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California Torts
Copyright 2017, Matthew Bender & Company, Inc., a member of the LexisNexis Group.

3-40 California Torts 40.syn


Fraud and Deceit and Other Business Torts


Neil M. Levy; Michael M. Golden; Leonard Sacks

Chapter Summary


This chapter discusses tort actions that may arise out of business transactions. Part A discusses the torts of fraud, deceit, and negligent misrepresentation, distinguishing deceit, actual fraud, and constructive fraud from one another. Part A also outlines the elements of each tort and discusses the applicable defenses, including statute of limitations, statutory privilege, comparative negligence, and contributory negligence. In addition, Part A reviews available remedies such as tort damages, rescission and restitution, and reformation of the contract.

Part B discusses two tort theories applicable to the misappropriation of business property: conversion and misappropriation of a trade secret. It addresses remedies under both the common law and the Uniform Trade Secrets Act (UTSA). Part C discusses the related torts of trade libel (also known as injurious falsehood or trade disparagement) and slander of title. Part D discusses tort remedies for interference with business relationships. Specifically, it examines the elements and common defenses for interference with prospective economic advantage, interference with contractual relations, conspiracy to induce breach of contract, and interference with employment relationship.

Part E discusses liability for breach of the covenant of good faith and fair dealing, which is implied in all contracts. It also discusses the tort cause of action for bad-faith denial of the existence of a binding contract. The chapter closes with a discussion of torts related to unfair competition. Subpart 1 of Part F discusses unfair business practices, including statutory and common law unfair competition and the Unfair Practices Act. Subpart 2 discusses restraints of trade, including the Cartwright Act, mergers, and monopolies.

California Torts (Matthew Bender) provides in-depth coverage of virtually all recognized theories of tort liability under California law, including related defenses and immunities. In addition to its substantial focus on California personal injury law, the treatise also covers professional liability and a variety of business tort causes of action, such as unfair competition, intentional or negligent interference with business or contractual relationships, unjust dismissal, and "bad faith" actions. It contains detailed information to help attorneys prepare during every stage of case development, from pretrial to verdict to post trial.


Business torts in California,fraud,deceit,negligent misrepresentation,actual fraud,constructive fraud,misappropriation of business property,conversion,misappropriation of a trade secret,trade secret,Uniform Trade Secrets Act,UTSA,trade libel,injurious falsehood,trade disparagement,slander of title,interference with business relationships,interference with prospective economic advantage,interference with contractual relations,conspiracy to induce breach of contract,interference with employment relationship,covenant of good faith and fair dealing,unfair competition,unfair business practices,Unfair Practices Act,California Business and Professions Code Section 17200,restraints of trade,Cartwright Act,mergers,monopolies,bad faith breach of contractual obligations


For a discussion of general negligence principles, see Chapters. 1-4.

For a discussion of defamation and of the judicial proceedings privilege, see Chapter 45.

For a discussion of measures of damages in tort actions generally, see Chapter 50.

Recovery for economic loss in tort actions generally is discussed in Chapter 52.

Recovery of punitive damages is discussed in Chapter 54.

For a discussion of tort liability for breach of the implied covenant of good faith and fair dealing in the context of insurance policies, see Chapter 82.


For forms of pleadings for use in tort actions that may arise out of business transactions, see California Forms of Pleading and Practice (Matthew Bender), Chapter 14, Advertising; Chapter 140, Contracts; Chapter 150, Conversion; Chapter 269, Fraud and Deceit; Chapter 340, Libel and Slander; and Chapter 565, Unfair Competition.

For sample legal arguments on numerous fraud scenarios, and related sample pleadings, see California Points and Authorities (Matthew Bender), Chapter 105, Fraud and Deceit.

For additional discussion of unfair competition and business tort causes of action under California law, see Conrad Rushing, et al., Matthew Bender(R) Practice Guide: California Unfair Competition and Business Torts.

For discussion of recovery in products liability actions generally, see California Products Liability Actions (Matthew Bender), Chapters 2 and 9.
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