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LAW 122 (625)
Jane Monro (29)
Chapter 5

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Law and Business
LAW 122
Jane Monro

CHAPTER 5: MISCELLANEOUS T ORTS A FFECTING B USINESS Conspiracy Lawful or Unlawful  Occurs when two or more defendants agree to act together with the primary purpose of causing the plaintiff to suffer a financial loss.  The law products the sense of fair pay. Competitive nature of capitalism maybe jeopardized due to conspiracy Intimidation Unlawful  Occurs when the plaintiff suffers a loss as a result of the defendant’s threat to commit an unlawful act against the plaintiff or third party. 1. Plaintiff must prove that the defendant threatened to commit an unlawful act 2. Tort does not occur unless the threatened party gave into the intimidation. 3. No need to prove that the defendant intended to hurt the plaintiff. Intimidation can occur of the motive by the tortfeasor was self-benefit, rather than injure the plaintiff Two-Party Intimidation Defendant directly coerces the plaintiff into suffering a loss. Three-Party Intimidation Defendant coerces a third party into in a way that hurts the plaintiff Interference with Contractual Relations  Occurs when the defendant disrupts a contract that exists between the plaintiff and a third party Direct Inducement to Breach of Contract (Lawful or Unlawful) occurs when the defendant directly persuades a third party to break its contract with the plaintiff: 1. Defendant must know about the contract that exists between the third party and the plaintiff 2. Defendant must intend to cause the third party to breach that contract. Tort can be committed even if the defendant is motivated by desire to benefit self 3. Defendant must cause the third party to break it’s contract with the plaintiff. Different if the defendant just informs the third-party about pros / cons of working for the plaintiff. 4. Plaintiff must stuffer a loss as a result of defendant’s conduct. Satisfied by the fact the fact the third-party does not perform it’s contract with the plaintiff. Indirect Inducement to Breach of Contract (Unlawful) Occurs when the defendant indirectly persuades a third party to break its contract with the plaintiff. Liability depends upon the same four factors plus proof that the defendant’s actions were themselves unlawful.  If a Union calls a legal strike that cause a company to break its contract with customer this is not an indirect breach of contract because no tort was committed 1 CHAPTER 5: M ISCELLANEOUS TORTS A FFECTING B USINESS Unlawful Interference with Economic Relations (Unlawful) may occur if the defendant commits an unlawful act for the purpose of causing the plaintiff to suffer an economic loss. 1. Unlawful acts someway directed against the plaintiff 2. Defendant had done something that was not entitled to do 3. Plaintiff must suffer an economic loss Deceit encourages ethical behavior in the business world. Occurs if the defendant makes a false statement, which is known to be untrue, with which it intends to mislead the plaintiff and causes the plaintiff to suffer a loss. False statement if defendant says or writes something that is positively untrue  Half-Truth if the defendant only shares a fraction of the truth, uses figures representing gross profits as if they are net profits  Failing to Update Information If change happens before the deal closes, silence may amount to a representation that the circumstances have stayed the same. 1. Defendant must know at time of making a statement that it is false 2. Defendant must make the statement with the intention of misleading the plaintiff 3. Plaintiff must suffer a loss as a result of reasonably relying upon the defendant’s statement Plaintiff is entitled to be put into the position that it would have if the defendant had not lied. Occupiers’ Liability requires an occupier of premises to protect visitors from harm  Occupier is any person who has substantial control over premises (CONTROL not OWNERSHIP) a tenant can control an apartment without owning out.  Visitor is any person who enters onto a premises  Premises Include more than just land Common Law Rules there are four categories of visitors:  Trespassers, Licensees, Invitees and Contractual entrants Occupier’s obligations are determined by a number of factors: The age of the trespasser, the reason for the trespass, nature of the danger that caused the injury, occupier’s knowledge of the danger and occupier’s cost of removing the danger. Statutory Rules  Common law applies only to dangers that are created by the conditions of the premises. Legislation also applies to activities that occur on the premises.  Standard of care no longer depends upon visitor’s classification. Occupier must use reasonable care  Statue generally allows an occupier to avoid liability by issuing a warning 2 CHAPTER 5: M ISCELLANEOUS TORTS A FFECTING B USINESS  Unlike Common Law, landlord’s may be liable to a visitor if it fails to make repairs under lease with the tenant. Nuisance Occurs when the defendant unreasonably interferes with the plaintiff’s use and enjoyment of land. Can only occur of the defendant’s interference is unreasonable, almost always unreasonable if it causes physical damage. Not likely to be liable if it merely impairs enjoyment and if defendant’s interference is non-intrusive  The defendant’s factory may emit chemical particles that drift with wind and destroy paint of plaintiff’s hose  Contraction project creates heavy vibrations and cracks foundation of plaintiff’s store Can occur if the defendant creates a smell or a sound that impairs the enjoyment of the plaintiff’s property:  Operate a pig farm that causes a stench to carry over to outdoor café  Music from the defendant’s nightclub may keep nearby residents awake at night Non-intrusive nuisance, without causing anything to travel onto plaintiff’s property:  Defendant installs sewer system on it sown property that drains water onto plaintiff’s land and damages foundation  Operate brothel that brings traffic and criminals close to plaintiff homes Unlikely that a tort is committed:  Defendant builds something on its property that ruins plaintiff’s view of lake or reduces amount of sunshine  Defendant paints its building a color that reduces the market value of plaintiff’s house Other considerations courts look at for nuisance:  Nature of the neighborhood smell of livestock might be okay in city but not in the country  Time and day of interference construction sounds are reasonable at noon on weekday but not late at night or on weekends  Intensity and duration Occasional barking from a dog might be okay but not if it is nearly constant every night.  Social Utility it might be okay if nuisance occurance is for society. (If you live by an airport there aint shit you can do about the loud sounds cause it helps lots of people)  Motivation Sounds of cars speeding at night may be okay in some situation (ambulance rushing through suburbs to save a life is okay, but teens drag racing down side streets to be
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