...impede achieving organisational objectives/opportunity” (Harb. 2008, slide 4). The student writers were asked to watch a video in which product liability was an issue. In the video, Non-Linear Pro sold an underperforming editing system to Quick Takes Video. The students were asked to identify potential tort risks in the video, to use the seven key elements of successful enterprise risk management to help mitigate associated risks, and to determine the criteria of involving legal counsel in product liability disputes. Potential Tort Risks Business-to-business sales are an important aspect of a supply and demand economy. In the video case study Product Liability the transaction demonstrated highlights some of the tort scenarios a business manager may encounter during the course of business. The torts risks in the video are classified in three categories. Although not all the tort risks are appropriate for follow up action, one tort risk is a clear violation. Through a process of analysis, the determination of the business manager may be to involve legal counsel to recover damages for the tort. There are three categories of tort doctrine. As stated by Cheeseman (2010) “These tort doctrines include negligence, misrepresentation, and the modern theory of strict liability” (p. 94). Although the purchaser will likely have a difficult time proving negligence, the other two doctrines are appropriately demonstrated in the video case study. Misrepresentation is described by Cheeseman...
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...A tort is a civil violation that causes injury or harm to a party, which tort law seeks to provide relief for those damages (Tort Law Overview, 2010). There are several main categories of tort law that are “intentional torts, negligent torts, and strict product liability torts” (Tort Law Overview, 2010, para. 4). We will use the above-mentioned categories to discuss the tortious acts caused by Nonlinear Pro against Quick Takes Video. We will identify potential tort risks, apply Harb’s 7-step risk management process to the main tort violation to mitigate the risk, and discuss when it is time to involve legal counsel. Potential Tort Risks After reviewing the product liability video Team A found there were a number of torts violations, we will discuss intentional torts, negligence, product liability. Intentional Torts According to Cheeseman (2010) an intentional tort is, “a category of torts that requires the defendant possessed the intent to do the act that caused the plaintiffs injuries” (p. 75). Here, we will discuss how Nonlinear Pro intentional misrepresented the product to Quick Takes Video. Intentional Misrepresentation. Intentional Misrepresentation is, false representation of material facts with the scienter, the innocent party must rely on the misrepresentation, and there is an injury (Chesseman, 2010). Nonlinear Pro promises Quick Takes Video a superior product that will meet their needs and cut project time in half. These benefits came at a lower cost than their...
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...Enterprise Risk Management Lori Abbott Law 531 September 24, 2012 Charles Burr Enterprise Risk Management Enterprise risk management (ERM) is the latest name for a risk management approach to business risks. Forerunners of this term include corporate risk management, business risk management, strategic risk management, integrated risk management, and holistic risk management (D'Arcy, 2001). Implementing the techniques of ERM will allow businesses to manage any potential tort issues and manage any potential civil suit cases. Tort is defined as a wrongful act or damage done willfully or negligently. The circumstances involving a tort can be strict liability or breach of contract that can bring about a civil suit (Cheeseman, 2010). This paper will provide potential tort risks that arose in the product liability video between Non-Linear Pro (NLP) and Quick Takes Video (QTV), identify a tort violation, and apply the 7-step process of enterprise risk management to mitigate the business risk associated with the violation. Potential Risks Some of the potential risks for NLP are the editing system has taken longer to set up, it has defects in manufacture and design, and it is an inferior product that did not meet the expectations of QTV. QTV leased the editing system from NLP with the understanding the new editing system would save QTV a substantial amount of time. The fact the videos had to be digitalized before the editing system could used was not mentioned...
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...Chapter 21 Warranties and Product Liability • Warranty, which is an assurance provided in a sales contract • Negligence, which refers to unreasonable conduct by the defendant • Strict liability, which prohibits defective products whether the defendant acted reasonably or not. A warranty is a contractual assurance that goods will meet certain standards. An express warranty is one that the seller creates with his words or actions. The UCC establishes that the seller may create an express warranty in three ways: (1) with an affirmation of fact or a promise; (2) with a description of the goods; or (3) with a sample or model. In addition, the buyer must demonstrate that what the seller said or did was the basis of the bargain. A statement is more likely to be an affirmation of fact if: • It is specific and can be proven true or false. Suppose the brochures of a home builder promise to meet “the strictest building codes.” Since there is a code on file, the builder's work can be compared to it, and his promise is binding. • It is written. An oral promise can create an express warranty. But promises in brochures are more likely to be taken seriously. Statements in a written contract are the likeliest of all to create a binding warranty. • Defects are not obvious. If a used car salesman tells you that a car is rust free, when the driver's door is pockmarked with rust, you should not take the statement seriously— since a court will not, either. • Seller has greater expertise...
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...“A satisfactory justification for strict liability in tort law has yet to be found.” It is generally recognised that being responsible at law or in ordinary life are very different concepts: one is based on blame while the other focuses on fault. This imbalance is embedded in the tension between the two bases of liability recognised in the law of torts. On the one hand, as stressed in Hoffman v Jones, ‘the most equitable result that can ever be reached by a court is the equation of liability with fault’. Courts have energetically defended the view that fault is crucial in establishing responsibility. On the other hand, the same jurisdictions have operated a shift since Rylands v Fletcher from this doctrinal claim to adopt a strict liability standard in particular circumstances. Despite its appearance in statutes, many claim that a satisfactory justification for strict liability in tort law has yet to be found. This essay will nevertheless argue that this stand is unsupported and untrue: it is nonsensical to call for one unique explanation for this area of the law. The law on strict liability responds to a social demand which should not be reduced to one ‘metatheory’. The first two parts of this essay will be dedicated to the analysis the ‘social and economic benefits’ of strict liability mentioned in Chavez v Southern Pacific Transportation Co. We shall then argue that these justifications are best understood when interrelated with a broader moral justification. I] Social...
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...ERM Team Paper Whenever an individual purchases a product he or she has certain expectations. One expectation may be that the product works the way it is advertised. Quick Take Video is in dispute with Non-Linear Pro for an alleged faulty video editing program. Team B will identify the potential risks that arose in the product liability dispute, identify the tort violations, and use the seven-steps process to apply the risk management process mitigating the business risks associated with the violations. Identification of the Potential Risks that Arose in the Product Liability Video Entering into a contact creates the potential for tort risks and violations. Regardless of the type of contract that we enter when purchasing a product, when one expects the product to work for the purpose in which it was intended. In the product liability video that Team B viewed, Non-Linear Pro implied that their video editing system was an easy to learn, top-of-the- line video editing system. After putting the equipment to use, employees began to realize that the top-of-the-line system was everything but top of the line. Inadequate memory, the Non-Linear Pro’s editing system could not keep up with the high-resolution and crashed constantly. Employees had each taken a one-day course with their trainer, reviewed the video tutorial and read the manual, without any positive results. It is very clear that the Non-Linear Pro misrepresented the quality of their product to Quick Takes Video....
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...CHAPTER 16---THE LEGAL AND REGULATORY ENVIRONMENT OF BUSINESS………….50 things! 16.1 LAW AND THE LEGAL SYSTEM 1. How does law differ from the legal system? * The legal system evolves to respond to changes in social norms and commercial activities. . Legal system is remarkably fair. The legal system establishes the rules of the game, adopting and enforcing them in a reasonably predictable manner. One U.S. law that creates unique challenges for American firms operating overseas is the Foreign Corrupt. Practices Act, which prohibits the distribution of bribes and other favors in the conduct of business. 2. Should laws be flexible? * Rules and Regulations provide a framework to any system. I believe that Laws should never be bounded by situations they should be equal for everyone under any circumstances. Flexibility would only make the system vulnerable. 3. Are our laws fair? * There are, of course, abuses and mistakes by judges and juries, and procedural mishaps occasionally tip the scales of justice in the wrong direction. Sometimes—as in George McGovern’s case—innocent parties are forced to bear the cost of defending themselves in court. On the whole, however, the U.S. legal system is remarkably fair. 4. Do people consider laws fair? * I think most of the people consider that a United States law is not fair. 5. In the United States legal decisions are based on the rule of law. What is the rule of law? * Predictability and Fairness. How do we...
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...ANTICIPATORY REPUDIATION -remedies -partial breach PG 169 ANTICIPATORY REPUDIATION -anticipatory repudiation CONTINUED PG 170 -held repudiation one of three ways- - A statement , action , knowledge maybe unable to perform PG 171 REMEDIES - Money damages - Compensation (direct damages) consequential damages, restitution, liquidated damages RESTITUTION -unjust enrichment EQUIPABLE REMEDIES -equitable relief – primarily in the form of specific performance, injunctive relief, reformation PG 173 AVOIDANCE AND MITIGATION OF DAMAGES PG 174 CONTRACTS INVOLVING RIGHT OF THE THIRD PARTY -assignment, delegation, third party beneficiary CHAPTER 9 TORTS AND PRODUCTS LIABILITY PG 208 OVERVIEW OF TORT LAW -tort -tortfeasor -Tortious conduct SOURCE OF LAW -restatement of torts...
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...legal issues that will be presented within this paper. In addition, the legal principles that apply to each of the issues will be discussed. Product Liability is the type of law that holds manufacturers, distributors, suppliers, retailers, and others involved with the product reponsible “for any damage caused by that product (Products Liability Law). This paper will contain important factors about the Product Liability video. For example, Potential tort risks that were addressed within the video will be identified. In addition, a tort violation from the video will be identified. This, in turn, will provide the 7-step process to be applied to the risk management process to mitigate the business risk associated with that violation. Lastly, the criterion in determining if it is an appropriate situation to involve legal counsel in regards to the breach of warranty occurrence will be evaluated. Potential Tort Risks First of all, there are several potential tort risks that are addressed within the Product Liability video. Tort law basically protects individuals from various enterprises and other parties from injuring the innocent either recklessly or negligently. For example, the video explains how the product quality was not represented properly. The company is at fault because they really misrepresented their product for consumers to pay. When the manufacturer expressed that the equipment would do what the consumer expects and it doesn’t live up to...
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...ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS Unit code 6 STUDENT NAME CALIN ZIMBRAN Student ID: p1002572 London 2013 Contents The essential elements of a valid contract in a business context 2 The impact of different types of contract 3 Terms in contracts 4 Elements of contract in given business scenarios 4 Law on terms in different contracts 5 Effect of different terms in given contracts 6 Liability in tort vs. contractual liability 6 Nature of liability in negligence 7 Vicarious liability 7 Elements of the tort of negligence and defences in different business situations 7 Elements of vicarious liability in given business situations 8 References: 8 The essential elements of a valid contract in a business context There are 4 essential elements necessary to form a valid and legally binding contract: 1. Agreement, which means offer and acceptance (notice that even though we put in the same category, they should be treated as two separate entities); 2. Consideration; 3. Intention (to create a legal relation); 4. Capacity. Even though we have 5 elements, which must all occur in order to generate a contract, the most relevant and the main indicator of a potential legally binding contract are the offer and the acceptance. This step can be long and difficult but once it comes to a conclusion, steps 2 to 4 can occur at the same time. The offer An offer expresses the strong will of a person making the offer (the offeror)...
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...Law 252 Business Torts — Week One Course Reading Assignment 1 Part One: The "borderland" between tort and contract. Sommer v, Federal Signal Corp., 79 N.Y.2d 540 (1992); IKEA North American Services, Inc. v. Northeast Graphics, Inc., 56 F.Supp.2d 340 (S.D.N.Y. 1999). Part Two: Introduction to the economic loss doctrine. Grams v. Milk Products, Inc., 283 Wis.2d 511 (2005). ' I have edited the cases in this attachment. Le • ' 593 N.E.2d 1365 79 N.Y.2d 540, 593 N.E.2d 1365, 583 N.Y.S2d 957 • (Cite as: 79 N.Y.2d 540, 593 N.E.2d 1365, 583 N.Y.S.2d 957) Page I .'Sommer v. Federal Signal Corp. N.Y.,1992. Court of Appeals of New York. Beverly SOMMER et al., Respondents-Appellants, v. FEDERAL SIGNAL CORPORATION et Respondents-Appellants, andHohnes Protection, Inc., Appellant-Respondent, et al, Defendant (And a Third-Party Action and All Related Consolidated Actions.) May 12,1992. OPINION OF THE COURT KAYE, Judge. substitute-initially understood that 810 wanted normal service restored. But as the brief conversation proceeded, the dispatcher became confused by the caller's repeated insistence that he would "activate" the system and the dispatcher concluded-without attempting to elicit greater clarification from the caller, or any other confirmation-that 810 wanted its system taken out ofservice. Seven to nine minutes later, Holmes began receiving fire signals from the building. However, consistent with his mistaken impression that the system was to be taken out...
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...Is the move away from contract and towards tort in product liability cases desirable? Introduction The approach taken with product liability cases has shifted over time. The Sale of Goods Act (1893) was an act put in place to state the terms and conditions of the contracts for the buying and selling particular goods. This act was later reformed in 1979, which fundamentally followed the same rules; the buying and selling of good were regulated by contractual agreements between the buyer and the seller. However as time progressed the sale of goods and product liability is moving from contracts and more towards tort liability. Contracts are legal promises between the buyer and seller in which the buyer promises to pay for a product that the seller must promise adheres to the standard expected from the product. A breach of contract includes that the buyer does not pay the right amount, or the more likely breach that the product has a design or manufacture defect that causes injury to the buyer. Tort liability instead simply makes the manufacturer responsible for any ‘injuries’ that the product causes the consumer. The idea behind this was because the seller is simply the agent of the manufacturer who has no part in the production process of the good sold. In this essay we will explain why product liability is starting to shift from contracts to tort. We will also discuss how tort law has developed over time focusing on the negligence rule and strict liability. Product liability...
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...1. Introduction 1.1 From the dawn of human civilization, we, human being are directly or indirectly dependent to each other. For our better living, we created family, then formed group/society, then country and international community. Each individual, each family, each group and each country are dependent on each other by some means. For the easy exchange of dependency, people introduced business. “Business is defined as the exchange of goods, services or money for mutual benefit or profit.” (Skinner and Ivanncevich, 1992, p.8) The organizations that involve in profit making activities are called business organizations. Business may be trade, commerce or industry. To make business organized, it must be governed by some rules and regulations which we call business laws. Each country has independent business laws. Business organizations must operate within the boundaries of laws and government regulations. 1.2 Laws have been developed not only to protect consumers but also to preserve competition. Government agencies enforce these laws at the federal, state, and local levels. Business firms that do not comply with the laws face fines and other penalties. 2. Aim The aim of this assignment is to give a general idea regarding the laws that affect business. 3. Scope In this assignment I have limited my focus on the laws of Bangladesh that affect business. However, I have also focused on some of the laws of USA, UK and India those affect business but not yet clearly...
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...Non-Linear Pros claims that QTV would “be twice as fast” . They had been making efforts to make progress for two weeks, but had only found that the equipment had a great number of bugs in it. In addition, in the course of attempting to operate the equipment, one of the editors at QTV injured her hand on a sharp piece of metal on or near one of the drives. The area did not contain a warning label. It is clear that Non-Linear Pro has “misrepresented the quality of the product” and can be sued for the tort of misrepresentation. There was an expressed warranty from the representative of Non-Linear Pro, which included a specific statement of fact that the editors at QTV would be “up and running in a day and a half” and that they would be “twice as fast” in their editing. This could entitle QTV to damages including the “benefit of the bargain,” or what QTV might have made had the video worked, and what it cost QTV in terms of worker hours. Non-Linear Pro could also be sued for the tort of negligence because the company failed to include a warning label on a dangerously sharp piece of metal on their equipment. In this case, Non-Linear Pro...
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...HND BUSINESS MANAGEMENT COURSE: ASPECTS OF CONTRACTS AND NEGLIGENCE FOR BUS [Type text] Page 1 Tables of contents Executive summary-----------------------------------------------------------------Introduction--------------------------------------------------------------------------Case study 1a Augustine and Christina------------------------------------------1b Augustine and Florence------------------------------------------Case study 2a Richmond consultancy business---------------------------------Case study 3 Catherine and Daniel---------------------------------------------Case study 4a Telephones supplied cannot be modified--------------------4b Telephones supplied can be modified-------------------------Case study 5 Grace and Office Supplies Ltd-------------------------------------Case study 6 Alfred and George------------------------------------------------------Case study 7a Test for a Tortfeasor as an Employee------------------------------7b Test to determine if employee’s act was during employment-Case study 8a Mary and Barnett Hospital-----------------------------------------8b Mary and Joe---------------------------------------------------------8c Mary and Thomas--------------------------------------------------Conclusion---------------------------------------------------------------Reference/Bibliography------------------------------------------------ Pages Executive summary [Type text] Page 2 This report is made of eight sections (case studies)-case...
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