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Tort

In: Business and Management

Submitted By hemp
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Torts Shapo (2003) stated "A tort is a civil wrong in the sense that it is committed against an individual (which includes legal entities such as companies) rather than the state. The gist of tort law is that a person has certain interests which are protected by law. These interests can be protected by a court awarding a sum of money, known as damages, for infringe- ment of a protected interest. Alternatively, by the issuing of an injunction, which is a court order, to the defendant to refrain from doing something" (p.1). This paper will give two scenarios of two different torts. The first tort will be Breach of Fiduciary Duty. The paper will also show how Breach of Fiduciary Duty can be avoided and how the situation could have been avoided. The second tort will be Injurious Falsehood. This paper will also show how Injurious Falsehood can be avoided and how the situation could have been avoided.
Breach of Fiduciary Duty
Corporation A files for bankruptcy. The directors of the corporation recommend what seems to be a good restructuring plan. The plan relies on maintaining the current business contracts for the success of the corporation. The reconstruction was formulated under false pretenses. After authorization of the plan, the directors of the corporation proceed to reroute the business contracts that would have permitted Corporation A to effectively reorganize to Corporation B. Corporation B is completely owned by the directors of Corporation A. Because of the directors take over of Corporation A's business contracts, the reformation of the Corporation A falls short.
This is a blatant Breach of Fiduciary Duty. According to "U.S.legal" (2001-2012), fiduciary duty is defined as "an obligation to act in the best interest of another party. For instance, a corporation's board member has a fiduciary duty to the shareholders, a trustee has a fiduciary

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