Impact of An Ethical Framework

Running head: CASE ANALYSIS
CASE ANALYSIS
Name of the student
Name of the university
Author note

CASE ANALYSIS1
Situation: 1
The plaintiff, in order to succeed the suit for negligence, it must be required to establish
that all components. For example, if the factor is damages, then that indicated that the plaintiff
suffered loss or injury in terms of damages. In that case, the defendant then held to be
responsible. Therefore on the basis of the verdict of the case of negligence, the juries are initiated
to make the comparison of testimony, facts, and evidence for the purpose of determining as to
whether the requisite elements are fulfilled (Doecke, 2015). The elements are duty, breach of
obligation, cause, in fact, proximate cause, damages. The duty in the case of negligence rest on
as to whether the defendant owes an obligation to take care of the plaintiff. The obligation
evolves when the legislation determines the association between the plaintiff and the defendant,
obliging the defendant in the particular case to act in a specific manner. Therefore ordinarily, the
judge determines whether the duty to take care owed by the defendant towards the plaintiff. The
duty is assumed to exist if the prudent person finds the existence of duty under certain situations
(Beran, 2017). The breach of obligation is another significant component of the law of
negligence by which the plaintiff has to establish that the negligent party that is the defendant
violates the duty towards another person. The defendant commits breaches of duty if he fails to
take the standard of care in carrying out his obligation. The cause in fact involve the plaintiff
should establish the action of the defendant is the actual cause of the harm or injury of the
aggrieved person (Foley & Christensen, 2016). The proximate cause connects to the extent of
responsibility of the defendant in the case of negligence. The defendant is only accountable for
the harm that is foreseeable to the defendant through his conduct. Finally, the plaintiff needs to
establish harm or injury that is recognized by law.

CASE ANALYSIS2
In the landmark case of Donoghue v Stevenson [1932] UKHL 100, it held that the
basis of the contemporary negligence law creating general standards of duty to take care. In the
case of Bolton v. Stone [1951], AC 8501All ER 1078 is a leading case of negligence
law that establishes that the defendant is not held to be negligent in case harm or injury to the
plaintiff was not foreseen as the consequence of action. In the case of Hedley Ltd v. Heller
& Partners Ltd [1964], AC 465 is the English case of the law of tort on the financial loss
resulting from negligent misstatement. In the case of Deloitte & Touché v. Livent Inc., 207 SCC
63 is the landmark case concerning the obligation of care that the auditors have towards the
client at the time of professional engagement. In the case of Esanda Finance Corporation Ltd v.
Peat Marwick Hungerford’s, it was held by the high court of Australia concerning the obligation
of auditors to the third parties. In the case of Scott v. McFarlane, it was held that the auditor was
responsible for damages concerning the act of negligence to the third parties who rely on the
auditing report.
Oscar Edwards Vance is an accounting firm having its office throughout Australia. It is
an auditing firm, and most clients operate in service industries and manufacturing. Framed Ltd is
the wholesaler and sold the products to the retailers. Framed went in liquidation as the company
failed to pay its unpaid debts. The Framed liquidator found that fraud had been committed by
Framed sales representatives who do the same for attaining sales incentives. Therefore OEV
takes the obligation to supervise the auditing process. However, the company fails to carry out
his obligation that amounting to gross negligence. Thus the liquidator of the company of Framed
is seeking compensation from OEV. The damages are claimed by them on the ground of the
negligent conduct of OAV. OAV fails to exercise reasonable care in detecting fraud that is
carried out in the company of Framed.