Tort Law and Business Practices
Added on 2020-03-28
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Running head: BUSINESS LAW0Business LawAssignment
BUSINESS LAW1Negligence and Misrepresentation in Business Negligence means carelessness by a person to perform his duty of precaution, which causes a monetary or non-monitory injury to another person. According to Feldthusen (2000), failure or not providing enough attention to a person to take control of something, which resulted in injury to another party, is called negligence. The injured person can file a civil lawsuit againstanother person’s negligence to recover his damages. As per Civil Liability Act 2002 (NSW), there are few steps to prove a person’s negligence in the court. The section 5B of this act provided that to prove a person negligent, it is necessary that such person has a duty of care. Without a duty, an action cannot be constituted as negligent. Section 5D required that such person must be conscious about the risks but no active steps were taken by him to avoid such danger. Section 5F requires that the risk must be obvious to a sensible person. In West Star Transportation, Inc.v.Charles Robison and Cherie Robison, 07-13-00109-CV (Tex.App.2015) case, the employer held liable for negligence since no steps were taken by him to protect his employees from dangerous radiation caused in the workplace. Many employees suffered from mental injuries due to lack of protection.Misrepresentation means misleading a person into signing a lawfully binding contract, by representing wrong information as true fact and the person entering into such contract has suffered some monetary loss. As per Cartwright (2002), in misrepresentation, a person uses wrong information to lure another person into signing a contract, which causes financial damage to such party. If a party did not rectify a wrong fact, it will also be constituted as misrepresentation. The person suffering loss can file a civil lawsuit to cover the damages caused due to misrepresentation of information (Bismaer et el. 2012). To avoid any injuries which lead to a negligence lawsuit, retailers should maintain proper care in his premises. According to Owen (2006), the product in the premises should be placedcorrectly so they would not cause an injury to customers. The dangerous substances should be out of the reach of customers and store at safe places. For example, the retailer should regularly clear the floor of the premises. If a sharp object placed on the ground cut the leg of customers, then such customers can file a negligence lawsuit against the retailer.
BUSINESS LAW2A business should maintain certain guidelines while entering into a legal contract with another party. As per Sawer (2013), all the necessary information which affects the parties of such contract must be provided up front without any alteration. Any changes in the details or hiding of any critical facts can lead to a suit of misrepresentation. For example, if the financial statement of a business is necessary in a contract and in order to attract another party, the business fabricates its statements to make them look more appealing to another party. If the other party enter into such contract by based upon the information of financial statements and suffered loss, then such business shall be liable for misrepresentation lawsuit. It is necessary that proper duty of care is maintained by a person while giving an advice to another person. An advisor should maintain proper caution while giving advice, to avoid any injury or harm caused to another party. Stickley (2016) provided that the advisor should determine the dissimilarity in language and intelligence of another party while giving any advice if he failed to comply with his duties than he shall be liable for negligence. The liability for wrong advice, whether oral or written, is similar. If wrong advice is given to a party with an objective to lure them into a lawfully binding contract, then such advice shall be considered a misrepresentation. Any wrong advice given by a public officer, who is considered as a specialist of his department, shall be considered as negligence or misrepresentation. For example, a lawyer is considered an expert of law, if a lawyer gives a wrong advice to his client regarding deadline of a case, and such client failed to file a suit dueto the wrong deadline, then such lawyer shall be liable for negligence. Any wrong information provided by an investment firm for attracting the client to invest into a project shall be considered as misrepresentation.The consequences of a negligence or misrepresentation lawsuit are depending upon the facts of such case. Usually, another party argues that there was no duty for caution and the act of claimant was not sensible as per a reasonable person. As per Collingwood (2010), the claimant has to prove that defendant has a duty of care which he failed to perform, and such negligence resulted in the injury of the claimant. If the defendant duty of care is proved, then the defendant has to prove that actions of the claimant were unreasonable. The consequences of a lawsuit are depending upon the injury suffered by the claimant. The court analysed the condition of a case and award either punitive or financial damages to the parties. The damageof future opportunities is also determined by the court while providing the damages to the injured party.
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