Legal Environment of Business and Business Ethics - Assignment Example

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