Claim Scenarios

Scenario 1

TPA Software, Inc develops proprietary software to integrate with their clients’ Human Resources and payroll systems. Their development team experiences a number of unforeseen set backs in the production of their software and subsequently fails to deliver their product on time, resulting in missed deadlines and payroll glitches. Though TPA Software contends that the client repeatedly changed the size and scope of the project, ultimately, the client fires TPA and files a lawsuit for breach of contract, seeking to recover lost profits due to the disruption.

Scenario 2

Your employee’s company laptop is stolen from his car. The laptop contains private financial information of your customers. Your customers sue you for damages resulting from your failure to protect their private financial information.

Scenario 3

An employee at XYZ Database Management, LLC unintentionally downloads a destructive computer virus onto the company’s server that quickly spreads to other files housed on the network. One of XYZ’s clients then downloads information from XYZ’s web site, thereby enabling the virus to spread to their client’s computer system. The uploading of the virus from XYZ’s site results in a significant loss of data, system malfunction, and a computer network shutdown for their client. The client sues XYZ Database Management, contending that they should have prevented transmission of the virus. The client seeks damages for the lost data and economic loss caused by the network shutdown.

Scenario 4

You are the owner of a manufacturing company and your IT department overhauls your corporate web site for the online launch of a new product. Your site now contains a new marketing logo to correspond with the new product. After seeing your new web site, another company files a trademark infringement suit against you, contesting that your new logo is similar to their businesses trademarked material. The lawsuit seeks financial damages, as well as an injunction to stop you from using the trademark.

Scenario 5

You place advertisements on your Web site and in your direct mailings to announce a new service offered by one of your important partners. The advertising contains material that your partner’s competitor claims it owns. The competitor sues you, contending you are liable for damages caused by unauthorized use of the advertising material.

Scenario 6

You overhaul your web site to include more promotional imagery about your services. The images used are digitalized images, including photographs, from your currently used print brochures. A person shown in one of the photographs claims that she did not authorize your use of her photo on a web site; the woman sues you, contending that you have violated her publicity rights.

Scenario 7

ABC, Inc is a local retailer that enables business transactions to be processed 24 hours a day through their web site. Their clientele is spread across the continental United States and many of their customers have become reliant upon the ability to access ABC’s website 24 hours a day to place orders for ABC’s products. A key client tries to place an order on ABC’s web sit, but discovers that it cannot access the site because the host network servers are inoperative. As a result, ABC’s client is unable to complete it work on time for one of its customers and the customer terminates the client’s contract. ABC’s client sues them for damages.