Explaining Key Elements of Duty of Care and Negligence in Business Law

This essay explains the concept of Duty of Care and Negligence in Business Law, covering its key elements and relevant case laws. It also discusses the importance of Duty of Care in business organizations.

BUSINESS LAW

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Explain and critically evaluate the key elements of the concept of Duty of Care and
Negligence...................................................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business laws are those laws that is used over establishment of business organization that
has been formed according to legal framework provided by an country. These laws has been
helping in making objectives and goals formed by an organization achieved in more effective
manner. These law makes business organization perform functions in effective manner. Also the
laws helpful for making business attain various aspect which makes working environment
improved in effective way. These laws leads over growth of an business organization possible
through making it attain sustainability. Scope of the laws is wider in nature that enhances
business entity with its working process. Nature is dynamic which makes business organization
growth possible in correct manner. Further the essay covers about negligence in duty of care that
is part of law of torts. These laws are used in order to solve issues related to an individual in
more effective way which covers duty of care towards each other.
TASK
Explain and critically evaluate the key elements of the concept of Duty of Care and Negligence
Law of torts means that kind of laws which is been used over handling of different acts
that takes place within day to day basis within the life of an individual. These laws are general in
nature and has been covering any wrong committed between two individual. In this law various
kinds of theories is been given by various law analysis. One of the main theory is of pigeon hole
theory that has segregated crimes covered under tort in six main category(Moscati, 2021). Under
law of torts various kinds of topic like tortious liability, vicarious liability, tress pass, strict
liability, battery ,assault and negligence is been covered. The main topic which is used within
essay is based over negligence that is one of the most important aspects in relation to duty of
care. Negligence is the wrong which is been used over making omission of act required to be
recognized over time when an action is committed. In other words negligence is based over those
aspects which could have been seen in effective but has been ignored by another
person(Ogunranti, 2021). One of the most important part of negligence which is covered within
law of torts is duty of care. Duty of care means those relationship and conditions that has been
recognized as legal obligation regarding duty that has to be performed. Failure to perform such
duty give rise to legal liability in relation to the act which has been ignored by another party but
could have been performed. As per such legal obligations damages should be claimed by the

claimant or party suffered such an injury over the condition that has caused breach of duty of
care. In this it is required by claimant to establish such condition which makes another party
liable over condition for duty of care. In other words existence of duty of care is dependent upon
losses that has made various conditions arise resulting in making different tests applied over
making justification upon those conditions. These tests are based over certain elements that are
psychiatric injury, pure economic loss and defective items. Such elements has made
establishment of such duty in more affective way that leads upon creating better framework for
its establishment(Kruessmann, 2021). These tests cover about both ethical and legal obligation
making good faith developed with prudent responsibility. It is required over exercising of utmost
care within an business organization that directly impacts decision making of an organization.
Since duty of care give rise to fiduciary duty which is required to be followed within the business
organization. Thus duty of care means fiduciary responsibility that is been used by companies
directors by making companies standards more advanced in nature leading towards applicability
of such duty in correct manner(Moloney, 2021). It is been used by companies directors in order
to make all goals and objectives accomplished in more effective manner. Duty of care is been
applied over different roles that are included within financial industries, accounting, auditing and
manufacturing. In case duty is not been followed in proper manner then it makes an individual
violating the duty attain legal obligation and action can be taken by shareholders or clients.
Along with this duty of care there are various other duties which is required to be followed that is
duty of loyalty which is based upon seeking prevention over directors upon acting against best
interests of corporation. This duty has been helping in making more relevancy created over usage
of duty of care within an organization. The duty is based over various aspects related over taking
decision related to financially, ethical and legal aspects within an organization. The decision
regarding such duty should be made only after collecting all the information available within
the account of an organizations. It is the responsibility of directors to act in judicious manner for
promoting organization's interests. An organization always include duty of care within its
policies in order to make ethical framework enhanced in more effective and organized manner.
Duty of care can be summed up as those requirements within which directors is to be presented,
informed and engaged about those act within which obligation is done intentionally. Also the
organization is required to make independent judgement without any biasses. In this trusted
sources can be used for making judgement more clear in nature and expert advice is required to

be taken. The directors are required to form various kind of legal development with corporate
governance that impacts working of organization in more effective manner. Directors are
required to develop plan which is based over discussion that has been made upon reviewing of
things like budget, legal complaisance and strategies required to be followed in such direction.
In workplace responsibility their clients is been reduced or limited over amount for harming or
injuring experiences. It is the responsibility that is there within workplace and covered in duty of
care and is overwhelmed. This can be understood with the help of example that is responsibility
of employer to perform duty in order to avoid any such conflict which results into omission of an
act that has to be performed by clients. This is helpful in remembering that duty of care makes
balancing of act possible. At workplace various aspects is been covered within duty of care that
is related over legal, professional, ethical, organizational, community and personal. Also the
organization is required over balancing safety of its employees over the young person this is
been achieved through the safety of other people, other rights of young employees is required to
be protected, e.g. the right to privacy. The aims of the service should be specified to employees,
e.g. to empower young people and the limits of our organisation cannot be breach for example
money and other resources(Gudeta and et. al. 2021). These are required to be followed within
workplace in order to make duty of care more affective in nature. In duty of care two main tests
exists that is neighbour test and Carpario tests. In neighbour tests the main principle that has
been marked is based upon this statement '' There must be reasonable care which should be
taken into consideration over the act which has been omitted that could have been done
before causing injury to neighbour”. In order to prove relevancy of the test an case law exists
that is Donoghue v Stevenson the facts of case says that Mrs Donoghue visits cafe with her
friend and ordered bottle of ginger beer with ice cream. As the beer comes within opaque bottle
that make contents of beer less visible. (Hakim and et. al., 2021).
Further the case facts tells that as she was emptying he bottle over ice cream and also drank some
beer from the bottle. Then she poured the remaining content of bottle over the ice cream that was
left. It was observed by her that an decomposed body of snail come out of bottle. This made her
cause personal injury and claim filed against the manufacture by her. In this case court held that
claim is required to be granted. Also the case lead upon establishment of modern negligence law
and various other act of omission was included within duty of care. Then in this case justification
is provided that rule of loving your neighbour becomes law and must not cause injury to

neighbour at any cost. Thus the question raised by lawyer " Who is my neighbour ?" is been
answered in restricted manner. Further the case marked out that reasonable care is required to be
taken in order to avoid acts and omission which can be reasonably foreseen and cause damages
to neighbour. The answer over question asked is that an person who has been closely and directly
affects by the act and has reasonably foresee about the injury caused to neighbour. Further in the
case the answer to question raised is been justified with statement'' The answer is that an
person who is been affected by an individual directly makes another person liable over
contemplation that affects the mindset of an individual. This has been caused due to
omission made in relation to act''. This is how justification is been provided and the test has
formed modern negligence law. Bourhill v Young in this case the claimant was pregnant wife
of a fish catcher and she got off tram and reached to get her basket off the tram and defendant
was driving motorcycle which past the tram with excessive speed (de Gioia-Carabellese, P.,
2021). This resulted in collision with care that was 50 feet away from the claimant where she
was standing. Further defendant was killed by the impact of collide and it was heard by claimant
but was not able to see it. In the shortest time the claimant went over the spot where accident
took place. Till the time body was removed and only blood was there on the road. This made
claimant went into shock with her baby that was still to be born. Claim was brought in relation
to negligence against defendant's estate. Further court in this case said that
“No duty of care was owed by the defendant to the claimant. There was not sufficient
proximity between the claimant and defendant when the incident occurred”. Another case
law related to the test is Home Office v Yacht Co Ltd facts of the case are some young
offenders were supervised over work that has to be done over Brown Sea Island under the
Borstal regime. One night the officer of Borstal regime retired over evening leaving the boys
unsupervised and seven of then successfully escaped. Also they sold the boat that was been
claimed by Yacht owned by claimant(Caon Pereira, 2021). In this case court held that Home
Office was owned over duty of care over the omission as they were in position of controlled by
third party and damage caused by third party. The harm caused was foreseeable which makes the
harm result in the action. Topp v London Country Bus the defendant bus company left mini
bus which is been laid overnight. This was unlocked and keys were left with ignition opened.
Driver was expected to pick the bus but he did not turned up for shift. Thieves stole bus and
drove away and unfortunately bus knocked women off her bicycle and killed her and husband

brought action for damages. This is been foreseen that thieves would take bus and run women
off her bicycle. The come Caparo test and relevant case law related to this is Caparo Industries
plc v Dickman in this case industry has brought shares of Fidelity Plc in relation over certainty
of accounts which has been presented by organization. Its has been found that Fidelity Plc has
shown more profit in pre-tax form that is of £1.3M. Though in real sense Fidelity has made loss
of £400,000 that was not shown by the auditors. In this claim has been made over certifying the
accounts. So in this case court came to conclusion that no duty of care is there since there was no
proximity that makes it irrelevant for Caparo. Also in this awareness over existence of Caparo
has not been proposed over the accounts which is been used by them. Another case of this test is
Robinson v Chief Constable of West Yorkshire Police the facts of case says that 76 year old
woman that makes sustainability develop over injuries that has been knocked down over the
grounds which made drug dealer escape form arrest. As the trial was going on judge applied the
Caparo test for duty of care and founded that reasonability is foreseeable exists because of
police action. This was also marked within close proximity but third stage does not applied
within it. Court held that duty of care is been owned and there exists establishment over ground
of liability like personal injury within which third stage does not apply of Caparo test. Also this
case showed fluency of this test(Alexiadis, 2021).
From the discussion it can be marked that duty of care is considered as pat of negligence
and covered within law of torts. Also there are various kinds of conditions existing within it
which makes its relevancy to be proved in more effective manner. Also the explanation provided
above shows that duty of care is one of the most relevant part of business organization also. Then
tests has been discussed in order to provide justification upon duty of care. In this cases has been
covered over showing relevancy of duty of care in more effective manner.
CONCLUSION
From the essay it can be proved that business laws are the laws that is been used over
making business formation possible in effective manner. These laws is focused over creating
guidelines and regulations which makes justification provided upon working of business
organization. Laws of business helps in covering various aspects which is used by an
organization to conduct trade. This essay deals with the concept of negligence in duty of care
which is been covered within law of torts. The discourse explains about those aspects which

made duty of care be more strong in nature and various elements involved within has been told.
In the end cases has been discussed regarding these aspects.

REFERENCES
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