Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. ABC Company manufactures and markets electrical goods. A new model of electric fan is introduced and, after a number has been sold, is found

1. ABC Company manufactures and markets electrical goods. A new model of electric fan is introduced and, after a number has been sold, is found to have a fault in the wiring which could prove to be dangerous. To what extent may ABC Company be liable for users under the tort of negligence?

2Candy received a big order from a new client called Danny. Prior to processing the order, Candy asked its banker HK Bank (HKB) to assess the financial stability of Danny. In its report, HKB gave favourable references but stipulated a disclaimer that these were opinion given without responsibility. In reliance on these references, Candy delivered the goods to Danny and received a cheque, which was subsequently dishonoured and Danny disappeared afterwards. Candy claimed HKB for damages for tort of negligence. Discuss HKBs tortious liability.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

Students also viewed these Accounting questions