Question

In: Operations Management

Fact Scenario:                    Quik Results, Inc.(QRI), a Michigan corporation, makes and sells Power Up!, a super...

Fact Scenario:

                   Quik Results, Inc.(QRI), a Michigan corporation, makes and sells Power Up!, a super energy boosting, carbonated beverage. Power Up! is made in Michigan, but shipped to stores all across the Midwest and East Coast. Power Up! is made by QRI, and delivered on QRI. trucks, by QRI employees. QRI has in-house accounting and marketing staff.

                  Steve, a driver for QRI, leaves the truck's motor running in neutral and carelessly forgets to set the parking brake while he makes a delivery. The truck rolls and crashes into a nearby gas station pump, igniting a fire that spreads quickly to a construction site a block away. A burned wall collapses onto a crane, which falls on, and injures, a bystander, Flo. What must Flo show to recover damages from Steve? What are QRI’s potential liabilities?

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Steve’s act was a negligent act. Steve should have demonstrated duty of care while parking the vehicle. Steve acted on behalf of QRI and parked the vehicle thus breaching the duty of care. Flo should recover on the basis of negligence. Hence, Flo should that QRI owed a duty of care to him and that QRI failed to fulfill the duty of care through Steve’s negligence.

This failure of duty of care by QRI (through Steve) caused injury to Flo. Though the crane fell on Flo, it was not due to his negligence. Steve’s action is a foreseeable event because if there is breach of duty of care, then it would hurt the public. Additionally, Flo should show that Steve’s breach of duty is connected to the injury. In the scenario, Steve’s action led to a series of events thus making the crane fall on Flo. Thus, the issue of foreseeability is determined by the proximate cause (injury to Flo). These are necessary to be showed by Flo to claim for his damages.

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