What Is A Business Tort?

Business torts refer to unlawful acts committed against another business entity. A business tort may include price fixing, forming a monopoly or duopoly, or interfering with another business’ contract. These torts can be intentional or unintentional and may involve injurious interference with a business’s existing or potential relationships, such as customers, suppliers, vendors, and competitors. 

Examples of intentional business torts are fraud, misrepresentation, and defamation. Unintentional business torts include negligence or unintentional accidents that cause harm to another party. 

Types Of Business Torts

Business owners need to be aware of any conflicts that arise as the result of derailed operations related to a business tort. They should also understand the legal terms of their relationships with other businesses and develop an understanding of any potential threats to their organization.

Some of the common types of business torts are as follows:

• Tortious interference 
• Restraint of trade
• Injuries falsehood
• Unfair competition
• Fraudulent misinterpretation

If you believe you have been the victim of any of the foregoing business tort offenses, you should consult with a business lawyers as soon as possible to discuss what remedies may be available to you.  The aforementioned types of business torts can be defined as follows: 

• Tortious interference: This type of tort involves a third party who intentionally disrupts the contractual relationship between two parties. It can occur when one company interferes with another’s business dealings, such as a competitor’s hiring process or sale of goods. The outcome of this type of tort typically results in financial losses and potential legal action.
• Restraint of trade: this occurs when a company attempts to restrict competition by controlling or limiting production, pricing, and supply. This type of tort is illegal in the US, yet still occurs today and can be a major challenge to businesses due to its effects on profitability.
• Injurious Falsehood: this type of tort occurs when a person or organization is harmed by a false representation of an individual or company. The false representation must be made with the intent of causing harm to another. Examples of this type of tort include misrepresentations in advertising and marketing, as well as false claims about the quality of goods and services.
• Unfair competition: this occurs when a company uses deceptive practices to gain an advantage over its competitors. This can range from falsely claiming certain products are superior, to spurious advertising claims and plagiarism.
• Fraudulent misrepresentation: This type of tort occurs when a company provides false information or fails to disclose facts that are necessary for the other party to make an informed decision. For example, a company may make false statements about the quality of its products or services in order to induce customers to purchase them. Wrong gestures, silence, and telling half-truths can all result in penalties.

As a business owner, a breach of fiduciary duty can also be a tort. It may be important to have an experienced business lawyer that can help you understand potential tortious acts and explain the best course of action.

How Do Torts Affect Business Practices?

Business torts, also known as economic torts, can have a significant impact on how businesses operate. The effects of business torts can range from financial losses to damage to a company’s reputation that might prevent companies from engaging in fair competition.

Consequently, it is important for businesses to understand the implications of wrongful acts and negligence in order to protect their interests. These torts are not criminal offenses, but they can still have serious consequences for businesses that are not careful.

Moreover, businesses risk being dragged into business tort litigation if they fail to take appropriate action against wrongful acts or negligence. For example, if a business gets charged with the restraint of trade, the court may order the business to pay damages and may even issue an injunction that prevents the business from engaging in certain activities. This can result in lost profits, loss of market share, loss of competitive advantage, and others.

Get In Touch With Us If You Suspect A Breach

If you have been betrayed by a trustworthy business partner, you can resort to business tort litigation to protect your interests. Our business lawyers understand the nuances of business tort law and are knowledgeable in handling such cases with the utmost discretion. Contact us now and schedule a free consultation.