This report analyzes a business law case involving Betapharm Ltd and the potential liability for negligence related to their new drug, THX 1138. The assignment applies the principles of tort law, specifically negligence, to determine Betapharm's responsibility to various plaintiffs affected by the drug. The report examines the elements of negligence, including duty of care, breach of duty, and causation, referencing the Civil Liabilities Act 2002 and relevant case law such as Donoghue v Stevenson, Jaensch v Coffey, Smith v Leech Brain & Co, and Esanda Finance Corporation v Peat Marwick Hungerfords. The analysis considers the potential claims of Alice, Bob, Dan, and Elizabeth, assessing whether Betapharm Ltd is liable for their respective damages. The report concludes by summarizing the company's liability based on the application of legal principles to the facts of the case.