Card Set Information

2011-06-20 16:43:44
torts economic

Torts-Economic Torts
Show Answers:

  1. Fraud
    Almost always comes up in contractual transactions, often where trickery is involved in inducing the buyer, etc.

    • 1. The D must make a misrepresentation of fact.
    • Affirmative Misrepresentation. Silence does not satisfy the tort of fraud (though it may be fraudulent for other civil law purposes). This is the origin of caveat emptor.

    • 2. Misrepresentation must be made deliberately or recklessly.
    • --D must know he’s lying or have made no effort to ascertain the truth.
    • --A mere error by D will not trigger fraud liability.

    • 3. The misrepresentation must be intended to induce reliance [material].
    • (puffing up car; not your actual expectation this will affect buyer)

    4. There must be reliance by P.

    • 5. Must be economic damage.
    • Must end up overpaying b/c of the fraud.

    • Compressed Fraud Elements
    • Someone tricked you deliberately, you fell for it, and you got screwed.
  2. Prima Facie Tort
    New York Only.

    • Intentional infliction of pecuniary harm without justification. Sort of a catch-all.
    • “Elements:” 1. Must be an intent to do harm; 2. Must be harm.

    • --Record company/radio station example.
    • --Predatory pricing—selling low to drive out competitors.
  3. Inducing a Breach of Contract
    1. Must be a contract in existence between P and third-party (T).

    • 2. D must have knowledge of the K.
    • 3. D must engage in persuasion designed to encourage T to breach the K.
    • Most bar questions, the inducement will be a better deal, better collateral, etc.; as opposed to coercion, etc.

    • 4. T must then breach the contract.
    • Privilege—special/advisory relationship b/t D and a contracting party (parents, professional advisors, clergy).

    • P’s Claims:
    • --Against T for the actual breach.
    • --Against D for inducing the breach.
  4. Theft of Trade Secrets
    1. P must possess a valid trade secret.

    • Valid trade secret=
    • 1. Information that provides a business advantage to the possessor (mfg process);
    • 2. Must be secret; and
    • 3. Owner must take reasonable steps to keep the information secret.

    2. D must take the trade secret by improper means.

    There are two alternative “improper means”:

    --“traitorous insider.” Improper b/c of breach of trust/implied confidentiality of relationship.

    --“industrial spy.” Improper if illegal or legal but violates ordinary standards of commercial morality.