The Separate Legal Personalty and Piercing the Corporate Veil - Free Essay Example

Sample details Pages: 4 Words: 1178 Downloads: 10 Date added: 2017/06/26 Category Business Essay Type Essay any type Did you like this example? BUSINESS LAW Types of Businesses A business refers to an organisation involved in the trade of goods, services, or both to consumers. Sole proprietorship is owned by one person and operates for profit. The individual has day-to-day responsibility for running the business however they can choose to operate singly or employ other people. The business is considered to be part of the individual and not a separate entity. As a sole proprietor, all responsibility, debts and liability are assumed by the owner. Therefore, it can be said that all assets of the business belong to the owner. A partnership is an entity with two or more individuals who share ownership of a single business. The partners should consult and have a legal agreement that sets out how profits will be shared, how partners can be bought out and what are the steps that will be taken to dissolve the partnership if needed. Time and capital must also be decided on. Each partner has unlimited liability for the risks, debts and actions the business incurs . Corporations are considered a unique entity, which is separate and apart from its owners. They are treated as individuals under the law. A corporation can be sued, it can be taxed and it can enter into contractual agreements. The owners of a corporation are referred to as shareholders. If ownership changes the corporation does not dissolve thus it has a life of its own. A corporation simply provides a way for individuals to run a business and to share in both profits and losses. Don’t waste time! Our writers will create an original "The Separate Legal Personalty and Piercing the Corporate Veil" essay for you Create order Separate Personality A separate personality of a company means that the corporation is independent and distinct from the people who own or invest in them. In the case,Salomon V Salomon Co. (1897), Salomon conducted his business as a soletrader. Hesold it to a company incorporated for the purpose called A Salomon co ltd.The only members were Mr. Salomon, his wife and their five children. They shared the shares among themselves. Mr.Salomon loan moneys to the business. When the company failed the company liquidator contended that Mr. Salomon loan should not be honoured and that Salomon should be held responsible for thecompanyà ¢Ã¢â€š ¬Ã¢â€ž ¢sdebts. Lord Halsbury LC stated that à ¢Ã¢â€š ¬Ã…“it seems to me impossible to dispute that once the company is legally incorporated it must be treated like any other independent person with its rights and liabilities appropriate to itself, and that the motives of those who took part in the promotion of the company are absolutely irrelevant in discussing what those rights and liabilities are.à ¢Ã¢â€š ¬Ã‚  From this case comes the fundamental concept thata company has a legal personality or identity separate from its members. Members have no interest in a companyà ¢Ã¢â€š ¬Ã¢â€ž ¢sproperty. Inthe caseMacaurav NorthernAssuranceCompany Limited (1925), M bought insurance for his timber estate while he was a sole trader. M later converted his business into a limited company butdid not make another insurance contract. A fire broke out in his timber estate. The insurance company refused Mà ¢Ã¢â€š ¬Ã¢â€ž ¢s claim for compensation. It was held that the insurance was correct not to honour. The house of Lordsheldthat in order to have an insurable interest in property a person must have a legal or equitable interest in that property, Mà ¢Ã¢â€š ¬Ã¢â€ž ¢s claims because M and his company were separate legalentities. Theloss of the timber wasthe companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s lossnot Mà ¢Ã¢â€š ¬Ã¢â€ž ¢s loss. Lifting the Corporate Veil The corporate veil is the concept that separates the personality of a corporation from the personalities if its shareholders. It protects them from being personally liable for the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s debts and also other obligations. However, this protection is not impenetrable. Lifting this corporate veil is when the court disregards the corporate personality and look behind the real person who is in control of said company. The court comes to the conclusion that a companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s business was not or isnà ¢Ã¢â€š ¬Ã¢â€ž ¢t being conducted in accordance with the provision of corporate legislation. Under the legal concept of piercing the veil, the court may hold the shareholders of the company personally liable for the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s obligations. Grounds under Which the Veil Is Lifted The corporate veil can be lifted in many cases. It can be lifted in the case of: Fraud/Improper conduct The courts will pierce the corporate veil when it feels that the company is being used to hide or conceal the identity of the perpetrator of fraud. In the case Gilford Motor Company Ltd v. Horne (1933), Mr. Horne was an ex-employee of the Gilford motor company and his employment contract provided that he could not solicit the customers of the company. In order to defeat this he incorporated a limited company in his wifeà ¢Ã¢â€š ¬Ã¢â€ž ¢s name and solicited the customers of the company. The company brought an action against him. The Court of Appeal was of the view that à ¢Ã¢â€š ¬Ã…“the company was formed as a device, a stratagem, in order to mask the effective carrying on of business of Mr. Horneà ¢Ã¢â€š ¬Ã‚  in this case it was clear that the main purpose of incorporating the new company was to penetrate fraud. Thus the Court of Appeal regarded this case as a mere sham to cloak his wrongdoings. Tax evasion The court has the power to disregard corporate entity if it is used for tax evasion purposes. Once the company conducts in schemes of tax avoidance without any necessary legislative authority the veil will be lifted. Protecting public policy This occurs when there is a conflict between incorporated companies not adhering to public laws. Courts may pierce the corporate veil to protect policies of the public and also to help prevent transactions that may occur contrary to public policy. Avoidance of legal obligations This is where the incorporated company is made and used to avoid any legal obligation(s). The court may disregard the legal personality of this incorporation and assume that no company really existed. Enemy character In times of war, the court will be prepared to pierce the veil of the company to determine the nature of the shareholding. A company can be assumed as an enemy character when persons in control of its affairs are residents in an enemy country. In a case stated above the court may examine the character of the persons in real control of the company and then declare it to be an enemy company. In the case Daimler Co. Ltd v Continental Tyre and Rubber Co. Ltd, a company was incorporated in England for the mere person of selling in England. This company sold tyres which were made in Germany by a German company which held the bulk of shares in the English company. The holders of the shares remaining, with the exception of one, and all the directors were Germans who resided in Germany. During World War 1, the English company commenced action for recovery of a trade debt. It was held that the company was an alien company and the payment of debt to it would amount to trading with the enem y. Therefore, the company was not allowed to proceed with this current action. 1

Vaccination And Its Effects On Children And Public Health

The means of dealing with infectious diseases that endanger individual and public health have evolved over the years. In 1789, however, the most protective technology used to prevent epidemics was introduced by physician Edward Jenner; vaccination. Vaccine efficiency continues to develop and become more advanced, producing immunity to infectious diseases from 90 to 100 percent of the time today. Because of inoculation, millions of people worldwide are immunized from fatal epidemics. However, because of unsubstantiated fears, many parents have been withholding vaccines from their children. Despite this, parents should not have the right to withhold vaccines from their children for philosophical reasons. Vaccines are the best way to prevent disease, vaccine exemptions endanger individual and public health, and without widespread inoculation, controlled diseases will rebound. Vaccination is both the most efficient and the most reliable modern technology used to prevent epidemic outbreak s. This is partly why it seems inconceivable for parents to refuse to vaccinate their children. According to Dr. NoÃ'‘l Merino, a Ph.D. certified author, educator, and philosopher, [i]mproved hygiene and sanitation have helped stop the spread of germs and viruses, but history shows that vaccine-preventable diseases dropped dramatically the years vaccinations were licensed[...] [a]mong children born in one year, scheduled childhood immunizations are estimated to prevent forty-two thousandShow MoreRelatedThe Importance Of Vaccinations1372 Words   |  6 PagesVaccinations have proven time and time again to be an effective form of preventive medicine, but in recent research it has been associated with serious developmental problems. The controversy over whether childhood vaccines are actually the cause of these development issues has been an ongoing debate for 2 centuries and is even more prominent in society now as more research is becoming available to the public, even if some of it says there is no link between the two. Parents and guardians now alsoRead MoreCompulsory Vaccinations And The Public Health Intervention Essay1324 Words   |  6 Pagesto compulsory vaccinations, the public health intervention will always have negative or harmful effects in combination with the benefits of compulsory vaccinations. For those that stand behind the argument that immunizations are unnecessary in our children, have argued that the vaccine industry has misrepresented the safety of vaccines. They also have argued that they have covered up information regarding certain vaccinations to gain from the financial standard. In order for the public and researchersRead MoreVaccinations Should Be Mandatory Vaccinations1495 Words   |  6 PagesThe government should mandate vaccinations, and although it would sacrifice the liberty and choice for public health it would keep the well-being and health of everyone much more safe and away from the risk of disease. Most people agree t hat vaccinations should be mandated because of how being vaccinated keeps people safer in public environments since being vaccinated helps stop diseases from being spread, as proven by science, but people who do not agree with vaccination mandation most of the timeRead MoreVaccines And Vaccines Are Made A Huge Impact On Humanity1494 Words   |  6 Pagesthere are many health professional, experts, doctors, and parents who believe that vaccination is a lifesaver. Vaccination is a controversial topic for many parents and guardians of children. Vaccines are made to save lives and reduce outbreaks; people should not second guess vaccines and should instead take precautions. Illnesses occurs yearly and it can affect people of all ages, especially in children. According to Immunize Children: â€Å"It’s been known for some time that children and adolescentsRead MorePrevention And Prevention Of Immunization1113 Words   |  5 Pagesdiseases that can be deadly especially to young children and infants. The process, as explained by the Center for Disease Control and Prevention (CDC), is referred to as the â€Å"4:3:1:3 series,† which represents the number of dosages of vaccines required to fend off diseases such as mealses, mumps, tetsnus, and many others (â€Å"Immunization†). In recent years there has been a movement mainly empowered by new mothers to forgo some or all vaccinations for their children. The following paragraphs will include anRead MoreThe Discovery of Vaccines Prevented The Spread of Infectious Diseases1342 Words   |  6 Pages vaccines increase the overall health of not only individuals, but of populations. Although these benefits prove effective on the world wide scale, the requirement of vaccinations of children to enter the public school system remains a current public health concern. Some argue that vaccines are dangerous for children and can lead to adverse effects. Others assert that the enforcement of requiring children to be vaccinated before entering schools protects the health of those attending school. TheseRead MorePros And Cons Of Vaccination1665 Words   |  7 PagesVaccinations, Worth A Shot! Mandated Vaccinations are a huge argument right now because of health and disease issues. There are people on both sides of this argument. Some people are against vaccinating their children because they feel they are being forced to have their child get vaccinated. While some people feel the need that vaccinations are important to protect themselves from any illness or diseases. Vaccinations should be mandatory for all schools and health care purposes. For one, peopleRead MoreCultural Perspectives on Vaccination1164 Words   |  5 PagesOutline (Pro-vaccination) The debate is led by anti-vaccinators who oppose vaccinations on ethical, political, religious and medical safety grounds. On the other hand, pro-vaccinators argue that the health benefits of vaccines outweigh the very few adverse effects that they have, and that vaccines have been largely advantageous to public health. Main points of contention: Pro-vaccinators (usually health care specialists, microbiologists, governments, pharmaceutical companies) Vaccinations are an effectiveRead MoreThe Vaccine Controversy Essay examples1641 Words   |  7 Pagesmorality, ethics, effectiveness, and /or safety of vaccinations. The medical and scientific evidence is that the benefits of preventing suffering and death from infectious diseases outweigh rare adverse effects of immunization. Since vaccination began in the late 18th century, opponents have claimed that vaccines do not work, that they are or may be dangerous, that individuals should rely on personal hygiene instead, or that mandatory vaccinations violate individual rights or religious principlesRead MoreMajor Canadian Health Concern: Unvaccinated Children and the Spread of Preventable Diseases1179 Words   |  5 PagesThe debate over vaccinations causing autism is a very important health risk facing our country today. There is a misconception that these two things are related which this essay hopes to dispel. The current threat of unvaccinated children, due to parental concern over the risk of adverse effects from vaccination including autism or religious choice is a major Canadian health concern and results in misconceptions, outbreaks, and general false fear in parents. In 2001 a research paper titled â€Å"Ileal-lymphoid-nodular

Banning Harry Potter Impedes Upon Our Rights Essay

Banning Harry Potter Impedes Upon Our Rights Muggles, Quidditch, and Hermoine. Do any of these words look familiar to you? If you are over the age of 11 then probably not these three words come from the Harry Potter book series. Muggles are non-magic people, quidditch is a ball game, and Hermoine is a young wizard and one of the main characters of the Potter series. I know these things because I have had the chance to read these wonderfully imaginative books. I believe it is wrong for the government or literary groups to ban books because books are a way for children to learn to read and develop an imagination, censorship impedes on our first amendment rights, and there is a separation between church and†¦show more content†¦This just proves that the books are not horrible and encourage satanic things. The huge debate with the books is that the books are either wonderful or they are satanic and should be banned. Some say that the books have encouraged reluctant readers to read and others that they have encouraged readers to value witchcraft. (Kennedy) There have been many attempts to ban this book from classrooms and school libraries. I personally do not believe that any book should be banned. A court case in 1980 relates to this very issue, Zykam v. Warsaw Community Corporation.(Potter) In this case the court ruled it is permissible for boards to make decisions about educational material based on their personal and moral views. I believe this is wrong, boards should not be able to make decisions based on their own morals or personal views, they should make decisions based on what is good for the children. Books are an infinite source of knowledge. I love to read. I have read everything and even some of the books that people believe should be banned. Such books include: The Bell Jar, Harry Potter, Ordinary People, and Catcher in the Rye. I have read and enjoyed all of these books. Not once did I try to commit suicide, or dream of witchcraft. Which some believe could happen from reading these beautiful literary pieces. The books, especially Potter, deal with many controversial issues includingShow MoreRelatedStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesCredits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. Copyright  © 2013, 2011, 2009, 2007, 2005 by Pearson Education, Inc., publishing as Prentice Hall. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form

Analysis of The Famous Sculpture, Laocoön and his Two...

The piece I decided to analyze is the famous sculpture, Laocoà ¶n and his two sons. I decided on this particular piece for a few reasons, one being the emotion we see on the subjects’ faces, and the other being the importance for future art. When I began this research I could not have possibly understood the relevance this piece had on the art that was yet to come. The Hellenistic period of Greek art spans from the time of Alexander the Great’s death in 323 to 30 B.C.E. (â€Å"Hellenistic Period† 1). However there have been controversies of precisely how long the Hellenistic period lasted. Some argue that from C. 400; to the first century can be classified as â€Å"Pre-Hellenistic† (Janson 138-139). â€Å"Hellenistic, is a term meant to convey the†¦show more content†¦But in 1905 the archeologist, Ludwig Pollack, discovered the original right arm of Laocoà ¶n and it was reconstructed in 1957-60 (â€Å"The Vatican† 185). The style of th is sculpture is immediately classified as Hellenistic, because of the motion on the bodies of Laocoà ¶n and his sons. The agony on their faces portrays the anguish they were feeling at the time of their death, and the bulging muscles, and veins stick out as they try to free themselves of the snakes. The legend says that Laocoà ¶n was a Trojan priest of Apollo. The Greeks who had been trying to sack the city of Troy for years were unsuccessful, and devised a new plan. They created the Trojan horse to offer the city of Troy as a promise to stop the fighting. Laocoà ¶n saw that this was a trap and tried to warn his fellow Trojans of the danger. When he approached the alter of Poseidon to pray, the Gods Athena and Poseidon depending on which version you read, favored the Greeks and decided to punish Laocoà ¶n for his treachery by sending two giant snakes to kill him and his sons. However, there was one Trojan who heeded the warning, his name was Aeneas. Aeneas, fled Troy and this e ventually led to the founding of Rome (â€Å"Musei Vaticani – sito ufficiale†). There are a lot of different theories just on this one story. I have seen that the snakes were sent by Athena, Poseidon, and even Apollo. There is also debate on whether the Trojan horse was a gift to the city of Troy or an offering to the gods.

the meaning of a friend Essay Example For Students

the meaning of a friend Essay Never having any guidance, or direction, he has always seemed to work through allobstacles. Langston was a young man, roughly beginning his first year of medical school. Everyone he knew saw it a miricle that he ever made it as far as a bachelors degree, muchless a Medical Degree. Born a mistake never knowing his mother, or father he spent much of hischildhood and adolescence running from foster homes east and west, he had never knownunconditional love or the feel of a true family. At the age of 24, only one person in his lifehad ever before cared enough to keep in touch with him. She was a young woman hecalled Mams. Natalie Green Entered is life when he was around the age of four, as his bigsister. She was only 18 and needed community service hours to receive a scholarship,never anticipating that such a loving relationship would grow with the young boy. Mams was an only child to a middle class black family, raised with a father that believe you mustearn and work for everything you receive. Even then the nature and history, of Langstonslife, at the age of four, shocked her. For the 12 months they spent together, in St.Louis,every weekend, and twice d uring the week they escaped from their lives. She took him toplays, book readings, social events, anything she thought would open his eyes to theopportunities surrounding him. As a result Langston was well on his was to success. Evenafter she left for collage, and he moved to a new home, every birthday, Easter,Christmas, Halloween, and any other special event, Langston would receive a letter orpost card with just enough words to make him keep trying. She was the main and onlymotivation in his life. On a Sunny day, in the beginning of September, Langston hopped on his bike andhurried home to his apartment to change clothes and rush to work, his daily routine. Thedoor flung open, his shoes flew across the room, he ran to the bathroom he turned on theshower, then ran into the kitchen, and was then brought to a paused when he noticed themail he must have overlooked when first entering. The shower still running, he grabbedthe mail, not expecting anything in paticular besides the usual junk mail. When suddenly hewas suprised to see a peach envelope with purple ink writing, reading Langston Brownthough, he didnt recognize the handwriting. With a bad feeling in the pit of his stomachhe ran to the bathroom to shut off the water, then slowly walked to the living room werehe sat squeamishly in the most uncomfortable chair, and nervously he began to open theenvelope. The first words of the letter brought him to tears, Dear Langston, your probablywondering who this is, I am Julie Morris, Up until two days ago I was Natalie Greens bestfriend. Knowing you were a dear friend to her I felt obligated to inform you Hestopped, he knew what had happened, not being able to read anymore, the letter droppedto the floor and he froze in silence, for what seamed a decade. Mams the only person whoheld any significance in his life had committed suicide, she was only thirty eight. Since thebeginning of his life all the insults, set backs, and rejections; none of this compared to theemotions he was faced with at this time. The impact Mams suicide had on Langstons life was tremendous. Although heonly got four or five letters a year from her and they seldom saw each other, she was stillthe one that drove Langston. With her gone he felt useless. In the months following,Langstons 3.8 GPA had taken a cliff dive to a 2.5, he went from job to job, not being ableto handle the once seamed easy requirements and responsibilities. Langston was depressedand drowning in self pity. Even the few shallow party friends Langston had come to knowin college couldnt redeem his spirits. His hard work, amazing accomplishments andoverwhelming ambition were slowly being flushed down the toilet. Yet the only thoughtsrushing his mind were, why her?, what could I have done?, how could she do this to meand herself?, why is life so unfair? with other pending questions, the confusion overcamehim. On a Wednesday Afternoon, about 2:30 p.m., half an hour after his first exambegan, He barely rolled out of bed, Eyes half shut he floped do wn the hallway toward thekitchen, expecting to find something to eat. He opened the freezer, no Eggos, he openedthe fridge, empty, he went to the pantry, hoping he would find cereal, though nothing butbareness. Then he noticed a piece of unfamiliar paper lay dusty and stained on the pantryfloor. Out of pure curiosity Langston found the energy to kneel down and pick it up. .u8742ccf3bdf3d9846dae873d0cdd5c75 , .u8742ccf3bdf3d9846dae873d0cdd5c75 .postImageUrl , .u8742ccf3bdf3d9846dae873d0cdd5c75 .centered-text-area { min-height: 80px; position: relative; } .u8742ccf3bdf3d9846dae873d0cdd5c75 , .u8742ccf3bdf3d9846dae873d0cdd5c75:hover , .u8742ccf3bdf3d9846dae873d0cdd5c75:visited , .u8742ccf3bdf3d9846dae873d0cdd5c75:active { border:0!important; } .u8742ccf3bdf3d9846dae873d0cdd5c75 .clearfix:after { content: ""; display: table; clear: both; } .u8742ccf3bdf3d9846dae873d0cdd5c75 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u8742ccf3bdf3d9846dae873d0cdd5c75:active , .u8742ccf3bdf3d9846dae873d0cdd5c75:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u8742ccf3bdf3d9846dae873d0cdd5c75 .centered-text-area { width: 100%; position: relative ; } .u8742ccf3bdf3d9846dae873d0cdd5c75 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u8742ccf3bdf3d9846dae873d0cdd5c75 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u8742ccf3bdf3d9846dae873d0cdd5c75 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u8742ccf3bdf3d9846dae873d0cdd5c75:hover .ctaButton { background-color: #34495E!important; } .u8742ccf3bdf3d9846dae873d0cdd5c75 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u8742ccf3bdf3d9846dae873d0cdd5c75 .u8742ccf3bdf3d9846dae873d0cdd5c75-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u8742ccf3bdf3d9846dae873d0cdd5c75:after { content: ""; display: block; clear: both; } READ: ch 2 medical terminology- suffixes indicating diseases or abnormal conditionsUpon flipping the paper Langston found a poem. It read:Well son I tell you:Life for me aint been no crystal stair. Its had tracks in it,And splinters,And boards torn up,And places with no carpet on the floor-Bare. But all the timeIse been a-climbin on,And reachin landins,And turnin corners,And sometimes goin in the darkWhere there aint been no light. So boy, dont you turn back. Dont you set down on the steps`Cause you finds its kinder hard. Dont you fall now-For Ise still goin, honey,Ise still climbin,And life for me aint been no crystal stair. Filled with astonishment Langston realized those were the closing words of Mamseulogy, Langston had been so greif stricken he totally zoned out the entire funeralceremony, even the lasting momentos she left for him. Mams hadnt forgotten him, nor notcared for him, for whatever reason she felt she had to die, she wanted Langston to knowhow much she was proud of him, and how much she believed he was capable of acheiving. Such a small, yet overlooked aspect. Who knew how much these few wordscould change Langstons life. Suddenly he felt powerful and ambitious once again. He nolonger blamed himself, or questioned the ways of life, he learned to accept the past andprepare for the future. Though some people looked down on Natalie Green for hercowardly death, contrary, Langston still holds her in the highest respect, for she changedhis life in ways he can never repay. She gave him hope and strength when there was noone else around to care if he woke up the next morning. She understood how much heneeded her in his life. Natalie Green was his Mams, warm hearted, strong, independent;the most influential, loving person in his life.

Business Law for Perre v Apand Pty Ltd - MyAssignmenthelp.com

Question: Write about theBusiness Law for Perre v Apand Pty Ltd. Answer: Relevant Facts Plaintiff was carrying out his business for sale of potatoes. The defendant was one of the potato farmers within South Australia and would sell his potatoes to customers in Western Australia. Apand, the defendant sold infected potato seed to one of the Plaintiff neighbors. Afterward, there was an outbreak, and all potatoes within 20km radius including the plaintiff could not be allowed in the market due to infection. As a result, the plaintiff suffered immense economic loss. When the plaintiff brought the case to the court, the Australian High Court found that Apand entirely owed a duty of care to the farmers. The judges provided different views, but all of them ended up concluding that it was it was reasonably foreseeable that if Apand had not supplied the one farmer with infected seeds, the other farmers within the 21km radius would not have been affected. Therefore, Apand was responsible for all those farmers pure economic loss. The Legal Issue The issue that was before the court to decide whether Apand owed a duty to care to Perres together with other potato farmers. In (Miller, 2016), the work states that whenever there is a case for negligence, the first consideration is to establish whether a duty to care existed with the defendant. The best procedure for establishing a duty to care was set in the case of (Donoghue v Stevenson [1932]) This case was born after Mrs Donoghue and her friend incident in a cafe. Her friend got an ice cream together with a bottle of beer. Mrs Donoghue drank the beer but close to finishing it, she noticed a decomposed snail inside the bottle. This caused her to personal injuries and she decided to sue the manufacturer. The court found that the manufacturer held a duty to care and therefore he was held liable for the damages. This case established what came to be called the neighbor principle (Riches, Allen and Keenan, 2009). The test for determining whether a duty to care exist on the defendant is a matter of conducting a test for foresight, proximity, consideration of justice and rationality while imposing the duty (Dunn, 2010). A material case that brought this principle was the case of (Caparo Industries pIc v Dickman [1990]). In the case, the defendant prepared Fidelity accounts. On his part, the defendant relied on the information in the accounts to acquire the shares from Fidelity plc. However, it turned out that the accounts were mistaken. The accounts provided that Fidelity had made a huge profit of lost 1.3M. However, the reality was that Fidelity had made a loss of 465,000. Caparo commenced suit for defendants. The court found no duty owed by the defendant. The purpose of the accounts was not to give advice concerning the purchase of shares. By bringing the principles of proximity to Perre's claim, there are questions that this claim would establish. One of these is how close is it between the Perre and Apand? Note that this doesnt mean closeness concerning distance (Mann, Roberts and Smith, 2012),. It means a legally established closeness. In other words, it's determining the closeness between Perre and Apand regarding conducts, or goods lost. An excellent example in support of this claim is the case of (Home Office v Dorset Yacht Co Ltd [1970] ) This case exactly matches the Perres claim. In this case, the young borstal trainees were supposed to work under the supervision of Borstal regime. In one night, the supervisors left the trainees, and the trainees escaped. On their escape, they stole a Yacht which later crashed with the claimants Yacht. The defendant argued that they had no duty, but the court found that a duty existed to care for the 3rd person. The damages were foreseeable, and the court entered judgement for the claimant. Following this example, there was a duty of care to be imposed on the defendant. Where it becomes reasonable to impose a duty of care, (Twomey et al., 2011) suggested that the next step turns to be that of examining whether this duty was breached. First of all, Perre claim would establish that Apand was supposed to be very careful while dealing with his customer. In particular, this claim proves that Apand was an expert, and skilled in his potato farming business. In this concern, Apand was supposed to exercise the skills of an experienced potato farmer. For example, in the case of (Nettleship v Weston [1971]), the claimant was teaching the defendant driving skills. While learning, the defendant hit the post, and the accident caused the claimant to sustain some injuries. The court found the defendant liable despite the fact that the defendant was inexperienced. Similarly, Apand was supposed the take reasonable care to examine the potatoes before sending them to the market. The case of (Wilsher v Essex Area Health Authority [1988]) also provides a clear picture of how a court may find Apand liable for his negligence. This case arose when a junior doctor gave excess oxygen to a premature baby. The result caused the baby to get a condition that affected the retina. The baby was finally left blind from one eye and the other eye partly sighted. Even though this condition could have resulted from other four factors, the judge still found the doctor liable for the negligence. In (Kubasek et al., 2016), the idea is that if a person is acting in his or her profession, that person should be judged with what a reasonable man would have acted given all the grounds that the defendant had. Thats to say, Apand should have thought about the outcome of releasing the affected potatoes to the field. A reasonable man would have known that it would affect the fields, and it would cause damages. In recovering the loss, Perres case falls in the line of (Spartan Steel v Martin Co Contractors Ltd 1973]). In the mentioned case, the claimant was operating a stainless-steel plant. Unfortunately, the defendants negligently cut the power cable running to the factory while digging a nearby road. The factory could not access power for up to 14 hours. The lack of power damaged some melts while preventing others from melting. The judge found the defendant liable, and allowed the claimant to recover compensation for the lost melts, and also recover the lost profits from those melts. Similarly, the judgment should be entered for Perre to recover the financial loss. References Miller, R. (2016). 11th ed. Cengage Learning, p.105. Riches, S., Allen, V. and Keenan, D. (2009). Keenan and Riches' business law. 9th ed. Harlow, England: Pearson/Longman, p.332. Twomey, D., Jennings, M., Fox, I. and Anderson, R. (2011). Anderson's business law and the legal environment. 21st ed. Mason, Ohio: South-Western Cengage Learning, p.198. Dunn, V. (2010). Professional negligence litigation in practice. 5th ed. Oxford: Oxford Univ. Press, p.8. Mann, R., Roberts, B. and Smith, L. (2012). Smith Roberson's business law. 15th ed. Mason, OH: South-Western Cengage Learning, p.141. Kubasek, N., Browne, M., Dhooge, L., Herron, D. and Barkacs, L. (2016). Dynamic business law. 3rd ed. , New York, NY: McGraw-Hill Education, p.138. Cases Donoghue v Stevenson [1932] AC 562 House of Lords Caparo Industries pIc v Dickman [1990] 2 AC 605 House of Lords Home Office v Dorset Yacht Co Ltd [1970] AC 1004 House of Lords Nettleship v Weston [1971] 3 WLR 370 Court of Appeal