Business torts are wrongful acts committed against business entities. They are typically committed in an intentional manner, but some business torts may be committed negligently or recklessly. These wrongful actions often lead the business to suffer some type of financial loss, such as a loss of profits, damage to the business’ reputation, loss of opportunity or loss of market share. Businesses that are negatively affected by business torts may be able to seek monetary damages in civil court and ask the court for an injunction against this wrongful behavior.

Common Types of Business Torts

Some of the most common business torts include:

  • Tortious interference – This tort involves one party that unlawfully interferes with another business’ contract or business relationship with a third party.
  • Restraint of trade – Common law requires businesses to avoid taking any action that would prevent another business from being able to operate in a normal fashion.
  • Unfair competition – Unfair competition occurs when a company markets a product that is similar to the plaintiff’s product or uses false advertising to gain a competitive market share.
  • Theft of trade secrets – This tort involves the wrongful use of a business’ proprietary information that is meant to protect the product or business. This theft is often used to gain a competitive advantage over a business.
  • Trade libel – This is the publication of false information about a business’ products or services that cause it to lose revenue or profits.
  • Fraudulent misrepresentation – Fraudulent misrepresentation is a false statement made to get another party to enter into an agreement.
  • Commercial disparagement – The intentional defamation of the reputation of a business is specifically designed to cause harm to the business or its reputation.

Legal Remedies for Business Torts

The legal remedy for the commission of a business tort depends on the actual tort and the damages the business has sustained. The most common legal remedy for this cause of action is the award of monetary damages, which are often equal to the amount of losses the business suffered because of the tort.

Another common remedy for business torts is for the court to issue an injunction that orders the defendant to stop their action. For example, the court may order the defendant to remove false advertising or defamatory statements about the business or its products or services.

 

 

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