Extortionate PLC Case: Examining Tort Law, Ethics, and Duty of Care

This case study analyzes the tort of negligence and the duty of care, focusing on a scenario involving Samantha's injury at Extortionate PLC. It explores whether the company is liable under tort law, considering an exclusion clause and prior complaints. The analysis delves into ethical considerations for banks, particularly concerning economic stability, market economy roles, and international trade implications. The study discusses internal and external factors affecting duty of care and concludes that Extortionate PLC likely has no valid defense under UK law, emphasizing the importance of infrastructure maintenance and ethical conduct. Desklib provides access to similar solved assignments and past papers for students.

LAWS AND ETHICS

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK...............................................................................................................................................3
Case scenario...............................................................................................................................3
What is Tort and the Duty of Care...............................................................................................4
Under the doctrine of tort consider whether Extortionate PLC is liable for Samantha’s injury. 4
What are the ethical considerations if any does the Bank owe the public...................................5
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Laws are those rules and regulations that are very important for an organization to grow and
maintain balance in society. As laws are related to various aspects of society and also these are
most important elements which are helpful in protecting of society from crime of all kinds.
Ethics these are that code of conduct that has to be followed to maintain discipline and order in
professional world. Ethics maintains a proper code of conduct to be followed by all law
professionals. Both these has to work together as they have wider scope which is related to
various laws and its applicability. In this report things that is going to be covered is
understanding of fundamentals of English legal system, company and business law. Then issues
related to business law, corporate governance and ethical issues in international context. All this
is going to be covered through case studies and answering questions related to it.
MAIN BODY
Tort of negligence is that kind of tort in which an person has committed wrong by not taking
proper action to accomplish the task in most appropriate manner. This negligence can lead to loss
to an very high extent. Various elements and concept are covered under this tort and its also
related to law as well as ethics. In other words tort of negligence is an legal wrong that is
suffered by someone person would regard as a foreseeable risk.
TASK
Case scenario
Samantha has visited her local bank around two weeks ago. The bank name is
Extortionate PLC in order to inquire about loan which is required for setting –up of new
business. While leaving the bank Samantha tangled and fall down upon the stairs in which carpet
was not properly fixed. In order to protect her she putted he hands on the carpet in front of her.
She got injuries because of it and broke her wrist and injured her hands further she also got hit
with the nail on stair. Extortionate PLC had an exclusion clause of limiting liability against
personal injury and damage to all customers using their facilities clearly displayed in their
business hall. After the incident Samantha’s friend contacted her few days later to inform her that

lot of people has met with same accident and issue has been raised before Extortionate PLC. Her
friend gave her an link that is related to social media account of the bank and various clients has
filed complain regarding this and has been claiming over it (Araki and et. al., 2018).
What is Tort and the Duty of Care
Duty of care is means that kind of situation or condition in which the law has been recognized
and breach of legal duty to care has taken place. If any manner an individual does not follow
then defendant cab be held liable for damages occurred out of it. This is result to breach duty of
care (Goodall, 2016). That is why it is necessary to prove that duty of care has been existed. It
kis dependent over loss and various types of legal test applied upon it. further personal injury and
property damage is going to be covered. Further duty of care can be understood through an case
law related to personal injury that is Donoghue v Stevenson in this case Mrs. Donoghue visited
the cafe with her friend. Both of the ordered a ginger beer bottle and ice cream with it. As ginger
beer comes in an opaque bottle this makes its content not be seen. Mrs. Donoghue putted half
the beer over her ice cream and drank some content of the bottle. After eating a part of ice cream.
It was noticed by her that an decomposed snail emerged out of the bottle. As a result of this Mrs.
Donoghue suffered personal injury. Now she seeks a claim from the manufacturer of the ginger
beer. It was held by the court that her claim was successful due to negligence done on part of
manufacturer. Also modern law of negligence was established by this. Also neighbor test come
into existence. This case is applicable to the above scenario in a manner that Samantha has
suffered personal injury due which she broke her wrist and caused harm to hands. This case is
based upon duty of care that was not into consideration by the manufacturer. In case of Samantha
it is the responsibility of the bank to get the satires repaired.
Under the doctrine of tort consider whether Extortionate PLC is liable for Samantha’s
injury.
Yes under doctrine of Tort Extortionate PLC is responsible for Samantha’s condition because
they fail to follow duty of care and breached it. As internal and external factor plays an very
important role in promoting of duty of care within an organization because they create an direct
and inn direct impact upon environment of an organization. External factors are responsible for
making all employees aware about the policies that are to be formed to make sure that negligence

is not done on part of any employee. Key elements of external factor are government policies,
economics, technology etc. Internal environment is that kind of environment which is
responsible for making an organization to flow important information in smooth manner. Inter
factors consists of those elements which effects an organization from inside and they are
financial resources, management, human resources and information resources. These could have
been used by Extortionate PLC to make repair done of stairs (Townend, 2016)
What are the ethical considerations if any does the Bank owe the public
Ethical issues that is majorly going to be faced by bank is related to economic because it is one
of the most essential part of any kind of business that has been running or any bank that is
operating. Market economy is regarded as that kind of economic decision in which the price of
goods and services has guided through a country’s citizens and businesses. Also government can
play an important role through its involvement and planning. As the economy is more oriented
towards market in general. Under market economy government has an important role to play. Six
kinds of roles are there that has to be played by government under such economy. These roles are
able to provide an stability within the institution and rules, promotes efficiency and positive
competing, correction of externalities, ensures stable and growth for goods and services. Also is
helpful in dealing with market results. Trade has increased competition and lowers world prices
that has been provided benefits to its consumer and is also helpful in rising of purchasing power
of its own income and has increased surplus of consumer. Trade has also broken down domestic
monopolies that are facing competition for effective foreign firms. Countries are trading with
each other only when resources are not available with them. Else they are not able to satisfy
needs and wants of customer. Exploiting of domestic resources countries are able to produce a
surplus and trade for resources required by them. Advantages and disadvantages of trade has
been explained as follows:
1. The exploitation of a country’s comparative advantage, which means that trade
encourages a country to specialise in producing only those goods and services which it
can produce more effectively and efficiently, and at the lowest opportunity cost.
2. Producing a narrow range of goods and services for the domestic and export market
means that a country can produce in at higher volumes, which provides further cost
benefits in terms of economies of scale.

3. Trade increases competition and lowers world prices, which provides benefits to
consumers by raising the purchasing power of their own income, and leads a rise
in consumer surplus.
Also there are certain disadvantages of trade also and they are
1. Trade can lead to an unnecessary or over specialization of risk at an work. This is going
to increase job loosing. It can lead to decrease in domestic production of goods at
increase in its rate. If jobs are lost the its is going to lead towards structural
unemployment.
2. In recent times the credit church has exposed the danger that is being spread through
over-specialization for UK with the way of reliability over its financial sector.
3. Certain companies are not able to grow at faster rate, due to facing of competition from
established firms and businesses. As they struggle for establishment of themselves.
European harmony – European Union has no longer been into a troublesome situation like
they were in past. They were being exception to a situation of civil war with Yugoslavia. Europe
has managed to over come this problem that was giving lot of trouble to the two. EU was
awarded with the Noble Prize in 2012 fro promoting of peace and they feel it is going to bring
economic and political stability (Pope, 2016).
Is there any possible defense for Extortionate PLC
That bank does not have any kind of defense available against Samantha as it was there
responsibility to take care of infrastructure and should have keep a regular check over it. As they
failed to do so. Also legal system of UK does not provide it (Tenery, 2016).

CONCLUSION
From the above file the concept of negligence has been covered and a case scenario has
been given which explains about duty of care and ethical code of conduct. Also advantages of
international trade have been discussed. Also a case law has been explained. The concept of
corporate issue has been discussed. Also external and internal factors have been told with their
key element. Further global trade advantages have been explained and also market economy has
been explained. In the has been told that no possible defence is there for the defendant as the
legal system does not provide it.

REFRENCES
Books and journals
Graeff, P., 2016. Ethics and corruption: An introduction to the special issue. German law
journal. 17(1). pp.1-6.
Araki, K. and et. al., 2018. The Japanese legal system and the applicability of laws and
regulations on private information protection and research ethics relating to medical
research. [Nihon Koshu Eisei Zasshi] Japanese Journal of Public Health. 65(12). pp.730-
743.
Goodall, N. J., 2016. Can you program ethics into a self-driving car?. IEEE Spectrum. 53(6).
pp.28-58.
Townend, D., 2016. EU laws on privacy in genomic databases and biobanking. The Journal of
Law, Medicine & Ethics. 44(1). pp.128-142.
Gibbons, J. C., 2016. Review of" The Economic Ethics of World Religions and Their Laws: An
Introduction to Max Weber's Comparative Sociology" by Andreas Buss. Journal of
Markets and Morality. 19(1).
Pope, K. S., 2016. The code not taken: The path from guild ethics to torture and our continuing
choices. Canadian Psychology/Psychologie canadienne, 57(1). p.51.
Tenery, R.M., 2016. Medical ethics: medical etiquette. Jama. 315(12). pp.1291-1291.