Question

34 34 Unit Three Discussion Question The concept of business torts is an interesting area of the law. We learned that a Tort is a violation of a known legal duty owed to another person (as opposed to contract liability that only arises if both parties to a contract voluntarily enter into an agreement). Most business against business legal controversies involve breach of contracts, but under certain areas of tort law, one business can owe a duty of care to another business--even absent a voluntary agreement between the two on how to conduct commerce. Comment on the following: Is there a legitimate reason society needs laws to make sure businesses respect the rights of another business, or is the capitalistic/free competition environment impeded by such laws? Should commerce be conducted in simply an unregulated, let the best competitive forces prevail world?

Answer 1

Business torts are wrongful actions performed against a business that cause harm to the business. Business torts may cause a loss of profits, loss of reputation, loss of business competitive advantage, loss of market share, and/or other types of losses. Business torts are also known as economic torts because they are often associated with losses of current or projected business profits.

Business torts may be committed intentionally  (e.g., by a competitor business) or may be caused by negligent or reckless behavior by individuals or other businesses. Business torts may include conspiracy, trade libel, misrepresentation, negligence, and other civil offenses.

Yes, there is a legitimate reason that society needs laws to make sure businesses respect the right of another business.The concept of law is keep life fair, just and orderly.Having law means that no one is above law.If you imagine doing business without any legal means to protect your best interests, you’ll understand why law is important to business. The law gives everyone a framework for how to act and operate. It holds people, businesses and government accountable for their actions.

Without predictable rules and patterns to follow, doing business would be chaotic. You would never know how another party would act in any given situation and it would be all too easy to be taken advantage of. The law provides much-needed stability, consistency and certainty in a potentially volatile landscape. With the guidelines for universal acceptable behaviour clear and universal, it’s a lot easier to ensure that organisations act predictably and responsibly.Also having laws ensure directly or indirectly that business can have a free competition.

No, the commerce should not prevail in unregulated environment. Regulations are necessary for everyone-

1) If only the best one would prevail without any competition in market than there will be monopoly in market that would leave to high prices of products.

2) Also in such situation there will be less or no innovation.

3) Lack of development.

4) Unemployment will be more as less organisations will be there in market.

Competition is the sign that market actually exists.competition always results in better products and services being created over time.