Consider the following:
1 A motor car manufacturer offers a three-year warranty on all cars that it produces. The warranty undertakes to make good any defects arising from the manufacturing process. On past experience, 0.5 per cent of car owners make claims under the terms of the warranty.
2 A cruise ship suffered an outbreak of food poisoning that affected most of its passengers.
Legal proceedings have been brought against the cruise ship company and a court case has just commenced. The lawyers for the company believe that it is probable that the cruise ship company will be found liable.
3 An airline company has just commenced operations and has acquired three new aircraft.
The law requires that these aircraft be subject to a rigorous overhaul after two years of flying.
Required:
State for which of these should a provision be recognised. Give your reasons.