Question

In: Operations Management

George is a farmer who, amongst other activities, has been in the business of raising chickens...

George is a farmer who, amongst other activities, has been in the business of raising chickens on a large scale. Given how many baby chicks are in the barn, they require a continuous supply of fresh air to have sufficient oxygen to survive. The equipment to do this is connected to the electric power supplied to the farm. In the past, George had suffered a minor loss of chickens from an interruption in this electric service and has, as a result, installed an auxiliary battery-operated power generator in the barn to be available as an emergency back-up. He has also taken the further precaution of having a battery-operated power failure detector in his bedroom so that if the electrical power in his house failed, a warning signal would alert him to the potential danger of loss of electricity to his barn.


Michael is a driver for Move ‘Em Transport Ltd. While driving the company’s truck on a night run, Michael allowed the vehicle to wander onto the shoulder of the road where the upper part struck overhead wires. As a result, electric power service in the area was interrupted for a period of five hours. The interruption extinguished the supply of fresh air to George’s barn and some 30,000 chickens died. Unfortunately, George had temporarily disconnected the alarm detector in his bedroom and so, on the one occasion when he needed it, it was not in operation. George brought an action for damages against both Michael and Move ‘Em Transport Ltd. to compensate him for the loss of his chickens.


Discuss the merits of the plaintiff’s (George’s) case, with particular reference to each of the elements of a negligence action. What will be the defences? What will be the likely outcome?

Solutions

Expert Solution

There are four main elements of a negligence action which are duty, breach of duty, cause, and damage.

When we look into this case, it is clear that Michael who is a driver for Move ‘Em Transport Ltd. had a duty to run the truck properly so that no accident could occur but as he allowed the vehicle to wander onto the shoulder of the road where the upper part struck overhead wires and this caused the interruption of electricity in the nearby locality, this event indicates that Michael breaches its duty of being the responsible driver.

The cause, in this case, can be seen as the accident caused by Michael that resulted in the power failure in the locality and it resulted in the loss of 30,000 chickens of George’s barn. So if we look at the given case, George has a case of negligence against Michael and can ask for the damage of 30,000 chickens.

On the other hand, Michael can argue that the death of 30,000 chickens was the result of the negligence of George as despite having the backup system and the warning alarm, he did not put it on using the day when the accident happened.

Looking at the facts of the case, there is a greater chance that George will get the damage for the loss of his 30,000 chickens on the account of  negligence action as Michael should be having the duty of care and thus he must drive properly


Related Solutions

Read the scenario below and answer the question that follows: George Richard is a farmer who...
Read the scenario below and answer the question that follows: George Richard is a farmer who is also a skilled metal worker. He makes unique garden sculptors that could earn him R400 per hour. One day he spent 10 hours planting R5 000 worth of seeds on his farm. 2.2.1 Measure George’s opportunity cost. (4) 2.2.2 Determine the cost that is measured by his accountant. (4) 2.2.3 If the seeds George planted yield R10 000 worth of crops, argue the...
George Palo is a 90-year-old male who has been diagnosed with early stage dementia. George's wife...
George Palo is a 90-year-old male who has been diagnosed with early stage dementia. George's wife Anna died two years ago and he moved into a small one-bedroom apartment in a retirement community, independent living setting. George has five children, but only his oldest daughter Maggie lives nearby. George has been relatively healthy over his long life with the exception of high blood pressure which is controlled with medication. He is very independent and loves to be outdoors, walking his...
Fred and George have been in partnership for many years. The partners, who share profits and...
Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. At the date the partnership ceases operations, the balance sheet is as follows:      Cash $ 100,000      Liabilities $ 80,000      Noncash assets 200,000      Fred, capital 100,000             George, capital 120,000      Total assets $ 300,000   ...
Fred and George have been in partnership for many years. The partners, who share profits and...
Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. At the date the partnership ceases operations, the balance sheet is as follows:      Cash $ 100,000      Liabilities $ 80,000      Noncash assets 200,000      Fred, capital 100,000             George, capital 120,000      Total assets $ 300,000   ...
Fred and George have been in partnership for many years. The partners, who share profits and...
Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash $ 100,000 Liabilities $ 80,000 Noncash assets 200,000 Fred, capital 100,000 George, capital 120,000 Total assets $ 300,000 Total liabilities and capital $ 300,000 1. Prepare journal...
Other than raising needed capital, what are the biggest challenges to small business today? Global competition,...
Other than raising needed capital, what are the biggest challenges to small business today? Global competition, lackluster economy, excessive government regulations or any on your list?
A new company is conducting its first round of capital raising. it has no other Common...
A new company is conducting its first round of capital raising. it has no other Common Stock Outstanding. 100,000 shares are issued at a Market Price of $50 per share. What is the total Equity Capital Contributed? (PLEASE ANSWER PARTS E-I) a.) the common stock issued in the above question is a PAR VALUE Common Stock because of the requirements of state law. If the PAR VALUE per share is $10 what will be the common stock-par value line item...
A terrible new virus has been discovered amongst​ beef-cattle in Southern Alberta. It is estimated that  ...
A terrible new virus has been discovered amongst​ beef-cattle in Southern Alberta. It is estimated that   44​% of all​ beef-cattle are infected with this virus. A team of veterinarians have developed a simple test. Indications are that this test will show a positive result​ - indicating the​ beef-cow being tested has the virus​ - with a probability of 0.950.95. ​Unfortunately, this test has a​ false-positive probability of 0.060.06. ​(a) A​ beef-cow in Southern Alberta was randomly chosen and given this...
George Jetson owns and operates a restaurant and catering business which has seen the business show...
George Jetson owns and operates a restaurant and catering business which has seen the business show an increase in revenue over the last 6 months. With an increase in revenues George realized the expenses would also increase, but expected to see an increase in the cash position of the business. In reviewing the cash position and bank account, he has realized there has been a decrease in the cash position. The business receives cash and credit cards at the restaurant...
Historically, the failure rate for franchises has been lower than that of other business ventures. True...
Historically, the failure rate for franchises has been lower than that of other business ventures. True or False
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT