Tag Archives: fraudulent representation

What are Business Torts? How can I Prevent Them When it comes to My Business?

Business torts are a basic part of business law. Tort law covers a wide range of issues. These can include personal injury, malpractice and negligence. Tort law overlaps with other types of business law such as contract law and other types of business law. Typically, people think of tort law as applying to personal injury situations. However, tort law can affect businesses significantly.

In business law, torts involve injury to the business such as loss of clients, loss of business opportunities, unfair competition, disparagement and loss of business relationships. The plaintiff in the case will have to prove that the tortious behavior has led to calculable business loss. For instance, if the issue is loss of clients, the plaintiff has to show the monetary damage this caused.  Business torts usually involve compensation to the injured party, usually in the form of financial compensation. A court might also order an injunction against the plaintiff to stop their tortious behavior.

business tortsAll businesses should have a business law attorney that they can consult for a variety of issues. It may be worthwhile to consult your business law attorney about possible tort risks for your business. The attorney can counsel you on how to avoid these situations. The attorney can also explain risky situations and advise you on how to communicate guidelines to employees.

Fraudulent representation is a common tort issue. The plaintiff has to prove that the defendant deliberately misrepresented facts and the plaintiff relied on the facts and was subsequently harmed. For example, if a financial advisor represents the buyer and seller of property could be liable if the advisor knows the property has significant defects.

Many business torts address the issue of unfair competition. The guilty party may be marketing a product that is nearly indistinguishable from the plaintiff’s product. Other business law torts can include intellectual property infringement and damage to computer hardware or software. Torts also address disparagement which involves making false statements about a business such as making false statements about the quality of the plaintiff’s services or products. Your attorney can help you understand which of these issues may affect your business and how to avoid them.