Business Law Essay

This essay examines the legal concept of 'duty of care' within the context of business law. It defines duty of care, outlining its moral and legal obligations to protect the interests of others, particularly as it relates to tort law and negligence. The essay specifically addresses the responsibilities of business owners in fulfilling their duty of care, emphasizing the need to take reasonable precautions to avoid foreseeable harm to customers and maintain a safe business environment. It highlights the importance of proactively identifying and mitigating risks, and the potential legal consequences of failing to meet these obligations. The essay draws upon key legal precedents, including Donoghue v Stevenson (1932) and Ansell v Waterhouse (1817), to illustrate the established principles of duty of care and the potential for liability. Furthermore, it mentions the relevance of the Corporation Act 2001 (Australia) and the Civil Liability Act 2003 in defining and enforcing these responsibilities. The essay concludes by emphasizing the importance of adhering to the principles of duty of care to avoid legal repercussions and maintain ethical business practices.

Running head: BUSINESS LAW
Business law
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Legal meaning of duty of care:
The word “duty of care” denotes certain moral as well as legal obligations to secure
the interest of some others. This term has been defined under many provisions of law. Under
the tort law, duty of care means to perform a duty in such a way to avoid the foreseeable
harm to others (Bahn and Weatherill 2013). It is regarded as one of the particulars under the law
of negligence. It is one of the most popular principles under the common law and the
principle was established in the case of Donoghue v Stevenson (1932). In Australia, certain
duty of care has been described under section 180 of the Corporation Act 2001.
Duty of care by business owner:
The term “duty of care” has been inserted under certain provisions of the common
law. It prescribes certain duties to be performed by a person to avoid any foreseeable risks. In
case of a business owner, the law requires them to exercise duties to take reasonable care
what an ordinary prudent person should have done in certain situations. Furthermore, the law
requires that a businessman should have to continue his business in a place that will be
regarded safe for the interest of the customers. It is the duty of the businessman to foresee all
the risks that can injure the interest of others. If there is any risk accrues regarding the
business, it is the duty of businessman to let the customer know about this. No step should be
taken by the businessman that goes against the public policies (Langford, Ramsay and Welsh
2015).
Steps to minimise the risks regarding duty of care:
Duty of take care is a moral principle that should have to follow by any prudent
person. In case of business, liabilities accrue regarding the business person if he failed to
perform his duties with reasonableness. Under the Tort law, duty of care depicts the civil

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liabilities to take steps to secure the interest of the customers. Under the Corporation Act, if
director of a company failed to perform his duties, he shall be held liable under section 180 of
the Corporation Act 2001. Duty of care is a part of the negligence law and relevant provisions
are mentioned under the Civil Liability Act 2003. In Donoghue v Stevenson (1932) the
provision regarding the duty of care had been established and the respondent who failed to
perform his duty properly held to pay damages to the claimant. The same principle has been
adopted in case of Ansell v Waterhouse (1817) M & S 385.

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Reference:
Bahn, S. and Weatherill, P., 2013. Qualitative social research: a risky business when it comes to
collecting ‘sensitive’data. Qualitative Research, 13(1), pp.19-35.
Langford, R.T., Ramsay, I. and Welsh, M.A., 2015. The origins of company directors' statutory duty
of care.