What Is a Business Tort?
A tort is considered a civil wrong that is comprised of many different topics including false imprisonment, slander, defamation, auto collisions, and more. Business torts, also called economic torts, addresses unethical trade practices that will likely result in economic loss. In a business tort case, the plaintiff in the lawsuit does not have to prove past or present harm, but rather the likelihood of future harm.
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Most business tort cases are settled with a monetary award to the victim. However, because most business tort cases include future harm, the burden is on the plaintiff to calculate exactly what their future loss consists of in a numeric value. Every monetary reward must be “calculable with reasonable certainty.”
3 Examples of Business Torts
While common law torts usually address physical loss, business torts deal with companies intentionally harming a competitor’s business opportunities. Examples of business torts include trademark infringement, disparagement, and fraudulent misrepresentation.
Trademark Infringement
A business can be sued if the name or logo is created to trick clients into thinking they are buying a different product produced by a contending company. Seventy years ago, the Lanham Act was created to protect businesses and forbid trademark infringement, trademark dilution, and false advertising.
Disparagement
When a person gives false or fake reviews concerning a product, an economic loss may occur due to the review. Because of this, the business can sue the person for disparagement. In most cases, the plaintiff will be awarded monetary damages and the guilty party must retract the false statement.
Fraudulent Misrepresentation
To ensure honest and fair treatment, a business can be sued if found guilty of intentional fraud or deceit. During a fraud claim, the plaintiff must prove that the guilty party intentionally distorted a fact that created harm.
If you have suffered losses due to business torts, contact an attorney at Spivey, Pope, Green, & Greer today.