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Chapter 3 - Summary Canadian Business Law, ISBN: 9781772552812 BUSI2601 (BUSI2601)

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Course
BUSI2601 (BUSI2601)

Institution
Carleton University (CU )

Book
Canadian Business Law

This document provides a full chapter summary of chapter 3 in the Canadian Business Law textbook, tailored for BUSI2601 business minor course at Carleton University. The chapter covers: - Categories of Tort Law - Concept of Negligence - Liability (Product and Occupiers) - Assumption of Ri...

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BUSI2601
TORT LAW
Tort - an act or omission that causes injury to people or damage to property or economic
interests, other than an injury that arises from a breach of contract
● Omission can lead to both criminal & tort liability
● Focuses on harm caused to individuals, property and businesses
● The injured person must be the one bringing an action for damages arising from
tort… court won't prosecute it on their own
● If a tort causes very serious harm, the state would launch a criminal investigation to
determine if a criminal prosecution is warrented
○ Purpose is to punish lawbreakers in the name of the state and prevent further
crimes
○ Tort action seeks to compesate people and businesses harmed

IMPORTANCE OF TORT LAW FOR BUSINESS PEOPLE
● Tort judgements are expensive, bc large awards to plaintiffs can cause insolvency to
the prosecuted business
● Tort judgements are a public relations nightmare, and can damage reputation.

VICARIOUS LIABILITY
● Liability imposed on one party (often an employer) for the harmful actions or
omissions of another (often an employee) done on the job

MINIMIZING RISK
● Include indemnification clauses in contracts if the business carries a significant risk of
vicarious liability
● Consider the risk of your employees and maybe use “fidelity bonding” (insurance)

NEGLIGENCE ACT
● Joint liability arises in situations where there are 2 or more tortfeasors, i.e. employee
and employer, or 2 co-workers
● If both are found liable for harm, the plaintiff may use the Negligence Act to revolver
the full amount of damages
● Contributory negligence - allows court to hold the plaintiff partially responsible for
their own injuries (usually 20% of damages)

ELEMENTS OF A TORT
1. Wrongful act
2. Causation - the wrongful act of the defendant caused the harm
3. Quantifiable harm
● The plaintiff has to successfully prove that this was a wrongful act

CATEGORIES OF TORT

, Intentional tort - injury deliberately caused to a plaintiff by a defendant
● Verbal or physical aggression & business torts
Intentional torts involving verbal or physical aggression
● Employee loses temper or might occur because of the nature of the work
itself
○ 3 categories of intentional torts: passing off, inducing breach of
contract, and interference with a business by unlawful mean
Assault and Battery
● Occurs in business setting where employees are vielnt to one another, and
the business may be held responsible for the injuries
● Its a threat of imminent physical harm
● Battery - claimed in conjunction with assault, and is any intentionally harmful
or socially offensive direct physical contact - includes violent or sexual
conduct
False imprinsonment - tort in which the defendant unlawfully restricts the freedom of the
plaintif (no way out)

DEFAMATION - tort based on harm to a person’s or a business’s reputation through false
statements made by the defendant. This includes making negative advertising claims about
business competitors.
● Written defamation - libel; verbal defamation - slander
● Injurious falsehood or slander of goods - for malicious false statements
DEFENSES TO DEFEMATION
● TRUTH - if can be proven true, then no defamtiaon lawsuit can succeed against you
● FAIR COMMENT - encouraging expression of opinions
○ Success depends on: 1. Matter of public interest, whether known or disclosed
factual foundation for the opinion expressed exists, adn whether its farm (not
intended to harm)
PASSING OFF- tort based on one party’s attempt to distribute its own knock-off product or
service on the pretense that it is the product or service of another party

BREACH OF CONTRACT - Tort law supports the law of contracts by providing additional
remedy, induced by a third party.
Elements of inducing breach include:
1. A contract exists (where only the plaintiff is a party)
2. The defendant has knowledge of the contact
3. The defendant has the intention to induce a breach of the contract
4. The defendant employs a direct inducement in an effort to cause the breach

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Chapter 3 - Summary Canadian Business Law, ISBN: 9781772552812 BUSI2601 (BUSI2601)

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