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Swansea University Question Paper
Swansea University
Course:Business Law Ii
Institution: Swansea University question papers
Exam Year:2011
PRIFYSGOL ABERTAWE : SWANSEA UNIVERSITY
DEGREE EXAMINATIONS: MAY/JUNE 2011
FACULTIES OF ARTS & HUMANITIES; BUSINESS, ECONOMICS & LAW; ENGINEERING AND SCIENCE
SCHOOL OF BUSINESS AND ECONOMICS
EBL221: BUSINESS LAW II
Time allowed: TWO hours
Answer ALL PARTS of BOTH questions The maximum mark for this examination paper is 100%. All questions carry equal marks (i.e, 50% for each question). All parts of each question carry equal marks.
Dictionaries: Candidates may only refer to the English and Welsh language dictionaries available at the examination venue.
Calculators: Calculators are not required.
Turn over
1. Lamb and Co is a plumbing and heating installation firm. Brian and Clive both work for Lamb and Co as plumbers. Their contracts describe them as ‘self employed sub-contractors’. They are required to supply their own equipment or to hire it from Lamb and Co. They are required to be available to work for Lamb and Co exclusively for 40 hours a week for all but four weeks each year. They are paid by the hour for whatever amount of work they do for Lamb and Co.
Edith engages Lamb and Co to repair some leaking pipes at her residential home for the elderly. Lamb and Co send Brian and Clive to do the work. Brian suffers injury when he falls through a rotten plank in the entrance hall. Edith had intended to fence off the dangerous area but had not got around to doing so. Clive’s attempts to render first aid worsen Brian’s injury and cause Clive himself to suffer an injury to his back. Both Brian and Clive are unable to work for some six months in consequence.
Before the accident occurred Brian and Clive had repaired the pipes but did not complete checks to the plumbing system which would have revealed a defect in the repair. Lamb and Co say that while checking a repair is a statutory requirement it is not done by most plumbers as it is too time-consuming. The next day, water leaking from the defective pipe freezes on the front porch. Jane, who is employed by Edith as a night nurse, does not notice the ice because it is dark when she arrives for work and the light in the front porch is not working. Jane slips on the ice and breaks her ankle.
a. Advise on whether Brian and Clive are employees of Lamb & Co and what significance this has for any legal claims that might arise from these facts.
b. Explain the duty and standard of care owed by Edith to Brian, Clive and Jane.
c. Explain why Brian is more likely than Clive to succeed in a claim for damages in this case and comment on whether this is consistent with the aims of tort.
2. Bart, an employee of Green Cabs Ltd, noticed Lisa, his passenger, was reading a copy of the Financial Times. Bart asked Lisa what she did for a living. She replied that she was a trainee stockbroker. Bart asked Lisa for some investment advice and she jokingly replied that a pharmaceutical company called Drugs R Us seemed a good idea. As a result of this conversation Bart invested all of his life savings in Drugs R Us. A few months later Drugs R Us was declared bankrupt and Bart lost a considerable sum of money.
The day after learning of his loss, Bart was so upset that he lost concentration and ignored a red traffic light causing an accident in which Alice, a four year old girl, narrowly avoided injury and her bicycle was crushed. Alice’s father Dean, coming immediately to the scene, saw her crushed bicycle under the wheels of Bart’s cab. Assuming that Alice had been injured, Dean was severely shocked, resulting in a recurrence of clinical depression for which he had previously been successfully treated. Alice’s mother Jackie heard about these events when she returned home from work four hours later. Jackie suffered nightmares and feelings of panic for over a year because of her distress about what happened to Alice and Dean.
a. Explain what factors a court would take into account to determine whether Lisa is liable to Bart for negligent mis-statement.
b. Explain the way the law distinguishes between liability to a primary and a secondary victim when considering whether a duty of care arises in relation to psychiatric injury.
c. Applying this test and any other relevant law, can Dean and Alice claim damages for psychiatric injury from Bart and/or Green Cabs Ltd?
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