Research and Discussion on Business Crimes, Business Torts, and Product Liability - Essay Example

Premises Liability Business liability, either to s or affected third parties, is based on the common law of tort as opposed to contractliability which results from the failure of one contracting party to properly perform the specified terms of the negotiated contract. Torts are wrongs committed by business and or person(s) to others which have caused damage to their property and/or injury to them. They may be intentional or unintentional. An example of an intentional tort in a business context would be a builder using illegal asbestos insulation knowing that it would very likely adversely affect the health of residents and visitors.

On the other hand, an unintentional tort usually negligence, is one based on carelessness rather than deliberate criminal activity, perhaps for economic gain. Usually the claimant has to prove the defendant was negligence and this negligence was the proximate cause of his damage and/or injuries. However, in certain cases a substance such as a chemical may be considered inherently very dangerous and if it escapes and this cause damages/injuries a court may impose strict liability, meaning that the claimant does not have to prove the defendant was negligent.

Rather the defendant is assumed to be negligent even though the exact cause of the incident is undetermined, unless they can show an outside force such as a natural disaster caused the incident and even with the best loss prevention and safety practices there is no way it could have been prevented. A common basis for a negligence action is premises liability. (Findlaw) A business must ensure that its’ premises is safe for its’ customers and others to reduce the possibility of slip and fall claims and injuries/damages resulting from other hazards.

For example, grocery stores must try to keep their floors clear of fallen produce. Those stores in states prone to severe winter conditions must ensure their parking lots and sidewalks are regularly cleared of hazardous snow and ice. Other hazards that could give rise to successful liability claims are inadequate lighting, too narrow aisles especially with heavy stock piled nearby which could fall on customers, stairs without proper handrails, too steep risers, poorly maintained or without warning signs and/or contrasting colors to mark their presence.

The duty of a frontline manager in a retail outlet is to anticipate possible hazards on his premises and promptly take steps to eliminate them or at least to reduce them as much as possible. Depending on the hazard, this can be achieved in several ways. It may necessitate redesign and rebuilding of the floor space., or it may require a system of periodic inspection and clean up either in house or by hiring an independent contractor. Also it is important that adequate liability insurance is in place.

While a retailer and/or its’ insurer can seldom avoid paying any damages to claimants because of defense costs, their exposure can be drastically reduced if it can be shown there are reasonable periodic inspections and clean up by staff or an independent contractor. Usually a court will accept a log documenting this. Since premises liability is usually based on negligence rather than strict liability, they will recognize there are certain hazards of weather and actions of other customers and not assign full liability to defendants unless it can be shown they were negligent in making reasonable efforts to keep their premises as safe as possible under the circumstances.

Reference“Learn About The Law (Accident and Injuries)” Findlaw retrieved from http//www.findlaw.com Sept. 23, 2012.