1.Ethan operates a small engineering business in Como, a riverside suburb of Perth. He uses an electric powered fork lift to move stock around his workshop. One day the fork lift develops a problem with a solenoid and can no longer be used. Ethan arranges to have the fork lift repaired by Preston Engineering who complete the repairs in 2 days. Sometime later the fork lift again developed a problem this time, unfortunately, causing the fork lift to accelerate unexpectedly leading to an accident at the rear of the workshop where damage of $750000 was sustained. Moreover, Ethan has a torn cruciate tendon in his foot as a result of the accident and can't play cricket on the weekend which has upset his young son Finn. Ethan wishes to also receive $1900 to account for distress over the lost cricket match.

Using the four step process, explain the liability (if any) of Preston Engineering to Ethan in the tort of negligence. Preston Engineering has, in fact, accused Ethan of poor maintenance of the fork lift as they claim the forklift's service schedule records revealed some scheduled services were missed or late although several were on time. Moreover, a recall notice from the fork lift manufacturer was ignored last year although it concerned the fork lift's lifting system.