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BTEC HND IN BUSINESS (Accounting)

ASSIGNMENT COVER SHEET


NAME OF STUDENT REGISTRATION NO. UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE VN: EN:

Aspects of Contract and Negligence for Business Negligence 2 of 2 (individual report) Mr. John Andre 26 Dec 2013

I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment.

________________________________ Signature

_________________________ Date

---------------------------------------------------------------------------------------------------------------FOR OFFICIAL USE (Course Administrator) Assignment Received By: Date:

ACNB Assignment 2 Fall 2013-2014

Unit Outcomes
Outcome Evidence for the criteria Feedback Assessors decision
First attempt Rework

Internal Verification

Contrast liability in tort with contractual liability

3.1

Understand principles of liability in negligence in business activities LO3

Explain the nature of liability in negligence

3.2

Explain how a business can be vicariously liable

3.3

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

Apply the elements of the tort of negligence and defences in different business situations

4.1

Apply the elements of vicarious liability in given business situations.

4.2

Merit grades awarded Distinction grades awarded

M1 D1

M2 D2

M3 D3

ACNB Assignment 2 Fall 2013-2014

Outcome

Evidence for the criteria

Feedback

Assessors decision
First attempt Rework

Internal Verification

Assignment
( ) Well-structured; Reference is done properly / should be done (if any) Overall, youve

Areas for improvement:

ASSESSOR SIGNATURE

DATE

NAME: ..........................................................................................

(Oral feedback was also provided) STUDENT SIGNATURE DATE / /

NAME : ..............................................................................
FOR INTERNAL USE ONLY VERIFIED YES NO DATE : ...........................................................................

VERIFIED BY : ........................................................................... NAME : ...........................................................................

ACNB Assignment 2 Fall 2013-2014

SCENARIO Mug-n-Sas, LTD is an electronics retailer with 5 stores throughout London. They sell a combined 5 billion worth of electronic devices each year, specializing in smartphones and tablet computers. To take advantage of their success in the smartphone industry, they have contracted with Pegatron of China to build an Android-based smartphone called the Muggy. The Muggy accounts for 500 million of their annual sales but a disproportionately large amount of their operating profit and is even sold through Marks and Spencer, a large department store chain with stores around the world. Honky Uh Now, the CEO of Mug-n-Sas, has hired your consulting firm to advise him on several legal issues. The issues are as follows. Suzi Simmons purchased a Muggy two months ago from Marks and Spencer. The phone came with a 2 year warranty but after one week, Suzi answered the phone while it was charging and received a fatal shock. Paul, her husband, is suing Mug-n-Sas for 1 million which is what he estimates his wife would have made over her lifetime plus and additional 25,000 for the funeral. He is also suing for 1 million in exemplary damages because Mug-nSas did not regularly audit Pegatron and likely would have caught the manufacturing problems if they did the audit regularly. The CEO believes his company is only responsible to replace the defective phone. Won Ton, a delivery person for Mug-n-Sas entered Henriettas house in order to install a new LED TV. While he was there, Henrietta offered him some tea and while the two were drinking, Won Ton stole a diamond necklace which Henrietta left on the table. Henrietta accused him immediately but Won Ton left. Henrietta is suing for 10,000, the cost to replace her necklace. A truck delivering new iPads from Apple to one of the stores was also carrying nitroglycerine. While unloading a box of iPads from the truck one of Mug-n-Sass workers knocked over a bottle of nitro-glycerine and it exploded destroying the truck, all of its contents, killing the driver, and damaging the loading dock of Mug-n-Sas. Apple is suing Mug-n-Sas for the 2,025,000 which includes the cost of the truck ( 25,000), the cost of the contents ( 1 million) and another 1 million for the amount Apple will have to pay the family of the driver under his employment contract. The CEO believes that his company should not have to pay anything and that Apple should pay his company because their loading dock suffered 100,000 worth of damage. One night last month, Tom, a burglar broke into one of Mug-n-Sas stores in order to steal the new iPhone 6 phones that the store has been advertising. The burglar entered through the roof by cutting a hole in it. While he was climbing down his rope, he touched an exposed electrical wire. The shock from that wire resulted in the burglar falling, landing on some LED TVs, destroying 2 of them and resulting in a trip to the hospital for Tom. The burglar was caught by the security on guard and handed to the police. The burglar is suing Mug-n-Sas for 5,000 for the hospital bills because the store had exposed electrical wires in violation of Londons building code. The CEO thinks he should not pay and that Tom should pay 4,000 to replace the TVs he destroyed and another 3,000 to repair the roof. Tom says that Mugn-Sas is contributorily negligent because of the exposed wire. Vidia entered the store on the day of a sale on tablets. While she was in store, she was waiting in line to ask some questions of the customer service desk. It was very crowded and
ACNB Assignment 2 Fall 2013-2014 4

when she got to the front of the line she placed her purse on the counter. An employee came by and took the purse. When Vidia complained the purse was returned but her phone was missing. She is suing for 600, the cost to replace the phone. She is also seeking exemplary damages of 1 million because she has heard the store employees do this sort of thing all the time. The CEO thinks it must have been an honest mistake and thinks he should pay nothing. She did not control her bag and if someone took it, that does not mean that he needs to buy her a new phone.

Your Task: Write a report for the CEO to advise him on his cases from a legal perspective. Task 1: Contrast liability in tort with contractual liability using the situations in the scenario (3.1) Task 2: Explain the nature of liability in negligence (3.2) and Apply the elements of the tort of negligence and defences in situations above (4.1) Task 3: Explain how a business can be vicariously liable (3.3) and Apply the elements of vicarious liability in the scenario above (4.2)

Note Support your answer by reference to any cases, as well as your own ideas.

ACNB Assignment 2 Fall 2013-2014

GRADING Pass is achieved by meeting all the requirements defined in the assessment criteria. (Refer to page 2 of the assignment brief) Select and apply appropriate methods/techniques (M2)

Merit

Characteristics / Possible Evidence Appropriate methods have been applied in analyzing legal impact and selection of cases to include has been justified. Present and communicate appropriate findings (M3)

Characteristics / Possible Evidence Presentation of analysis and recommendations is appropriate for those familiar and unfamiliar with the subject of contract law.

Distinction Take responsibility for managing and organizing activities

(D2)

Characteristics / Possible Evidence independence demonstrated and substantial activities have been planned, managed, and organised related to the application of contract law. Demonstrate convergent, lateral and creative thinking (D3)

Characteristics / Possible Evidence innovation and creative thought have been applied to the contracts in the scenario. To achieve a PASS, students answers should display clear presentation of information / data collected. As a member in group discussion, students should contribute positively. To achieve a MERIT, students answers should display clear, concise presentation of information / data collected. As a member in group discussions, student should contribute positively towards others opinions and offer constructive advice / suggestions. To achieve a DISTINCTION, students answers should display clear, concise and analytical presentation of information / data collected. As a member in group discussions, student should contribute positively and offer constructive advice / suggestions. Information should share with all members of the group.

ACNB Assignment 2 Fall 2013-2014

PRESENTATION 1. The assignment should have a cover page that includes the assignment title, assignment number, course title, module title, Lecturer/tutor name and students name. 2. Ensure that authenticity declaration has been signed. 3. This is an individual assignment. 4. Table of contents with a list of all headings and page numbers. 5. A fully typed up professionally presented report document. Use 12 point Arial, 12 point Times New Roman, or 12 point Calibri script. 6. Your assignment should be word-processed and be a maximum 3,000 words in length. 7. Appendices/administrative aspects are outside this word count limit. 8. You must acknowledge the sources of information and evidence using the Harvard referencing system. 9. Submit both a hard (printed) and soft (electronic in DOCX format) copy by the deadline listed above NOTES TO STUDENTS FOR SUMMISSION Check carefully the submission date and the instructions given with the assignment. Late assignments may not be accepted. Ensure that you give yourself enough time to complete the assignment by the due date. Do not leave things such as printing to the last minute excuses of this nature will not be accepted for failure to hand-in the work on time. You must take responsibility for managing your own time effectively. If you are unable to hand in your assignment on time and have valid reasons such as illness, you may apply (in writing) for an extension. Failure to achieve a PASS grade will results in a REFERRAL grade being given. Take great care that if you use other peoples work or ideas in your assignment, you properly reference them in your text and any bibliography. Failure to follow any of these instructions may cause you to fail for submitting improperly. NOTE: If you are caught plagiarizing, the University policies and procedures will apply.

ACNB Assignment 2 Fall 2013-2014

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