M-Scan Ltd lease mobile medical scanners to local GP practices, medical centres,

employers, and hospitals.

Contracts are negotiated with both private and public providers and are for a five-year

period. Fees consist of an annual fee and a charge per booking. The standard form contract

provides that 10 per cent of the annual fee and 1 per cent of each booking will be donated to

the Albright Cancer Research Foundation.

Delivery and collection of the equipment is made by Care 2 U Ltd. The standard form

contract between M-Scan Ltd and its customers contains an exclusion clause to the effect

that the carriers will not be liable for any damages done during transportation, delivery or

return, where the user of the equipment has not undertaken the recommended systems

check and presented the results of this in writing to both Care 2 U Ltd and M-Scan Ltd.

M-Scan Ltd are finding the administration of the 1 per cent donation to the Albright Cancer

Research Foundation overly burdensome and have given notice to existing customers that

from next month this donation will cease and the annual donation will drop from 10 per

cent to 5 per cent. In recognition of this change M-Scan Ltd has reduced their annual fee by

5 per cent. The existing customer base is happy with the new arrangements but the Albright

Cancer Research Foundation say this change will have severe funding implications with

them as they have already allocated funds to projects based on this promised cash flow.

One of M-Scan Ltd's customers, Vulcanicity Ltd, failed to undertake a systems check before

the scanner was collected. The driver from Care 2 U Ltd was new and being given a copy of

the paperwork produced at the original delivery did not recognise the difference. Vulcanicity

is claiming that the equipment was in working order when given to Care 2 U Ltd and that the

damage discovered must have happened in transit and as such is not their responsibility.

Advise the Albright Cancer Reasearch Foundation whether 1.They can claim the promised

revenue from M-Scan Ltd and 2.Care 2 U Ltd as to whether they can rely on the exclusion

clause in the contract between Vulcanicity Ltd and M-Scan Ltd.