2013

EF-501 Engineering Society

Assignment 2

T.Ragubaran E/09/270

01. In Sri Lanka the state intervened to protect the interests of the workers, by means of enacting labor laws. Discuss. Labor Laws 1. Statutes on regulation of wages and conditions Employee holiday Act No 06 of 1959 Holiday Act No 29 of 1971 Privilege Leave (private) Law Act No 14 of 1976 Budgetary Relief Allowance Act No 18 of 1978 Fuel Configuration five Day Week Act Special Allowance of Workers Law Supplementary Allowance of Workers Act Wages Boards Ordinance No 43 of 1941 Shop and office Employees Act No 43 of 1950 2. Statutes on employee welfare Workmens Compensation Ordinance No 19 of 1934 Factories Ordinance No 45 of 1942 Employee provident fund Act No 46 of 1980 Payment Gratuity Act No 12 of 1983 3. Statutes on industrial relations Trade Union Ordinance No 14 of 1935 Industrial Dispute Act No 43 of 1950 Termination of Employment of workmen Act No 45 of 1971 Employee Council Act No 12 of 1979 4. Statutes on obtaining jobs & training Service contract Ordinance no 11 of 1865 Registration of Domestic Services Ordinance No 28 of 1871 Chauffeurs Regulation Ordinance No 23 of 1912 National Apprenticeship Act No 49 of 1971 Employment of Trainees Act No 08 of 1978 Foreign Employment Agency Act No 32 of 1980 Sri Lankan Bureau of Foreign Employment Act No 21 of 1985 5. Statutes on women, young person and children Mines (prohibition of female labor underground) Ordinance No 13 of 1937 Maternity Benefits ordinance No 32 of 1939 Mines, Quarries and Minerals Ordinance No 55 of 1947 Employment of Women, young Persons & Children Act No 47 of 1956 6. Statutes on Indian laborers Estate Labor (Indian) Ordinance No 13 of 1899 Medical Wants Ordinance No 17 of 1880 Diseases (laborers) Ordinance No 10 of 1912 Thundu Prohibition Ordinance No 43 of 1921 Minimum Wages (Indian labor) Ordinance NO 27 of 1927 Even though there are many labor laws practice in Sri Lanka I was selected some Labor Acts which are mainly emphasis the Terms and conditions of Employment in Sri Lanka. WAGES BOARD ORDINANCE In 1928 Labor organization adopted convention No 26; creation of minimum wage fixing machinery. Sri Lanka enacted minimum wages Ordinance of 1927 through tripartite machinery for fixation of minimum wage, working hours, minimum age for employment. Machinery embracing all sectors of labor was a crying need at the time. Introduction of the wages board ordinance No 27 of 1941 fulfilled that need.

The Ordinance is in three parts; Part 01- Provisions relating to all trades. Payment of wages wages shall be paid without any deduction other than an authorized deduction (include any cash advance, payment of rent, payment of loan, contribution to person, provident fund, insurance, saving, medical or welfare scheme, ect.) Maximum Deduction -75% in the case of workers in any trade specified by the Minister by notification in the gazette; cocoa, cardamom & pepper trade, rubber trade, coconut trade. -50% in the case of workers in any other trade. Wage Period a) If the wage period is one week within three days of the end of the week b) If the wage period is two weeks - within five days of the end of the week c) If the wage period is one month within ten days of the end of the month Employer can keep the wage with him if payment is impossible & pay at the earliest opportunity. On the termination of the employment wages due shall be paid before the expiry of the 2nd working day after such termination. Maintenance of Wage records The employer shall maintain & keep accurate & clear records in writing in respect of; names of the workers, number of hours or days worked, wages paid. Date of payment & deductions. These records must be maintained for a period of 4 years. Penalty for failure to comply For breach of any provision of part 1, an employer is liable up to a fine of Rs. 1000 or to imprisonment for a term not exceeding 6 months or to both. He is also liable to pay any wages found due. Part 02- Provisions relating to particular trades. Establishment of Wages boards Minister of labour is entitled to constitute a wage board for any trade by considering the request made by employer of a particular trade or employees of a particular trade or on his own. Annual Holiday Majority of the Wages Boards have accepted number of Annual Holiday is 14 days. In Wages Boards of security Service, Nursing Annual Holiday is 21 days. In Wages Boards of Tea, Rubber, Coca Annual Holiday is 14 days. In Wages Boards of Paddy Hulling Annual Holiday is 18 days. Statutory Holiday Majority of the Wages Boards have declared 8 statutory holidays as public holidays. Parts 03- General matters. SHOP AND OFFICE EMPLOYEES ACT Shop and office employees Act No 19 of 1954, replaced the Shops Ordinance No 66 of 1938.The preamble to the Act states that An Act to provide for the regulation o employment, hours of work and remuneration of person in shop and office, and for matters connected therewith or incidental thereto. Hours of Work A normal days work is limited to 8 hours and a normal working week is limited to 45 hours. Only in restaurants and hotels, could a female over 18 and male over 16 be employed from 6 p.m to 10 p.m. Only on residential hotel could a female over 18 be employed between 6p.m & 6a.m and in an office maintained by an airline at the airport. Weekly Holidays On completion of 28 hours of work in a week, the law provides for the granting of one and half days holiday with pay.

Annual Holiday The total annual leave entitlement is 14 days. Public Holidays The eight public holidays are granted with remuneration.9 Tamil Thi pongal day, National day, The day prior to Sinhala Hindu New Year, The Sinhala Hindu New years day, May day, The day after the full moon poya day month of vesak, prophet Mohammeds birth day, Christmas day) Casual Leave The entitlement for a calendar year is 7 days. This is to be utilized on account of private or ill- health. In the commencing year of employment one day is granted for every two completed months. Maternity Leave Female employees are entitle to maternity leave on the following basis; a) 84 days leave in respect of the first two live births. b) 42 days leave in respect of the third & subsequent births of for confinements resulting in the issue of a viable fetus. Salary Payment The Act places time limits within which salaries should be paid. Salaries up to one week, within next 3 days Salaries over 1 week & up to two weeks with in the next 5 days. Salaries in excess of two weeks and up to one month, with in the next 10 days. Deduction from salary Authorized Deductions The aggregate deduction limit is 60% from the total remuneration. Other Deduction In respect of other deductions, the consent of the employee is not necessary. FACTORIES ORDINANCE Objective of Factories Ordinance No 45 of 1942 is the establishment and maintenance of a safe and a healthy work environment for those employed in the work place. Commissioner of Labour is the officer I n charge of the administration of the ordinance. Registration of a Factory The factory ordinance requires a factory to be registered. The rule applies to the construction, extension and conversion of existing factory. Building must be approved by a panel of civil engineers nominated by the commissioner. Safety Provisions Every part of transmission machinery, every dangerous part of other machinery all rotating parts of machinery should be guarded securely. Women and young person shall not clean any part of the prime mover or transmission machinery while it is in motion. It is obligatory to provide training and supervision for young persons working at dangerous machinery. Statutory Tests Hoists and lifts and steam boilers should be thoroughly examined and tested by a competent person at least once in every period of twelve months. Maximum working load it could carry should be marked on every hoist of lift. Should be marked the date on which the next test is due. A register should be maintained to enter the particulars of the tests. Safe Place of Employment The occupier is responsible to provide a safe place for his employees to work and safe means of access to such work place. Person entering should wear suitable breathing apparatus. The person entering should wear a belt to which a rope should be attached and free end of the rope should be held by a person outside. Provisions of Health

Cleanliness Factories should be maintained in a clean state and free from dirt, effluvia arising from drains, sanitary conveniences. Overcrowding factories should not be overcrowded. The amount of cubic space allowed per person employed in a room should not be less than 400 cubic feet. Temperature A reasonable temperature so as to not cause discomfort to the persons employed should be maintained. Lighting Every part of the factory in which person are working or are passing should be wee-lit, either by natural or artificial light. Sanitary conveniences Sufficient and suitable sanitary convenience should be provided separately for males and females. Provision on Welfare Drinking Water - An adequate supply of drinking water should be provided and maintained at suitable points conveniently accessible to persons employee. Washing facilities Suitable and adequate facilities should be provided for washing purpose.\ Accommodation for Clothing suitable and adequate accommodation for clothing not worm during working time should be provided and maintained for the use of employees. Meal Rooms Meals should not be permitted to be taken in rooms where dangerous or poisonous substances are used nor should persons to be allowed to remain in such rooms during intervals allowed for meal and rest. Notification of Accidents When an accident occurs in a factory which causes loss of life or disability in excess of 3 days or makes a person unconscious written notice of the accident should be sent by the employer to the District Factory Inspecting Engineer. TERMINATION OF EMPLOYMENT OF WORKMEN The Termination of Employment of Workmen Act No 45 of 1971 was introduced by the Government under Security Ordinance a set of emergency regulations to control retrenchments. These regulations were later regularized by an Act of Parliament. How to Terminate Services of employee by the Employer No employer shall terminate the scheduled employment of any workman without; The prior written consent of the workman or; The prior written approval of the Commissioner of Labor Employers & Workmen not covered by the Act An employer by whom less than 15 workmen on an average have been employed during the last six months. If employee has been employed for less than 180 continuous periods of 12 months commencing from the date of employment Consequences of Termination in Breach of Act Where an employer terminates the employment of workman in breach of the Act; Such termination is illegal, null and void and of no effect. The Commissioner may order the employer to continue to employ the worker from a specified date in the same capacity & t pay wages and all the benefits. Employer fails to comply with the above; he is guilty offence, liable to conviction & imprisonment 7 to payment of a fine Rs. 50 for each day in delay. EMPLOYEE PROVIDENT FUND The objective of the Employee Provident Fund act No 15 of 1958 is to provide retiring benefits to employed persons in the private & state sector undertaking through the machinery of a contributory provident fund. Employment & persons covered The act applies only to those employments which have been declared by regulation to be covered employments.

Practically every employment in Sri Lanka is a covered employment except for the employments and persons under noted. Trainees are entitled to provident fund. But NAITA apprentices are should not contribute to the fund. Rate of Contribution 12% by employer & 8% by employee. Total Earnings Basic wage or salary. Cost of allowance, special living allowance & other similar allowances. Payment in respect of holidays. Cash value of any cooked or uncooked food provided to employee. Meal allowances. Commissions paid to employees for any services rendered to the employer. Enhanced Rates of Contribution An employer & employee can, by mutual agreement, elect to pay a higher rate of contributions to the fund HR Sri Lanka|human resources Sri Lanka|human resource management|hr|HR|human resource development what is human resources personnel management sri lanka Arrears & Surcharges The employer is required to deduct the contribution & send to the fund before the end of the following month. Where the employer fails to do so & is unable to satisfy the Commissioner that the failure to do so was beyond his control, the employer is liable to pay a surcharge. The surcharge payable are as follows; Not exceeding 10days 5% Between 10 days & one month- 15% Between 1 month and 3 month- 20% Between 3 months and 6 months 30% Between 6 months & 1 year 40% Exceeding one year 50% EMPLOYEES TRUST FUND The bill of Industrial Relations Act of 1978 contained provisions related to establishment of a Trust Fund Board. The government resolves to enact separate legislation due to certain policy decisions. But the Employees Trust Fund Act No 46 of 19870 was enacted as a separate legislation. The objectives of the Employees Trust Fund are promoting employee ownership, promote employee participation and provide non- contributory benefits to retirement. Contribution Employers responsibility to make contribution equivalent to 3% of the monthly total earnings of every employee. Contribution of a particular month should be paid on or before the last working day of the succeeding month. Self Employed Persons A self-employed person may become a member of the fund by sending a notice to the Board indicating his desire to become a member. After the applicant is being accepted, he shall be liable to pay 3% from his total earnings. Total Earnings Wages, salary Cost of Living allowance, Special Living allowances & any other similar Allowances. Payment in respect of Holidays.

If we compare Sri Lankan workforce from 1953 to 1981, then we will get some interesting data. In 1953 the percentage of workforce involved in agriculture was around 52, which came down to 43% in 1981. In manufacturing sector the percentage of 1953 was only 10 percent. In 1981 it has gone up to 15.7%. Transport, storage, and communications increased from 3.5 percent to 4.8 percent over the same period. All these figures are suggesting a significant shift of work force of Sri Lanka. Apart from the agriculture the other sector are moving rapidly. Free market economic policy also helped to improve these data. After the independence, there was a significant demographic and educational change is observed. The rapid growth in population of the country also increased the level of work force in other sectors like- manufacturing, tourism etc. Due to the high competition in the labor forces, Sri Lankan govt. decided to cut down the service age in the public sector to save the country from the curse of unemployment. To some extent this strategy worked. Now, we will deeply concentrate on the govt. labor policies of Sri Lanka. During nineteenth century, labor legislation mainly dealt with the agricultural sectors and the general labor laws were passed in the closing of years of the colonial rule. In 1941 the government enacted the Wages Boards Ordinance, the first comprehensive piece of legislation regarding the payment of wages, the regulation of working hours, and sick and annual leave; the ordinance also empowered the government to establish wages boards for any trade. The board appoints equal number of labors from all different large sectors, suggested by the employers and workers. Ordinances of 1942 and 1946 enacts that all manufacturing units should have minimum standards for health and safety for the organization. The law also provides the commissioner the right to send inspection team in any manufacturing plants. The Maternity Benefits Ordinance, as amended in 1957, entitled a woman who worked in a factory, mine, or estate to full compensation for a period of two weeks before her confinement and for six weeks afterward. It is to be noted that the employee must have worked for the employers to be provided with such benefits. The Employees Provident Fund, established in 1958, provided a national retirement program for the private sector. The Employees Provident Fund, established in 1958, to benefit all the retired persons with financial back up. According to this act, employer must contribute 6 percent and employee must contribute at least 4 percent to the provident fund. Participation in this plan is observed very high. In public sector employees retired life is secured by the pension plans. It was seen that legislation to protect the health and welfare of the labors was very much wideranging, but the practical implementation was a bit narrow at the initial stage. Now lets discuss about the working condition. Working condition varied according to the type and size of the employment. The Factories Ordinance of 1942 established guidelines for industrial safety and sanitation and made each factory liable to government inspection. In 1980 strike and boycotts were taken place in Sri Lanka due to the inadequate meals in the factories. The factories Ordinance prohibited work for women between 9 PM to 6 AM. A 1957 law, for example limited working time for women to nine hours. Other laws prohibited women and children from working time underground, in mines, for example. Unemployment was a problem in Sri Lanka during 1960s. After the economic liberalization unemployment came down to 12 percent. According to official data, in 1987 the labor force consisted of around 6.2 million persons, of whom 5.4 million, or 87 percent, were gainfully employed, but these figures understated unemployment, which the Ministry of Finance estimated at 18 percent in late 1987.

02.1. What is product liability? Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause. Although the word "product" has broad connotations, product liability as an area of law is traditionally limited to products in the form of tangible personal property. Primarily, consumers are vulnerable since the legal protection given to consumers against manufacturers is not strong enough. Particularly, fatal and physical injuries such as deaths, deformities, permanent disabilities and illnesses caused by defective products involve a policy issue to be considered by a jurisdiction. 37 Secondly, it is very difficult to prove the nexus between the manufacturer of the product and the consumer at all times. Thirdly, modern rules of world trade monopolize evolving liability regimes. This is evident when analyzing the legal work of the international community on consumer rights. Still, it has only guide lines on consumer rights which have no legal effect, but merely provide an internationally recognized set of basic objectives. However, in general, many jurisdictions have taken steps to regularize internal trade and transactions of goods and services at the domestic level by the enactment of strict laws. Parliaments have approached the debated issue from two different angles. Firstly, recognizing offences which derive from command and control theory. Imposing products liability for defective products on the part of the manufacturer is the second approach. The tendency of the modern jurisdictions is to incorporate both aspects into their regimes. Sri Lanka too has a major statute to regularize internal trade, consumer protection and other concerns that are consequential to this issue.38 at the same time several corresponding statutes are available.39 the objective of latter statutes are not per se consumer protection, however, these can be used as supplemental to the intended purpose. The intention of Parliament when introducing the CAAA was to focus only on issues that impact society at large, but not individual consumers. For this purpose, the CAAA has repealed several corresponding Acts which were in place and established a powerful Authority to deal with the debated issue. Also, it has recognized several offences relating to unfair trade practices. The doer will be punished in violation of these provisions of the CAAA.40 In line with this, the Authority can impose a fine and if he is proved guilty in a court he may be imprisoned for a period of time.41 Fines are collected to a fund that is used for the functions of the Authority. However, there is no provision to deal with product liability towards the damage caused to an ultimate victim although the damage is extremely significant.42 Other than making a complaint to the Authority, there is no remedy available to individual victims against manufacturers. The only remedy that is available to them is the edictal action in Sri Lanka.43 In this, products can be held liable only if the element of fault is proved on the part of the defendant manufacturer who has no connection with the consumer.44 In fact, the burden of proof of fault of the manufacturer does not help the victim to redress the damage caused to him, but rather it only suppress and discourage litigation. This issue of damage is totally victim oriented and personalized. Therefore, in Sri Lanka the consumer is not protected in the real sense because there is no statutory law for the recovery of damage caused by a defective product. Hence, in this research it is intended to analyze firstly whether this burden could be averted and encourage Consumers who suffered loss/damage by introducing a new legal criteria and secondly how it could be done.

02. 2. Define the following A. Contributory negligence Contributory negligence in common-law jurisdictions is defense to a claim based on negligence, an action in tort. It applies to cases where plaintiffs/claimants have, through their own negligence, contributed to the harm they suffered. For example, a pedestrian crosses a road negligently and is hit by a driver who was driving negligently. Since the pedestrian has contributed to the accident, they cannot sue the driver for damages because the accident would not have occurred if it weren't for the pedestrian's own negligence. Another example of contributory negligence is where a plaintiff voluntarily disregards warnings and assumes a certain level of risk, although accepting reasonable risk while attempting to rescue another person is not considered contributory negligence. Contributory negligence is sometimes regarded as unfair because under the doctrine a victim who is at fault to any degree, including only 1% at fault, may be denied compensation entirely, which is known as pure contributory negligence.85 In the United States, the pure contributory negligence only applies in Alabama, the District of Columbia, Maryland, North Carolina, and Virginia. Indiana applies pure contributory negligence to malpractice cases. In England and Wales, it is not possible to defeat a claim under contributory negligence and therefore completely deny the victim compensation. It does however allow for a reduction in damages recoverable to the extent that the court sees fit. Contributory negligence can be compared with comparative negligence, where the negligence of the plaintiff is not a complete defense of the insured but can reduce the damages. B. vicarious liability Vicarious liability refers to a situation where someone is held responsible for the actions or omissions of another person. In a workplace context, an employer can be liable for the acts or omissions of its employees, provided it can be shown that they took place in the course of their employment. Many employers are unaware that they can be liable for a range of actions committed by their employees in the course of their employment - these can include bullying and harassment, violent or discriminatory acts or even libel and breach of copyright. It's also possible to take action against an employer for the behavior of third parties, such as clients and customers, provided these parties are deemed to be under the control of the employer. The key question of any case of vicarious liability is whether the employee was acting in a personal capacity, or in the course of their employment. This can often be difficult to determine. Nor does an employer's liability end once the employee leaves the organization - as the law stands, action can still be taken against an employer even though the person in question no longer works for them. So what practical steps can employers take to avoid vicarious liability for the acts of their employees? The most important thing that employers can do is to ensure that they have taken all reasonable steps to prevent such acts or omissions from occurring. For example, maintaining an upto-date equal opportunities policy and providing anti-discrimination training to staff serve to demonstrate an active commitment on the part of the employer towards combating discriminatory practices in the workplace. This would then reduce the likelihood of an employer being held vicariously liable for any discriminatory acts committed by its employees. 02. 3. Write short notes on the following. A. Donoghue V Steevenson Donoghue v. Stevenson [1932] All ER Rep 1; [1932] AC 562; House of Lords Negligence, whether duty owed to person injured. Duty of manufacturer of article to ultimate consumer. Bottle of ginger beer bought from retailer. Bottle containing dead snail. Purchaser poisoned by drinking contents. Liability of manufacturer to consumer. The common law duty of care; the neighbor principle Facts

On 9th April 1929 Mrs. Mary M'Alister or Donoghue brought an action against David Stevenson aerated water manufacturer Paisley, in which she claimed 500 as damages for injuries sustained by her through drinking ginger beer which had been manufactured by the defender. Mrs. Donoghue and her friend went to a shop occupied by Francis Minchella, and known as Wellmeadow Caf, at Wellmeadow Place, Paisley where the friend purchased ice cream, and ginger beer suitable to be used with the ice cream as an iced drink. For Mrs. Donoghue to drink. Mrs. Donoghue had no direct or indirect claim against the manufacturer based on contractual obligations because she did not purchase the product. The ginger beer was contained in an opaque bottle that prevented the contents from being viewed clearly. Mrs. Donoghue consumed some of the product after which the decomposed remains of a snail emerged from the bottle when the remaining ginger beer was poured into her glass. She sought damages against the manufacturer, Stevenson, from the resulting nervous shock and gastro-enteritis, which she claimed was caused through the incident. The trial judge found that the plaintiff could bring an action. The Court of Appeal overturned this decision. The plaintiff appealed to the House of Lords. The Decision The issue of law before the House of Lords was whether the defendant (Stevenson) owed Mrs. Donoghue a duty of care. The case was never tried on the facts. Dicta of Lord Atkins ". The complainant has to show that he has been injured by the breach of duty owed to him in the circumstances by the defendant to take reasonable care to avoid such injury". The rule in Heaven v. Pender was "demonstrably too wide." The concept of negligence is based upon "a sentiment of moral wrongdoing (for) which the offender must pay." Not every moral wrong can have a practical effect in law so it must be limited to taking "...reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbor." A neighbor is a person so closely connected with and directly affected by (proximate to) my act (or omission) that I should have had them in mind when I committed the act (or omission). It would be a grave defect in the law if a consumer could not claim in circumstances such as a manufacturer negligently mixing poison into a drink. Lord Buckmaster referring to the dicta of Brett MR in Heaven v. Pender and the decision in George v. Skivington (1867) LR5 Ex 1 (which were applied by Lord Atkins): ". It is in my opinion better that they should be buried so securely that their perturbed spirits shall no longer vex the law." You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbor/another. Note Lord Aitkins statement Lord Aitkins statement about the foreseeability of the effects of one's acts on one's neighbors is central to the existence of a duty of care in the law of tort/delist, especially on the then developing nascent tort/delict of negligence. In this judgment he formulates what is commonly known as the "neighbor principle". B. Lieback V McDonalds There is a lot of hype about the McDonalds' scalding coffee case. No one is in favor of frivolous cases of outlandish results; however, it is important to understand some points that were not reported in most of the stories about the case. McDonalds coffee was not only hot, it was scalding -- capable of almost instantaneous destruction of skin, flesh and muscle. Here's the whole story. Stella Liebeck of Albuquerque, New Mexico, was in the passenger seat of her grandson's car when she was severely burned by McDonalds' coffee in February 1992. Liebeck, 79 at the time, ordered coffee that was served in a Styrofoam cup at the drive through window of a local McDonalds.

After receiving the order, the grandson pulled his car forward and stopped momentarily so that Liebeck could add cream and sugar to her coffee. (Critics of civil justice, who have pounced on this case, often charge that Liebeck was driving the car or that the vehicle was in motion when she spilled the coffee; neither is true.) Liebeck placed the cup between her knees and attempted to remove the plastic lid from the cup. As she removed the lid, the entire contents of the cup spilled into her lap. The sweatpants Liebeck was wearing absorbed the coffee and held it next to her skin. A vascular surgeon determined that Liebeck suffered full thickness burns (or third-degree burns) over 6 percent of her body, including her inner thighs, perineum, buttocks, and genital and groin areas. She was hospitalized for eight days, during which time she underwent skin grafting. Liebeck, who also underwent debridement treatments, sought to settle her claim for $20,000, but McDonalds refused. During discovery, McDonalds produced documents showing more than 700 claims by people burned by its coffee between 1982 and 1992. Some claims involved third-degree burns substantially similar to Liebecks. This history documented McDonalds' knowledge about the extent and nature of this hazard. McDonalds also said during discovery that, based on a consultants advice, it held its coffee at between 180 and 190 degrees Fahrenheit to maintain optimum taste. He admitted that he had not evaluated the safety ramifications at this temperature. Other establishments sell coffee at substantially lower temperatures, and coffee served at home is generally 135 to 140 degrees. Further, McDonalds' quality assurance manager testified that the company actively enforces a requirement that coffee be held in the pot at 185 degrees, plus or minus five degrees. He also testified that a burn hazard exists with any food substance served at 140 degrees or above, and that McDonalds coffee, at the temperature at which it was poured into Styrofoam cups, was not fit for consumption because it would burn the mouth and throat. The quality assurance manager admitted that burns would occur, but testified that McDonalds had no intention of reducing the "holding temperature" of its coffee. Plaintiffs' expert, a scholar in thermodynamics applied to human skin burns, testified that liquids, at 180 degrees, will cause a full thickness burn to human skin in two to seven seconds. Other testimony showed that as the temperature decreases toward 155 degrees, the extent of the burn relative to that temperature decreases exponentially. Thus, if Liebeck's spill had involved coffee at 155 degrees, the liquid would have cooled and given her time to avoid a serious burn. McDonalds asserted that customers buy coffee on their way to work or home, intending to consume it there. However, the companys own research showed that customers intend to consume the coffee immediately while driving.McDonalds also argued that consumers know coffee is hot and that its customers want it that way. The company admitted its customers were unaware that they could suffer third-degree burns from the coffee and that a statement on the side of the cup was not a "warning" but a "reminder" since the location of the writing would not warn customers of the hazard. The jury awarded Liebeck $200,000 in compensatory damages. This amount was reduced to $160,000 because the jury found Liebeck 20 percent at fault in the spill. The jury also awarded Liebeck $2.7 million in punitive damages, which equals about two days of McDonalds' coffee sales. Post-verdict investigation found that the temperature of coffee at the local Albuquerque McDonalds had dropped to 158 degrees Fahrenheit. The trial court subsequently reduced the punitive award to $480,000 -- or three times compensatory damages -- even though the judge called McDonalds' conduct reckless, callous and willful.No one will ever know the final ending to this case.

C. Grant V Australian Knitting industry Grant v The Australian Knitting Mills ([1936] A.C. 562) is a landmark case in consumer law from 1936. It is often used as a benchmark in legal cases, and as an example for students studying law. Dr. Grant, the plaintiff, contracted dermatitis as a result of wearing woolen underpants which had been manufactured by the defendants (Australian Knitting Mills Ltd). The garment in question contained an excess of sulphite. Upon purchase, he wore them for one entire week without washing them beforehand. The Privy Council held that the defendants were liable to the plaintiff.

D. Chinta Devi V Glacio limited B. E. DE SILVA, J. AND DHEERARATNE, J. S.C. (C.A.) 270/78 (F) WITH 271/78 (F) - D.C. COLOMBO 79048/M. MARCH 15, 1985 On 13.9.1973 the plaintiff-appellant filed this action based on tort and alternatively on contract seeking to recover from the defendant Company a sum of Rs. 250,000 being damages sustained by her for injuries suffered by her on 16.6.1971 as a result of the explosion of a refrigerator manufactured by it and purchased by her father in 1967 for household use. The plaintiff was completely deformed, disfigured and disabled by the injuries sustained in the explosion. The plaintiff alleged that there was a failure on the part of the defendant to take due care in the design and manufacture of the said refrigerator. The plaintiff pleaded negligence by the defendantcompany in fitting a burner unsuitable and unsafe for a kerosene reingerator. The plaintiff by application to the Conciliation Board dated 6.6.1973 (posted on 7:6:1973) which would in the normal course' have been received by the Board on 8.6.1973 had sought relief from the Board but' as no settlement was possible the Chairman of the Conciliation Board. Issued a certificate: dated 4.9.1973 which was received by the plaintiff on 6.9.1973. After the trial the District Judge held there was negligence on the part of the defendant but dismissed the action on the ground' that plaintiff's` claim based on tort` was prescribed in two years. The action on contract was not sustainable because the refrigerator was sold to plaintiff's father and there was no contract between plaintiff and defendant. The plaintiff appealed from this. Judgment and the defendant filed a cross-appeal against the finding of negligence against it. Held (1) The time taken by proceedings before a Conciliation Board includes the time taken by the, Board to constitute a panel until the date on which the certificate is signed by the Chairman of the Conciliation Board. The, matter of plaintiff's application. Was pending before the Board from 86.1973 to 4.9.1973 when the Certificate was. Signed by the Chairman. In deciding on prescription this period should be deducted in terms of section 15 of the Conciliation Boards Act and when this is done the action is found to be filed before the expiry of two years and therefore the claim is not prescribed. (2) There has been a breach of the duty to take care in the design and manufacture of the refrigerator and the finding of the District Judge on negligence is supported by the evidence. The damages claimed are not excessive. APPEALS from the Judgment of the District Court of Colombo. Page 1 of 7

H. W Jayewardene, Q. C. with Eric Amerasinghe, P. C., with Miss P. R. Seneviratne, and Harsha Soza, for plaintiff-appellant in appeal No. 270/78 and for the plaintiff-respondent in cross-appeal No. 271/78. H. L. De Silva, P.C. with M. llliyas for the defendant-respondent in appeal No. 270/78 and for the defendant-appellant in cross-appeal No. 271/78. Cur. Adv. vault May 3, 1985. B. E. DE SILVA, J. The plaintiff-appellant filed this appeal from the judgment of the learned District Judge dismissing the plaintiff's action. The plaintiff filed this action to recover from the defendant a sum of Rs. 250,000 being. The damages sustained by the plaintiff, consequent upon injuries caused to the plaintiff as a result of the explosion of a refrigerator manufactured by the defendant and purchased by the plaintiff's father.

03. Write short notes on the following cite decided cases. A. .Polluter pays principle The 'polluters pays' principle is the commonly accepted practice that those who produce pollution should bear the costs of managing it to prevent damage to human health or the environment. For instance, a factory that produces a potentially poisonous substance as a byproduct of its activities is usually held responsible for its safe disposal. This principle underpins most of the regulation of pollution affecting land, water and air. Pollution is defined in UK law as contamination of the land, water or air by harmful or potentially harmful substances. Part of a set of broader principles to guide sustainable development worldwide (formally known as the 1992 Rio Declaration), the polluter pays principle has also been applied more specifically to emissions of greenhouse gases which cause climate change. Greenhouse gas emissions are considered a form of pollution because they cause potential harm and damage through impacts on the climate. However, in this case, because society has been slow to recognize the link between greenhouse gases and climate change, and because the atmosphere is considered by some to be a 'global commons' (that everyone shares and has a right to use), emitters are generally not held responsible for controlling this form of pollution. However, it is possible to implement the 'polluter pays' principle through a so-called carbon price. As we'll discuss in future questions in this series, this imposes a charge on the emission of greenhouse gases equivalent to the corresponding potential cost caused through future climate change. In this way, a financial incentive is created for a factory, for instance, to minimize its costs by reducing emissions. Many economists argue a carbon price should be global and uniform across countries and sectors so that polluters do not simply move operations to so-called 'pollution havens' countries where a lack of environmental regulation allows them to continue to pollute without restrictions. B. Precautionary principle "When an activity raises threats of harm to human health or the Environment, precautionary measures should be taken even if some cause And effect relationships are not fully established scientifically. "In this context the proponent of an activity, rather than the public,Should bear the burden of proof. The process of applying the Precautionary Principle must be open, Informed and democratic and must include potentially affected parties. It must also involve an examination of the full range of alternatives, including no action."

The Essence of Precaution: Critics say that the precautionary principle is not well-defined. However, the Science and Environmental Health Network (SEHN) points out that, in all formulations of the precautionary principle, we find three elements: 1) When we have a reasonable suspicion of harm, and 2) Scientific uncertainty about cause and effect, then 3) We have a duty to take action to prevent harm. The precautionary principle does not tell us what action to take. However, proponents of a precautionary approach have suggested a series of actions: (1) Set goals (2) Examine all reasonable ways of achieving the goals, intending to adopt the least-harmful way (3) Assume that all projects or activities will be harmful, and therefore seek the least-harmful alternative. Shift the burden of Proof -- when consequences are uncertain, give the benefit of the Doubt to nature, public health and community well-being. Expect Responsible parties (not governments or the public) to bear the burden of producing needed information. Expect reasonable assurances of Safety for products before they can be marketed -- just as the Food And Drug Administration expects reasonable assurances of safety before new pharmaceutical products can be marketed. (4) Throughout the decision-making process, honor the knowledge of those who will be affected by the decisions, and give them a real "Say" in the outcome. This approach naturally allows issues of ethics, Right-and-wrong, history, cultural appropriateness, and justice to Become important in the decision. (5) Assume that humans will make mistakes and that decisions will sometimes turn out badly. Therefore, monitor results, heed early Warnings, and be prepared to make mid-course corrections as needed. This implies that we will avoid irreversible decisions and Irretrievable commitments. Instead of asking the basic risk-assessment question -- "How much harm is allowable?" -- The precautionary approach asks, "How little harm is Possible?" In sum: Faced with reasonable suspicion of harm, the precautionary approach urges a full evaluation of available alternatives for the purpose of preventing or minimizing harm. C. Inter generation equity Intergenerational equity in economic, psychological, and sociological contexts, is the concept or idea of fairness or justice in relationships between children, youth, adults and seniors, particularly in terms of treatment and interactions. It has been studied in environmental and sociological settings. In the context of institutional investment management, intergenerational equity is the principle that an endowed institution's spending rate must not exceed its after-inflation rate of compound return, so that investment gains are spent equally on current and future constituents of the endowed assets. This concept was originally set out in 1974 by economist James Tobin, who wrote that, "The trustees of endowed institutions are the guardians of the future against the claims of the present. Their task in managing the endowment is to preserve equity among generations." in terms of an economical context. Intergenerational equity refers to relationship that a particular family has on resources. An example is the forest-dwelling civilians in Papua New Guinea, who for generations have lived in a certain part of the forest and thus becomes their land. The adult population sell the trees for palm oil to make money. If they do so at an unsustainable level there will be no resources for their children or grandchildren in the future. The unsustainable use of resources would then lead to Intergenerational inequity. Conversations about intergenerational equity occur across several fields.They include transition economics, social policy, and government budget-making. Intergenerational equity is also explored in environmental concerns, including sustainable development, global warming and climate change.

D. Public trust doctrine The public trust doctrine is the principle that certain resources are preserved for public use, and that the government is required to maintain them for the public's reasonable use. The public trust doctrine in essence means that powers vested in public authorities are not absolute or unfettered but are held in trust for the public, to be exercised for the purposes for which they have been conferred and that their exercise is subject to judicial review by reference to those purposes. Administrative acts and decisions contrary to the public trust doctrine and\or violative of human rights would be in excess or abuse of power and therefore void. The Court expressed the view that in such judicial review the historical English law limitations on prerogative writs are no longer applicable, because now Sri Lankan courts not courts of the Crown but are bound by the public trust doctrine and are subject to fundamental rights. Undoubtedly the State has the right to exploit its own resources pursuant, however, to its own environmental and developmental policies and laws. Rational planning constitutes an essential tool for reconciling any conflict between the needs of development and the need to protect and improve the environment. Human beings are at the centre of concern for sustainable development. In order to achieve sustainable development, decision making process must also comply with public trust doctrine.

04.1. What is motivation? Motivation is the word derived from the word motive which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. In the work goal context the psychological factors stimulating the peoples behavior can be i. desire for money ii. success iii. recognition iv. job-satisfaction v. team work, etc One of the most important functions of management is to create willingness amongst the employees to perform in the best of their abilities. Therefore the role of a leader is to arouse interest in performance of employees in their jobs. The process of motivation consists of three stages: A felt need or drive A stimulus in which needs have to be aroused When needs are satisfied, the satisfaction or accomplishment of goals. Therefore, we can say that motivation is a psychological phenomenon which means needs and wants of the individuals have to be tackled by framing an incentive plan. 04.2. Compare and contrast theories of motivation pro-funded by FW Taylor, Abraham Malso and Elton Mayo. Taylor Frederick Winslow Taylor (1856 1917) put forward the idea that workers are motivated mainly by pay. His Theory of Scientific Management argued the following: Workers do not naturally enjoy work and so need close supervision and control Therefore managers should break down production into a series of small tasks Workers should then be given appropriate training and tools so they can work as efficiently as possible on one set task. Workers are then paid according to the number of items they produce in a set period of time- piece-rate pay.

As a result workers are encouraged to work hard and maximize their productivity. Taylors methods were widely adopted as businesses saw the benefits of increased productivity levels and lower unit costs. The most notably advocate was Henry Ford who used them to design the first ever production line, making Ford cars. This was the start of the era of mass production. Taylors approach has close links with the concept of an autocratic management style (managers take all the decisions and simply give orders to those below them) and Macgregors Theory X approach to workers (workers are viewed as lazy and wish to avoid responsibility). However workers soon came to dislike Taylors approach as they were only given boring, repetitive tasks to carry out and were being treated little better than human machines. Firms could also afford to lay off workers as productivity levels increased. This led to an increase in strikes and other forms of industrial action by dis-satisfied workers. Mayo Elton Mayo (1880 1949) believed that workers are not just concerned with money but could be better motivated by having their social needs met whilst at work (something that Taylor ignored). He introduced the Human Relation School of thought, which focused on managers taking more of an interest in the workers, treating them as people who have worthwhile opinions and realising that workers enjoy interacting together. Mayo conducted a series of experiments at the Hawthorne factory of the Western Electric Company in Chicago He isolated two groups of women workers and studied the effect on their productivity levels of changing factors such as lighting and working conditions. He expected to see productivity levels decline as lighting or other conditions became progressively worse What he actually discovered surprised him: whatever the change in lighting or working conditions, the productivity levels of the workers improved or remained the same. From this Mayo concluded that workers are best motivated by: Better communication between managers and workers (Hawthorne workers were consulted over the experiments and also had the opportunity to give feedback) Greater manager involvement in employees working lives (Hawthorne workers responded to the increased level of attention they were receiving) Working in groups or teams. (Hawthorne workers did not previously regularly work in teams) In practice therefore businesses should re-organize production to encourage greater use of team working and introduce personnel departments to encourage greater manager involvement in looking after employees interests. His theory most closely fits in with a paternalistic style of management. Maslow Abraham Maslow (1908 1970) along with Frederick Herzberg (1923) introduced the Neo-Human Relations School in the 1950s, which focused on the psychological needs of employees. Maslow put forward a theory that there are five levels of human needs which employees need to have fulfilled at work. All of the needs are structured into a hierarchy (see below) and only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied. For example a person who is dying of hunger will be motivated to achieve a basic wage in order to buy food before worrying about having a secure job contract or the respect of others. A business should therefore offer different incentives to workers in order to help them fulfill each need in turn and progress up the hierarchy (see below). Managers should also recognize that workers are not all motivated in the same way and do not all move up the hierarchy at the same pace. They may therefore have to offer a slightly different set of incentives from worker to worker.