Bugusa, Inc., Worksheet

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  • Topic: Product liability, Tort, Strict liability
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BUGusa, Inc., Worksheet

Use the scenarios in the Bugusa, Inc., link located on the student website to answer the following questions.

Scenario: WIRETIME, Inc., Advertisement Altrese
Has WIRETIME, Inc., committed any torts? If so, explain.

WIRETIME, Inc. (WIRETIME) has committed trade libel. WIRETIME’s advertisement satisfies the three conditions of trade libel as defined by our text (Melvin, 2011, p.212):

1. Clear and specific reference to the disparaged product. WIRETIME makes defamatory statements about a specific company [BUGusa (BUG)] as well as to the specific product that BUG manufactures (BUG’s electronic recording devices).

2. Disparaging statement made with either knowledge that the statement was false or reckless disregard for the truth. WIRETIME’s statement that BUG’s electronic recording devices are low quality and do not work reliably for longer than one month is reckless disregard for the truth. We have no proof referenced in this scenario ascertaining the truthfulness of WIRETIME’s statement, but we can demonstrate that they published this statement with malice, or reckless disregard for the truth, with the intent of making BUG’s customers believe that BUG manufactures a low quality, unreliable product, thus driving away BUG’s customers and influencing them to use WIRETIME’s product as an alternative.

3. Communicated to a third party. By advertising the disparaging statement, WIRETIME communicated to a third party, the public, thus satisfying the third condition of trade libel.

Scenario: WIRETIME, Inc. (Janet) Fay
Has WIRETIME, Inc. committed any torts? If so, explain.
1. Non compete tort was committed in this situation because WIRETIME completely overlooked the fact that Janet is in a contract with BUGusa that says Janet is not to work for any company that is the competitor of BUGusa

2. WIRETIME continuously offered more benefits to Janet until she...
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