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Business Law Case Study - Assignment Example

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Issues concerning negligence and claims for damages on account of negligence form quite a sizeable part of our legal system. Such matters fall under the purview of the Common Law and are most usually decided in the Civil Courts, cases of criminal negligence would be directed to the Criminal Courts of the land where they occur. …
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Business Law Case Study
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One might well question what the State’s liability is if any, regarding this turn of events. In the given scenario, Blast is a sub-contractor of Mountain Clear Corp. Mountain Clear Corp has been given the contract by the State of Colorado. So the relationship between the State of Colorado and Mountain Clear Corp. is that of Principal and Agent. In turn the legal and contractual relationship between Mountain Clear and Blast is that of Principal and Agent. But there is no contractual relationship between the State of Colorado and Blast. The State of Colorado would ordinarily have expected Mountain Clear Corp. to carry out the required duties without involving a sub-contractor. So the State of Colorado cannot be held liable for what happened. In a similar case, Minnie Berkely had an accident on a tramline operated by The Forty Second Street Railway Co., which was owned by the Third Avenue Railway Co. Though Berkely sued Third Avenue Railway Co, for compensation for personal injury caused, the New York Court of Appeals held that Third Avenue Railway Co. was not liable for the debts of its subsidiary. A similar stance can definitely be adopted here, especially if the State was not aware of the work being sub-contracted by Mountain Clear to Blast. The Contractor’s Liability By the contractor here is meant Mountain Clear Company. It is clear from the above detailed explanation of events that Blast was liable for negligence because its guard had gone to sleep when the Plaintiff approached and went through the danger zone. Had the guard been awake, he could have definitely have prevented the Plaintiff from crossing over. This was the duty of reasonable care which the guard would have been expected to perform, since ordinarily guards perform these duties3. But as to the question of whether Mountain Clear Co. is liable for the acts and omissions of Blast, it is clear that it is not. Blast had the duty to carry out the blasting activities at the site under its own authority and schedule but Read More
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