the facts, themes, and concepts covered in the
chapter.
8. MindTap: Case Problem Analysis: Product Liability
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website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 9:
Negligence, Strict Liability, and Product Liability.
a. Read a short scenario case, analyze fact patterns, and answer questions to
gain a deeper level of critical analysis and understanding.
9. MindTap: Brief Hypotheticals: Negligence, Strict Liability, and Product Liability
a. Assess your ability to apply legal concepts to hypothetical scenarios.
10. Research Project:
a. Ask students to find examples of the risk utility test in cases.
b. Ask students to present these cases to the class.
[return to top]
Additional Resources
Cengage Video Resource
•
MindTap Quick Lesson Video:
• Negligence: https://geyser.cl-cms.com/navfiles.xqy/geyser/buslaw/assets/blaw_clarkson_cla/video/adr/
• Reasonable Person Standard: https://geyser.clcms.com/assets/blaw_clarkson_cla/video/reasonable_person_standard_2/re
asonable_person_standard_2
•
Strict Product Liability: https://geyser.clcms.com/assets/blaw_clarkson_cla/video/strict_product_liability_shortened
_2/strict_product_liability_shortened_2
•
The Superseding Cause Defense to Negligence: https://geyser.cl-cms.com/navfiles.xqy/geyser/buslaw/assets/blaw_clarkson_cla/video/blaw_ql_bird_super
seding_cause/
•
Personal Property: https://geyser.clcms.com/assets/blaw_clarkson_cla/video/reasonable_person_standard_2/re
asonable_person_standard_2
[return to top]
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website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
Instructor Manual
Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465;
Chapter 10: Privacy and Internet Law.
Table of Contents
Purpose and Perspective of the Chapter…………………………………………………………………………. 2
Cengage Supplements …………………………………………………………………………………………………… 2
Chapter Objectives ………………………………………………………………………………………………………… 2
Key Terms ……………………………………………………………………………………………………………………… 2
What’s New in This Chapter ……………………………………………………………………………………………. 4
Chapter Outline …………………………………………………………………………………………………………….. 4
Discussion Questions …………………………………………………………………………………………………… 10
Additional Activities and Assignments …………………………………………………………………………… 11
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
1
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
Purpose and Perspective of the Chapter
In this chapter, the reader will understand the development of privacy laws and how the
government regulates activity online.
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Center.
•
•
•
•
•
•
Transition Guide (provides information about what’s new from edition to edition)
Test Bank (contains assessment questions and problems)
Solution and Answer Guide (offers textbook solutions and feedback)
PowerPoint (provides text-based lectures and presentations)
Guide to Teaching Online (provides technological and pedagogical considerations
and resources for teaching online)
MindTap Educator Guide (describes assets in the MindTap platform with a detailed
breakdown of activities by chapter with seat time)
Chapter Objectives
The following objectives are addressed in this chapter:
1. Identify when an individual can expect a reasonable expectation of privacy under
the Fourth Amendment.
2. Identify when an employer may monitor an employee’s electronic communications
or records.
3. Identify the laws that regulate wiretapping and electronic surveillance.
4. Identify potential torts related to the use of the internet.
5. Identify when user generated content may be regulated.
6. Describe the rights and duties of internet service providers.
7. Explain when law enforcement may access a user’s social media content.
8. Explain when an employer may access an employee’s social media content.
9. Describe how unsolicited electronic communications are regulated under federal
law.
[return to top]
Key Terms
Reasonable expectation of privacy: The test to analyze whether privacy should be
protected
Third-party doctrine: The Fourth Amendment does not protect the privacy of information
that has already become public or has been shared
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
Public disclosure of private facts: A tort providing redress to victims of unauthorized and
embarrassing disclosures
Intrusion: A tort addressing an unreasonable invasion into someone’s private space
Electronic Communications Privacy Act of 1986 (ECPA): Federal statute prohibiting
unauthorized interception of, access to, or disclosure of wire and electronic
communications
Wiretap Act: The section of the ECPA that prohibits the interception of face-to-face oral
communications and telephone calls
Stored Communications Act: The section of the ECPA that prohibits the unlawful access
to stored communications, such as email
Foreign Intelligence Surveillance Act (FISA): Federal statute governing the government’s
collection of foreign intelligence in the United States
Children’s Online Privacy Protection Act of 1998 (COPPA): Federal statute that regulates
the collection and disclosure of children’s information online
Health Insurance Portability and Accountability Act (HIPAA): Federal law protecting
medical records from unauthorized disclosure
Family Educational Rights and Privacy Act (FERPA): Federal law protecting the privacy of
student records
General Data Protection Regulation (GDPR): Sets out the data privacy rights of all
Europeans
California Consumer Privacy Act (CCPA): The most protective data privacy law in the
United States
Revenge porn: Unauthorized posting of sexually explicit photos of another, often to
embarrass or shame
Communications Decency Act of 1996 (CDA): Provides ISPs immunity from liability when
information was provided by an end user
Spam: Unsolicited commercial email
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website, in whole or in part.
3
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
[return to top]
What’s New in This Chapter
The following elements are improvements in this chapter from the previous edition:
•
•
•
•
•
•
•
•
•
•
•
•
Substantial changes to both law and coverage, including new sections on biometric
data, children’s privacy, health privacy, and student privacy.
NEW case: Carpenter v. United States (2018).
Expanded coverage on trends in consumer privacy.
New section on the European General Data Protection Regulation (GDPR).
New section on the California Consumer Privacy Act (CCPA).
Revised section on understanding privacy policies.
Expanded coverage of revenge porn.
NEW case: The People v. Austin (2019).
New section on sexual predators online.
NEW case: Packingham v. North Carolina (2017).
New Ethics Box on the responsibility of social media companies.
NEW case: Dyroff v. Ultimate Software Group, Inc. (2019).
[return to top]
Chapter Outline
I.
PRIVACY IN A DIGITAL WORLD (10-1)
a. How We Lose Our Privacy in the Digital World (10-1a)
i. Security and Data Breaches
(1) Internet crimes include:
(a) Phishing (attempts to fraudulently acquire personal
data from users),
(b) Hacking the internet of things (which disrupts
computers imbedded in household objects such as
security cameras, mattresses, thermostats, and even
toys),
(c) Malware (that enables criminals to control computers
and destroy data), and
(d) Denial-of-service attacks (which shut down computers
and networks).
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
ii. Surveillance
(1) Surveillance includes tracking individuals by IP and collecting
their search and buying preferences.
iii. Biometric Data
(1) Biometric refers to physical or behavioral characterizes, such
as fingerprints, facial patterns, and DNA.
iv. Data Mining and Behavioral Advertising
(1) Eighty percent of Americans shop online. What people buy and
what they view are both sets of personal data that can be used
for targeting advertising.
II.
THE LAW OF PRIVACY (10-2)
a. Constitutional Law: The Fourth Amendment (10-2a)
i. The Fourth Amendment to the Constitution prohibits unreasonable
searches and seizures by the government. The government must first
obtain a warrant before searching anyplace where a person has a
reasonable expectation of privacy.
ii. There is a two-step test to determine if a person has a reasonable
expectation of privacy.
(1) The person had an actual, subjective expectation of privacy.
(2) Society accepts the person’s expectation of privacy as
reasonable.
iii. Under the third-party doctrine, a person has no legitimate
expectation of privacy in information he voluntarily shares with a third
party, including friends, banks, utilities, and ISPs.
iv. There is no protection for anything that is already viewable publicly.
b. Privacy Torts (10-2b)
i. Public Disclosure of Private Facts
(1) The tort of public disclosure of private facts prohibits the
unjustifiable revelation of truthful, but secret, information. A
plaintiff must prove all four elements:
(a) The defendant made public disclosure,
(b) The disclosed facts had been private,
(c) The facts were not of legitimate concern to the public,
and
(d) The disclosure is highly offensive to a reasonable
person.
ii. Intrusion
(1) Intrusion is an unreasonable invasion into someone’s private
space. A plaintiff must prove all three of the following:
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website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
(a) Intentionally intruded, physically or otherwise;
(b) Upon the solitude or seclusion of another or on his
private affairs or concerns; and
(c) In a manner highly offensive to a reasonable person.
c. Federal Privacy Statutes (10-2c)
i. Wiretapping and Electronic Surveillance
(1) The Electronic Communications Privacy Act of 1986 (ECPA)
is a federal statute that prohibits unauthorized interception of,
access to, or disclosure of wire and electronic communications.
(2) Wiretapping. The Wiretap Act makes it illegal to intercept or
record face-to-face oral communications and telephone calls
during their transmission. It also prohibits disclosing the
contents of an illegal recording.
(a) The Wiretap Act does not protect every conversation.
(i) If one party consents to the conversation being
recorded, it is legal.
(ii) Businesses can monitor conversation with their
customers in the course of business, so long as
notice is given.
(iii) Wiretap laws only protect speakers with a
reasonable expectation of privacy in the
conversation.
(3) Accessing Email.
(a) The Stored Communications Act prohibits
unauthorized access to or disclosure of stored wire and
electronic communications. Under the Act:
(i) Any intended recipient of an electronic
communication has the right to disclose it.
(ii) ISPs are generally prohibited from disclosing
electronic messages to anyone other than the
addressee.
(b) An employer has the right to monitor electronic
communication even if it does not relate to work
activities if the following three are fulfilled:
(i) The employee consents,
(ii) The monitoring occurs in the ordinary course of
business, or
(iii) In the case of email, if the employer provides the
computer system.
(c) However, an employer cannot access an employee’s
social media profile by trickery or coercion.
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website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
ii. Foreign Espionage
(1) The Foreign Intelligence Surveillance Act (FISA) is a federal
statute governing the government’s collection of foreign
intelligence in the United States.
(a) FISA protections include:
(i) The government can spy on people in the United
States with permission from the Foreign
Intelligence Surveillance Court (FISC). The
government must show that the surveillance:
1. Targets “persons reasonably believed to
be located outside the United States,” and
2. Seeks “foreign intelligence information.”
(ii) Government agencies must delete irrelevant and
personally identifying data before sharing it with
other agencies.
(iii) The government must notify defendants if
evidence used against them was gathered by
FISA surveillance.
iii. Children’s Privacy
(1) The Children’s Online Privacy Protection Act of 1998
(COPPA) is a federal statute that regulates the collection and
disclosure of children’s information online.
iv. Health Privacy
(1) The Health Insurance Portability and Accountability Act
(HIPAA) protects the privacy of medical records.
v. Student Privacy
(1) The Family Educational Rights and Privacy Act (FERPA)
protects the privacy of student education records.
d. State Privacy Statutes (10-2d)
i. State privacy laws include the following:
(1) Security breach notification.
(2) Reader privacy.
(3) Biometric privacy.
(4) Disclosure of personally identifying information.
(5) Social media passwords.
e. Trends in Consumer Privacy (10-2e)
i. Cambridge Analytica harvested data from 87 million Facebook users
without their permission. This highlighted the need for closer
regulation of personal data.
f. European General Data Protection Regulation (10-2f)
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
i. In 2018, the European Union (EU) implemented the European General
Data Protection Regulation (GDPR), which sets out a framework for
processing personal data fairly and transparently. It is the most
sweeping privacy legislation in the world.
(1) Some of the GDPR’s key provisions are:
(a) Definitions. Data and processing are broadly defined.
(b) Applicability. It applies to all businesses that process the
data of anyone living within the EU.
(c) Limitations on data use. Data must be deleted after its
purpose is fulfilled.
(d) Individual rights. People have the right to prohibit data
processing and to know how data is used.
(e) Privacy policies. Clarity provisions must be included.
(f) Data breaches. Authorities and victims must be notified.
(g) Accountability. A data protection officer must be
appointed and have training standards.
(h) Penalties. Fines can be up to 4 percent of annual
worldwide revenue.
ii. California Consumer Privacy Act
(1) The California Consumer Privacy Act (CCPA) allows
Californian residents to control the use of their personal data
and
(2) It requires businesses to have clear and transparent privacy
policies.
g. Understanding Privacy Policies (10-2g)
i. The FTC has issued a set of guidelines known as the Fair Information
Practices (FIPS). The core principles of the FIPS are:
(1) Notice/Awareness. Individuals should know before any
personal information is collected.
(2) Choice/Consent. People should be able to control the use and
destination of their information.
(3) Access/Participation. People should have the ability to view,
correct, or amend any personally identifiable record about
them.
(4) Integrity/Security. Information collectors must take reasonable
precautions to ensure that the data they collect are accurate
and secure.
ii. A good privacy policy will be understood and communicate the
following:
(1) What data is being collected about you (and why).
(2) How this information is being used (and why).
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
8
Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
(3) Whether your data is shared with third parties (and for what
purpose).
(4) How long your data is kept.
(5) If and how you can get access to your data.
III.
REGULATION IN THE DIGITAL WORLD (10-3)
a. Regulation of Online Speech (10-3a)
i. The First Amendment to the Constitution protects free speech, even
when it is offensive.
ii. Defamation
(1) A plaintiff must prove that his reputation was harmed by the
defendant’s false statement. However, when the internet is
involved, the following issues arise:
(a) Opinions are not defamatory.
(b) Statements must be verifiably false.
(c) When a plaintiff is harmed anonymously, they have the
burden of proving the need for the court to unmask the
speaker. Courts review the following two factors in this
inquiry:
(i) Assess whether there is compelling evidence of
wrongful conduct, and
(ii) Balance the need for disclosure against First
Amendment concerns.
iii. Threats
(1) The First Amendment does not protect fighting words or true
threats of violence, even online.
iv. Revenge Porn
(1) Revenge porn is the unauthorized posting of sexually explicit
photos of someone else, often with the intent to embarrass or
shame.
(2) Four percent of American’s have had intimate images
disclosed, or threats to do so.
(3) Forty-six states have laws making revenge porn a criminal
offense.
v. Sexual Predators
(1) The internet’s anonymity allows sexual predators and
traffickers to lure their victims into meeting up. Some states
have criminalized offenders use of the internet.
b. Liability of ISPs (10-3b)
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
i. Congress passed the Communications Decency Act of 1996 (CDA),
which created broad immunity for ISPs and websites. Under the CDA,
end users and anyone who simply provides a neutral forum for
information (such as ISPs and website hosts) are not liable for content
provided by someone else. Only content providers are liable.
c. Consumer Protection Online (10-3c)
i. Unfair or Deceptive Advertising
(1) Section 5 of the FTC Act prohibits unfair and deceptive acts or
practices.
ii. Spam
(1) The Controlling the Assault of Non-Solicited Pornography
and Marketing Act (CAN-SPAM) is a federal statute that
regulates spam but does not prohibit it. Under this statute,
commercial email:
(a) May not have deceptive headings (From, To, Reply To,
Subject).
(b) Must offer an opt-out system permitting the recipient to
unsubscribe (and must honor those requests promptly).
(c) Must clearly indicate that the email is an advertisement.
(d) Must provide a valid physical return address (not a post
office box).
(e) Must clearly indicate the nature of pornographic
messages.
(2) A company can avoid these requirements by obtaining
advance permission from the recipients.
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Discussion Questions
You can assign these questions several ways: in a discussion forum in your LMS, as wholeclass discussions in person, or as a partner or group activity in class.
1. Discussion: Appropriation and personal data. ([Regulation in the Digital World
(10-3)]
a. Should the appropriation tort apply to an individual’s personal data? A
plaintiff must prove the following three elements to support a claim of
appropriation:
i. An appropriation,
ii. Without consent, and
iii. Of one’s name or likeness for another’s use or benefit [Dwyer v. Am.
Exp. Co., 273 Ill. App. 3d 742, 748, 652 N.E.2d 1351, 1355 (1995)].
© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
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Instructor Manual: Beatty, Business Law and the Legal Environment Standard Edition, 9e, 2022, 9780357633465; Chapter 10:
Privacy and Internet Law.
b. Would this be a workable approach to the issue? Why or why not?
i. Answer: Answers will vary. Pro-appropriation arguments: An
individual should have the right to her own data. Individuals should
be paid for the use of their personal data, just like for a picture.
ii. Anti-appropriation arguments: Extending this appropriation tort to
cover personal data would be damaging to business. The
development of internet commerce would be halted by fear of
appropriation claims.
2. Discussion: Can immunity go too far? ([Regulation in the Digital World (10-3)]
a. Revisit the facts of the Dyroff case. At what point would a website lose CDA
Immunity under Section 230? What happens when Section 230 immunity
collides with another law?
i. Answer: Answers will vary. In the case of Fair Housing Council of San
Fernando Valley v. Roommates.com, LLC, 521 F.3d 1157 (9th Cir. 2008),
Roommates.com operated a platform that allowed users to find
roommates. Roommates.com users had to complete a profile that
included information such as gender, number of children, and race.
The Fair Housing Council of San Fernando Valley brought suit, alleging
the questionnaire violated the Fair Housing Act because users could
discriminate based on answers. Due to these questions, the website
was classified as an information content provider. The Court held that
the portion of Roommates.com’s site that hosted the questionnaire
was not entitled to Section 230 immunity.
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Additional Activities and Assi…