Legal Aspects of Business

Legal Aspects of Business

INTRODUCTION
Legal aspects are those kind of rules and regulations which is been used for providing
basic framework in formation of business organization. These aspects covers various kinds of
laws which makes objectives and goals of organization accomplished in more effective manner.
Law of torts are the laws which deals upon wrongs which has been committed by an individual
in day to day life it includes vicarious liability, negligence and trespass. This presentation is
based upon law of torts which deal with voracious liability
TASK
Case scenario: In this case two incidences takes place within an organization EIC Ltd.
First incident driver was retained under ‘zero-hours’ contract by EIC Ltd and was delivering
building material with the help of train. Under his course of work crane was parked by him on
pavement but did not notice pedestrian which resulted in causing swung with the pedestrian path
causing head injuries to an pedestrian. In second incident an employee of EIC Ltd punched local
resident on his face due to which his nose break during a heated argument. Resident complained
about noise and bad language used by construction worker on -site.
Whether EIC Ltd will be vicariously liable (a) to the pedestrian for her injuries resulting from the
negligence of the truck-mounted crane driver/operator (b) to the local resident for his
injuries following the battery inflicted by the Site Manager.
Vicarious liability this is the situation within which one party is been held responsible
over making unlawful actions in relation to third party. In this third party carries share in relation
to liability. Vicarious liability arises due to situation within which relationship of master and
servant is explained. Under vicarious liability “Master is held liable over wrong that is been
committed by his servant”. Vicarious liability can arise in situations where one party is
supposed to be responsible for a third party and is negligent in carrying out that responsibility
and exercising that control.
From the above case scenario it can be observed that ' zero hour' contract exists between
driver and ECI Ltd within which an employee is not required to show number of working hours.
So, as per the situation it can be seen that driver has done negligence on his part but was working
on order of ECI Ltd. That is why employer and employee relation exists which makes vicarious