California First-Year Law Students' Exam (Baby Bar) — MCTortsEasy
A disgruntled former employee, seeking revenge against their previous employer, intentionally spread false rumors online that the company's new product was contaminated and unsafe. As a direct result, several major retailers canceled their orders, causing significant financial losses for the company. Which intentional tort has likely been committed?
- AIntentional Infliction of Emotional Distress
- BDefamation
- CInterference with Prospective Economic Advantage
- DTrespass to Chattels
Show answer & explanationAnswer & explanation
Correct answer: C. Interference with Prospective Economic Advantage
The former employee's actions, spreading false rumors to disrupt the company's business relationships and cause financial harm, directly align with the elements of interference with prospective economic advantage. This tort protects against wrongful interference with reasonable expectations of economic benefit.
Why the other options are wrong
- A. Intentional Infliction of Emotional Distress requires extreme and outrageous conduct causing severe emotional distress, which is not the primary focus or outcome here.
- B. While defamation may also be present, the core harm described is the disruption of business and financial loss, pointing more directly to interference with prospective economic advantage.
- D. Trespass to chattels involves intentionally interfering with another's personal property, which is not what occurred here.
Interference with Prospective Economic Advantage
This tort occurs when a defendant intentionally and wrongfully interferes with a plaintiff's reasonable expectation of economic benefit, causing the plaintiff to suffer economic harm.
- Requires an existing economic relationship or a reasonable expectation of one.
- Defendant must have knowledge of the relationship/expectation.
- Defendant must intentionally interfere with the relationship.
- Interference must be wrongful (e.g., by fraud, defamation, or other illegal means).
- Plaintiff must suffer actual economic harm as a result.
Memory trick: Prospective Advantage: Don't mess with my future money deals!