Week 5 Assignment – Management Liability Scenario
Overview – In this assignment you apply contract and product liability law to a business scenario.
SCENARIO FACTS:
· Mowers, Inc., a fictional company, has a flourishing lawncare business. The business has two full-time employees who have been with the company for five years.
· All employees are trained on using the lawn equipment and, upon being hired, signed a waiver-of-liability contract limiting liability for the company.
· The owner, Brian, tells his employees “Not to worry—the company will protect you!”
· One employee, Lori, was on the job cutting a lawn.
· Lori was riding a mower, a Ferrari 2000, which was three years old and in good working condition.
· The step-up on the mower had writing on it with a warning sticker to replace the sandpaper liner for traction every three years due to normal wear and tear.
· It was replaced every three years as required.
· Lori stepped down off the rider, slipped because of moisture from the grass, and severed her pinky toe on the mower blade.
· When she fell to the ground, the mower continued through the grass and proceeded by itself to cut and mulch a neighbor’s prize roses.
· Peta, the neighbor, was preparing for a rose competition with a potential grand prize of $10,000.
Instructions
Consider the above scenario and write 3–4 pages in which you make the following determinations:
QUESTIONS OF THE ASSIGNMENT:
1. Pursuant to contract law requirements, determine the legality of the waiver contract and whether verbal assurances become part of the written contract. Support your response.
2. Determine whether the plaintiff Peta has a product liability case against the manufacturer Ferrari for each of the following defects. Support your response.
· Is there a “Design defect?” (Be sure to define these terms and explain them)
· Is there a “Manufacturing defect?”
· Is there a “Failure-to-warn defect?”
3. Determine whether the employee Lori has a claim for injuries and whether the employee Lori can recover pain and suffering damages per tort law or worker’s compensation law. Support your response.
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