Textbook Notes (368,566)
Canada (161,966)
MGSC30H3 (57)
Jeff Rybak (14)

Legal Environment - Lecture 006

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Management (MGS)
Jeff Rybak

MISCELLANEOUS TORTS AFFECTING BUSINESS 11 February 2014 (Chapter 5, p. 106-129) BUSINESS TORTS Name Unlawfulness Intent to Harm Conspiracy Defendant’s act may be Lawful Act – Hurting plaintiff lawful or unlawful must be defendant’s primary When 2 or more defendants (IE: People boycotting for purpose (hard to prove) agree to act together with the Aboriginal land claims, Unlawful Act – Hurting primary purpose of causing company lost money; plaintiff must be foreseeable the plaintiff to suffer a boycotters not liable because (should have known financial loss purpose was to raise actions might hurt plaintiff) awareness) Intimidation Prove defendant threatened Defendant’s act must be unlawful act, threatened party directed at plaintiff – but When the plaintiff suffers a must give into intimidation, hurting plaintiff need not be loss as a result of tort elements are established defendant’s primary purpose defendant’s threat to commit even if hurting is not intended an unlawful act against the (benefit themselves instead) plaintiff or 3 party Interference with Contractual Indirect induce to breach of Defendant’s act must be Relations contract – Defendant’s act directed at plaintiff – but must be unlawful (when hurting plaintiff need not be When the defendant disrupts defendant indirectly defendant’s primary purpose a contract that exists persuades 3 party to break rd between the plaintiff and a 3 contract – steal tools to party perform contract) (Hiring away best workers) Direct inducement to breach of contract – Defendant’s act may be lawful or unlawful (when defendant directly persuades 3 party to break contract – must know about contract, intend to cause, and actually cause, plaintiff suffers a loss) Interference with Economic Defendant’s act must be Defendant’s act must be Relations unlawful or authorized directed at plaintiff – but hurting plaintiff need not be When the defendant commits defendant’s primary purpose an unlawful act for the purpose of causing the plaintiff to suffer an economic loss DECEIT D ECEIT 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. False statement is when the defendant says or writes something that is positively untrue. Also: • Defendant may be held liable for half-truth (IE: Selling business, stating you will provide figures representing gross profits as f they reflect net profits) • Defendant may be held liable for failing to update information (IE: Selling business, give information that is accurate when you give it but inaccurate because of dramatic change) • General rule is that buyers are responsible for asking questions and making investigations; seller is required to warn you about hidden defects As a matter of risk management, business people must not only avoid lying; but avoid creating the wrong perception. The defendant must know at the time of making a statement that it is false. The defendant must make the statement with the intention of misleading the plaintiff. The plaintiff must suffer a loss as a result of reasonably relying upon the defendant’s statement. OCCUPIERS LIABILITY Type of Visitor Description Occupier’s Obligation Trespasser A person who does not have Not to intentionally or permission to enter the recklessly injure a premises (IE: Burglar) trespasser (IE: Setting a trap for a burglar) Licensee A person who has permission To protect a licensee from to enter the premises but who hidden dangers that were does not further the actually known to the occupier’s economic interest occupier (IE: A social guest) Invitee A person who has permission To take reasonable care to to enter the premises and protect an invitee from who further the occupier’s unusual dangers that the economic interest (IE: occupier knew or should Business customer) have known about Contractual Entrant A person who en
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