Question 5: Law and Risk Management v Kent Glowinski posted Sep 15, 2020 4:0? PM it? Subscribe "Law" is all about risk management. Usually, when a business is sued in civil courtI it is because of failure to proactively manage risks. Read the following scenario and list the risk management failures , that is, how the business could have avoided the lawsuit and harm in the first place. Scenario: Mona, 24 years old, just graduated from college in computer arts, but doesn't feel like working in the field. Instead, Mona has decided that she wants to open a nightclub in Markham with her sister, Anitha, 22 years old. Neither has ever operated a nightclub, but how hard can it really be? Mona and Anitha decide to lease a large space on Markham Main Street. They don't have a great amount of money, so they forego the building inspection, decide against getting commercial or liability insurance, and have no time to get a fire inspection. Theyjust want to get the nightclub open. Mona and Anitha's parents tell them they need a liquor license and SmartServe training to sell alcohol, but all this red tape will just get in the way of business. On Canada Day Weekend in JunefJuly at 10pm, they open the nightclub "DangerSpace!" They can't afford an employee to work at the entrancel and they can't afford a bouncer, so Mona sits at the door and takes the $10 entrance fee while she drinks a bottle of champagne to celebrate the opening. There is a huge lineup and soon, Mona is taking in so many $10 bill she doesn't know what to do. At about midnight, a group of really intoxicated patrons arrive. |Dine in particular, Neil, can barely walk. Mona takes his $10 bill and let's him in. Neil goes to the bar and orders four triple drinks for himself from Anitha, who is the main bartender. Anitha pours the drinksI not really measuring the amount of alcohol [because she doesn't know how much should be in the drink}. Neil drinks the drinks very fast and then goes to the dance-floor. Within 3 minutes, Neil assaults another patron lBart} and Neil starts getting sick on the dance-floor. Two other patrons grab Neil and drag him to the door of the club, where they ask Mona to call Neil a taxi and pay for it. Mona tells the patrons that their club doesn't buy people taxis home. Neil stumbles off down the streets of Markham by himself. The next day, Mona and Anitha get the news that Neil drove home drunk, and smashed his car into a utility pole. He is now disabled for life. He and his family has started a lawsuit against Mona and Anitha: as well, Bart, who was assaulted at the club, sues Mona and Anitha. As Mona and Anitha have no insurance, they alone are responsible for all potential damages in these two lawsuits. Explain the risk management failures in this scenario, and what Mona and Anitha could have done to have mitigated these risks
