University of Phoenix Material
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
Has WIRETIME, Inc., committed any torts? If so, explain.
WIRETIME has committed Defamation in the form of trade libel against BUGusa, Inc. by taking out a print ad in an industry magazine (University of Phoenix, 2013). According to Melvin (2011) there are three elements that must be present to claim libel. 1) The defamatory statement must be “clear and specific” to the company or product. WIRETIME clearly stated in the ad that the equipment used by BUGusa, Inc. was “low quality and did not work reliably for more than 1 month,” (University of Phoenix, 2013). The statement was made against a specific company and their specific product. 2) The statement was made knowing it was not true. BUGusa, Inc. has exclusive contracts with law enforcement (University of Phoenix, 2013) so their products are well known in the industry. 3) The statement was made to a third party by taking out the ad in print (Melvin, 2011). An ad like this could cause customers to rethink their contracts with BUGusa, Inc. or could deter new customers from using their products. This could damage their reputation in the industry.
Scenario: WIRETIME, Inc. (Janet)
Has WIRETIME, Inc. committed any torts? If so, explain.
In this scenario Janet breaches her contract and leaves BUGusa, Inc. for WIRETIME Inc. and that is not a tort (University of Phoenix, 2013). However, WIRETIME Inc. went after Janet by offering her a 10% pay increase and a $5,000 signing bonus. Because WIRETIME Inc.’s Human Resource manager knew that Janet was under contract and could not work for WIRETIME the act to employ Janet was an interference with contractual relations and that is a tort (Findlaw Inc., 1999). The defendant, WIRETIME, intentionally
References: FindLaw Inc. (November 1, 1999). Business Torts: Misrepresentation, Interference and Unfair Competition. Retrieved from http://www.inc.com/articles/1999/11/15387.html Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin. University of Phoenix. (2013). Case Scenario: BUGusa, Inc. [Multimedia]. Retrieved from University of Phoenix, LAW241 - CONTEMPORARY BUSINESS LAW website.