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Extra info for CIMA Learning System Fundamentals of Ethics, Corporate Governance and Business Law: New syllabus (CIMA Certificate Level 2008)

Sample text

This observation is plainly inconsistent with the decision in Great Peace Shipping. If the only exceptions are those enunciated in Young’s case then the Court of Appeal in Great Peace Shipping was bound to follow Solle v Butcher. 3 Duty to take care How do you know whether you owe someone a duty of care? The answer is that if it is reasonably foreseeable that your actions are likely to affect someone, then it is likely that you owe that person a duty of care. (In other words, the so-called ‘neighbour test’ set out in Donoghue v.

A higher standard of care Nicholas Thompsell (Field Fisher Waterhouse), Accountancy, April 1997 Reproduced by permission of the author The partners of Ernst & Young must have breathed a huge sigh of relief when the High Court recently found for the firm in a £255m negligence suit relating to the acquisition of several companies by its client, NRG. Ever since the ADT v. BDO Binder Hamlyn decision in December 1995, the spectre of multimillion-pound liabilities has haunted accountants and other professionals advising on mergers and acquisitions (M & A) transactions.

6 Contributory negligence The most important (partial) defence to a claim for negligence also involves causation. The defence of contributory negligence arises if the claimant was partly the author of his own misfortune, so that the accident was partly caused by the claimant himself. In these circumstances, the courts have a discretion to reduce the damages awarded by any percentage which they consider appropriate. Example In Sayers v. Harlow UDC (1958) the door of a public toilet had a defective pay-lock.

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