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Essay on Tort Law Related to Business

   

Added on  2020-04-01

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KENT INSTITUTE AUSTRALIABusiness LawAssessment 3(Student Details: )

ESSAY2Tort is such an area of law, which is crucial for not only individuals, but also for theorganizations, as it applies to a number of business situations. This is particularly for the torts ofnegligence and misrepresentation, along with certain other torts. There are a number of case lawswhich present the real life situations whereby not only the common people, but also thebusinesses had been indulged in tortious activities (Statsky, 2011). The rationale behind steeringaway from such torts lies in the fact that they are coupled with liabilities, which can cause hugelosses to the businesses. There are a lot of requirements which have to be fulfilled forestablishing the presence of any form of tort and this is dependent upon the particular type of tortin question. The torts not only attract the liability under the common law, but also attract thestatutory laws particularly the Civil Liability Act of the particular jurisdiction in which thetortious act was undertaken (Trindade, Cane and Lunney, 2007). Through this essay, all theseaspects which surround the torts related to the business situations have been elaborated, alongwith detailing certain other related aspects. Negligence is the very first and the most prominent tort which the businesses come across intheir daily activities. The best manner of defining a tort is such a contravention of “duty of care”,which results in one party being injured due to the actions which the other party undertook, andthis takes place when the first party knew that their actions could potentially injure the secondparty (Kennedy, 2009). As has been stated in the introductory section, there are somecomponents/ elements/ rudiments which are required to establish a case of negligence. These arethe “duty of care”, its resultant breach, harm or injury, foreseeable loss, proximity betweenparties, direct causation, and remoteness of loss. In case where any of these rudiments aremissing, the claimant would fail in their claims (Kolah, 2013).

ESSAY3The first step which is required to make a case of negligence is “duty of care”. The leading casein this regard is that of Snail in the bottle, which is fully known Donoghue v Stevenson [1932]AC 562. D was the consumer in this case, who bought a ginger beer bottle in a cafe. This bottlewas manufactured by S and in this bottle was found a dead snail, which led to the contaminationof the contents of this bottle and when D consumed it, she fell sick. As a result of this sickness,D brought an action before the court against S for negligence. S denied owing a “duty of care”and stated that the cafe should be made liable. However, the court ruled in favour of the plaintiffand upheld the negligence of D. The rationale for this decision was cited as the proximitybetween S and D, and the reasonable foreseeability of such contamination leading to sickness ofconsumer (Latimer, 2012). Another helpful case for establishing “duty of care”, through the threefold test given in it wasthat of Caparo Industries plc v Dickman [1990] 2 AC 605 (Lunney and Oliphant, 2013). Thistest requires that the need to establish that there have to be risk of harm in a foreseeable manner;there has to be proximity between parties; and lastly, if the penalties are to imposed, they wouldbe deemed as fair (E-Law Resources, 2017a).NegligenceNegligence

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