Dilemma 5

On a school trip accompanied by 2 teachers, a group was responsible for their own catering.
Tasks concerning cooking had been split up among the students. During one evening, they
were busy with cooking spaghetti. One of the students was about to strain the spaghetti when
another student incidentally bumped into the student who then poured the boiled spaghetti
and the hot water over his hands. The student suffered severe burnings.

Define the term liability

In the corporate sector, liability definition may take many different forms. A liability,
broadly speaking, can be anything for which your business accepts responsibility. The word
"liability" is frequently used to refer to a business's risk or legal responsibility. For instance,
companies frequently purchase public liability insurance to shield themselves from legal
danger in the event that a member of the public sustains an injury while on their property.
However, in accounting, a liability is defined as money or other assets that your firm owes to
another organization. This might be a supplier, a lender, or even a specific person like a staff
member. Liabilities are recorded on the right side of the balance sheet in a company's
business records in contrast to its assets (What Is Liability | Square Business Glossary, n.d.).

Which type of liability is applicable?

Liabilities having a one-year due date are considered current liabilities. These mostly
take place during routine corporate activities. These financial commitments should be
managed taking into account the company's liquidity because to their short-term nature.
Obligations that are due after more than a year are referred to as non-current or long-
term liabilities. It is crucial that the short-term obligations, such as short-term loans or the
current element of long-term debt, are not included in the non-current liabilities.
One particular type of liability is contingent liabilities. Depending on how an
uncertain future event plays out, they are potential liabilities that could or might not
materialize (Corporate Finance Institute, 2023).

Which International Convention is applicable in this context and identify the

appropriate sections?
 The Montreal Convention of 1999 is applicable in this context as it governs the
liability of airlines in the case of accidents and injuries that occur during international air
travel. Particularly, Article 17 of the Montreal Convention outlines the carrier's responsibility
for harm a passenger suffers when boarding, disembarking, or during flight operations.
Articles 17(1) and 17(2) of the Montreal Convention would probably be pertinent in this
situation. In accordance with Article 17(1), the carrier is responsible for compensating
passengers for bodily injury, and Article 17(2) creates a presumption that the carrier is liable
unless the carrier can demonstrate that the injury was not caused by the carrier's negligence or
another unlawful act or omission (The Montreal Convention 1999 (MC99), n.d.).

To decide whether the airline is liable for the passenger's injuries under the Montreal
Convention, the particulars of the case must be investigated. It may be important to
demonstrate carelessness if the airline complied with the rules of the airport authorities and
there were no warning signs or verbal cautions.

Was there a duty of care? Was there a breach of care? Explain the causation!
It is true that the airline owed the passenger a duty of care, which was broken by
failing to provide the customer enough warning or visual cues that the level was changing.
The harm to the passenger was specifically brought on by the duty violation.

What is the extent of liability?

The severity of the injury and any losses incurred by the passenger would determine
the airline's level of liability. If the airline is determined to be at fault, it may be held
accountable for the injury's related costs, including medical bills, lost earnings, pain and
suffering, and other damages.

What is Liability | Square Business Glossary. (n.d.). Square.

https://squareup.com/gb/en/glossary/liability
Corporate Finance Institute. (2023). Liability. Corporate Finance Institute.

https://corporatefinanceinstitute.com/resources/accounting/liability/

The Montreal Convention 1999 (MC99). (n.d.).

https://www.iata.org/en/programs/passenger/mc99/#:~:text=The%20Montreal

%20Convention%201999%20(MC99)%20establishes%20airline%20liability%20in

%20the,had%20developed%20haphazardly%20since%201929.