How is 'business tort' defined?

A business tort is defined as a wrongful act that results in legal liability. This encompasses a range of harmful actions, such as fraud, defamation, or interference with contractual relationships, that a business might engage in, either intentionally or unintentionally. When such actions occur, they can lead to claims for damages or penalties, establishing a legal basis for the harm caused to another party.

Understanding this definition is essential in the context of business law, as it highlights the responsibilities and potential legal repercussions businesses face in their operations. This concept emphasizes the importance of ethical conduct and adherence to legal standards to avoid situations that might lead to business torts.