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Law 421 Bugusa Inc.

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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 Inc has committed a Tort against BUGusa, assuming there is not data to support its claim. In the example given WIRETIME, Inc published in a magazine seemingly false claim about product quality and reliability. This advertising action qualifies as Defamation if BUGusa can prove loss of business and revenue over the comments. According to The Legal Environment of Business (pg.209) if the above conditions are true then the actions of WIRETIME, Inc meet the four elements in order to recover for a defamation action. Defamatory statement - This would be a statement from WIRETIME, Inc that BUGusa’s product is unreliable after one month (WIRETIME advertisement). Dissemination to a third party - This action is satisfied by WIRETIME, Inc. publishing their comments in an industry magazine. Specificity - If the claims are unfounded by WIRETIME, Inc, then this element is satisfied. Lastly if BUGusa can prove loss of business as a result of WIRETIME's advertising then the "Damages" element is satisfied.

Scenario: WIRETIME, Inc. (Janet)
Has WIRETIME, Inc. committed any torts? If so, explain.

I believe that WIRETIME, Inc. has not committed a tort. Janet had a two-year contract with BUGusa, Inc. and took a contract to the HR manager who responds they would give her a 10% increase over her current salary and a $5,000 signing bonus. Only if Janet choices to accept the position at WIRETIME, Inc. then BUGusa Inc. would be able to seek damages for things such as the cost to hire and train a new employee to replace Janet. It would be considered tortious interference that caused the breach of contract.

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