Foundations of Business Law

Topics: Tort law, Tort, Law Pages: 4 (1528 words) Published: April 28, 2013
What legal issues does this situation raise and what are the possible legal consequences? Legal issue – 1st scenario
The factual scenario that occurs at Global Banking Corporations raises two major legal issues which are more than likely to result in legal consequences. The first scenario is an example of negligent misstatement. Sam, a young and enthusiastic banker is hired by Global Banking Corporation, provided a willing grandfather financial information on investment. However as Sam mistakenly passes and advises the grandfather the wrong information he is likely to be held liable for negligent misstatement. Global Banking Corporation may be held liable for the actions of Sam due to the concept of vicarious liability. As a result the grandfather would be trying to sue Sam and Global Banking Corporation for negligent misstatement. Sam and Global Banking Corporation owe a duty of care to the grandfather because it is reasonably foreseeable that misleading information about investment can lead to future damages. It is reasonable to suggest that the grandfather is to rely on the advice and information provided by Sam as Sam’s job is to provide accurate measurements/advice on investment. In a similar case the high court successfully suggested that a duty of care covered the giving of both information and advice in circumstances where it was reasonable to expect that the recipient might act on such advice. Global Banking Corporation has not breached their duty of care however Sam has, due to the seriousness, although Global Banking Corporation would be held liable due to vicarious liability. The grandfather made an attempt to seek professional advice and also made sure the conversation was in a professional workplace, a bank. The amount of money the grandfather was willing to invest resembles that this is serious in nature. Sam has not acted as a reasonable person would in his profession. If the grandfather had invested on the deceptive information he would had...
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