Also known as an economic tort, a business tort is a wrongful action that is taken against a business with the intention to cause it harm. Business torts often result in lost profits, damaged reputation, loss of market share, and loss of competitive advantage. Business torts can either be committed intentionally or be the result of a party’s negligent behavior. A business that is the victim of a business tort can file a lawsuit to obtain financial compensation for its losses. In this article, we discuss some of the most common business torts.
Restraint of Trade
Restraint of trade is a business tort that involves the interference of a business’s ability to conduct business freely. This tort can encompass any activity that limits trade, sales, or transportation via interstate commerce. In other words, restraint of trade is any activity that prevents a party from conducting normal business without restraints. Examples of restraint of trade include:
- Interference with a contract or business agreement
- Fixing prices to limit competition
- Coercing someone to cease doing business
- Using non-compete clauses or other contractual provisions to limit the ability of others to conduct business
Tortious interference is the deliberate and unlawful interference with a company’s contractual or business relationships. Examples of tortious interference include causing a party to commit a breach of contract and disrupting another’s ability to fulfill a contract.
Injurious falsehood is a false statement deliberately made to cause damage to a business. False statements about a business can damage a business owner’s reputation and negatively affect the performance of the business. In order for a business to prove injurious falsehood, it must prove that the maker of the statement knew it was false at the time it was made.
Unfair competition results when businesses compete on unequal terms due to favorable or unfavorable conditions being applied to some businesses, but not others. In addition, unfair competition can occur when the actions of some businesses harm others by preventing competition on a level playing field.
Fraudulent misrepresentation occurs when a party or business uses purposeful deception to secure an unlawful or unfair gain. This tort is one of the most deliberate types of misrepresentation, and it carries serious penalties. Fraudulent misrepresentation includes any act that intentionally deceives a person or business.
Contact a Georgia Business Litigation Lawyer
If you are the victim of a business tort of any kind, you need an experienced Georgia business litigation attorney in your corner. At Griffin Durham Tanner & Clarkson, our knowledgeable attorneys have extensive experience assisting clients with business disputes of all kinds. When you come to us for assistance, we will do everything in our power to ensure that your case is successful. Please contact us today to arrange a free initial consultation with one of our talented lawyers.