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Chapter 6

Chapter 6. Business Torts and Cyber Considerations. I. Disparagement. Slander of Title Trade Libel Defenses. Disparagement. Deals with monetary damages that a business person suffers from an injurious falsehood to his or her business product

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Chapter 6

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  1. Chapter 6 Business Torts and Cyber Considerations

  2. I. Disparagement Slander of Title Trade Libel Defenses

  3. Disparagement • Deals with monetary damages that a business person suffers from an injurious falsehood to his or her business product • If ONLY the reputation of a business person has been injured, the cause of action lies in DEFAMATION • When alleging disparagement, the plaintiff has the burden of proof to show the falsity of the statement

  4. A. Slander of Title • Occurs when there is either an oral or written false and unprivileged statement about the title to real or personal property that causes actual monetary damages to the plaintiff • A slander of title tort is designed to protect the “marketability” of the property

  5. B. Trade Libel • Trade libel is an intentional disparagement on the “quality” of another’s property (goods or services) that results in monetary damage • An important feature to note is that the plaintiff may not use a claim of mental distress as a type of damage

  6. C. Defenses • The 3 basic defenses to disparagement are: • Truth • Absolute Privilege • Qualified Privilege

  7. II. Appropriation of Likeness for Commercial Purposes

  8. California has long recognized a common law right of privacy • The difference between the COMMON LAW RIGHT, and the STATUTORILY GRANTED RIGHT, is that under the statute the plaintiff must prove that the use of a person’s name or likeness was knowingly made

  9. III. Interference With Economic Relations Inducing a Breach of Contract Interference with a Contractual Relationship Interference with a Prospective Economic Advantage of Another

  10. A. Inducement to Breach Another Person’s Contract • This theory is designed to protect a person from intentional acts that are undertaken to produce an actual breach of a valid contract • A plaintiff must prove: • that there is an existing valid contract • that the defendant had knowledge of the contract • Knowledge alone is not enough, the defendant must also have intended to produce the breach of the contract

  11. B. Interference with Contractual Relations • This theory is designed to protect against intentional acts that do not necessarily result in a contract breach but merely makes the plaintiff’s performance of the contract more expansive or burdensome • This tort requires proof that: • Plaintiff had existing valid contract with 3rd party • Defendant had knowledge of the contract • Defendant’s intentional and unjustified acts were designed to interfere with or disrupt the contract • There was actual interference • Damages were suffered by plaintiff as a result of defendant’s actions

  12. C. Interference with a Prospective Economic Advantage • This third theory is designed to protect against intentional acts, causing harm to an economic relationship that is likely to produce an economic benefit • Plaintiff must prove: • That there was an economic relationship with a 3rd party that offered the probability of a future economic benefit to the plaintiff • That the defendant had knowledge of this relationship • That there was an actual disruption of the relationship and damages were suffered by the plaintiff as a result of the defendant’s actions

  13. IV. Cyber Considerations Cyber Crime

  14. Cyber • Cyber is a term used to describe an idea, thing or person associated with the computer age • Simply put, it is the electronic medium through which we communicate online

  15. A. Cyber Crime • Crimes that can be committed using computers: • Hacking • Spamming • Forgery • Financial theft • Identity theft • Embezzlement • Theft of trade secrets • Intellectual property • Federal Acts include: • The Computer Fraud and Abuse Act of 1984, amended by • The National Information Infrastructure Protection Act of 1996

  16. Disparagement Slander of Title Trade Libel Defenses Appropriation of Likeness for Commercial Purposes Interference with Economic Relations Inducement to Breach Another Person’s Contract Interference with Contractual Relations Interference with a Prospective Economic Advantage Cyber Considerations Cyber Crime Chapter Summary

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