Business Torts and Their Impact
Added on 2020-04-01
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Running head: BUSINESS LAW0Business LawAssignment
BUSINESS LAW1Negligence and MisrepresentationAs per Civil Liability Act 2002 (NSW), if a person did not perform his duty to care or caution,which resulted in injury to another person, it is called Negligence. As per Feldthusen (2000), negligence is a person’s failure to take appropriate care over something, due to which some financial or physical injury occurred. Any person suffering injury due to another person’s negligence can file a civil lawsuit to recover damages. There are several factors to constitute a person’s negligence. Section 5B provides that the person conducting negligence must have a duty of care for controlling something. Without a duty of care, a person cannot prove another person’s negligence. The happening of injury must directly relate to the act of another person’s negligence. Section 5F provides that the risk factor of negligence must be obvious to a reasonable person. Section 5D provides that the negligence person must be aware regarding the obvious risk and no safety measures were taken by him. In the recent case of West Star Transportation, Inc.v.Charles Robison and Cherie Robison, 07-13-00109-CV (Tex.App.2015), the court held the employer liable for the brain injury of employees, caused due to the working condition of the workshop.Misrepresentation is knowingly representing a false fact or not correcting any wrong information, with an intention to lure someone into entering a legal contract. According to Cartwright (2002), the person who believes in such wrong fact and suffered loss due to a legal contract can file a suit of misrepresentation against another party. The required steps formisrepresentation include intentionally showing or not correcting any wrong information while entering into a legal agreement with another party. The person conduction misrepresentation must be aware regarding the false fact. The person entered into the legal agreement must suffer any financial loss due to relying upon the wrong information.It is necessary that a business follow certain safety guidelines to avoid any lawsuit for negligence or misrepresentation. According to Owen (2006), there are several situations which can become the reason for business negligence suit, for example, it is the duty of business to maintain proper security measures for employees or customers visiting the workplace. If any employee or client suffered any injury or harm due to misplacement of tools or due to lack of proper protection of dangerous substances, then such business will be liable for the suit of negligence.
BUSINESS LAW2As per Harris and Bromiley (2007), if a business takes advantage of wrong facts to lure his clients into a legal contract, then such actions will be called a misrepresentation of facts. For example, if a person show manipulated financial account to his clients to give them false realisation that company is making huge profits to lure them into entering into a business contract, then such business will be liable for misrepresentation suit. False advertising by corporations to attract customers into buying their products are also a part of misrepresentation. In case of giving advice to another individual or business, it is necessary that advisor maintain the proper duty of care to avoid any harm or injury due to such advice. As per Stickley (2016), it is the duty of advisor to ascertain the difference between language and knowledge while giving advice and make sure that another party understands the content of advice. If the advisor failed to fulfill his duty while giving advice, it will be considered as negligence. An advice can be oral or written; the legal penalties for both advice are same. Giving someone false advice to motive them for entering into the legal business agreement shall be considered as misrepresentation. Any false advice from a public officer who is considered as an expert of his department shall consider as negligence or misrepresentation. For example, a lawyer who gives the wrong deadline of a certain case to his client, due to whom the client failed to file his lawsuit which causes him a financial loss, shall be considered as negligence. If a consultancy firm gives advice to his clients for investing in a certain business which is facing huge losses, it will be considered as misrepresentation. According to Bismark et al. (2010), any negligence or misrepresentation conducted by a business can have different consequences. A business can present the argument in court that there was no duty of care available and any reasonable person would have done the same. It is the duty of an injured person to provide the negligence or misrepresentation of business. The burden of proof shifts to the defendant once the claimant proves defendant’s duty of care.The consequences of a case depend upon the level of negligence and loss suffered by the party. As per Barker et al. (2012), the court can assess the situation of a particular case an award financial or punitive damages to the party. The future opportunities’ loss can also consider by the court while assessing a number of damages suffered by the claimant. To protect against a negligence lawsuit, a business can provide several defenses such as:1.Comparative Negligence: As per Schwartz and Rowe (2010), a business can provide the argument that injury suffered by the claimant is not due to the complete
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