Chapter 5 - Miscellaneous Torts Affecting Business Flashcards
What are three categories of torts important to business?
Business Torts, False statements and torts related to land
What are included in the Business torts?
Conspiracy, Intimidation, Interference with Contractual Relations and Unlawful Means Tort
What is the tort of conspiracy?
Occurs when two or more defendants agree to act together to cause the plaintiff to suffer a financial loss
What are the two types of conspiracy torts?
Lawful act conspiracy and unlawful act conspiracy
What does Lawful Act conspiracy mean?
Occurs when two or more people cooperate on a course of conduct, that by itself, is lawful. Liability is imposed when believed that they came together for the primary purpose of hurting the plaintiff
What does Unlawful Act conspiracy mean?
The defendants conspired tow commit an act that was unlawful in itself. Proof that the defendants should have know that their actions might hurt the plaintiff
What is the tort of Intimidation?
Plaintiff suffers a loss as a result of the defendant’s threat to commit an unlawful act against either the plaintiff or a third party
What are the two branches of the tort of intimidation?
Two-party intimidation and three-party intimidation
What is two-party intimidation? p.108
Occurs when the defendant directly coerces the plaintiff into suffering a loss
What is three-party intimidation? p.108
Occurs when the defendant coerces a third party into acting in a way that hurts the plaintiff
What are the requirements for a two-party /third-party intimidation tort?
Proof the defendant committed a unlawful act, The defendant is liable only if its threat was effective (intimidate either the plaintiff or third party)
What occurs when a defendant’s threat to breach a contract?
With a third party will result in liability but the same threat to breach a contract may not be enough in a two party case (can simply sue for breach of contract)
What does the tort of intimidation NOT require?
Does not require proof that the defendant intended to hurt the plaintiff. Still liable if the defendant only wanted to benefit itself, rather than injure the plaintiff
What is the tort of interface with contractual relations?
Occurs when the defendant disrupts a contract that exists between the plaintiff and a third party
What are the four elements of the cause of action for “interference with contractual relations”?
Knowledge, intention, cause and loss
Within the tort of interference with contractual relations, what can the plaintiff sue for?
Sue the defendant in tort for inducing a breach of contract. Sue the third party in contract for actually breaching the agreement
If the plaintiff choses both actions of suing the defendant and the third party, what happens?
The plaintiff cannot recover full damages under BOTH actions, the plaintiff will have to elect between two sets of damages
What can occur if the defendant’s conduct is particularly “outrageous”
The plaintiff may be entitled to recover punitive damages and compensatory damages (under the tort)
What are the two branches of the tort of interference with contractual relations?
Direct and indirect, defendant directly/indirectly induced a third party to breach a contract with the plaintiff
What is the unlawful means tort?
Occurs if the defendant committed an unlawful act against a third party with the intention of causing the plaintiff to suffer an economic loss
What are the necessary elements of the unlawful means tort?
Parasitic, Intention and Actionable Wrong
What is the parasitic element?
The tort is parasitic meaning the plaintiff must latch onto a tort claim that the third party has against the Defendant, pg.112 for example
What is the intention element
Liability requires proof that the defendant committed a wrong against the third party with the intention/purpose of causing the plaintiff to suffer an economic loos
What is the Actionable Wrong element?
The plaintiff must prove that the defendant committed a civilly actionable wrong against the third party. The plaintiff can sue the defendant only if the third party can sue the defendant
What occurs when a contract is misrepresented?
may be entitled to RESCIND the agreement on the basis of a misrepresentation
What three forms of false statements are there?
Deceit, defamation, and injurious falsehood
What is the tort of deceit?
Occurs if the defendant makes a false statement
What four elements must be proven in a tort of deceit?
False statement, knowledge, intention, reasonable reliance
What is the false statement element?
The plaintiff must prove that the defendant made a false statement. In the form of : a spoken word, written document, meaningful gesture
What are examples of false statements? Avoid creating the wrong conception
A complete lie, half truth, failure to update information and caveat emptor (obligated to disclose important information)
What is the knowledge element?
The plaintiff must prove that the defendant knew, at the time of making the statement, that is was false.
What can occur in terms of a careless statement?
A careless statement may allow the plaintiff to prove the tort of negligence. But the tort of deceit does not exist if the defendant was careless and should have known that the statement was false (required that they do know) therefore becomes a tort of negligence
What is the intention element?
Deceit requires proof that the defendant made the false statement with the intention of misleading the plaintiff
What is the reasonable reliance element?
Deceit requires proof that the plaintiff suffered a loss as a result of reasonably relying on the defendants statute?
How is the reasonable reliance element applied?
Liability is possible only if a statement pertains to a past of existing fact not options or predictions or puffs?. However, if a FALSE statement of fact is implied by an opinion or predication
What are the remedies for the tort of deceit?
Backward, place the plaintiff as if the defendant had never made the false statement, not as if it the statement had been true
What is the tort of defamation?
Occurs when the defendant makes a false statement that could lead a reasonable person to have a lower opinion of the plaintiff THAT RESULTS IN DAMAGES (financial losses)
What are the elements of a tort of defamation?
Reasonable person, living person and groups?
What is the reasonable person element?
It is enough proof if a reasonable person would believe that the defendant was referring to the plaintiff , no need for proof that the defendant intended to defame or actually thought less of the plaintiff
What is the living person element?
The tort of defamation is limited of living persons, including cooperations
What does Slander mean?
A defamatory statement that is spoken
What does Libel mean?
A defamatory statement that is written