What Is a Business Tort?
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What Is a Business Tort?
A business tort is an area of law devoted to a legal wrongdoing in a business relationship. This type of tort typically covers legal disputes involving improper and intentional interference with another party’s business interests. Sometimes, this area of law overlaps with contract law.
Are Business Torts the Same as Personal Injury Torts?
No. Personal injury torts focus on injury or harm done to a person’s body or property damage. A business tort deals with the injury to a person’s commercial interests, such as the loss of:
- Customers or clients
- Business relationships
- Business opportunities
What Are Some Business Torts?
Some common example of business torts are:
- Wrongful Interference: This occurs when a third party intentionally interferes with business relations, such as contracts and negotiations, between two parties.
- Disparagement: The defendant disseminates false statements about the quality of a company’s products or goods. As a result, the company loses business. The types of false statement include fake reviews, libel, and slander.
- Unfair Competition: The defendant misappropriates the plaintiff’s intellectual property, such as a trademark or slogan, or puts out a product that is intended to confuse customers into thinking that the plaintiff put out the product. The plaintiff usually files a trademark or copyright infringement lawsuit.
What Are Some Business Tort Remedies?
Remedies in a business tort action typically involve monetary damages. This means that the defendant is obligated to pay the plaintiff money to compensate the plaintiff for any financial losses that the plaintiff’s business suffered. The court calculates losses such as:
- Loss of business reputation
- Loss of profits that are calculable with reasonable certainty
- Punitive damages
Another type of remedy is called equitable remedies. This occurs when the court orders an injunction. The order compels the defendant to refrain from doing something such as advertising or selling a product.
Do I Need an Attorney Regarding a Business Tort Action?
A company is just like a person, in that any harm caused to it needs to be remedied. If your company has been harmed by a business tort, it is best to talk with a business attorney about pursuing remedies for your company.
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Last Modified: 11-24-2015 12:28 PM PST
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