Practice question
A business loses customers to a competitor's lawful, honest competition. No fraud, unfair act, breach of duty or other legal wrong is established. Does the sales loss alone require the competitor to pay tort damages?
- No, the facts show loss without the required legal wrong
- Yes, lawful competition always guarantees compensation
- Yes, every competitor owes the other's previous income
- No, because commercial wrongs can never be actionable
- Yes, if one business opened first
Legal references
- Civil Code Articles 19–21 and 2176: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
- Sanggacala v. National Power Corporation, GR 209538, July 7, 2021, main decision: https://lawphil.net/judjuris/juri2021/jul2021/gr_209538_2021.html
Answer this question in flashcards to review your response and continue practicing.