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Chapter 5 Exam Notes (CP)

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Ryerson University
Law and Business
LAW 122
Henry Ojambo

CHAPTER 5 MISCELLANEOUS TORTS AFFECTING BUSINESS LAW 122 Other Important Torts in business Context:  Conspiracy  Intimidation  Interference with contractual relationships  Unlawful interference with economic relations  Deceit  Occupiers liability  Nuisance  The rule in Rayland’s v Fletcher  Defamation  Injurious falsehood CONSPIRACY  Act of Conspiracy usually occurs when two or more defendants agree to act together with the primary purpose of causing financial loss to the plaintiff.  Law condones aggressive competition between individuals, but its sense of fair play may be offended if several people conspire against another.  Hard to prove in courts  Cant distinguish if defendants primary purpose of hurting the plaintiff  Rules are different if the defendant injured the plaintiff by conspiring to perform an unlawful act. INTIMIDATION  Concerned with unethical business practices  Intimidation: occurs when the plaintiff suffers a loss as results of the defendant’s threat to commit an unlawful act against either the plaintiff or a third party.  Tort of intimidation ahs to branches o Two-Party intimidation: occurs when the defendant directly coerces the plaintiff into suffering a loss  Ex. Manger of a supermarket might use threats of physical violence to frighten the owner of a small convenience store into closing down. Three party intimidations: occurs when the defendant coerces a third party into acting in a way that hurts the plaintiff.  First Plaintiff must prove that the defendant threatened to commit an unlawful act, such as a crime, or tort, or even a breach of contract  Second, the tort does not occur unless the threatened party gave in to the intimidation  Third, as long as the other elements of the tort are established, there is no need to prove that the defendant intended to hurt the plaintiff. INTERFERENCE WITH CONTRACTUAL RELATIONS  Most effective ways of gaining an advantage over competitors in the business world is to hire away its best workers or otherwise prevent those people from performing their jobs.  Interference with contractual relations: occurs when the defendant disrupts a contract that the plaintiff has with another party. o Direct inducement to breach of contract o Indirect inducement to breach of contract  Direct inducement to breach of contract o Occurs when the defendant directly persuades a third party to break its contract with the plaintiff. Liability requires four factors  first the defendant must know about the contract  the defendant must intend to cause the third party to break that contract  third, the defendant must actually cause the third party to break its contract with the plaintiff  fourth, the plaintiff must suffer a loss as a result of the defendants conduct  Indirect inducement to breach of contract • Occurs when the defendant indirectly persuades a third party to break its contract with the plaintiff 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. Name of tort Unlawfulness Intent to harm Conspiracy Defendants act may Lawful act-hurting the plaintiff must be be lawful or unlawful defendants primary purpose Unlawful act-hurting plaintiff foreseeable Intimidation Defendant must Defendants act must be directed at plaintiff-but threaten unlawful act hurting plaintiff need not be defendants primary purpose Interference Indirect inducement- Defendants act must be directed at plaintiff-but with to breach of contract- hurting plaintiff need not be defendants contractual defendants act must primary purpose relations be unlawful Interference Defendants act must Defendants act must be directed at plaintiff-but with economic be unlawful or hurting plaintiff need not be defendants relations unauthorized primary purpose 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. ( four parts to the definition)  1. defendant must make a false statement • defendant may know half the truth • defendant liable for failing to update information  2. the defendant must know, at the time of making a statement , that it is false  3. the defendant must make the statement with the intention of misleading the plaintiff.—does not have to be made directly to the plaintiff  4. the plaintiff must suffer a loss as a result of reasonably relying upon the defendants statement Caveat emptor “let the buyer beware” The seller is not obligated to volunteer information OCCUPIERS’ LIABILITY -Occupiers liability: requires an occupier of premises to protect visitors from harm.  Occupier: any person who has substantial control over a premises  Visitor: any person who enters onto premises  Premises: include more than land, ships, planes, vehicles,  Law of occupier’s liability is complicated, partly because it differs between jurisdictions. o Common law Rules ( made by judges) o Statutory rules (made by legislators) COMMON LAW RULES Traditional common law rules recognized four categories of visitors. Each visitor owed a different type of obligation 1. An occupier must do more than simply refrain from intentionally or recklessly hurting a trespasser. a. Law now uses a d
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