Economic Torts: Master the Fundamentals of Economic Wrongs

Question 1

In the tort of conspiracy, what is the minimum level of agreement required between the defendants?

Accepted Answer

Intention to commit a specific unlawful act

Answer

Mere intention to cause harm

Answer

Intention to induce the third party to breach of contract

Answer

Intention to cause economic loss

Question 2

In the tort of injurious falsehood, what type of statement is actionable?

Accepted Answer

Statement that causes economic loss

Answer

Defamatory statement

Answer

Negligent statement

Answer

Statement made in good faith

Question 3

In the tort of defamation, what is the crucial distinction between slander and libel?

Accepted Answer

Slander is spoken defamation, while libel is written defamation

Answer

Slander is more serious than libel

Answer

Libel requires proof of special damages, while slander does not

Answer

There is no meaningful distinction between slander and libel

Question 4

Which of the following is NOT recognized as an economic tort in the United Kingdom?

Accepted Answer

Assault

Answer

Passing off

Answer

Libel

Answer

Wrongful interference with contract

Question 5

What is a fundamental element required to establish the tort of passing off?

Accepted Answer

Misrepresentation of the trader's goods or services as those of another

Answer

Intention to deceive consumers

Answer

Actual monetary loss incurred by the claimant

Answer

Negligence on the part of the defendant

Question 6

What is the significance of the 'economic loss' requirement in economic torts?

Accepted Answer

Both A and B are true.

Answer

It establishes that the claimant must suffer a quantifiable financial loss to have a valid claim.

Answer

It excludes recovery for non-economic losses, such as emotional distress or reputational damage.

Answer

It distinguishes economic torts from other torts, such as personal injury claims.

Question 7

Which remedies are commonly awarded by courts in cases involving economic torts against businesses?

Accepted Answer

Injunctions

Accepted Answer

Damages

Answer

Rescission

Answer

Specific performance

Question 8

In the tort of passing off, which three elements must be established?

Accepted Answer

Goodwill, misrepresentation, and damage

Answer

Negligence, foreseeability, and causation

Answer

Malice, intention, and economic loss

Answer

Misappropriation, confusion, and unjust enrichment

Question 9

Which of the following is NOT an essential element of the tort of passing off?

Accepted Answer

Intentional or negligent conduct on the part of the defendant

Answer

Misrepresentation by one trader as to the goods or services of another trader

Answer

Damage to the goodwill of the other trader

Answer

Use of the other trader's distinctive marks

Question 10

Which of the following is NOT a valid defense to an action for defamation?

Accepted Answer

Consent of the plaintiff

Answer

Truth

Answer

Fair comment

Answer

Privilege

Question 11

Which of the following is an example of an economic tort?

Accepted Answer

Libel

Answer

Battery

Answer

Negligence

Answer

Trespass to land

Question 12

What is the main distinction between strict liability and negligence?

Accepted Answer

Strict liability imposes liability without fault, while negligence requires proof of fault.

Answer

Negligence imposes liability only for foreseeable harm, while strict liability imposes liability for all harm.

Answer

Strict liability is a common law tort, while negligence is a statutory tort.

Answer

There is no distinction between strict liability and negligence.

Question 13

Which of the following is NOT an essential element of the tort of negligence?

Accepted Answer

Intentional or reckless conduct

Answer

Duty of care

Answer

Breach of duty

Answer

Causation

Question 14

Which of the following is NOT an element of the tort of interference with contractual relations?

Accepted Answer

Foreseeability

Answer

Intention to interfere

Answer

Inducement of breach

Answer

Causation

Question 15

In cases involving the tort of passing off, which of the following is NOT a potential remedy?

Accepted Answer

Specific performance

Answer

Injunction

Answer

Damages

Answer

Account of profits

Question 16

Which of the following is categorized as an economic tort?

Accepted Answer

Interference with contractual relations.

Answer

Libel.

Answer

Battery

Answer

Negligent driving.

Question 17

Identify the example that best illustrates an economic tort.

Accepted Answer

A company deliberately enticing away a key employee from a rival company.

Answer

A careless driver causing damage to another vehicle.

Answer

A doctor misdiagnosing a patient's condition.

Question 18

Which type of economic loss is recoverable in an economic tort claim?

Accepted Answer

Loss of profits.

Answer

Emotional distress.

Answer

Damage to reputation.

Answer

Physical pain.

Question 19

In economic tort cases, which remedy is commonly granted by the courts?

Accepted Answer

Injunction.

Answer

Community service.

Answer

Probation.

Answer

Imprisonment.

Question 20

Which of the following is NOT a necessary element of the tort of deceit?

Accepted Answer

Absence of damage

Answer

Intentional misrepresentation

Answer

Reliance by the claimant

Answer

False representation

Question 21

Which tort arises when a person intentionally interferes with the contractual relations of another without lawful justification?

Accepted Answer

Inducing breach of contract

Answer

Malicious prosecution

Answer

Libel

Answer

Passing off

Question 22

What is the primary remedy for the tort of passing off?

Accepted Answer

Injunction

Answer

Rescission

Answer

Specific performance

Answer

Damages

Question 23

Which defense is available in the tort of malicious prosecution?

Accepted Answer

Reasonable and probable cause

Answer

Privilege

Answer

Fair comment

Answer

Truth

Question 24

What is the essential distinction between the torts of slander and libel?

Accepted Answer

Permanence of the defamatory statement

Answer

Intent

Answer

Content

Answer

Target audience

Question 25

In the tort of nuisance, what must the claimant prove to establish a cause of action?

Accepted Answer

An unreasonable interference with the enjoyment and use of their land

Answer

Intention to cause harm

Answer

Actual damage to property

Answer

Foreseeability of harm

Question 26

Which of the following is NOT a recognized type of economic tort?

Accepted Answer

Battery

Answer

Passing off

Answer

Conspiracy

Answer

Negligent misstatement

Question 27

Which of the following is an essential element of the tort of passing off?

Accepted Answer

Misrepresentation of the defendant's goods or services as belonging to the claimant

Answer

Damages

Answer

Malice

Answer

Intention

Question 28

Which of the following is a type of negligent misstatement?

Accepted Answer

A statement made without reasonable care

Answer

A statement made under duress

Answer

A statement made intentionally

Answer

A statement made in good faith

Question 29

Which of the following is NOT a potential remedy for the tort of defamation?

Accepted Answer

Specific performance

Answer

Rescission

Answer

Damages

Answer

Injunction

Question 30

Which of the following is a form of economic loss?

Accepted Answer

Loss of profits

Answer

Physical injury

Answer

Property damage

Answer

Emotional distress

Question 31

A company launches a smear campaign against a competitor, falsely claiming that the competitor's products are unsafe. This scenario is most likely an example of which economic tort?

Accepted Answer

Injurious falsehood

Answer

Unlawful interference with trade

Answer

Passing off

Answer

Interference with contractual relations

Question 32

Which defense to economic torts argues that the defendant's actions were justified by a legitimate business interest?

Accepted Answer

Justification

Answer

Public interest

Answer

Statutory authority

Answer

Fair comment

Question 33

Which of the following is a key distinction between 'passing off' and 'injurious falsehood'?

Accepted Answer

Passing off involves misrepresentation of the defendant's goods or services as belonging to the claimant, while injurious falsehood involves false statements about a competitor's goods or services.

Answer

Passing off requires proof of malice, while injurious falsehood does not.

Question 34

A company creates a website with a domain name very similar to a well-known competitor's, aiming to attract customers who might mistake it for the competitor. This action is likely an example of which economic tort?

Accepted Answer

Passing off

Answer

Unlawful interference with trade

Answer

Injurious falsehood

Answer

Interference with contractual relations

Question 35

Which of the following is NOT a remedy typically available for victims of economic torts?

Accepted Answer

Imprisonment

Answer

Account of profits

Answer

Injunction

Answer

Damages

Question 36

A competitor uses a marketing strategy that deliberately confuses consumers into thinking its products are those of a well-established brand. This situation exemplifies which economic tort?

Accepted Answer

Passing off

Answer

Unlawful interference with trade

Answer

Injurious falsehood

Answer

Malicious falsehood

Question 37

What is the primary purpose of the tort of unlawful interference with trade?

Accepted Answer

To safeguard businesses from actions that unfairly hinder their ability to compete in the market.

Answer

To ensure that all businesses have equal access to resources and opportunities.

Answer

To prevent businesses from engaging in unfair advertising practices.

Question 38

In a case of inducing breach of contract, the defendant must have acted:

Accepted Answer

Intentionally and without lawful justification.

Answer

Accidentally and without intent to cause loss.

Answer

Recklessly and with foreseeability of harm.

Answer

Negligently and with malice.

Question 39

Which of the following is a type of economic loss that can be recovered in tort?

Accepted Answer

Loss of profits

Answer

Pain and suffering

Answer

Punitive damages

Answer

Emotional distress

Question 40

Which of the following is NOT an example of an economic tort that protects intellectual property?

Accepted Answer

Trespass to the person

Answer

Passing off

Answer

Trademark infringement

Answer

Copyright infringement

Question 41

The tort of unlawful interference with trade can occur when a defendant:

Accepted Answer

Engages in conduct that intentionally disrupts the claimant's business relationships.

Answer

Causes physical damage to the claimant's property.

Answer

Breaches a contract with the claimant.