7
CHAPTER 3
BUSINESS TORTS AND CRIMES
Answers to Learning Objectives
(Page 22)
1. The basis for intentional tort liability includes (a) an act by the defendant, (b) an intention to
cause the consequences of the act, and (c) causation. The basis for negligent tort liability
includes (a) a duty of the defendant, (b) breach of the duty, (c) the breach was the actual and
proximate cause of an injury, and (d) injury.
4. Computer crimes are crimes committed with the aid of a computer or crimes involving
computers. The three types of computer crimes that affect business are: trespass
⎯unauthorized use of or access to a computer; fraud⎯larceny and embezzlement; and
criminal copyright infringement⎯willful copyright infringement for business advantage or
financial gain.
Lesson Outline
1. Torts are either intentional or based on negligence. Torts caused by a business or involving a
business are business torts.
b. Confusion about a product
4. Interference with a contract or economic advantage occurs when a business relationship has
been formed and a third party causes one party to break up that business relationship.
5. Confusion about a product is making false statements about another’s product or representing
goods or services as being the goods or services of someone else.
6. A trademark includes a word, symbol, device, or any combination of these adopted and used
by a person to identify and distinguish his or her goods from another person’s goods. The
Chapter 3 Business Torts and Crimes
8
11. The Racketeer and Influenced and Corrupt Organizations Act allows injured parties to
recover damages for criminal conduct of an enterprise through a pattern of racketeering
activity.
Comments on Cases
(p. 23) Arrington’s fear that she would be arrested was not the restraining force required to prove
the tort of false imprisonment. Arrington v. Liz Claiborne, Inc., 688 N.Y.S.2d 544 (N.Y.
App. Div.)
(p. 26) In this case the court said that the Alert directly impugned the design and quality of First
Act’s bank instruments. Further, it would strain the imagination to figure how any
reasonable company could fail to realize this language would cause pecuniary harm. First
Act Inc. v. Brook Mays Music Co., 429 F. Supp.2d 429 (MA)
(p. 27) The court pointed out that there was no subtlety in the modified version of NYSE’s mark
used by the hotel. No one could miss the elaborate parody. New York Stock Exchange,
Inc. v. New York, New York Hotel LLC, 293 F.3d 550 (2nd Cir.)
9
(p. 31) Since extortion is a state crime, if the purpose of the BLM employees’ actions was to
extort the right-of-way, the action would constitute racketeering activity under RICO.
Robbins v. Wilkie, 433 F.3d 755 (10th Cir.)
(p. 33) The fact that there were such a huge number of pirated computer programs on the group’s
computer site not only proved the criminal charge, but meant that many defendants pled
guilty rather than go to trial. United States v. Rothberg, 2002 WL 171963 (N.D. Ill.)
Answers to Questions
(Page 35)
1. a. In order to recover for an intentional tort an injured party must show: an act by the
defendant, an intention to cause the consequences of the act, and the injury was caused by the
defendant’s act or something set in motion by that act.
b. In order to recover for a negligence tort an injured party must show: a duty to the injured
party, breach of that duty, the breach was the actual and proximate cause of an injury, and
injury or damage.
system.
4. Marks used by a business in a way that identifies its goods or services and differentiates them
from others are entitled to trademark protection. The mark normally must be inherently
distinctive, which means unique, arbitrary and non-descriptive.
5. Trademark dilution reduces the capacity of a mark to identify and distinguish goods or
services. This can be done by blurring a trademark or using the mark in a disparaging
manner or on low quality goods.
6. Shoplifting is always a business crime because it is committed in a store and by the taking of
store merchandise.
Chapter 3 Business Torts and Crimes
10
8. A rogue program is a set of software instructions that produces abnormal or unexpected
behavior in a computer. It may cause computer users difficulty, inhibit normal use, or impose
injury.
because it means the company is prohibited from doing business with the government.
Answers to Case Problems
(Page 36)
1. Yes. The court noted that when the settlement was made the fee had been awarded and was
not appealed. It was a valid and enforceable right and Amber’s conduct interfered with the
performance of the fee agreement. Little v. Amber Hotel Co., 136 Cal.Rptr.3d 97 (Cal. Ct.
App.)
4. No. The court stated that originality means a work was independently created and
possessed some minimal degree of creativity. Here the designer modified and arranged the
decorative elements in unique ways while adding his creativity. Universal Furniture Intern., Inc.
v. Collezione Europe USA, Inc., 618 F.3d 417 (4th Cir.)
5. No. The law prohibited gaining entry to a computer. Basically this was a prohibition against
outsiders breaking into a computer system or hacking. Chrisman was authorized to access
the computer system so he was not a hacker or an outsider breaking in.
Chrisman v. City of Los Angelebs, 65 Cal.Rptr.3d 701 (Cal. Ct. App.)
March Madness Athletic Ass’n LLC v. Netfire Inc., 120 Fed. Appx. 540 (5th Cir.)
8. Yes. Following Gamble and yanking her underwear to find out if they were shoplifted was
enough to allege actions that would put a person in fear of a wrongful touching. Grabbing
Gamble’s underwear was an impermissible touching. Gamble ex rel. Gamble v. Dollar
General Corp., 852 So.2d 5 (Miss.)
9. Yes. The evidence showed that the software sent out as Microsoft software was not in fact
manufactured by Microsoft. Send out counterfeit software was copyright infringement.
Microsoft Corporation v. V3 Solutions, Inc., 2003 WL 22038593 (Ill.)