International Business Law Analysis

This assignment delves into the intricacies of international business law. It examines different legal perspectives on consumer rights, manufacturer responsibilities, and tort reforms within a global context. The analysis is supported by references to academic works and publications focusing on corporate governance, tax compliance, intellectual property, and dispute resolution in international business.

COMMERCIAL
LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
1........................................................................................................................................................3
Concept of Liability in tort of negligence with respect to the given case..............................3
2........................................................................................................................................................5
Rights of consumers in aspect of Australian Consumer Law.................................................5
3........................................................................................................................................................7
Role of relevant caps on personal injures or tort....................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Law is a set of rules and regulations which are the essential part of the legal system of the
society. It is the set of the systematic rules and regulations which are designed for the effective
and systematic learning of the societal people. Law has different and varied parts which can be
characterised as business law, commercial law and criminal law (Chen, 2011). Commercial law
is a significant part of law which can be defined in the terms of business law or corporate law. It
is that form of law which applies to rights , relations and conduct of person or persons who are
engaged in the business that are engaged and occupied in merchandising and trading of sale of
goods or any other transaction. In this report , various aspects of commercial law has been
introduced and illustrated.
1.
Concept of Liability in tort of negligence with respect to the given case
Commercial and corporate law is the type of law which has been described in the sense of
trading, merchandising and sale of goods and services between persons of contract. It deals with
the rights and liabilities in aspect of the persons who are engaged in the perspective of the
commerce and other trade and services (Fombad, 2013). In other words, it can be said that it is
often considered as the part of civil law which deals in both public and private law. Relationship
between agent and principal has also been illustrated in the civil law. In this aspect it can also be
said that various forms of contracts related to corporates, hiring practices and production and
distribution of sale of goods and services are also included in the context of the commercial law.
In other words it can be said that commercial law can be defined as the statutory law which
deals and governs the commercial and business law (Rubin, 2011).
As per the IRAC rule:
ISSUE: In the given case scenario, it has been given that Samsung has been producing a
mobile phone namely, Galaxy note 7 which is being sold in the Australia by Samsung

Electronics Australia. It was been assessed that there was some technical issues and faults in the
manufacturing process . It resulted into the battery overheating problems and issues.
In this case, It can be assessed that the company is liable for any kind of damages and
injuries that has been caused to its customers due to an issue of the overheating of battery.
RULE: In this prospect, there is a concept related to the liability in tort of negligence,
which is related to the negligence and carelessness of one party to the contract for another party.
Tort law is one of the variable in the commercial law for the time being in force. Tort law is a
civil wrong committed by one person and for which the other innocent party is liable to demand
for the damages (Halla, 2010). In this regard, there is a distinction between a tort and a
evildoing, respectively. Negligence is considered as the part of the Tort law which can be
circumscribed as a concept in which one party or person to the contract owes another person a
duty of care. It is also defined as a term in which one party fails to perform the the task which
would have been performed by him in the reasonable manner, failure of which would lead to the
payment of damages by defendant party for any damages, injuries or loss caused to the innocent
one. In accordance with the decided case law of McCANN & ORS v. SWITZERLAND
INSURANCE AUSTRALIA LIMITED & ORS (S229/1999), it was held that there are
appellants were entitled to claim the damages from the defendants. In negligence, plaintiff can
claim indemnity from defendant in case of any loss or damage caused on defendant's part.
In this context, it can also be considered that there are several legal rules and principles
relating to the idea of Negligence. These can be illustrated as follows:
 In order to demand for the compensation from the litigant party, the plaintiff is required
to satisfy the three conditions which can be demonstrated as follows:
▪ To prove that defendant has a duty of care owed to plaintiff in any course of
transaction. Litigant has a reasonable duty of care for the plaintiff at the time on
which the negligence has been occurred by him (Law and Long, 2012).
▪ Duty of care that has been owed, has breached by an act of defendant. In another
words, defendant has ruptured the duty of care on plaintiff. It was a failure on the
part of him to assure the reasonable and required set standard of care.
▪ That breach of duty by defendant has caused damages and personal injuries to
injured party. Also, the damage that has been caused was not too remote.

In the aspect of the the term negligence, case of Donoghue v Stevenson [1932] AC 562
House of Lords, has set as a landmark case. It also illustrates that the manufacturer is held liable
for the damages that has been caused to Mrs Donoghue.
In accordance with the provisions of Civil Liability Act, 2002, There are certain other
principles relating to the negligence which are explained as follows:
 A person is not negligent for not taking care of the duty that has been allotted to him in
due course until and unless:
▪ The risk was foreseeable and predictable (Siems and Deakin, 2010). It means that
the defendant and plaintiff are able to foresee that risk.
▪ The risk was significant.
APPLICATION : In accordance with the provisions of the Tort liability in Negligence,
the person who is required to ensure the effective duty of care on another person, if fails to
perform then that party must pay the plaintiff for the damages for injuries and it will be treated
as breach of duty of care. So, with reference to the said provision, Samsung can be held liable for
the damages for breach of duty of care that has been caused by their mistake and negligence
while production of mobile phones. It is due to the reason that they were supposed to ensure the
standard duty of care. It will be considered as the breach of duty of care. They had breached the
duty of care for its Australian customers. Also, the person who was staying in hotel can sue
Samsung for its damages for breach of duty.
CONCLUSION: So, as per the provisions all the terms and conditions of tort in
negligence would be applicable on Samsung electronics, Australia. As, the company has
breached the duty of care that has been owed to them, so the company can be held liable for the
negligence.
2.
Rights of consumers in aspect of Australian Consumer Law
Australian consumer Law is a legislation that has been framed in the respect of protection
of rights of consumers from manufacturers and consumers (Louw, 2012). It came into force on
January 01, 2011. the main focus of this act is on the protection of rights and obligations of
consumers against malpractices. In the part 3-5 of Australian Consumer law, it has been defined

about the rights of consumers and also liability of manufacturers for goods and services having
safety defects (Terpstra, Foley and Sarathy, 2012).
ISSUE : With reference to the given case scenario, Samsung electronics has defaulted in
the production of its mobile phone namely Galaxy note 7 which Is consist of the design and
production defaults causing in overheating of phone. So its consumers in Australia has a right to
claim for the damages suffered by them, in accordance to the provisions of the part 3-5 of the
Australian Consumer Law. So, in this case the consumers who are having the said phone which
is defective in nature can sue the defendant for the indemnification.
RULE: In accordance with this provision, it can be said that there are certain rights by
which consumers are entitled to perform in certain situations. These can be defined as follows:
 Consumers have a complete right to ask and demand for the damages in the case of loss
which has been occurred due to the negligence regarding the safety of a particular
product.
 Also, if it has been proved that it is the duty of the manufacturer to take care of the duty
and adopt reasonable steps then, it consumers can sue the said manufacturer for any loss
or personal injuries caused.
 Also, it can be said that if the manufacturer has supplies and goods and services in the
reasonable course of action and trade but the goods had safety defects then the said
manufacturer and producer will be held liable for the amount of damages, loss and
personal injuries suffered by consumer (Lydersen and et. al., 2010).
 Owners and innocent third party or bystanders can also claim for indemnity if the goods
are defective in nature in regard to safety.
On the contrary, as per the legislations illustrated in the part 3-5 of the Australian
consumer Law, the defendant has also some rights I accordance with the case. The defendant can
file his defence in pertaining the following:
 There are four defences that are made available for the defendants for filing their defence
which can be characterised as :
▪ The defendant can claim that there were no defects detected at the time when the
goods were being sold to the costumers. In this, if it has been shown by the

manufacturer that the goods were defective free at the time of delivery then it
will be considered as a defence.
▪ It can also be asserted by litigant that proper compliance with the mandatory
standard has been ensured, even though defect occurs.
▪ The defence has been considered as the art defence.
▪ In the end, it is a component defence.
APPLICATION: The consumers in this case, can demand for compensation on the basis
of defect in goods in respect of safety. In the accordance with the provisions discussed above, it
can be evaluated that the consumer can demand compensation for the injuries that has been
caused to them.
CONCLUSION: So, in accordance with the above said provisions, the Samsung
electronics can file his defence in the against of the claim made by consumers. It can be alleged
by the cited company that all the said standards have bee ensured in the process of production of
Galaxy note 7 then, the manufacturer will not be held liable. Also, if it has been proven that the
goods were defect free at the time of sale, then also no liability will arise on the part of Samsung
electronics.
3.
Role of relevant caps on personal injures or tort
As, liability of tort is commitment of civil wrong action. In accordance with the
provisions and terms specified in the context of the Australian Consumer Law, various caps on
the damages of amount of personal injuries or losses by defendant has also been fixed (Ngaido,
2016). It has been imposed with the purpose of reducing the tort liabilities that has been
committed by persons. Imposing relevant caps on the penalties will result in the stabilities in the
rate of crime and other aspects. Also, it is considered as the political issue it also advocates
several limits on the ability to file claims and capping the awards that are required to be given in
the context of the decision making regarding tort. In accordance with the provisions of the ACL,
it can also be stated that in the existing tort system, it is consist of system which explores costs
and expenses of awards but ignore and avoid the benefits of current tort system (Roters and et.
al., 2010). It can also be stated that court in order to avoid any future damages, it may award any
retaliative damages to reject that particular conduct and action in near by future.

CONCLUSION
From the above mentioned report,, it can be held that negligence and tort law are the part
of commercial law. In this report various aspects and terms of the negligence and tort has been
illustrated. Also, the case study of Samsung Electronics has also been demonstrated.
Furthermore, in this light, different obligations and duties of care to be performed by one party
to another party to the contract is also discussed. Moreover, various rights of consumer and
manufacturers has also been depicted in this report it can be further analysed that there is an
amount that has been fixed for the damages paid to plaintiff. It is the concept related to the term
Tort reforms.

REFERENCES
Books and Journal

Chen, N., 2011. Securities laws, control of corruption, and corporate liquidity: International
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Fombad, C.M., 2013. Some reflections on the prospects for the harmonization of international
business laws in Africa: OHADA and beyond. Africa Today.59(3). pp.50-80.
Halla, M., 2010. Tax morale and compliance behavior: First evidence on a causal link. Bonn:
IZA.
Kitagawa, Z., 2016. Dispute Settlement (Vol. 5). Doing Business in Japan.
Law, M.T and Long, C.X., 2012. What do revolving-door laws do?. The Journal of Law and
Economics.55(2). pp.421-436.
Louw, A.M., 2012. Ambush Marketing & the Mega-Event Monopoly: How Laws are Abused to
Protect Commercial Rights to Major Sporting Events. Springer Science & Business
Media.
Lydersen, L and et. al., 2010. Hacking commercial quantum cryptography systems by tailored
bright illumination. Nature photonics.4(10). pp.686-689.
Ngaido, T., 2016. Making laws and building institutions in the Sahel: The case of Niger.
Roters, F and et. al., 2010. Overview of constitutive laws, kinematics, homogenization and
multiscale methods in crystal plasticity finite-element modeling: Theory, experiments,
applications. Acta Materialia.58(4). pp.1152-1211.
Rubin, J., 2011. Institutions, the rise of commerce and the persistence of laws: Interest
restrictions in Islam and Christianity. The Economic Journal.121(557). pp.1310-1339.
Siems, M and Deakin, S., 2010. Comparative law and finance: Past, present, and future
research. Journal of Institutional and Theoretical Economics JITE.166(1). pp.120-140.
Terpstra, V., Foley, J and Sarathy, R., 2012. International marketing. Naper Press.