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McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
32) Jimmy’s Trucking Ltd has sued Hoffa Security Inc in tort. Jimmy’s accuses Hoffa of
committing torts that resulted in substantial economic losses. The evidence indicates that,
aside from Jimmy’s specific allegations in tort, Hoffa did not act in an unlawful or
unauthorized way. The evidence further indicates that while Hoffa’s actions were directed
toward Jimmy’s, Hoffa did not specifically intend to injure Jimmy’s economic interests.
Hoffa did know about a contract that Jimmy’s Trucking had, Hoffa induced a third party
to break a contract it had with Jimmy’s Trucking and that third party did breach the
contract it had with Jimmy’s Trucking. Given these facts, Hoffa may be liable for
a. intimidation but not conspiracy.
b. interference with economic relations but not interference with contractual relations.
c. direct inducement to breach of contract, but not indirect inducement to breach of
contract.
d. conspiracy but not intimidation.
e. conspiracy but not interference with economic relations.
33) The tort of unlawful interference with economic relations
a. is one of the oldest torts.
b. was recently rejected by the Supreme Court of Canada.
c. requires proof that, among other things, the plaintiff suffered a physical injury.
d. requires proof that, among other things, the defendant acted with an intention to in
some way injure the plaintiff.
e. is a subset of the tort of intimidation.
34) Sweety Cola and Bubbly Cola are competitors in the cola market. As part of a recent
advertising campaign, Sweety claimed that its cola has zero calories; Bubbly’s cola has
caused cancer in laboratory rats; Bubbly sells its cola in bottles that actually belong to
other beverage manufacturers; and Bubbly sells its cola in bottles that are designed to
make consumers believe that they are buying Sweety’s cola. Bubbly has sued Sweety for
the tort of injurious falsehood. Sweety may be held liable if
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
a. its cola has more than zero calories.
b. Bubbly Cola has not caused cancer in laboratory rats.
c. Bubbly does occasionally sell its cola in bottles that belong to other beverage
manufacturers.
d. Bubbly does occasionally sell its cola in bottles that are designed to make consumers
believe that they are buying Sweety’s cola.
e. its comments caused Bubbly to suffer an economic loss, even though all of those
statements were true.
35) Brownie Inc and Chewy Ltd are competitors in the chocolate bar market. Their “trade
war” involves several facts. First, as part of a recent advertising campaign, Brownie
claimed that claimed that its own products are calorie-free. Second, Brownie said that
Chewy uses only third-rate materials in its products. Third, Brownie said that Chewy’s
products are proven to cause cancer. And fourth, Brownie occasionally packages its
products in such a way as to make consumers believe that they are buying Chewy
products. Which of the following statements is TRUE?
a. If Brownie’s products are not calorie free, Brownie must be held criminally liable for
misleading advertising.
b. As long as Chewy suffered a loss of sales and Brownie acted maliciously, Brownie
may be held liable under the tort of injurious falsehood if it is false that Chewy uses only
third rate materials in its products.
c. If Chewy’s products do not cause cancer, Brownie may be held liable under the tort of
deceit as long as it should have known that its statement was false.
d. Brownie may be held criminally liable for passing off if Brownie does occasionally
package its products in such a way as to make consumers believe that they are buying
Chewy products.
e. Neither company can be held liable for injurious falsehood unless it knew that it was
committing a tort when it made a particular statement.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
36) Which of the following statements is TRUE with respect to the tort of injurious
falsehood?
a. It requires proof that the defendant’s statement caused the plaintiff to suffer a loss.
b. It always consists of a slander of title.
c. It may be established on the basis of proof that the defendant should have known that
the statement in question was false.
d. It is another name for the tort of defamation.
e. Because it requires proof of malice, it always results in punitive damages being
awarded to a successful plaintiff.
37) The Ontario Court of Appeal’s decision in Reach MD Inc v Pharmaceutical
Manufacturers Association of Canada is vitally important to the tort of
a. conspiracy.
b. intimidation.
c. deceit.
d. interference with economic relations.
e. occupiers’ liability.
38) Simon, who is nine years old, was recently injured after he wandered onto Regina’s
land. Simon was infected with a disease after he stepped barefoot on a syringe. The
evidence indicates that Regina’s land is routinely used by drug addicts to “shoot up.”
Regina was aware of that fact, but did nothing to stop it or post warning signs. Simon has
sued Regina under the tort of occupiers’ liability. Which of the following statements is
TRUE?
a. If a court concludes that Simon’s injury was caused by an activity on Regina’s land,
rather than the condition of Regina’s land, then Regina may be held liable under statutory
rules but not under the traditional common law rules.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
b. If the common law rules apply to the facts, then it will be necessary to classify Simon
as a trespasser, licensee, invitee, or contractual entrant.
c. The tort of occupiers’ liability has been abolished in most provinces.
d. If the statutory rules apply, then Regina will be held liable only if she created the
danger that caused Simon’s injury.
e. If the statutory rules apply, then the court will apply the doctrine of common humanity.
39) Rande was injured by an accident that occurred on land belonging to the Acme
Chemical Company. The company may be held liable
a. under the tort of trespass to land if a toxic chemical drifted off its land and injured
Rande while he waited for a bus on a public sidewalk.
b. under the tort in Rylands v Fletcher if Rande fell into an unmarked pit on the
company’s land.
c. under the tort of nuisance if a chemical drifted off the company’s land and ruined the
paint on Rande’s car, even if that vehicle was parked on public property.
d. under the tort of occupiers’ liability if a toxic chemical drifted off of its own land and
onto Rande’s land, where it caused him to give up occupation of his property.
e. under the strict liability tort of nuisance if Rande was injured as a result of its
reasonable actions.
40) Which of the following factors is relevant to a judge’s decision as to whether or not a
party accused of the tort of nuisance used its property in a reasonable manner?
a. the happiness that the defendant receives from the activity in question
b. the nature of the damage that the plaintiff suffered
c. the fact that the defendant’s activity diminishes the value of the plaintiff’s property
d. the fact that the plaintiff and the defendant are closely related
e. the fact that the defendant has property insurance.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
41) Kareem is the CEO of Aladdin Contracting. Recently, the municipal government has
put forth a project for which it is accepting bids. Kareem knows that Aladdin’s main
competition, Jafar Construction, will be vying for the contract. Kareem calls the CEO of
Jafar and tells him that if he doesn’t allow Aladdin to get the contract for a high price,
they will sabotage Jafar’s construction projects for the next year. Which of the following
has occurred?
a. Aladdin and Jafar have committed the tort of conspiracy by talking about the project.
b. Aladdin has committed the tort of interference of contractual relations because Jafar
has an implicit contract with the city to make a fair bid.
c. Aladdin has committed two-party intimidation because the intimidation has caused
Jafar to suffer a loss.
d. Aladdin has committed three-party intimidation because the intimidation has caused
the government, but not Jafar, to suffer a loss.
e. Aladdin is committing both two- and three-party intimidation because the intimidation
causes both Jafar and the government to suffer.
42) Liam knows that Bonnie works at Maison Realty, but she is the best realtor in the city
so he has asked her repeatedly to quit so she can work for him. Bonnie keeps refusing.
Finally, Liam offers Bonnie a large signing bonus if she switches and Bonnie accepts.
Liam does not know that Bonnie’s contract with Maison states that Bonnie cannot work
in the city as a realtor for six months if the employment contract is breeched. Which of
the following is true about the situation?
a. Liam has committed three-party intimidation.
b. Liam has committed the tort of interference with contractual relations and an indirect
inducement to breach of contract.
c. Liam has committed the tort of interference with contractual relations and a direct
inducement to breach of contract.
d. Liam has only indirectly induced a breach of contract because he did not know about
the non-competition clause.
e. Liam has not committed the tort of unlawful interference with economic relations
because his action was directed at Bonnie, not Maison Realty.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
43) Yanni is looking to buy a car when he sees Isabella’s ad. The ad states that the car is
a 1999 Sunfire with less than 100 000 km on it. It also states that the car is great for long
road trips with friends. Yanni buys it and takes it on a road trip. After driving 150 km, the
car breaks down. When Yanni brings it to the mechanic, he is told that the car’s odometer
has been rolled back and the car has actually been driven closer to 300 000 km. Which of
the following statements is true?
a. Isabella is liable for the tort of deceit because the car was obviously not great for long
road trips.
b. Isabella is liable for the tort of deceit because she lied about how many kilometers the
car had driven.
c. This is a case of caveat emptor and Yanni has no way to recover his money.
d. Isabella is liable for the tort of deceit only if she knew that the car had been driven
more than 100 000 km.
e. Isabella is liable for the tort of intimidation because she forced the sale onto Yanni by
lying about the kilometers.
44) You invite your friend Suri over for a beer, but tell her you’ll be late, so you give her
your key and tell her to wait for you inside. When she enters the house, a burglar jumps
out from a closet and hits her on the head and she suffers a concussion. The burglar runs
to the back door, but trips on the string that you have set up as a trip wire that was
supposed to be a practical joke for your roommate and breaks his wrist. Both Suri and the
burglar are suing you under the tort of occupiers’ liability. Which of the following
describes the outcome under the common law rules?
a. You are only liable to Suri because she is an invitee.
b. You are only liable to Suri because she is a licencee.
c. You are only liable to Suri because you had no protection against burglars.
d. You are only liable to the burglar because you recklessly injured him.
e. You are liable to both Suri and the burglar.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
45) Etienne rents an apartment in an older building that has many structural problems.
The most recent problem is exposed wiring in Etienne’s kitchen. Etienne has asked the
landlord twice to fix the problem, but he is quite busy with repairs and has yet to fix it.
Crystal is visiting and, though Etienne has warned her, accidentally touches the exposed
wiring which electrocutes her, causing her to go to the hospital. Crystal is now suing both
Etienne and his landlord for occupiers’ liability. Which of the following describes the
outcome under the statutory rules?
a. Etienne is liable because Etienne has not used reasonable care.
b. The landlord is liable because he failed to make repairs under the lease.
c. Etienne is not liable if he believed that the potential danger to Crystal was small.
d. The landlord is not liable because he does not have control over the premises and
therefore is not an occupier.
e. Both Etienne and the landlord are liable because of vicarious liability.
46) Caitlyn is building a tree house for her son in her back yard. Currently, the house is
half completed, but still quite large. Vikram, her neighbour, is upset because it blocks the
view from his porch of the sunset, which he likes to watch every night. Furthermore,
Caitlyn has been working on the tree house until midnight every night and he finds the
sounds annoying. Which of the following is true?
a. If Vikram sues for the tort of nuisance, only the late-night hammering would be
considered.
b. If Vikram sues for the tort of nuisance, only his impairment of the enjoyment of the
sunset would be considered.
c. Both forms of damage would be considered in a nuisance case.
d. The hammering would not be considered because completing the tree house quickly
has social utility.
e. If Caitlyn gets a permit to build the tree house, Vikram has no defense; she would have
statutory authority.
47) At RDP Industries, Chun, an accountant, is notorious for wearing bright dresses. In a
water cooler conversation, Joseph says to Quinn, “Those accountants are just so lazy and
useless; they walk around here in their loud clothes and expect everything to be done for
them.” Which of the following statements is true?
a. Joseph has not committed the tort of defamation because he did not reference Chun
directly.
b. Joseph has not committed the tort of defamation because what he said is considered
libel.
c. Joseph has not committed the tort of defamation because what he said was not
published.
d. Joseph has not committed the tort of defamation because he referred to a group of
individuals.
e. Joseph could not use the defense of justification unless he could prove the statement is
true.
48) Alpha Juice and Beta Drink have been battling for soft drink supremacy for many
years Recently, Beta released a falsified study saying that the dye used in Alpha contains
asbestos and has been shown to cause cancer. Because of this, sales of Alpha have
dropped significantly as customers take their business elsewhere. Alpha sues Beta for the
tort of injurious falsehood. Which of the following is true?
a. The tort of injurious falsehood always requires proof that the defendant made a false
statement about the quality of the plaintiff’s products.
b. Liability may not be imposed under the tort of injurious falsehood if the defendant’s
primary purpose was to benefit itself, rather than to hurt the plaintiff.
c. It only requires proof that the defendant acted in malice.
d. It requires proof that the defendant’s statement caused the plaintiff to suffer a loss.
e. It only requires that the defendant made a false statement which caused the plaintiff to
suffer a loss.
Essay Questions
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
1) “To succeed in an action for intimidation, the plaintiff must prove that the defendant
threatened to commit an unlawful act. Depending upon the circumstances, it may be
sufficient if the plaintiff proves that the defendant threatened to commit a breach of
contract.” Explain the circumstances in which this statement is or is not true.
2) Amarjeet and Doris were competitors in the widget industry. In an over-exuberant
effort to take over her business, Amarjeet told Doris that he would spread false and
unflattering rumours about her unless she sold her company to him. Doris was quite
frightened by Amarjeet’s behaviour but she did not sell her company to Amarjeet. She has
now sued him for the tort of intimidation. Amarjeet has argued in defence that he acted
solely for the purpose of furthering his own financial interests, and not out of a desire to
hurt Doris. The evidence indicates that he is telling the truth in that respect. He also
resists liability on the basis that he never actually did defame Doris as he had threatened
to do. Will either of those defences protect Amarjeet from liability? Is there any other
basis upon which he can avoid liability? Explain your answers.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
3) You and I are competitors in the publishing business. You and I both know that Mysty
is my best employee and that much of my success is due to her efforts. You want to find
some way of causing Mysty to stop working for me and, if possible, to start working for
you. You have persuaded her to meet with you for a discussion of her future employment.
You intend to tell her that I am a lousy employer. Identify and explain the risk
management issues that you should bear in mind as you prepare for that meeting.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
4) Johanna was employed by Raouf. Willie caused her to breach that employment
contract. Raouf is trying to decide whether or not to sue Willie for interference with
contractual relations. He therefore wants to know what facts he would be required to
prove in order to succeed in such a claim.
5) Slobodan and Ashraf allegedly committed the tort of conspiracy against Vanessa. She
is trying to decide whether or not she will sue them. She therefore wants to know what
facts she would be required to prove in order to succeed in such a claim. In that respect,
why is it important for her to determine whether the act that Slobodan and Ashraf
conspired to commit was unlawful in itself?
6) As a general rule, the tort of deceit is not committed if the plaintiff suffered a loss as a
result of relying upon an opinion, prediction, or puff that the defendant made, even if that
statement was incorrect or inaccurate. Identify and briefly explain the reason for that
general rule.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
7) Rachel owned the right to mine for gold on a particular piece of property. Because she
lacked immediate financial resources, she issued a statement that was designed to attract
investors. That statement was, as Rachel knew, false. It claimed that the land held
considerably more gold than it actually did. Relying upon the truth of the information
contained in Rachel’s statement, Siddharth invested $100 000 in her mining project. On
the basis of the statement, he expected to earn a net profit of $250 000. In fact, he earned
a much more modest profit of $10 000. Siddharth has sued Rachel for the tort of deceit. If
he succeeds, how much will he receive as compensatory damages? Explain your answer.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
8) Khalid was injured while trespassing on property owned and occupied by Charisse. He
has sued her for the tort of occupiers’ liability. Describe the relevant standard of care
under: (i) the traditional common law rules, (ii) the modified common law rules, and (iii)
the statutory rules.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
9) Zeno was injured while he was either a licensee or an invitee on property owned and
occupied by Kavita. He has sued her for the tort of occupiers’ liability. Describe the
relevant standard of care under: (i) the traditional common law rules, (ii) the modified
common law rules, and (iii) the statutory rules.
10) Briefly explain the difference between the tort of private nuisance and the tort of
public nuisance.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
11) Bouba received special permission under the Radio and Satellite Signal Reception
Act to erect a radio beacon on his property. The statute specified a number of technical
requirements, but it did not impose requirements or restrictions regarding the height,
shape, size, or location of the beacon. Bouba built a very tall beacon at the edge of his
property, about 10 metres from a house that belonged to Virginia on the neighbouring
piece of land. That beacon toppled over during a snowstorm and crashed through
Virginia’s roof. She has sued Bouba for the tort of nuisance. He argues, however, that he
is protected by the defence of statutory authority. Is he correct? Explain your answer.
12) Identify and briefly explain the considerations that will influence a court’s decision to
grant an injunction to stop an ongoing nuisance.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
13) Siegfried owns a rattlesnake that he keeps in his office in a large, locked aquarium.
Bianca was severely injured during a recent meeting at Siegfried’s office after she was
bitten by the snake. She has sued for the tort of Rylands v Fletcher. Siegfried claims that
he should not be held liable because he took every reasonable precaution in placing the
snake in a locked aquarium. He also argues that it was entirely unforeseeable that the lock
would spontaneously spring open and release the snake from its cage. (The manufacturer
of the lock went out of business several years ago and cannot be sued.) The judge has
accepted the factual truth of those arguments, but has not yet decided upon their legal
significance. Can Siegfried avoid liability under Rylands v Fletcher on the basis that he
neither carelessly nor intentionally injured Bianca? Is there any other basis upon which
he might avoid liability? Explain your answers.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 5: Miscellaneous Torts Affecting Business
14) What interest is the tort of defamation intended to protect? How is the requirement of
publication related to that interest?
15) What is the defence of justification? To which tort does it apply?
