Critical Thinking on Logical Issues

Topics: Strict liability, Tort, Vicarious liability Pages: 3 (932 words) Published: December 12, 2010
Critical Thinking on Logical Issues

Scenario 1
There is a lot of tragedy surrounding WV Steel Company lately. National Construction (our of Colorado) is building a new football stadium. The opt to buy and use cables that were approved by a contractor for WV Steel. After the stadium is built the upper deck collapses and injures and kills civilians watching the game. National is now under a lot of pressure from lawsuits stemming from the incident. To make matters worse Jessica crashes her car on the way to a meeting due to negligence when driving. She hits a school bus and the bus driver and some children on the bus end up being hospitalized. “There are three types of defects that incur liability – manufacturing, design defects, and marketing defects.” (J., & D., 2010) From the case presented we are ruling out manufacturing and design defects. The only case that National could have against WV Steel would be one based on marketing defects. “Marketing defects deal with poor or improper instructions as well

as failure to warn consumers of hidden dangers foreseeable risks posed by the product that could have been avoided or reduced had the information been known.” (J., & D., 2010) Jessica Smith, a contractor for WV Steel looked at the plans from National and sells recommended cable to National. If National can prove that Jessica withheld valuable marketing information about the cable’s ability to support the weight of the trussing for the upper deck then National would have a very strong case against WV Steel and against Jessica Smith. Because Jessica was acting as an agent of WV Steel when the accident occurred the bus passengers do have a legitimate cause of action against WV Steel and Jessica. “Both a principal and an employee may be held liable for torts committed by an agent or an employee. The may both be liable although they were personally not at fault, a theory known as a vicarious liability; in the case of an employer, this liability is more...

References: J., A, & D., w. (2010). Business law: principles and practice. South-Western Pub.
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