...Contrast liability in torts with contractual liability 3 (3.2) Explain the nature of liability in negligence & (3.3) Explain how a business can be vicariously liable 4 (4.1) Apply the elements of the tort of negligence and defences in the above different business situations for the legal officer who is assigned to VJSC & (4.2) Apply the elements of vicarious liability in above different business situations for the legal officer who is assigned to VJSC 8 Conclusion 11 References 12 Introduction Law plays important roles to protect benefits, obligations and bringing fair for everybody in society. This report gives information about tortuous liability, contractual liability, vicarious liability, the tort of negligence and defences. After that, I can determine liability of person who is responsible when violations as well as providing advices for the legal problems in business of VJSC. (3.1) Contrast liability in torts with contractual liability * Tortuous liability will be applied when occurs the law violation of civil nature that infringes on the rights and legal interests of others as a legal entity or individual. In addition, the rights and legal interests are not specified in the contract between the parties. * Contractual liability is the parties sign in the contract based on satisfy about agreement, negotiation and terms of contract. They are completely voluntary to enter into a contract and having contractual liability each other. * The...
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...The Relationship between Principals and Agents in Business BUS311: Business Law I (BNJ1151A) Prof. Samantha Hodapp January 30, 2012 The Relationship between Principals and Agents in Business The relationship between a prinicipal and agent in business can and have been great; benefitting both parties involved while providing the best services or products to the consumer. Many businesses, or prinicipals, use an agent, such as an employee or sales representative, to represent the business when dealing with third-parties, also know as the consumer or client. For the sake of this writing this relationship will be based on the principal (A.O.I.), special agent(s) (sales representatives) and third-parties (clients). A special agent is a person delegated to act only in a particular transaction, under definite instructions, and with specific limits on the scope of his or her authority. (Liuzzo, 2009, pg. 259) An example in this case would be a sales representative who has authority to negotiate the price of a sale to a limit predetermined by the principal. Another example of prinicipal and agent relationships is GNC who argued that the conduct of McCreadies was sufficient to represent they had authority to enter a binding agreement on behalf of O2. McCreadies was hired by O2 to negotiate the terms of the contract and GPN argued that agents are commonly used to negotiate and enter into contracts and that O2 had at no time informed them of any restrictions of McCreadies’ authority...
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...COMPLEMENTS? LAURA POPPO1 * and TODD ZENGER2 1 2 Pamplin College of Business, Virginia Tech, Blacksburg, Virginia, U.S.A. John M. Olin School of Business, Washington University, St Louis, Missouri, U.S.A. Relational exchange arrangements supported by trust are commonly viewed as substitutes for complex contracts in interorganizational exchanges. Many argue that formal contracts actually undermine trust and thereby encourage the opportunistic behavior they are designed to discourage. In this paper, we develop and test an alternative perspective: that formal contracts and relational governance function as complements. Using data from a sample of information service exchanges, we find empirical support for this proposition of complementarity. Managers appear to couple their increasingly customized contracts with high levels of relational governance (and vice versa). Moreover, this interdependence underlies their ability to generate improvements in exchange performance. Our results concerning the determinants of these governance choices show their distinct origins, which further augments their complementarity in practice. Copyright 2002 John Wiley & Sons, Ltd. Transaction cost economics (TCE) has emerged as a common framework for understanding how managers craft governance arrangements. The general proposition of this literature is that managers align the governance features of interorganizational relationships to match known exchange hazards, particularly those associated with...
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...Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. The out-side person or company in this arrangement is known as a subcontractor, but may also be called a free-lance employee, independent contractor, or vendor. Many small businesses hire subcontractors to assist with a wide variety of functions. For example, a small business might use an outside firm to prepare its payroll, an accountant to help with its record keeping and tax compliance, or a free-lance worker to handle a special project. Subcontracting is probably most prevalent in the construction industry, where builders often subcontract plumbing, electrical work, drywall, painting, and other tasks. (a) "Contracting" or "subcontracting" refers to an arrangement whereby a principal agrees to put out or farm out with a contractor or subcontractor the performance or completion of a specific job, work or service within a definite or predetermined period, regardless of whether such job, work or service is to be performed or completed within or outside the premises of the principal. (b) "Contractor or subcontractor" refers to any person or entity engaged in a legitimate contracting or subcontracting arrangement. (c) "Contractual employee" includes one employed by a contractor or subcontractor to perform or complete a job, work or service pursuant to an arrangement between the latter and a principal. (d) "Principal" refers to any employer...
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...1. Please explain the crucial difference between a contractual relationship and an at-will relationship. The crucial difference between a contractual relationship and an at- will is the time frame of the relationship. In a contractual relationship, one party enters into a contract with another. For example in terms of an employment relationship, an employer would extend an offer the employee and the employee would accept the offer and a contractual relationship would exist. In an employment relationship, an employee with a contractual relationship has more right, bargaining power and could potentially have a specified timeframe of employment. In at-will relationship, a contract exist but both parties have the right to terminate the relationship...
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...LWC1 - Fundamentals of Business Law and Ethics Course of Study Your competence will be assessed as you complete the LWC1 objective assessment for this course of study. This course of study may take up to 10 weeks to complete. Introduction Overview There are the two major subdomains of study within the Fundamentals of Business Law and Ethics Course of Study: business law and business ethics. The exam covers 11 business law and ethics concepts, including the following: contractual relationship government regulation of business dispute resolution labor and employment law hiring and employment practices warranties, negligence, and liabilities Sarbanes-Oxley Act ethical issues in business ethical leadership ethics programs use of company resources You likely have had some experience with the legal system, either through your own encounters or merely through listening to the nightly news, and you have probably read or heard about various ethical and legal issues causing financial upheaval in today's business world. This background will serve you well in this study. Now you can expand on that experience, and perhaps refine and enhance your own views on these issues. Once you complete this course of study, you will have demonstrated a level of competence that you can immediately use in your work setting and career. Outcomes and Evaluation There are 10 competencies covered by this course of study; they are listed in the "Competencies for Fundamentals of Business Law and Ethics (LWC1)...
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...this scenario. Your report should be no longer than 3,000 words. 1 Differences Between Liability in Tort and Contractual Liability Contractual liability concentrates on what is in a contract and the obligations between the two or more parties of the contract. Both parties in contractual liability contracts are controlled by it and the terms stated in the contract cannot be broken. The terms of a contract must be fulfilled by both of the parties; otherwise consequences will follow if one party breaks the terms. Contractual liability contains conducting agreement and liability between businessperson and merchant. Tort law is used in situations where a person has done harm to another person. Liability varies significantly in tort law and contractual law in terms of issues of content. Contractual liability is based on agreement but tort law’s liability is not based on agreement. Also the way court provides compensations and how it deals with these two reflects on the difference between them. Contractual liability therefore concentrates on the contract and liability issues whereas tort of liability concentrates on what kind of harm or loss has the other party caused to the innocent party. In contractual liability both parties are aware and know well what they have agreed to when signing a contract. Usually only mistake or misunderstanding leads to breaking contractual liability. In tort of...
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...Supply Co. for $150 million in exchange for: * Assets of Rural Life Supply Co. that include: * Exclusive supplier contract of farming equipment with Farming Depot and non-contractual customer relationship with Farming Depot for routine purchases of power tools. * Exclusive supplier contract of power tools with Cattle Caller and non-exclusive contract associated with the customer relationship with Cattle Caller for the backlog of orders for farming power equipment. * Tom agrees to purchase Tractor Heaven for $90 million in exchange for: * Assets of Tractor Heaven that include: * Customer lists of Tractor Heaven, half of which contain confidentiality agreements. * Non-contractual customer relationship with Bonanza Farming. Issue: What is the appropriate GAAP and IFRS accounting treatment for Tom’s Tractor Supply acquisitions of Rural Life Supply Co. and Tractor Heaven? Analysis: Deloitte guidance FASB ASC-805-20-55-20, 805-20-55-55 **SEC S99-3: At bottom of 805 stds page Conclusion: GAAP-Tom’s The exclusive supplier contracts Tom’s acquired from RLS are identifiable intangible assets, and are accounted for separately from goodwill as prescribed by ASC 805-20-55. Additionally, the non-exclusive, non-contractual customer relationship with Farming Depot acquired by Tom’s is an...
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...describing it as an exchange relationship that is established orally or in written form that is made between two or more individuals, contains at least one promise, and is recognized as a legally binding agreement (Blum, 2011). The focus of this written assignment examines the elements that must exist for a contract agreement to be considered enforceable by law. The assignment will examine the following contractual elements including: (a) offers, (b) acceptance, (c) legal consideration, (d) capacity, and (e) legality of purpose. In addition, the assignment will identify the components that govern the parameters of common law and the Uniform Commercial Code (UCC). For the purpose of this study, a fictitious scenario (myself) has been hired and offered a two year contract as the head chef of the Fabulous Hotel Company. As a sample to illustrate contractual issues that individuals may encounter, the agreement contains a non-compete clause that will serve to provide a closer analysis of specific contractual obligations and restrictions. The findings of this assignment will conclude that the courts are not able to successfully arbitrate disputes without an essential contractual agreement to define the terms that make it enforceable by law. The Anatomy of Contracts Without agreements spelled out in contracts, the courts are unable to adjudicate promises between individuals. In today’s business environment, many professionals find themselves dealing with contractual issues in one way or...
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...needs and demand to outside of the world and get the best solution. All these developments have made our business world faster than ever and this trend is still going on. But to take any sort of massive or minor project, we have to sit with many different parties and make lawful agreement with them so that one party can demand for their legal right if necessary. This assignment has been designed completely on aspects of contract. How a contract can be formed and what are the necessary elements for the formation of a contract have been comprehensively explained here. Table of Contents Executive summary ii Introduction 1 01 Initial evaluation 1 1.1 Explanation of the importance of essential elements required for the formation of a valid contract 1 1.2 The impact of three methods in terms of forming and binding enforceable contract under the English Law. 2 02 Initial Business situations 4 2.1 Essential elements of a valid contract to advise Andrew 4 2.2 Law on contract terms to advise Cheltenham Champions Hotel on the claim of the guest 5 2.3 The effect of the contract terms to advise the downton hotel will be described in below 5 03 Further assessment 6 3.1 Contrast liabilities in tort with contractual liability 6 3.2 Explanation of the nature of liability in negligence 6 2.3 Explanation of how a business can be vicariously liable 7 04. Further Business Situations 8 4.1 Understanding of the elements of the tort of negligence and defenses to advise Head...
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...function in the business world. The law in relation to the liability of auditors changed significantly with the introduction of Companies Act 2006. It is now possible for audit firms to limit their liability towards clients through contractual agreements. The current auditing liability regime has proven to be controversial. This essay will first present the relevant liability rules and examine the underlying problems, then evaluating the significance of these rules with regard to auditing reforming. Overall, an auditor can be liable either in contractual, tortious or criminal circumstances. Each of these areas will be discussed in turn. I. Contractual Liability There is usually a contract that exists between the audit company and its client which gives rise to a contractual relationship and its surrounding duties. If an auditor does not exercise reasonable care and skill, the client company will be able to claim for damages for any loss arising from the situation. The auditor’s implied contractual duty of care is owed to the company and not to individual members as the contract is formed with the company as a separate legal person. The role of auditor is to “ascertain and state the true financial position of the company at the time of the audit, and his duty is confined to that.” To discharge this duty fully, basic check of the accounts is needed; some form of enquiry would be required as well. While the standards required in relation to contractual liability are increasing...
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...Vertical marketing system Contractual vertical marketing system (Contractual VMS) is one of Vertical marketing systems. In this system, independent firms at different levels of production and distribution work together to achieve greater economies or sales than they would on their own. These firms coordinate their strategies through contractual agreements in order to eliminate channel-conflict that may arise out of individual objectives. It is value-adding partnership (VAP). Contractual VMS come in three types: Wholesaler-sponsored voluntary chains, retailer cooperation, franchise organization. Vertical Marketing Systems (VMSs) include three types: corporate, administered, and contractual. In a corporate VMS, one member of the distribution channel owns the other members. Although they are owned jointly, each company in the chain continues to perform a separate task. In an administered VMS, one member of the channel is large and powerful enough to coordinate the activities of the other members without an ownership stake. Finally, a contractual VMS consists of independent firms joined together by contract for their mutual benefit. Contractual system is the most popular VMS, accounting for about 40% of all retail sales. Caterpillar focuses on developing powerful partnerships with its dealers, and its dealers would like to work together with Caterpillar. They both contribute to their mutual benefits. First, they “share the gain as well as the pain.” When times are good, Caterpillar...
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...BBC203 Business Law Ass. No. 2 Essay Q.1 Student No. 201212185 What is vicarious liability? Analyse the differences between contractors and employees and explain why these differences are important, in your answer you should consider the multi-factor test. Vicarious liability is a part of Tort law, which can be defined as the imposition of liability on a third party, such as an organisation or employer for the wrong actions, non-actions or negligence of an employee performing their employment duties on behalf of the organisation or employer. It is mostly a component of common law, set by a doctrine of judicial precedents but also involves civil law as vicarious liability falls under concurrent powers with its legislative power of the Parliament, shared between both federal and the states jurisdiction to pass statutes, legislations and Acts (Pendleton & Vickery, 2009). Vicarious liability can only be imposed with a standard of proof, ‘the balance of probabilities’, based on a multi-factor test rule, which includes the usual tests of negligence by the tortfeasor’s conduct, with a dispute process based on proving a ‘balance of probabilities’. To understand vicarious liability it is important to first outline the legal responsibility of an employer for the conduct of employee’s. Employers are responsible to actively contrive precautionary measure, such as policies, procedures and contractual boundaries to minimise the risk of an employee committing a wrongful act while within...
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...Week 5 Final Paper Betty Poppins Bus 311 Instructor Brandy Krectzburg 7/01/13 Business Contracts: Protocol, Laws & Ethicality There are various kinds of contracts which arise within our business world today; contracts are an essential component to business livelihood. Although a contract is an agreement, not all agreements are valid contractual obligations. In order for any contract to be an official and legally binding agreement, there are essential requirements which must first be fulfilled. Because contracts are vital to the organization and its success, it is important that the organization has an inclusive understanding of the inner workings of business contract and law and sustaining ethicality within these agreements; this will help ensure that each and every business transaction is a smooth and successful endeavor from beginning to end. What is a contract, and what makes it valid? According to Essentials of Business Law, by Susan Rogers (2012), a contract is described as being “a legally enforceable agreement between two or more people.” Therefore, a contract emerges from the voluntary consent of two or more people with mutual accordance to enter into this agreement. Contracts are helpful to business, as these agreements are binding to both parties involved. In order for a contract to be a valid and binding agreement there are five fundamental yet essential elements that must be present, and these are: 1. The Offer, 2. The Acceptance, 3. Consideration...
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...BUSI 2601 BUSINESS LAW Maven House Press Booking Publishing Agreement Analysis Nov 2, 2015 Yuxuan Tang Student ID 100949179 CONTENT Part I - Executive Summary 2 Part II – Objectives, Methodology, Ethic issues and Relationships 3 Part III – The Clauses 6 Part IV – The Notions and Principles 20 Part V – Recommendation and Lessons learned....................................................29 Part VI – Legal Corrective Measures with Provisions............................................31 – Part I. Executive Summary Law is an artificial tool that governs an individual’s daily behavior. It outlines the right and wrongs of each individual and governs their conduct. The law can protect people’s basic rights and prevents people from choosing the wrong path and impose penalties to people who bring harm upon others. It is a solution to many disputes and complications. People may also fall into a dilemma when relationships are involved, law can help people leave their relationship aside and deal with their current situation and come up with a fair judgment. A contract is, “a deliberate and complete agreement between two or more competent people, not necessarily in writing, supported by mutual consideration, to do some act voluntarily that is enforceable in a court of law”[1]. This report provides an analysis of the publishing agreement between an author and a publisher...
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