Aspects of Contract Negligence for Business Assignment 2 BTEC Nguyen Huu Phong 2017

ASSIGNMENT 2 FRONT SHEET
Qualification

BTEC Level 5 HND Diploma in Business

Unit number and title

Unit 5: Aspects of Contract and Negligence for Business

Assignment due
Learner’s name

Nguyễn Hữu Phong

Assignment submitted

3/05/2017

Assessor name

NGUYEN CHI THANG

Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature

Date

Grading grid
P3.1

1

P3.2

P3.3

P4.1

P4.2

M1

M2

M3

1

D1

D2

D3


Assignment title

Aspects of Liability in Negligence in Business context

In this assignment, you will have opportunities to provide evidence against the following criteria.

Indicate the page numbers where the evidence can be found.
Assessment criteria

Expected evidence

Task
no.

Assessor’s Feedback

LO3. Understand principles of liability in negligence in business activities
3.1 Contrast liability in tort
with contractual liability

 Achieved

Point out how liability in

1.2

negligence tort differs from tort
contractual liability

Not achieved

Provide brief explanation of
3.2 Explain the nature of
liability in negligence

specific elements of the tort of

negligence, including duty of
care; breach of duty; damage–
causation and remoteness of
damage;
personal
injuries;
damage to property or economic
loss

 Achieved
1.1

Not achieved

Explain definition of vicarious
3.3 Explain how a business
can be vicariously liable.

 Achieved

liability
Explain how a business can be
vicariously liable.

2.1

Not achieved

LO4. Be able to apply principles of liability in negligence in business situations
2

2


Identify general actions to an
action in the tort of negligence
and give brief explanation of each
of them
List the sort of remedies in the
4.1 Apply the elements of
tort of negligence and give brief
the tort of negligence and
explanation of each of them
defenses in different business
Explain the differences between
situations
defenses and remedies in the tort
of negligence
Conclude
whether
your
company
are
subject
to
negligence compensation

 Achieved
1.2

Not achieved



4.2 Apply the elements of
vicarious liability in given
business situations

3

Explain the concept of
vicarious liability and identify
situations vicarious can occur, i.e.
in the course of employment or in
agency

Analyze the required
elements for vicarious liability
that must be presented in each
situation

Based on the selected
cases, make conclusion vicarious
liability apply on each particular
case, i.e. vicarious liability and
employment, vicarious liability
and agency, vicarious liability and
independent contractor

 Achieved

2.2

Not achieved

3


Assessment criteria
Merit descriptor No.1 (M1)

Expected Evidence

Identify and apply
strategies to find appropriate
solutions.

Merit descriptor No.2 (M2)

Select and design

Feedback
(note on Merit/Distinction if applicable)

 Achieved
Not achieved
 Achieved

appropriate techniques

Not achieved

Merit descriptor No.3 (M3)

Present and communicate

 Achieved

appropriate findings

Not achieved
Distinction descriptor No.1 (D1)

 Achieved

Use critical reflection to
evaluate own work and
justify valid conclusions.

Distinction descriptor No.2 (D2)

Not achieved
 Achieved

Take responsibility for
managing and organizing
activities

Distinction descriptor No.3 (D3)

Not achieved
 Achieved

Demonstrate
convergent/lateral/creative
thinking

4

Not achieved

4


Summative feedback

Assessor’s Signature
IV Grading Check:

Date
Comments if any:

Agree
Disagree

Modify grade to

IV Signature

5

Date

5


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6


Contents
Introduction

8

LO3. Understand principles of liability in negligence in business
activities
3.1 Contrast liability in tort with contractual liability
8
3.2 Explain the nature of liability in negligence
11
3.3 Explain how a business can be vicariously liable
12
LO4. Be able to apply principles of liability in negligence in
business situations
4.1 Apply the elements of the tort of negligence and defenses in
different business situations
12
4.2 Apply the elements of vicarious liability in given business
situations
13

Conclusion

14

References

15

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7


Introduction
In business, it occurred many cases unplanned as something inevitable, these situations influence and
cause damage to the parties involved. To control and solve it, we need to grasp and understand principles
of liability in negligence in business activities. These factors will help us statistics and analysis clearly are
situations to solve problems in the best way. In this report, I will raise the concept and theory of tort law
and those situations where the parties involved do affect each other when the mistake and damaging to the
interests of others. I will analyze the theory and apply that theory to situations in order to see clearly the
situation and the parties must take responsibility and compensate the damage.

LO3. Understand principles of liability in negligence in business
activities
3.1 Contrast liability in tort with contractual liability
The contract is a commitment agreement between two or more parties (legal entities) to do or not to do a
certain task in the framework of the law. The contract is usually associated with the project, in which a
party to the agreement with the other party of the project or part of the project for themselves. the contract
may be the civil agreement for economy or society. The contract may be made in writing or by word of
mouth can be the witness, if the breach of contract or not according to the commitment of the two parties

will jointly to court and the loser will bear all the cost.
According to Quora stated that:” A tort is a wrongful act that injures or interferes with another's person or
property. A tort case is a civil court proceeding. The accused is the "defendant" and the victim is a
"plaintiff." The charges are brought by the plaintiff. If the defendant loses, the defendant has to pay
damages to the plaintiff.”
Example: In 2005, a police officer in New York City named John Florio had broken teeth, tearing her
mouth and throat torn when chewing broken glass pieces hit in Big Mac of McDonald's food store. After
that, the culprits were discovered, Albert Garcia, an employee of McDonald's has jail in 18 years, who
have deliberately put the broken glass on the pie. McDonald has paid 5.5 million dollars compensation to
Florio, while Garcia was accused of attacking police in a serious way.

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8


Causation: Any damage is the cause of it. Possible causes stemming from misconduct. There are many
causes of damages but must search out and clearly identify the main cause leading to the damage.
Breaking the chain: The series went from original cause leads to damage must be considered in a general
way, learn all the sources of the cause of the damage and determining the cause would be the direct cause.
There are the basically types of tort:
•

Trespass: it is the illegal infiltration behavior of a party to another party in any case for anything
other party. Trespass occurs with 3 types of is human, property, land. For human is the unlawful
detention, vi cave assault, assault, ... for the property is misappropriated assets of other
unauthorized people and for the land's constitute the illegal land use not permitted by the law.

Example: Mr.A and Mr. B have a problem with the general land using, Mr.A caught Mr.B's daughter to
force Mr. B concessions and accept defeat in the dispute.

•

Nuisance: Is the nuisance, disrupting and discomfort of a party to the other party.

Example: A family party often extends to the late, large music affected everyone around.
•

Defamation: it is a false statement that it wrong, affecting the credibility, reputation, honor of the
individual or the organization.

Example: Mr.A open a cake shop and Mr B is also opening a cake shop beside, Mr.A often tell clients that
Mr.B's store unhygienic and poor quality of raw materials, while Mr.B's store completely ensure that all
standards of hygiene and quality.
•

Negligence: an individual or organization fails to comply with an obligation to carefully impair,
damage to other people

Example: A home repair and shield are supposed to cover the surrounding area to not affect to other
parties around. However, due to the subjectivity does not cover the back of the house leads to the
construction materials from falling broke windows of cars besides.
•

Liability:
Joint in liability: the two or more people responsible for causing damage to another party.

Example: Mr.A, Mr.B, Mr.C together to open coffee shop in the same streets and compete with each other.
However, because of the right strategy and attracted many more customers, so Mr.A coffee shop shilling is
more people to drink, this leads to Mr.B and Mr.C affected sales. Mr.B and Mr.C has linked together to
smash Mr.A. In one afternoon Mr.A sat before his coffee shop, Mr.B and Mr.C throw paint on and hit on

Mr.A hand .However, Mr.A was taken car number of Mr.B and show it to the police investigation. After

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9


investigating and found Mr.B and Mr.C conspirators should have conducted process. Mr.B and Mr.C must
compensate for the damages and not re-offending.
Several or proportionate in liability: just as the Joint but in this case, the level of responsibility
depending on the level of errors caused by the parties.
Example: under the laws in Vietnam, the nightclub was not open to 0.am midnight. However, A nightclub
opened to 3.am and Mr.A playing time to close the door and drunk. He was still driving the car and the
cops catch. Nightclub bear 20% and Mr. A bear 80% in the case of Mr. A.
Strict liability: responsibility put on the parties own the dangerous sources capable of causing
damage to other people.
Vicarious liability: it is the responsibility that the head of the management and organizational
property be subject instead of the employee when the employee causes damage.
Example: accident of Phuong Trang driver but the responsibility first by the Phuong Trang Company
before processing to the driver caused the accident.
Compare contract law and tort law:
Similarities:
Contract laws and tort laws share many similarities. Both problem solving and handling violation
according to the regulation, the parties concerned must compensate the damages as caused damage or
adversely affect other stakeholders.
Differences

Relationship

Damages

Liability

10

Contract Liability
Clearly defined in the
contract.
The offending party will take
responsibility and
compensation as specified.
Damage
primarily
to
compensation and the related
financial impact.

Liability in Tort
No regulations
contract.

and

no

The damage affected property,
health, benefits, ... The
damage is not just in the
financial side.
The offending party and not The responsibility belongs to
done

right
under
the two or more people causing
provisions of the contract.
damage, liability could relate
to the other side of the
offending custom levels of the
party.
The company, the head of the
10


stand-out responsibility for
who directly caused the
damage.

3.2 Explain the nature of liability in negligence
According to Rotlaw stated that: “Negligence occurs when a person uses less than reasonable care to
protect others from harm. Most personal injury and similar tort cases are based on a claim that one
person’s negligence has caused another’s injury.”
A negligence case has some elements:
Duty of care
The duty of care is a standard in the law of negligence. It is a duty owed to use reasonable care; in other
words, one must act as a reasonable person. It is a duty to act the way a responsible person should act in a
given set of circumstances, and a deviation from this could result in negligence.
Example: mobile phone design engineer of Samsung must do everything thoroughly if not explosive
battery error occurs same as Note 7 in 2016. If it happens again, they must bear all the responsibilities.
There are 3 factors: Foreseeable, Proximity, Reasonable
Breach of duty of care
According to Rotlaw state that: “A breach of duty occurs when one person or company has a duty of

care toward another person or company, but fails to live up to that standard. A person may be liable
for negligence in a personal injury case if his breach of duty caused another person’s injuries.”
Damage
It is the loss or damage to health, honor and property, the spirit of the victim.
Damage has two types: Physical damages and Nervous shock
Example: X taxi carrying Mr.A caused the accident but luckily there have no damage. However, Mr.A
haunted about the crash affect your work. He has a lawsuit about the compensation damage physically and
mentally that he was causing.

3.3 Explain how a business can be vicariously liable.
Vicarious liability is imposed on the manager or the organization responsible for the replacement of staff
who caused the damage in at your service.
Employer-employee: responsible management party when the two parties have a labor relationship in
labor contract through which the two sides have signed.
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11


Example: go back many years ago, when the driver of the singer Ho Ngoc Ha take her out, while the wait
has caused the accident caused 10 deaths. Ho Ngoc Ha to stand bear all damages and compensation for the
damage, and the driver will be processed by law and set forth in the labor contract between the two.
Agent-principal: relationship between the two sides often in short period and do not exist a relationship
contract. When the agent to follow the orders of the principal and causing damage, then the principal will
be responsible for, and when the agent himself caused the damage, the principal is not liable.
Independent contractor: who is from labour, the action itself and solely for all the consequences, effects
caused by ourselves.

LO4. Be able to apply principles of liability in negligence in
business situations

4.1 Apply the elements of the tort of negligence and defenses in
different business situations
Situation: Mr. A went to the shop of Mr. B to purchase of an iPhone 6S old as a gift for the birthday of his
wife, after checking series number on iPhone, Mr. A paid and signed the bill with Mr. B, then Mr. A asked
Mr. B brought it to address XXX to give Mr. A's wife and make her surprise. However, after Mr. A left,
other person has brought an iPhone 6s faulty heater battery and have the same color with the color of the
Mr.A's iPhone. To date of Mr. A, Mr. B had taken the error iPhone to delivered to Mr. A's wife. The
consequence is that two days after use, the phone fuming and almost burnt hands, burning his wife Mr. A.
After checking the series on iPhone that Mr. A realized it is not the iPhone bought because of different
series. Mr. A lawsuit Mr. B because responsibility for interior work and influence others.
Situation analysis:
Mr. B was not careful in work, rushing and caused damages to the wife of Mr. A when delivered a faulty
battery products and very dangerous. This has led to the wife of Mr. A burned hand affect health.
Conclusion: Mr. B has responsible and obliged to compensate the damage caused to Mr. A and Mr. A's
wife. If the lawsuit then Mr. A fully capable of winning because Mr. B was wrong mercy lead to
unfortunate incidents.

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12


4.2 Apply the elements of vicarious liability in given business
situations
As said above, Vicarious liability is the case that the manager, head of a company, organization or
company, held responsible instead of the employee when the employee make mistake and cause damage.
Situation: In 2012, when Apple announced Apple Maps and take Google Maps default out of the iPhone,
this made million iPhone users and programmers of the world surprised because their daily work
associated with Google Maps. This becomes more and more catastrophes when Richard Williamson, a
longtime employee of Apple and is the head of the Apple development team Maps were too sloppy in

developing this application leads to too many silly errors and discrepancies led to more people being
plunged into problems the influence of business, many people are using Apple products. This immediately
creates a protesting that Apple and Apple's CEO at the time that Tim Cook stood out and apologize
customers all over the world and offer a solution to remedy the situation. Apple and Tim Cook has got the
responsibility of what their employees did. Many people have also filed a lawsuit Apple intentionally
exclusive maps application on their products. Finally, all the problems were resolved when Apple takes
Google Maps returned. Richard Williamson were changed the location and left the company, significantly
more Scott Forstall-father of iOS also must go because of the failure of this damage.
In this case, we can see the Apple employee has caused enormous damage and influence more people but
the people responsible for the Apple and Tim Cook because they hire these people to do this work.

Conclusion
Understand the principles of liability in negligence in business activities is an important thing that every
person needs to know to be able to analyses, process and identification of situations when there is an
unexpected situation occurs. Understand and solve a satisfactory manner according to the rule of law will
help the parties concerned to protect their rights.

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References
•
•
•
•
•
•

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Vneconomy (2015) Top 10 customer cases sued fastfood, Available at:
(Accessed: 24 April 2017)
Clarke, P. (2016) Contract and Tort Law, Available at: (Accessed: 24 April 2017)
Schubert, J. (2016) What Is Duty of Care? - Definition & Examples, Available at:
(Accessed: 24
April 2017)
Rotlaw (2017) What is “negligence”?, Available at: (Accessed: 24 April 2017)
Rotlaw (2017) What is “breach of duty”?, Available at: (Accessed: 24 April 2017)
Duyen Pham (2012) Apple sacked "boss" Apple Maps, Available at: (Accessed: 24 April 2017)

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