Question

What impact might the typically greater damages awards in the United States have on a businessperson’s decision about whether to keep the firm’s operations in the United States or move them to another country?  Does the potential cost of paying damages encourage large corporations to outsource jobs to other nations? Why or why not?

Answer 1

Insurance often covers damages awards in the United States and the premiums can be adjusted to reflect increased amounts of awards. But insurance premiumscan also go up simply to increase the profits of the insurance companies. Such increases may also bpassed on to consumers. If damages awards have been curtailed, businesses and consumers wouldthus be paying higher prices without a trade off. If insurance premiums were lowered to reflect lowerdamages awards—this seems unlikely, at least in the long run—it is not likely that a business wouldbe willing to take higher risks with dangerous products. The business’s reputation could suffer, andits profits could as easily disappear as if they were paid to insurance companies as premiums. If tort

liability is a businessperson’s primary concern, then locations in which damages awards are fewer in
number and lower in amount might be appropriate places in which to choose to do business.In contrast to U.S. courts, courts in Europe generally limit damages to compensatory damages;
punitive damages are virtually unheard of in European countries. Even when plaintiffs do win compensatory damages, they generally receive much less than would be awarded in a similar case
brought in the United States. In part, this is because citizens of European countries usually receive
government-provided health care and relatively generous social security benefits. Another reason,
though is that European courts tend to view the duty of care and the concept of risk differently than
U.S. courts do. In the United States, if a swimmer falls off a high diving board and is injured, a court
may decide that the pool owner should be held liable, given that such a fall is a foreseeable risk. If
punitive damages are awarded, they could total millions of dollars. In a similar situation in Europe,
a court might hold that the plaintiff, not the pool owner, was responsible for the injury..
Tort laws in other nations also differ in the way damages are calculated. For example, under
Swiss law and Turkish law, a court is permitted to reduce the amount of damages if an award of full
damages would cause undue hardship for the party who was found negligent. In the United States, in
contrast, the courts normally do not take a party’s economic circumstances into consideration.

Intentional Torts against Persons
An intentional tort requires intent. Intent means that the actor intended the consequences of his or
her act or knew with substantial certainty that certain consequences would result from the act. The
law generally assumes that one intends the normal consequences of his or her actions. Thus a push
is an intentional tort because the object of the push can ordinarily be expected to go flying.
A . ASSAULT AND BATTERY
1. Assault
An intentional, unexcused act that creates in another person a reasonable apprehension or
fear of immediate harmful or offensive contact is an assault. If the contact is such that a
reasonable person would want to avoid it and there is a reasonable basis for believing the
contact is coming, the plaintiff suffers apprehension whether or not he or she is afraid.
interest protected is freedom from having to expect harmful or offensive contact. The completion of the act that caused the apprehension, if it results in harm, is a battery.
2. Battery
A battery is an unexcused, harmful, or offensive physical contact intentionally performed.
The interest protected is the right to personal security and safety. The contact can be to
any part of the body or anything attached to it. The contact can be made by some force
that the defendant sets in motion.
3. Compensation
Proof of motive in not necessary. Damages from a battery can be for emotional harm or loss
of reputation as well as for physical harm.
4. Defenses to Assault and Battery
The defenses discussed in the text are
• Consent: When a person consents to the act that harms him or her, there is no liability
for the damage done. This defense is good only as long as the defendant remains within
the boundaries of the consent given.
• Self-defense: An individual who is defending his or her life or physical well-being may
use self-defense—that is, whatever force is reasonably necessary to prevent harmful
contact. This defense extends to real danger and apparent danger, but force cannot be
used once the danger has passed (and revenge is always prohibited).
• Defense of Others: An individual can act in a reasonable manner to defend others who
are in danger.
• Defense of Property: Individuals may use reasonable force to defend property, but not
force that is likely to cause death or great bodily injury.