Chapter 6 Study Guide: Abusive or Frivolous Litigation and Business Torts

Vocabulary flashcards covering key definitions, elements, and distinctions regarding abusive or frivolous litigation and business torts from Chapter 6.

Abusive or Frivolous Litigation

Litigation against which tort law protects individuals, recognizing a right not to be sued without a legally just and proper reason and not to have litigation misused against them.

Malicious Prosecution

A tort committed when someone initiates a lawsuit maliciously and without a legitimate legal reason, and subsequently loses the suit.

Abuse of Process

Using a legal process against another person in an improper manner or to accomplish a purpose for which that process was not designed, such as the wrongful use of subpoenas or improper attachment of property.

Key Difference Between Malicious Prosecution and Abuse of Process

Abuse of process does not require proof of malice and is not limited to prior litigation, whereas malicious prosecution strictly requires malice, lack of a legitimate legal reason, and termination of the prior suit against the initiator.

Business Torts

Torts that generally involve wrongful interference with another person's business rights, categorized into interference with a contractual relationship and interference with a business relationship.

Four Elements of Wrongful Interference with a Contractual Relationship

1. A valid, enforceable contract exists between two parties; 2. A third party knows that the contract exists; 3. The third party intentionally induces one of the contracting parties to breach the contract; 4. The plaintiff suffers damages.

Wrongful Interference with a Business Relationship

A tort in which a plaintiff must prove that the defendant used predatory practices to intentionally harm an established business relationship or gain a prospective economic advantage in an attempt to gain market share.

Predatory Practices

Conduct that goes beyond legitimate competition to intentionally harm an established business relationship or gain economic advantage, such as hiring an individual to distribute brochures about food poisoning outside a competitor's restaurant.

Legitimate Competition

Ordinary competitive actions that do not constitute predatory practices on their own, including remodeling a facility, improving food and service quality, and increasing advertising in response to a competitor.