Amarjeet and Doris Were Competitors in the Widget Industry

question 14

Essay

Amarjeet and Doris were competitors in the widget industry. In an over- exuberant effort to take over her business, Amarjeet told Doris that he would spread false and unflattering rumors about her unless she sold her company to him. While Doris was initially quite frightened by Amarjeet's behaviour, she eventually refused to sell her company to him. She has now sued him for the tort of intimidation. Amarjeet has argued in defence that he acted solely for the purpose of furthering his own financial interests, and not out of a desire to hurt Doris. The evidence indicates that he is telling the truth in that respect. He also resists liability on the basis that he never actually did defame Doris as he had threatened to do. Will either of those defences protect Amarjeet from liability? Is there any other basis upon which he can avoid liability? Explain your answers.

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Definitions:

Finance Charges

The cost of borrowing money, including interest and other fees.

Accounts Receivable Turnover

A financial ratio that measures how effectively a company collects cash from its credit sales by comparing net credit sales with the average accounts receivable.

Average Collection Period

The average amount of time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Net Sales

The total revenue from sales of goods or services, less returns, allowances for damaged or missing goods, and discounts.