STUDENT: Lê Thị Hương

ID: 19071386

Legal, Ethical and Social Environment of Business

Question 1:

The complaint that needs to be identified and resolved in this case is as follows: Grand
Cars gave false information about the payload of 5 trucks that Transtars had hired to carry
construction materials. Accordingly, Transstars rented 5 trucks with a weight of 360 tons /
1 vehicle and in fact, Grand Cars' vehicles only met 300 tons/vehicle. This leads to not
ensuring the correct completion time of the two parties.
The two parties have signed a contract, so in this case, according to the Misrepresentation
Act 19671, Grand Cars has made false claims or negligent misrepresentations.

The law provides as follows:

A misrepresentation leads another to believe in a condition that is different from the

condition that exists. Although persons sometimes make misrepresentations accidentally
because they are unaware of the existing facts, the tort of counterfeit misrepresentation, or
fraud, involves intentional deceit for personal gain. The tort includes several elements:

1. A misrepresentation of material facts or conditions with the knowledge that they are
false or with reckless disregard for the truth.
2. An intent to induce another party to rely on the misrepresentation.
3. A justifiable reliance on the misrepresentation by the deceived party.
4. Damage suffered as a result of that reliance.
5. A causal connection between the misrepresentation and the injury suffered.

Based on the law the Misrepresentation Act 1967 on this case, Transtars has the ability to
win the case because Grand Cars gave false information leading to damage to Transtars
and Grand Cars delayed the time specified in the contract.
Grand Cars needs to compensate Transstars for its breach in accordance with the contract
provisions and the agreement of the two parties.

However, in my opinion, this case must be considered from other aspects. The information
that Grand Cars put in the contract about the vehicle's tonnage of 300 tons/truck according
to Grand Cars is taken from an expert, recognized source, and when signing the contract
Transars also did not verify this information. In the course of contract communication,

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The-Legal Environment of Business Cross.Miller 9th 2014.pdf
incorrect information will be invalidated, affecting the content of the contract such as:
Agreement, considerration,...This can also be a negative proof for Transtars.

Question 2:

The case of Selena mentioned in the case is not an uncommon case in our lives. Selena
signed a contract with the event company at 6pm but the buffet delivered late, at 10pm.
According to the Consumer Rights Act 2015, Section 55 reads as follows:

The right to require repeat performance is a right to require the trader to perform the service
again, to the extent necessary to complete its performance in compliance with the contract.

If the consumer requires such repeat performance, the trader must provide it within a
reasonable time and without significant inconvenience to the consumer; and must bear any
necessary costs in doing so (including in particular the cost of any labor or materials).

The consumer cannot require repeat performance if completing performance of the service
in compliance with the contract is impossible.
Any question as to what is a reasonable time or inconvenience is to be determined taking
account of the nature of the service, and the purpose for which the service was to be
performed.

So Selena can either allow repeat performance or refuse the contract and claim damages or
both.
The buffet service party has broken the contract in terms of time and may affect Miss
Selena's schedule. The two sides need to renegotiate to find a solution that suits Selena's
schedule and requirements and of course all costs incurred by the caterer must be
responsible because they made a wrong contract according to the law specified in the
contract. The service provider needs to do exactly and enough according to the contract
signed with Senela.

Question 3:

We need to discuss the situation of Jessica, Belinda, Matthew and Tom under the following
circumstances:

Belinda is Jessica's daughter, she rented a big wheeler in the park and got into an accident
and got injured with that car , in the car there was Matthew as the driver and Tom as the
passenger. These two are not injured. Jessica witnessed the scene of her daughter Belinda
falling, so her spirit was affected. According to the law of Unintentional Torts
(Negligence)2:

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SECTION 5 Unintentional Torts (Negligence), The-Legal Environment of Business Cross.Miller 9th 2014.pdf
The tort of negligence occurs when someone suffers injury because of another’s failure to
live up to a required duty of care. In contrast to intentional torts, in torts involving
negligence, the tortfeasor neither wishes to bring about the consequences of the act nor
believes that they will occur. The person’s conduct merely creates a risk of such
consequences. If no risk is created, there is no negligence. Moreover, the risk must be
foreseeable. In other words, it must be such that a reasonable person engaging in the same
activity would anticipate the risk and guard against it. In determining what is reasonable
conduct, courts consider the nature of the possible harm. To succeed in a negligence action,
the plaintiff must prove each of the following:

1. Duty. The defendant owed a duty of care to the plaintiff.

2. Breach. The defendant breached that duty.
3. Causation. The defendant’s breach caused the plaintiff’s injury.
4. Damages. The plaintiff suffered a legally recognizable injury

I predict the outcome of the case will be as follows:

High Heaven Park has committed the crime of Unintentional Torts (Negligence) due to not
checking the car before serving customers, this is an irresponsible act leading to the
accident of Belinda, Tom and Matthew; causing emotional damage to Jessica. High Heaven
must be responsible for compensating its customers, the tool can be Belinda and Jessica.
High Heaven must be responsible and compensate customers according to the agreement
after the brands have been checked and supervised.

*Jessica suffered psychological trauma from witnessing her daughter's accident due to the
negligence of the park. She was not directly involved in the accident. That she was scared,
moved. Secondary victim. Bad, strong mental impacts also need to be protected and
compensated from High Heaven.

*Belinda will consider applying the following Compensatory Damages: 3

A plaintiff is awarded indemnification for compensation or indemnification plaintiff for

actual damages. So the goal is to make the whole plaintiff and put her or him in the same
position where she or he would have to endure torture not occur. The damages awards are
usually divided into special damage and general damage.

Particularly damaging to the plaintiff because of identifiable monetary losses. Such losses
may include lost medical costs, wages and benefits (now and future), additional costs,
irreplaceable loss damaged items and costs of repair or replacement nature.

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SECTION 1 The Basis of Tort Law, The-Legal Environment of Business Cross.Miller 9th 2014.pdf
The damage to Bilenda's health, including both mental and physical, requires a thorough
examination by a doctor and notification to the judge. High Heaven is responsible for
compensation for damage including medical expenses, rehabilitation costs, and
compensation for future effects (if any) caused by the accident.

*With Tom, the court may consider the following law Assumption of Risk4

A plaintiff who voluntarily enters into a risky situation, knowing the risk involved, will not
be allowed to recover. This is the defense of assumption of risk, which requires:

1. Knowledge of the risk.

2. Voluntary assumption of the risk. The defense of assumption of risk is frequently
asserted when the plaintiff was injured during recreational activities that involve known
risk, such as skiing and skydiving.

Courts do not apply the assumption of risk doctrine in emergency situations. Note that
assumption of risk can apply not only to participants in sporting events, but also to
spectators and bystanders who are injured while attending those events. In the following
Spotlight Case, the issue was whether a spectator at a baseball game voluntarily assumed
the risk of being hit by an errant ball thrown while the players were warming up before the
game

Tom is ready to assist in saving other guests so Tom must be aware of the risks involved
in this activity and when he accepts to participate but when the risk comes he is not injured
which means that when he sues the court will give The High Heaven side was innocent and
received no compensation.

*Matthew can request High Heaven compensation because according to the law the
Occupational Safety and Health Act of 1970, Congress established the Occupational Safety
and Health Administration (OSHA) to ensure safe and healthy working conditions for
workers by how to set and enforce standards and by providing training, access, education
and support.5
Because they did not ensure the quality of the car before handing it over to the driver,
causing Matthew to panic, it can also affect mental health. However, the case does not
clearly state that testing the device before use is his job, so the court needs to consider it
carefully.

4
SECTION 5 Unintentional Torts (Negligence), The-Legal Environment of Business Cross.Miller 9th 2014.pdf
5
https://www.osha.gov/aboutosha
In short, everyone affected by this accident except Tom needs to be checked by the health
authorities before proceeding with the lawsuit.

Question 4:

In a corporation, the responsibility for the overall management of the firm is entrusted to a
board of directors, whose members are elected by the shareholders. The board of directors
makes the policy decisions and hires corporate officers and other employees to run the
daily business operations. When an individual purchases a share of stock in a corporation,
that person becomes a shareholder and an owner of the corporation. Unlike the partners in
a partnership, the body of shareholders can change constantly without affecting the
continued existence of the corporation. A shareholder can sue the corporation, and the
corporation can sue a shareholder.6

Shareholders have the right to receive notices and attend shareholder meetings, according
to the Companies Act of 2013 and vote and policy to appoint an elected Board member to
audit the company's books and records. A corporation that is owned by shareholders and
has the power to exert significant control over the firm's actions is known as a company.
Minority shareholders have the right to file claims against corporate directors or officers
who they believe are not participating in the company's fiduciary responsibility centers and
are using the company's finances for personal gain. multiply or deceive its investors. What
are the essential shareholder rights and powers, such as the right to receive dividends if a
business general meeting is necessary to pass.

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Chap 19, The-Legal Environment of Business Cross.Miller 9th 2014.pdf