Study Guide to accompany Canadian Business and the Law, 5th edition

Chapter 12

CHAPTER 12
OTHER TORTS
Objectives
After studying this chapter, you should have an understanding of
• the range of torts that are relevant to business organizations
• how torts arise from the use of property
• how torts arise from business operations
• how a business can manage the risk of liability in tort

Learning Outcomes
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Recognize that business activity can result in tort action (page 261)
Recognize the torts that arise from the use of property (pages 262–267)
Understand the obligation of an occupier to people on the property (pages 262–265)
Recognize that the tort of nuisance places restrictions on occupier’s activities that interfere with occupiers of other property (pages 266–267)
Understand the tort of false imprisonment (page 269)
Recognize the torts that arise from normal business operations (pages 271–276)
Understand the torts of passing off and interference with contractual relations
(pages 271–273)
Recognize the difference between defamation and injurious falsehood (pages 274–276)
Understand how a business can manage the risks associated with commercial torts
(pages 277–278)

Chapter Summary
While negligence is the most common tort a business will encounter, various other commercially relevant torts merit analysis. These torts can be categorized and assessed according to whether they would arise because the business is an occupier of property or because it provides a product or service. Furthermore, torts that could be committed against a competitor can be grouped separately from those more likely to involve a consumer. Though these distinctions are not definitive, they provide a useful way of organizing the variety of torts that affect the commercial world. As an occupier, a business must be sure to keep its property safe so that people coming on-site are not injured, otherwise it faces occupiers’ liability according to a regime that classifies the entrant in question under common law or by statute. To avoid committing the tort of nuisance, a business must not unreasonably and substantially interfere with the right of its neighbours to enjoy their property. The law governing trespass gives occupiers a right to exert control over who comes onto their premises, subject to human rights codes. Torts arising from business operations in relation to customers are false imprisonment, assault and battery, and deceit. Through these torts, the law seeks to ensure people’s right to move about as they please, to have their bodily integrity
© 2014 Nelson Education Limited

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Study Guide to accompany Canadian Business and the Law, 5th edition

Chapter 12

respected, and not to be misled about the quality of a product or service. Torts more likely to be committed against a competitor include passing off, interference with contractual relations, defamation, and injurious falsehood or product defamation. These torts endeavour to protect a business’s property and its own reputation. Given the diverse and wide-ranging nature of a business’s potential liability in tort, preventing torts from ever occurring should be one of management’s top priorities.

© 2014 Nelson Education Limited

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Study Guide to accompany Canadian Business and the Law, 5th edition

Chapter 12

Study Outline
Use this outline to prepare a complete set of notes for this chapter.
Torts and Property Use—page 262
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Occupiers’ Liability _____________________________________________________
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Liability at common law _______________________________________________
Contractual entrant ___________________________________________________
Invitee _____________________________________________________________
Licensee