BA 3340 Lecture Notes - Lecture 67: Liability Insurance, Vicarious Liability, False Imprisonment
Document Summary
There are three concepts: liability insurance: A contract in which an insurance company agrees, in exchange for a price, to pay the damages on behalf of a person who incurs liability. Duty to defend requires the insurance company to pay the expenses that are associated with lawsuits brought against the insured party. Liability insurance undermines tort law"s deterrence func-ons. Discourages people from commidng torts by threatening to hold them liable. Occurs when one person is held liable for a tort that was commioed by another person. For example, while on the job, a worker aoacks another person, the company can be held liable for the employee"s acion: remedies. Compensatory damages: the defendant is required to pay for the losses that they caused the plainih to suher. Defendant is responsible only for losses that they in fact caused. A loss is remote if it would be unfair to hold the defendant responsible for it.
