Unified protection for the informed decision in business transactions by legal test

Abstract

Consumers and companies alike require to make countless informed decisions in the context of commercial activities. Going beyond the trivial purchase of a substandard good or service, the informed decision is a choice made after a comprehensive evaluation of the reasonably predicted possible outcomes of each potential option. A typical example would be a consumer without expert knowledge in energy, investing in a solar power system. Under such circumstances the consumer has to be aware if there will be a benefit compared to the no action alternative which requires both information provided by the manufacturer and possible reliance on expert opinion. Venture capitalists and hedging fund managers face similar circumstances where they need to invest based upon informed decisions of the subject as well as the risks. This paper investigates the available legal remedies in both local and foreign jurisdictions for consumers and companies when deprived of an informed decision due to restriction of information, deception or perfidy. Based on this, a judicial test is formulated to allow a generalized protection of the informed decision in business transactions.