Business torts involve civil misconduct by organizations that affect other parties, including other companies. Business torts may provide the basis for commercial litigation if the affected party can prove their allegations in court.
When one company causes provable harm to another business, a lawsuit can help remedy the issue. Business leaders can take legal action in response to tortious interference with business contracts and defamation. They may also be able to ask the civil courts for support when they face unfair competition. Unfair competition can involve a variety of different inappropriate activities.
Does a price-fixing scheme meet the necessary legal standard to justify litigation on the basis of a business tort?
Price fixing is unlawful and harmful
Federal antitrust regulations address price fixing and other attempts to manipulate the market. Technically, businesses and service providers have the authority to price their goods and services however they choose.
However, their decisions can represent unfair competition in scenarios where they attempt to damage a competitor’s market share. Price-fixing schemes involve two or more professionals or business owners working cooperatively to manipulate the market.
Often, price fixing involves undercutting a successful company’s pricing, possibly by lowering prices to an unsustainable point. The goal of price fixing is to push out competition and force competitors to relocate or close.
Those with evidence that competitors cooperated to manipulate pricing and consumer decisions may be able to take legal action against competitors involved in the scheme. Discussing suspicions of price fixing with a legal professional can help frustrated business leaders evaluate their options, including business litigation.
