Chapter 5: Miscellaneous Torts Affecting Business PDF

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Chapter 5: Miscellaneous Torts Affecting Business

Includes learning objectives (with solutions), key terms & definitions, and a chapter summary...

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Chapter 5 (p. 105-133) Miscellaneous Torts Affecting Business Learning Objectives (10) 

Describe the tort of conspiracy and explain the risks that arise when two or more companies plot together against another business o Conspiracy usually occurs when two or more defendants agree to act together with the primary purpose of the plaintiff suffering a loss. While the law generally condones aggressive competition between individuals, its sense of fairness is lost when more than one person is acting together. The risks associated with conspiracy can be very troublesome because it’s very hard to prove that the main intent of both parties was for the plaintiff to have incurred a loss. There intentions could have been something else.

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Explain the two ways in which a business can commit the tort of intimidation o Two-party intimidation refers to when the defendant directly coerces the plaintiff into some sort of intimidation tactic o Three-party intimidation refers to when the defendant acts with a third party to intimidate the plaintiff Distinguish between direct inducement to breach of contract and indirect inducement to breach of contract o A direct inducement to breach of contract occurs when the defendant disrupts a contract that exists between the plaintiff and a third party o An indirect inducement to breach of contract occurs when the defendant indirectly persuades a third party to break its contract with the plaintiff

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Describe the tort of lawful interference with economic relations o Occurs when the defendant commits an unlawful act that causes the plaintiff to incur an economic loss. (i.e. the case of “Herman MD” and the advertising space sold on calendars) Outline the elements of the tort of deceit o Deceit occurs if the defendant makes a false statement, which they know to be untrue, with which they intend to mislead the plaintiff, and which causes the plaintiff to suffer a loss o The defendant must make a false statement o The defendant must know, at the time the statement was made, that the statement was false o The defendant must make the statement with the intention of misleading the plaintiff o The plaintiff must suffer a loss as a result of reasonably relying upon the defendant’s statement

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Explain the rules that apply to occupiers’ liability in your province or territory o An occupier in Ontario does not have to use reasonable care to protect some types of trespassers. It is enough to simply refrain from intentionally hurting them. In contrast, reasonable care must be taken to protect child trespassers who the occupier knows, or ought to know, are on the property. Outline the range of situations in which the courts may impose liability on a business for committing the tort of nuisance o Physical damage to the plaintiff or their property o If the defendant creates a smell or sound that impairs the enjoyment of the plaintiff’s property o Non-intrusive nuisances (i.e. operating a brothel that brings traffic and criminal activity nearby)

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Describe the elements of the rules in Rylands v Fletcher and explain how that tort involves strict liability o The defendant must have made a non-natural use of their land o Something associated with a non-natural use must escape from the defendant’s land and cause the plaintiff to suffer a loss o The defendant must be held liable even though they acted as carefully as possible

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Explain why businesses are frequently in danger of committing the tort of defamation o Businesses must be careful that while trying to enhance its own reputation it does not make a false statement that may hurt the competition

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Describe the tort of injurious falsehood o Occurs when the defendant makes a false statement about the plaintiff that causes the plaintiff to suffer a loss o Includes slander of title, slander of quality, or any other types of false statements o The plaintiff must prove that the statement is false, that the defendant acted out of malice, and that the plaintiff suffered a loss

Key Terms & Definitions 

Conspiracy: occurs when two or more defendants agree to act together with the primary purpose of causing the plaintiff to suffer a financial loss

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Intimidation: occurs when the 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

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Two-Party Intimidation: occurs when defendant directly coerces the plaintiff into suffering a loss

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Three-Party Intimidation: occurs when the defendant coerces a third party into acting in a way that hurts the plaintiff

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Interference with Contractual Relations: occurs when the defendant disrupts a contract that exists between the plaintiff and a third party

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Direct Inducement to Breach of Contract: occurs when the defendant directly persuades a third party to break its contract with the plaintiff

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Indirect Inducements to Breach of Contract: occurs when the defendant indirectly persuades a third party to break its contract with the plaintiff

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Unlawful Interference with Economic Relations: may occur if the defendant commits an unlawful act for the purpose of causing the plaintiff to suffer an economic loss

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Deceit: occurs if the defendant makes a false statement, which they know to be untrue, with which they intend to mislead the plaintiff, and which causes the plaintiff to suffer a loss

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Occupier’s Liability: requires an occupier of premises to protect visitors from harm

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Occupier: any person who has substantial control over the premises

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Visitor: any person who enters onto the premises

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Premises: include more than land. Apartments, offices, elevators, parking lots, vehicles

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Statutory Authority: means that the defendant caused a nuisance while acting under legislation

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The Rule of Rylands v Fletcher: states that the defendant can be held strictly liable for their nonnatural use of land if something escapes from their property and injures the plaintiff

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Defamation: occurs when the defendant makes a false statement that could lead a reasonable person to have a lower opinion of the plaintiff

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Slander: a defamatory statement that is spoken

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Libel: a defamatory statement that is written

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Publication: occurs when a statement is communicated to a third party

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Justification: occurs if the defendant’s statement is true

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Privilege: an immunity from liability

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Public Interest Responsible Journalism: occurs when a journalist, despite getting some facts wrong, acted in accordance with the standards of responsible journalism in publishing a story that the public was entitled to hear

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Fair Comment: an expression of an opinion regarding a matter of public importance

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Injurious Falsehood: occurs when the defendant makes a false statement about the plaintiff’s business that causes the plaintiff to suffer a loss

Chapter Summary 

10 Torts that are important for business people o Conspiracy – usually occurs when two or more defendants agree to act together with the primary purpose of causing a financial loss to the plaintiff o

Intimidation – occurs when the 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

o

Interference with Contractual Relations – occurs when the defendant disrupts a contract that exists between the plaintiff and a third party. A direct inducement to breach of contract occurs when the defendant directly persuades a third party to break its contract with the plaintiff

o

Unlawful interference with economic relations – occurs when one person intentionally does an unlawful (or unauthorized) act that causes the plaintiff to suffer a loss

o

Deceit – occurs if the defendant makes a false statement, which it knows to be untrue, with which it intends to mislead the plaintiff, and which causes the plaintiff to suffer a loss

o

Occupier’s liability – requires an occupier of premises to protect visitors from harm. Some provinces/territories rely on the traditional common law rules, while others rely upon occupiers’’ liability statutes

o

Nuisance – Occurs when the defendant unreasonably interferes with the plaintiff’s ability to use and enjoy its own land. The defence of statutory authority may protect a defendant from liability, but it has been narrowly interpreted by the courts. The courts often award injunctions to stop or prevent nuisances

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The Rule in Ryland v Fletcher – states that the defendant may be held strictly liable for its non-natural use of land if something escapes from its property and injures the plaintiff Defamation – occurs when the defendant makes a statement that could lead a reasonable person to have a lower opinion of the plaintiff. Liability may be avoided through the defences of justification, privilege, and fair comment

o

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Injurious falsehood – occurs when the defendant makes a false statement to a third party about the plaintiff’s business in a way that causes the plaintiff to suffer a loss...