Business Law - Bug, Inc. Term Paper

Another option could be fro Bug to use a defense of proximate cause which states that for a negligent act or omission to be a proximate cause of damage, it must be a natural and probable (not just possible) result of a sequence unbroken by any intervening causes.

6. [See situations b. And c. For background information.] The attorneys for BUG have completed their investigation of WIRETAP and its employee, Steve. If they want to bring a successful action against WIRETAP for civil RICO, what do they need to prove? What type(s) of damages could BUG receive?

The RICO law was an attempt to eliminate organized crime. The focus was that by concentrating on illegal money made during a crime, the person using that money was in fact perpetrating a crime. Legal consequences for RICO can be extremely harsh. Guilty parties could face both criminal and civil forfeitures, a $25,000 fine and imprisonment for up to 20 years. This remedy is coupled with the forfeiture of all properties and interests related to any related violations. Civil penalties for RICO also include treble damages and attorney's fees for any successful plaintiff.

For WIRETAP to qualify, Bug would have to show that WIRETAP's management and Steve specifically did unlawful activities by using income derived from racketeering activity, maintained an interest in their company while perpetrating those racketeering activities, conducted the affairs of the company through racketeering activity and knowingly conspired to commit those crimes against Bug.

7. Sally DoGood, a police officer in Shady Town, was sitting in a police van monitoring wiretaps placed in the Crime Boss hideout.The equipment she was using, which was an older model purchased from BUG, short-circuited and injured Sally. An insulator that could have prevented the possibility of shorts was not included in the original design because of its effect on production costs. The newer models, not yet purchased by the Shady Town Police, have the insulator installed. What tort(s) may Sally have for a successful case against BUG? Explain your answer(s).

Products liability is in the realm of torts which state a manufacturer or seller of products can be held liable if those products are defective and cause injuries. Products liability laws allow individuals injured through no fault of their own and therefore the fault of a defective product, to recover remedies from the manufacturer, wholesaler, or retailer of the defective product.

In this case it would be considered an indirect loss for Sally DoGood's personal injury caused by Bug's defective product. To recover under a negligence theory, Sally DoGood would have to prove duty, breach, causation, and harm.

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