For example, creating a raw materials conglomerate that refuses to sell necessary materials to specific manufacturers could be construed as restraint of trade. Restraint of trade is a common law doctrine that requires that businesses and individuals do not take actions or enter into agreements that would cause another business to cease being able to operate normally. One interpretation of tortious interference may be interfering with the economic expectations of a plaintiff by harming a business relationship. Tortious interference is the deliberate and unlawful meddling with the contractual dealings of a business. Types of Business TortsĬommon types of business torts include: Tortious Interference Also, restraining orders and injunctions may be issued to inhibit a defendant from continuing to harm the plaintiff. Legal remedies to business torts may include the award of damages. Losses can also include future, unrealized profits a business expects to lose as a result of a business tort. The loss can also be caused by improper interference in the business interests or dealings of an individual or business. The loss can be due to various types of misconduct, including malpractice, negligence, misrepresentation, theft of trade secrets, business disparagement, and so forth. Finally, the plaintiff must prove that the defendant's actions caused a measurable loss. In addition, the plaintiff must prove that the defendant's actions either were intentional or were negligent or reckless, as well as identify a specific law, contractual responsibility, or norm of behavior that the defendant breached. The defendant's actions further caused the plaintiff a loss.The defendant did not uphold the responsibility.The defendant had a responsibility (statutory or otherwise) to act in a certain manner.In a business tort case, the plaintiff must prove the following elements: In the suit, the defendant is the offending party, and the plaintiff is the harmed party. The legal recourse to a business tort is a civil suit in a court of law.

Business torts may include conspiracy, trade libel, misrepresentation, negligence, and other civil offenses. Business torts are also known as economic torts because they are often associated with losses of current or projected business profits.īusiness torts may be committed intentionally (e.g., by a competitor business) or may be caused by negligent or reckless behavior by individuals or other businesses. Business torts may cause a loss of profits, loss of reputation, loss of business competitive advantage, loss of market share, and/or other types of losses. Remedies for Business Tortsīusiness torts are wrongful actions performed against a business that causes harm to the business.

Business tor definition