ACTG 2P40 Lecture : The Law of Torts & Professional Liability - Chapters 3 & 4

The Principle of Integrity in the AICPA’s Code ofProfessional Conduct would be violated in cases of:

genuine differences in opinion.

subordination of judgment.

inadvertent error.

unintentional distortion of facts.

What is the difference between managerial discretion and theintentional falsification of accounting records?

In answering this question, identify each tort committed. Namethe tort, tell who committed the tort, tell the elements/definitionof each, and tell what facts lead you to believe the tort wascommitted. Next, state what defenses, if any, the defendant had foreach tort committed. State the defense, what is required to provethe defense, and what facts led you to believe that the defense isavailable.

Example: Brian walked up to Danny and punched him in the nose.Danny tried to duck but was hit anyway.

Example Answer: Brian committed two potential torts. First,Brian committed Battery. Battery is the unprivileged intentionaltouching of another. Brian committed this tort when he punchedDanny in the nose. The second tort Brian committed was Assault.Assault is creating a reasonable apprehension or fear in another ofan immediate battery. Since Danny tried to duck, it shows he wasapprehensive of the punch (the battery). There are no defenses forBrian's actions.

Assignment fact pattern:

Kristi was late for work on her first day. Wanting to set a goodimpression, she felt she had to find a way to make it to the hotelon time. As she is walking down the street, she saw a bicycle onMariah’s lawn. Mariah owed Kristi $80 but had never paidher. Kristi decided if she were to ride the bike to work, she maynot be that late. Plus, Kristi figured the bike was worth aboutwhat Mariah owed her and it would only be fair for her to borrowthe bike. Kristi walked onto Mariah’s lawn, picked up the bike, androde it to work.

Kristi made it to work with just a minute to spare. She jumpedoff the bike and ran into the office building. However, in jumpingoff the bike, she also flung it down the sidewalk. Jolie, who wasnot late to work but was outside enjoying a cigarette, saw the bikecome flying at her. Jolie tried to move out of the way but was hitin the leg by the bicycle. The result of the incident was a brokenleg for Jolie.

As Kristi ran into work, she slipped and fell on a puddle ofwater. Brittany, the office janitor had just mopped the floor.However, she failed to put down a wet floor sign to warn thoseentering the building. As a result of the fall, Kristi suffered asprained ankle.