Business Law and Ethics: Case Study of Negligence and Duty of Care

This report examines a case study involving Extortionate PLC and a customer, Samantha, who was injured in the bank's premises. The analysis focuses on the tort of negligence and the bank's duty of care, exploring the legal and ethical implications of the incident. The report delves into the elements required to prove negligence, including breach of duty, duty of care, causation, and harm. It discusses potential outcomes, such as full compensation, shared responsibility, or no compensation, based on the court's analysis. Furthermore, the report highlights the ethical considerations for the bank, emphasizing the importance of addressing hazards promptly and compensating injured parties. The conclusion stresses the significance of adhering to business law and ethical principles for establishing and maintaining a successful business.

Business Law and Ethics

Contents
INTRODUCTION...........................................................................................................................1
PROJECT 1.....................................................................................................................................1
Explain the given case study........................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5
Online..........................................................................................................................................5

INTRODUCTION
Business law dictate how to run and form a business and include all the laws that is required
to manage, buy & close as well as sell any form of business. It is determine that business law
plays an important role in development of an economy. It is essential to consider all the law
associated with business in order to easily and properly carried out activities (Mason and
Megone, 2018). In addition to this, it is essential for managers to aware about ethical values and
laws as it plays vital role on the overall performance and activities of an organisation. Ethics and
law are two different terms but both is consider and carried together by an organization. In
relation to the present file, two various task will be discuss in an effective manner. The first part
is based on the case study that is related with the Tort of Negligence and duty of care.
PROJECT 1
Explain the given case study
The case study state about the incident take place at Extortionate PLC with a women
name as Samantha. She went to bank that us Extortionate place in order to gain knowledge about
loan procedure so that she can properly as well as easily start her own business. When she was
leaving after collecting the information, Samantha fell down and got injured. It is stated in the
laws of company that is it will be responsible for any damages take place within the premises to
customers. After sometimes, Samantha get to know by her friend that she is not only the person
who was injured in the bank but there are lot of people who injured and claim to the bank. In
addition to this, her friend also provide the link that involve list of people that claim the bank.
One of the major issue that is occurred her is whether Samantha should get damage or not. In
addition to this, Extortionate also involve law that state, it is the responsibility of public that they
protect themselves so that no accident take place or happen at the location.
Tort of Negligence is defined as a legal wrong, which is suffered by a person at the hands
of another people who fails to take care in order to avoid what an individual regard as a risk. In
the respective case study, it is linked with Samantha and the incident that take place in the bank.
It is determine that this form of wrong falls is consider in the category of civil wrong, where the
damages is needed to be paid off by the innocent party or by the defaulters. In the Tort of
Negligence, it involve four elements that is required to be proved such as breach of a duty, duty
of take care and the cause occurred due to breach of duty & harm. In addition to this, if all this
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factors are fulfilled then on the present case legal action is taken by the innocent party. On
contrary, it is determine that if any of the negligence arise then in this case or situation, it is
essential for court to analyse what types of claim it is and how it is given so that damage is
recover in an effective manner (Loveland, 2018). There are different situations that is consider
for the present case. The first case is full compensation is given by the defaulter company of all
the damages. The second option is where both the parties that is Samantha and Defaulter
company both are equally responsible for the incident take place and in that case the amount is
equally divided by both the parties. The third one is no amount is given to person by the
defaulter company, as judges found that there is no requirement to pay the amount of damage.
All this situations is consider and required to be focus in case, where default is taken place by the
party. In addition to this, if a person has knowledge about all such potions, the he or she can gain
proper justice by the innocent party in an effective manner.
The discussion about the present case & its relatable questions, it is said that Tort is an
error or any mistake that has been done by an association or a person. In this case, it is the
responsibility of the defaulter company to accept and give the damage about to person. It is
essential for a person to understand the concept or analyse the work before performing it so that
it take place in a proper as well as systematic manner as it help in attaining goals with in
stipulated time frame. The Duty of care is define as the situation, where one that is person
performing work is responsible to take care of other people as it is determine that a small
mistakes sometimes occurs a big issue for other people. It is better understand by an example
that is the case of Grant v. Australian Knitting Mills Ltd., 1935 AC 85. This case show that
manufactures is not provide all the relevant information to buyers and because of this, they
suffered from different problems and the liability occur upon the manufacturers.
According to the guidelines of Tort of Negligence, it is analyse that Extortionate PLC
should compensate Samantha for her injury and the expenses that is suffered by her. It is the
responsibility of bank to make [proper use of carpet so that customer balance is not mismanage
and no accident is occur at the place. The bank have involved the clause but it is determine that
including clause at every time with the customers is not work because it does not have anything
to do with it. In easier term, it is the responsibility of Extortionate PLC to give the compensation
amount to the person who suffered losses because of company.
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In the current scenario, bank play an important role as it provide funds to public and in
return charge interest along with the principle amount. It is determine that bank gives a particular
time to repay the loan and in case of delays, it charge penalties from customers. The given case
sated that due to negligence of bank, there are lot of innocent people and Samantha has faced and
suffered injury. In addition to this, there are various ethical consideration that is own from public
and is required to be follow in order to work in a systematic manner. The first that is required to
be understand by bank is if any object create issues then it is important to find the solution
rapidly and effectively as well (Anderson, 2018). Secondly, it is important for bank to pay for the
damages, if any of the customer or person is getting injured because of them. It was the issue of
bank that is associated with the carpet and is ignored by all the higher authorities of bank. If the
solution is not provided by the bank then a person have the right to take legal actions and will
fight for their own losses and damages as well.
After conducting an analysis of the given case, it is essential to understand that Samantha
is getting injured because of bank and it is important for bank to provide her effective solution. It
is essential for banks to have information on the notice board about the carpet that can be seen by
customers so that they take acre and did not fall and got injured. In addition to tis, the cause
related to the injury should be consider and included in the Article of Association. It is determine
that of bank fulfil all this above situations, then there is a possibility to save themselves from any
kind of penalty.
From the above case, it is analysed that it was the mistake performed by the side of bank.
They neglect the carpet issue even its managers know that lot of customers as well as visitors
visit the bank on continuous basis. It is important for bank to give amount of damage to the
person who got injured in a proper manner. If the carpet is properly placed then there is a less
chance of occurrence of injury to the person or customers of bank as well. The bank avoid
situation after knowing about the problem and due to which it suffer losses.
CONCLUSION
This has been summarised from the preceding discussion that it is important and crucial that
whenever any of the business is established some of the lawful rules and accountabilities are
required to be pursued. Guidelines of business law can be efficient and appropriate in those
circumstances but on the same period of time.
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REFERENCES
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managerial implications of mandatory CSR resulting from the new Indian companies
act. Journal of Business Ethics. 160(4). pp.961-972.
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European Review. 29(2). pp.348-359.
Kaplan, D.M. ed., 2019. Encyclopedia of food and agricultural ethics. Springer Netherlands.
Harris, A.L. and et. al., 2019. Incorporating ethics and social responsibility in IS
education. Journal of Information Systems Education. 22(3). p.1.
Haker, H. and Beyleveld, D. eds., 2018. The ethics of genetics in human procreation. Routledge.
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Jamunadevi, R., 2020. A Study on Business Ethics. Studies in Indian Place Names. 40(19).
pp.625-630.
Mladenovic, R., Martinov-Bennie, N. and Bell, A., 2019. Business students’ insights into their
development of ethical decision-making. Journal of Business Ethics. 155(1). pp.275-
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Online
Concept and Differences between a Lawyer, a Solicitor and a Barrister in UK. 2019. [Online].
Available Through: <https://www.hg.org/legal-articles/concept-and-differences-between-a-
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