Torts 6 .txt

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Torts 6 .txt
2010-07-11 21:48:15
Economic Torts

Economic Torts
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  1. Fraud: Elements
    • 1: ∆ misrepresents fact
    • 2: Make deliberately or recklessly
    • 3: In order to induce reliance
    • 4: π relies on misrepresentation
    • 5: Economic damage
  2. Prima Facie Tort
    Intentional infliction of pecuniary harm without justification

    • 1: Intent to do harm
    • 2: Resulting harm

    Example—Deliberately selling products below cost to drive a rival out of business
  3. Inducing Breach of Contract : Elements
    • 1. Existence of a valid contractual relationship between π and a 3rd-party or a valid business expectancy
    • 2. ∆ knows about K or business expectancy
    • 3. ∆ intentionally interferes by encouraging π to breach K or terminate the expectancy
    • 4. Damages (e.g., π breaches K with 3rd-party, as a result)
  4. Inducing Breach of Contract: Who can non-breaching π sue?
    The non-breaching 3rd-party can sue:

    • π for breach of K, and
    • ∆ for inducing the π's breach
  5. Inducing Breach of Contract: Defenses
    ∆ may be relieved of liability if he/she has a special relationship with one of the contracting parties

    Examples—advice from attorneys, accountants, parents, clergy
  6. Theft of Trade Secrets
    • π must possess a valid trade secret, and
    • ∆ must take the secret by improper means
  7. Trade Secret: Definition
    • (1) Info that provides a business advantage
    • (2) Info must be secret, not generally known AND
    • (3) Owner must take reasonable steps to keep the info secret
  8. Theft of Trade Secret: What is an "Improper Means"?
    • (1) Traitorous insider–breach of confidentiality and trust.
    • (2) Industrial espionage