Business Law is also known as commercial law which refer to law that government dealing between people and commercial matters. Many business laws may involve trying to prevent problems that can hurt the business or cause legal disputes. Tort law is remedy which will be provide on civil wrong. Simply it provide compensation for injuries to person and property but only when it caused by the fault of others. This is also known as “economic torts” it cover all aspects which may occur due to negligence that cause or cause in the future such as any financial loss. Tort law comes from Latin word “Tortus” which basically means wrong or wrong deed.
Tort law will cover compensation from the person who causes the injury to injured person. In business tort law covers wide range of misconduct which may include injury of person or damage to business. Business tort law also cover contract law in business, which may include unfair trade practices that may come intentional and improper interference with the business interest of another (Joel Levin, 2008). Many tort also involve injury to another person body or damage to the property so there is example which may be covered in business torts are interference wrongfully, competition with unfair, disparaging, damage to computers.in this torts it may be include loss of clients , loss of business relation with other.it also cover that type of losses which may be come in future this help us or this save us from losses that were experienced in the past. This is only done with the help of lawyer or business lawyer or we have to hire a business lawyer for represent in court , this lawyer help us to recover any losses caused by the business tort .The types of damages that may be awarded by the court for civil wrongs, called “tortious conduct,” of an individual or entity include:
1. Reimbursement for property loss or property damage
2. Medical expenses
3. Pain and suffering
4. Loss of earning capacity
5. Punitive damages
Types of legal torts (Tort Law in Australia, 2012)
1. Intentional torts: -Intentional torts will be recover that time when injured person show some main points to justify that this damage occur due to intentionally, first one is an act by the defendant, 2. An intention to cause the consequences of the act 3. Causation – which mean the injury was caused by the defendant act or something set in motion by the act
2. Negligence torts :- anyone can recover in tort for negligence when court hear such cases like involving accidents to building , injuries from product or person may recover tort for negligence whenever these elements occur or the injured business show :-
• Injury to business
• Damage to business
• Proximate cause of the injury
3. Strict liability torts: – Strict liability occurs when society is saying that activity cause by business is dangerous or not good for society.
4. Several more torts which may help in business operation :-
1. Liability of products: – Any injury caused by products such as any person injured by using of that product caused due to any manufacture negligence for making of that product. after this a person who bring a case against other in a court must go to the manufacture plant or factory where that product were made, see each and every aspect of the product how it is made after than if he prove negligence than case may be consider if he can’t show negligence in the design of the manufacture’s product, it cannot be consider as a negligence caused by product or any manufacture defect.
5. Activity of business: -Many other activities also covered in business tort which is done in business .they are intentional tort and may be based on state law, federal law, or the common law, so injured parties may recover damages on the basis of the conduct that cause two types of harm, interference with a contract or economic advantage, any other confusion about product. Only these two general types of harm may recover in other business activities.
Importance of Tort System (Lawyers)
1. Tort law give people to create and established business and save them from dangerous practices.
2. It give business as a mode of profit and safety
3. It also gives freedom from government role or tort system helps to limit the government’s role.
4. It give protection to person as well as to property of business such as nuisance it may be public or private , trespass , fraud (misrepresentation), any product disparagement or unfair competition
5. It may cover from many damages such as expenses, lost wages and pain and suffering .tort law compensate the victim to harm actually done, damage which is measured by the extent of the injury, in money terms also, property destroyed, compensation for lost wages, reimbursement for medical expenses.
Why tort law is different from criminal law (Carl F. Cranor, 2017)
There are two ways in which tort law is different from criminal law:
1. Torts comes from negligent as well as intentional or criminal action
2. Tort lawsuits always bear fewer burdens of proof such as preponderance of evidence rather than beyond a reasonable doubt.
In business torts that arise from product liability also:
Product liability is that area of law in which product manufactures, distributor of company, sellers of company take responsibility for every injuries which is caused by the product. Theory of negligence is decided by the product liability cases. Negligence is caused because of unintentional injury or any cause through unintentional harm. Many states also convert the category of product liability into category of strict liability tort (Dietrich ; Barker, 1993).
When we get the claim of product liability: -Lawyer wills advises how to file an action for product liability. There are three major bases for product liability claims are manufacturing defect, design defect, any failure – to – warn defect. Manufacturing defects are those which may come or arise at the time of manufacturing processes and usually come because of poor quality materials and design defect occur where the product design is useless or dangerous this is not matter that hoe carefully manufactured defect is defect , it product not satisfy the consumer who purchasing that product or consumer complaining about defect in design that mean this product is design defect product .failure to warm defect means there is failure arise in product that carry inherent non – obvious danger these danger are present regardless of how well the product is manufactured and designed for intended purpose (Tort Laws ) .
There are two types of damages which are classified:-
1. Compensatory damage :- there are some special damages which are classified in compensatory damage which are economic losses
1. Loss of earning
2. Property damage
3. Medical expenses
4. General damage
5. Non-Economic damages which are pain, suffering, emotional distress.
2. Punitive damage: -punitive damages are those types of damages which come from blatantly negligent, malicious, and grossly reckless manners.
Key aspects of the tort of negligence in the business (Joel Levin, 2008): –
1. Negligence between relationship between the parties :-
Negligence cases are based on a non-contractual relationship between the parties. The parties may be known to each other because as with a surgeon and a patient, or they may be strangers, as with two drivers involved in a road traffic accident. Due to the lack of any agreed relationship between the parties.
2. Negligence because of the nature of the obligation: –
In relation to negligence, the nature of the obligation is not agreed between the parties but rather is imposed by operation of law.
3. Negligence – causation and remoteness of damage: –
In relation to negligence, issues of causation and remoteness tend to be considered separately. The key test for causation is known as the test, which basically asks whether the loss would have been sustained but for the defendant’s negligence.
4. Negligence – the measure of damages: –
In this negligence is measure through damages, how much damage is done and how it could be covered.
Tort law divides most specific torts into three general categories (Tort Law in Australia, 2012):
1. Intentional Torts – the causing of harm by an intentional act, such as intentionally conning someone out of his money.
2. Negligent Torts – the causing of harm through some negligence, such as causing a car accident by running a red light.
3. Strict Liability Torts – the result of harm incurred due to the actions of another but there is no finding of fault by the defendant.
Related Legal Terms and Issues in business tort are (Dietrich & Barker, 1993): –
1. Civil Lawsuit – A lawsuit brought about in court when one person claims to have suffered a loss due to the actions of another person this is called civil lawsuit
2. Criminal Offense – An act committed by an individual that is in violation of the law, or that poses a threat to the public this is called criminal offense
3. Damages – A monetary award in compensation for a financial loss, loss of or damage to personal or business property, or an injury occur .
4. Defendant – A party against whom a lawsuit has been filed in civil court, or who has been accused of or charged with a crime or offense.
5. Entity – An individual, company, association, trust, or other organization that is legally recognized in the eyes of the law. A legal entity is able to enter into contracts, take on obligations, pay debts, be sued, and be held responsible for its actions.
6. Personal Property – Any item that is moveable and not fixed to real property.
7. Plaintiff – A person who brings a legal action against another person or entity, such as in a civil lawsuit, or criminal proceedings.
8. Punitive Damages – Money awarded to the injured party above and beyond their actual damages. Punitive damages, also referred to as exemplary damages, are ordered for the purpose of punishing the wrongdoer for outrageous misconduct in a civil matter.
9. Real Property – Land and property attached or fixed directly to the land, including buildings and structures are called real property.
As per the tort of negligent, responsibility for negligent misstatement is imposed only if they were made in circumstances that made it reasonable to rely on them. A false statement of fact made honestly but carelessly. A statement of opinion may be treated as a statement of fact if it carries the implication that the person making it has reasonable grounds for his opinion. The principal aims of the Tort law to provide the compensation by putting the plaintiff as near as possible. In the usual form of relief given by the courts in a successful tort action is an award of damages for the loss she suffered. Relief may take the form of a court order restraining the wrong statement from doing or continuing the tortious act. Under this act council person should compensate the suffered employee to mentally relief. Tort of Negligence the council person should compensate the affected employee to stand once again and start the business again.