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

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
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
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
C. Defenses

The 3 basic defenses to disparagement are:
1.
Truth
2.
Absolute Privilege
3.
Qualified Privilege
II. Appropriation of
Likeness for
Commercial Purposes

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
III. Interference With
Economic Relations

Inducing a Breach of Contract

Interference with a Contractual Relationship

Interference with a Prospective Economic
Advantage of Another
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
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:
1.
Plaintiff had existing valid contract with 3rd party
2.
Defendant had knowledge of the contract
3.
Defendant’s intentional and unjustified acts were designed to interfere
with or disrupt the contract
4.
There was actual interference
5.
Damages were suffered by plaintiff as a result of defendant’s actions
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:
1.
That there was an economic relationship with a 3rd party that
offered the probability of a future economic benefit to the
plaintiff
2.
That the defendant had knowledge of this relationship
3.
That there was an actual disruption of the relationship and
damages were suffered by the plaintiff as a result of the
defendant’s actions
IV. Cyber
Considerations

Cyber Crime
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
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
Chapter Summary


Disparagement



Interference with
Economic Relations

Slander of Title
Trade Libel
Defenses



Appropriation of Likeness
for Commercial Purposes

Inducement to Breach
Another Person’s Contract
Interference with
Contractual Relations
Interference with a
Prospective Economic
Advantage
Cyber Considerations

Cyber Crime