In the Liebeck v. McDonald’s case, a woman sued McDonald’s for serving hot coffee. The woman spilled hot
coffee on her lap while trying to add cream and sugar. The woman sued McDonald’s for negligence in a civil
suit. The issue centered on whether or not the coffee’s specific temperature was unreasonably hot.
McDonald’s lost the lawsuit. The compensatory verdict was $160,000. McDonald’s was found liable.
Conversely, if a defendant is convicted of committing a crime, the consequences are usually incarceration (jail/
prison) and/or a fine (payment of money to the state).
The word used to describe the legal responsibility for harm in a civil case is liability, not guilt. Guilty is the word
used to describe a person found guilty of committing a crime in a criminal case.
Businesses can be charged with criminal acts as well. In 2017, Oliver Schmidt, former manager of a
Volkswagen engineering office near Detroit, was arrested. He faced years in prison for attempts to defraud the
United States, wire fraud, violation of the Clean Air Act, and a charge of giving an untrue statement under the
Clean Air Act. Schmidt’s actions directly violated a business law and, since his actions violated an established
law, he was held criminally liable. In December of 2017, Schmidt was sentenced to seven years in prison.
Professional Negligence
Professional negligence is often called malpractice. A professional’s duty of care is usually a duty to exercise
the degree of care, skill, diligence, and knowledge commonly possessed and exercised by a reasonable,
careful, and prudent professional of the same type in the state (or sometimes in the community). Along with
attorneys and health care providers, the following professionals might be sued for malpractice: accountants,
architects, engineers, surveyors, insurance brokers, real estate agents and brokers, and clergy.
For negligence, the usual kind of damages recoverable are compensatory, or money to compensate for the
injuries/damages incurred to make the person whole (e.g., money for medical bills, lost wages, loss of future
earning capacity, pain and suffering, emotional distress, property damage, etc.).
Assessment Questions
1. Explain White Collar Crime.
2. What is a pump-and-dump scheme?
3. The crime of larceny includes:
1.
The nontresspassory taking and controlling of personal property.
2.
The trespassory taking and carrying away of real or personal property.
3.
Joyriding.
4.
The trespassory taking and control of personal property.
4. Distinguish between larceny and embezzlement.
5. What is the Foreign Corrupt Practices Act?
6. Businesses can be charged with crimes.
a.
True.
b.
False.
Chapter 5 Criminal Liability
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