Question

Read the Following Background Information: PI plans to headquarter the business in commercial space in a local shopping center. The PI headquarters will include private business offices, a reception area, and a conference meeting and planning space to which potential and existing customers will be invited to discuss proposals for painting jobs, paint products, and to complete contracts for painting jobs. The business space will be open to the public to collect information and inquire about PI services, examine paint displays, and view photos and exhibits from ongoing and past painting jobs. The shopping center in which PI will be headquartered is busy and heavily trafficked with customers every day. The PI owners are concerned about potential accidents on the store property and other liabilities that could arise with customers and employees. At the direction of your supervisors at BC, you are tasked to develop a plan to identify and minimize potential tort risks that PI faces in its public retail store operations. PI owners will use the plan to refine policies and procedures to prevent and/or minimize liabilities for PI in the retail facility. Instructions For this project, you will write a plan to be presented in a PowerPoint presentation. There is no set number of slides but include a title page and a reference page. Use the note section to discuss, explain and support the ideas and conclusions presented in the presentation. The notes must be complete, clear and comprehensive and submitted with the Power Point in order to receive full credit. The plan focuses on potential tort liabilities (except product liability, which is not included in this project.) The Power Point presentation will: A. identify and describe specific tort liabilities that PI could face in its retail store operations; B. develop and explain policies and/or procedures PI could implement to prevent or minimize these tort risks; C. evaluate and discuss how PI owners should orient employees to apply these policies and/or procedures to prevent or minimize identified tort risks. You should use only assigned resources available in the classroom for the project. Use in text citations, as needed. Include a References list of cited resources. Label each part of the Power Point as follows: A. Potential Tort Liabilities B. Policies and Procedures to Minimize Tort Risks C. Employee Orientation

Answer 1

Tort refers a violation where a person causes damage, injury or harm to another person. These actions may or may not be intentional, a breach of duty or a purely a violation of certain laws.

Specific tort liabilities which PI could face are:

• Joint liabilities and individual liabilities: They have set up their office at a busy mall. If a customer gets an injury while visiting them , they can be joint liabilities for them. However, if a customer gets an injury in their office which can be solely attributable to PI, then there will be individual liabilities on them.
• Vicarious Liabilities: This happens when a superior is held responsible for the conduct of subordinates. Wrong commitments to customers, misrepresentation of products by the sales or customer representatives can result in to Senior Management being held responsible.
• Third Party Liabilities: It happens when the liabilities are incurred due to certain actions of a third party on whom they may or may not have any control. What they are offering is a service - in simple words, doing and guiding about paint jobs to their clients. They may be suggesting certain brands, grades, colours to their clients. The quality of these products is not in their hands. Hence, a third party liability can be incurred due to the same.
• Plaintiff or Victim Liability means where a victim actually contributes to a liability. Here there can be cases where a customer accidentally touches some products or visits certain areas of display which he should not and that may cause him some harm.
• Strict Liability: means cases where the intention to violate the law was not there. The company is dealing in paint and oil based products which is hazardous. Though the office is only meant for discussions and deal closures, however, they may be storing a few samples etc which may be a problem.

How to ameliorate or aviod liabilities:

• Have a firm contract with the mall owner or Building owner that any liabilities due to the structure of building, office etc will be reimbursed by them.
• Design the office, passageways, washrooms and other utilities to be accident proof. Usage of anti skid tiles, sturdy false sealings, clear markings etc needs to be a priority to avoid damages.
• Have a clear sales and ethics policy where misrepresentations are not allowed. These policies should be regularly audited to ensure that violations are not happening which may increase claims against the company.
• Have firm contracts with the product companies like paint, adhesive manufacturers, where the liability of PI is restricted to a certain extent and the product liability has to be taken by actual manufacturer.
• In no case, samples or products be stored in the office. If it is required , then adequate fire safety provisions should be there to handle such risks.
• Orientation programs for employees to avoid such liabilities is a must. Employees should be made aware of what to commit, what not to commit etc.
• While entering in to a contract with a customer, all their liabilities and exposure should be clearly defined and disclosed.