StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Legal Environment of Business and Business Ethics - Assignment Example

Summary
The paper "Legal Environment of Business and Business Ethics" is a good example of a Business assignment. The clarity in comprehension and interpretation of the law is important, especially within the corporate world. Primarily, sales and purchases occur within the business scene that requires proper evaluation within the framework of regulations and legislation…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95% of users find it useful

Extract of sample "Legal Environment of Business and Business Ethics"

LEGAL ENVIRONMENT OF BUSINESS AND BUSINESS ETHICS By Student’s Name Code + Course Name Professor’s Name University/College Name City, State Date Introduction Clarity in comprehension and interpretation of the law is important especially within the corporate world. Primarily, sales and purchases occur within the business scene that requires proper evaluation within the framework of regulations and legislation. Fundamentally, the various transactions that occur in the business scene require the incorporation of the contract of law. Therefore, this paper will evaluate the law in regard to the case study. Question One (a) Explanation of case facts. Transactions between sellers and buyers forms a contract in which both parties willingly undertake. Thus, from the evaluation of the case, Mohammed and E&Z electronics entered a sales contract. The contract had different stipulations, and it is legally enforceable within a court of law. The washing machine had a defect that significantly led to bodily damages to Mohammed. Accordingly, it is imperative to note that aspects of negligence might have prevailed on both the manufacturer and the buyer. Due to the bodily harm incurred, Mohammed seeks to sue for damages which may be in monetary form. A monetary compensation is a cause of action in regard to the damages that may have been caused directly by the washing machine's defect. (b) Definition and significance of Warranty of merchantability Stim (2010, pp. 68-76) asserts that, under the warranty of merchantability, goods purchased from an individual who handles such goods whether the seller or manufacturer, implied condition must prevail. Merchantable warranty denotes that the goods bought should be of reasonably fit for the intended purpose. (c) Definition and significance of implied and express warranties First and foremost, express terms entail orally or written terms which are agreed upon by both parties. Stim (2010 pp. 68-74) affirms that written terms prevail over the oral terms. In instances whereby the contractual terms are written, the oral evidence is not admissible to vary or explain the various written terms. On the contrary, implied warranties entail the terms within a sales contract which though not agreed upon by both parties, form an integral part of the contract. The terms are implied by the statutes or the court of law. Thus, from the evaluation of the case, implied warranties are highly applicable. As such, the court should incorporate the implied warranty stipulations in order to evaluate the terms of the warranty issued to the client in order to make individual judgment pertaining the case. (d) Seller or Manufacturer’s negligence. Negligence entails the omission, by a party, which disregards the duty of care owed to the harmed individual. Thus, from an evaluation of the case, the seller can be sued for contributory negligence. During the court proceedings, it has to be proven that E&Z Electronics was directly to blame for the losses incurred by my client. The seller exposed Mohammed to danger evident in the sale of a faulty product. The negligence of the seller to inform my client of the product flaws is a subject of an imperative evaluation. (e) Remedies In instances of breach of contract, the innocent party's contractual rights are violated. The cause of action in such instances of breach of contract entails remedying the plaintiff. Jones (2013, pp. 47-83) asserts that the remedies to a breach of contract can be legal or equitable. Legal remedies may necessitate a specific sum of monetary damage to be decided by the court (Jones 2013, pp. 55-65). Equitable remedies were created by courts of equity and were previously only available in the Lord Chancellors courts. Hence, the two forms of remedies differ in that the legal remedies are awarded as of right to a successful claimant while equitable remedies are awarded as per the discretion of the court and may include a prohibitory or mandatory injunction. From the case evaluation, a legal remedy is applicable. Mohammed should seek compensation from E&Z and L&G Electronics as compensatory damages and for losses suffered due to the defective switch. Since substantial damages were evidenced, the court should deem the right monetary amount to pay Mohammed as a result of the direct consequences of a breach of contract. (2) Counter arguments Firstly, contributory negligence is highly applicable in the evaluation of Mohammed, Jones (2013, pp. 54-59) asserts that in instances that the damage is caused by a default from the plaintiff, the remedy should not prevail. As such, it is necessary to prove that the plaintiff himself contributed to the damage or the resultant defect of the switch. The defect evidenced on the washing machine may have been caused by the litigant's negligence. The litigant was cognizant of the defect and should have taken the appropriate steps to lessen the losses through repairing the product. Furthermore, a warranty entails a minor provision in a sales contract in which when the prospect of a breach prevails, right to sue for damages prevails. Since a warranty has an expiration date, if the expiration date is overdue E&Z Electronics will not be liable for the damages experienced by the plaintiff. Secondly, the doctrine of mitigation of loss is highly applicable in this case. Jones (2013 pp. 51-54) asserts that the mitigation of loss doctrine may be incorporated in instances whereby the breach of contract occurred and the innocent party did not take the necessary measures to reduce the losses that may have occurred. This principle is imposed upon the plaintiff in instance where he fails to mitigate the loss coupled with the amount by which the loss ought to have been minimized which is irrevocable. Mohammed or the plaintiff knew the switch was faulty and should have taken the necessary steps to correct the fault. As such, the individual should have taken the product to E&Z electronics for the company to repair the fault or return it to the manufacturer. (3) Judgment from a Judge’s perspective. (a) Plaintiff’s contributory negligence A legal duty of care is applicable in this case. The plaintiff, Mohammed, having proven that the defendant owed a duty of care in the given scenario, proper judgment can be made. As an aspect of negligence, a legal duty of care denotes the prospect that the defendant knew that selling a defective product could have harmed the plaintiff. (b) Whether the E&Z Electronics' product resulted in the body injuries and destruction of property. A defective switch may have led to the damages incurred by Mohammed. Admittedly, it is imperative that Mohammed proves how the defective switch directly led to the damages incurred, that is, the loss of property and physical injury. Through an emphatic description coupled with evidence linking the faulty switch and the losses incurred, an appropriate decision can be made. (c) Possible product modification by the manufacture Incorporating instructions regarding the operations of the product is imperative. The manufacturer should have dictated various directives or protocols to be followed regarding a defective switch. Furthermore, the manufacturer should have incorporated a warning indicator in the product to notify any defect occurring in the product. Through the above measures, the concept of Volenti non fit Injuria (voluntary assumption of risk) could have prevailed in the defendant’s argument. The latter could have established that the plaintiff had actual knowledge of the nature coupled with the risk of using the washing machine. (d) The seller’s liabilities Though the seller is not the manufacturer, it is significant to note that the sales contract was undertaken between E&Z and Mohammed. As such, in a court of law, the seller owed a duty of care and is responsible for the goods sold by him to the buyer. (e) Remedying the case A monetary form of compensation is highly imperative in the evaluation of the case. Therefore, Mohammed should have his health status and properties lost appropriately and sufficiently compensated by both the manufacturer and the seller. Hence, it’s pivotal to make the right monetary compensation to the plaintiff since significant damage was evidenced. Conclusion The law is instrumental in ensuring justice in all sectors of the corporate world including protecting transactions between sellers and buyers. Where one party is found to have contravened an agreement such as an implied or express warranty, appropriate legal mediation can be sought. In Mohammed’s case, significant damage was impacted on the plaintiff due to a fault in the product sold to him by E&Z Electronics. Mohammed's lawyer should seek to convince the judge to have the product's merchants compensate the plaintiff for the losses while lawyers to the merchant should convince the judge why the merchants are not liable for the losses. Reference List Stim, R 2010, Contracts: The essential business desk reference, Nolo, New York. Jones, L 2013, Introduction to business law, Oxford University Press, London Read More

CHECK THESE SAMPLES OF Legal Environment of Business and Business Ethics

Management styles, business ethics & the legal environment of business

Date Assignment #2: Management styles, business ethics & the legal environment of business 1.... Generally speaking, what are the responsibilities of manager?... The responsibilities of a manager are actually being actively involved in four functions: planning, organizing, directing, and controlling of crucial resources (human and assets) assigned under one's jurisdiction....
3 Pages (750 words) Essay

The Legal and Ethical Environment of Business

This study "The Legal and Ethical environment of business" will begin with the statement that Mr.... Lowell returned to Miami, her attorney faxes a letter to DWI shipping company requesting them to send to the $10 million within 10 business day in regards to Mr.... and Mrs....
3 Pages (750 words) Case Study

The Legal and Ethical Environment of Business

The Legal and Ethical environment of business Currently, Iraq is regarded as the world's second largest proven oil reserves, next to Saudi Arabia.... The Iraqi Constitution of 2005 clearly stipulates the provision of business prospects for international oil companies (IOCs).... In operating an oil exploration business in Iraq, DWI needs to consider dealing with various institutions....
2 Pages (500 words) Essay

The Legal and Ethical Environment of Business

An essay "The Legal and Ethical environment of business" outlines that vicarious liability can hold one party like DWI for example, liable for the injury or damages that are sustained by another party, in spite of the fact they may not have had any kind of active involvement in the injury.... The Legal and Ethical environment of business The notion of vicarious liability or the legal doctrine of “respondeat superior” holds business principals responsible for the torts of their agents1, therefore in the case of DWI, this would mean that the firm could be responsible for the illegal harmful acts of their agents or employees....
2 Pages (500 words) Essay

BUSINESS - It's Legal, Ethical, and Global Environment

For thousands of years, Running Head: Business - Its Legal, Ethical, and Global Environment Business - Its Legal, Ethical, and Global environment of the of the Institution]Business - Its Legal, Ethical, and Global EnvironmentTen years ago, many people in the United States did not know the meaning of a terrorist.... Therefore the men who interpret the religion states, that killing innocent lives and looting is all justified and legal, as long as they are doing it for their religion, but in all other cases its a crime against humanity....
2 Pages (500 words) Essay

The Legal and Ethical Environment of Business

Also, some relevant similar The Legal and Ethical environment of business Ethical Violations Discrimination means treating someone badly just because she or he is different from one (Middleton, 1999).... This would create the environment of grouping or empire building within the organization.... In addition to that, discrimination would engender the environment of hostility within the organization.... In the recent times, the cost of doing business has increased after the emergence of the global financial crisis....
2 Pages (500 words) Essay

Ethics and Legal Environment, Business Association and Torts, Critical Thinking

From the paper "Ethics and legal environment, Business Association and Torts, Critical Thinking" it is clear that limited partnership further benefits the firm through complementary skills from the limited partners as it increases the pool of skills and knowledge.... .... ... ... The issue is the superhuman based argument....
13 Pages (3250 words) Assignment

The Legal and Ethical Environment of Business

The study "The Legal and Ethical environment of business" focuses on Enron's collapse that took away the investors' confidence over the company's management.... In the following parts of this paper, first, the Enron debacle is described, it is followed by the causes of unethical and illegal practices in the corporate world; before the conclusion, implications from the investor and business perspectives are provided.... The practices such as accounting for the unrecognized profits and sales in the company accounting; creating and entering into the partnership agreements with the fictitious companies and recording illegal and unethical business transactions were largely carried out by the management of Enron....
5 Pages (1250 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us