Corporate Law, Audit and Regulation

(Task 1 of a 2 Task Assessment – Weighted 40%)

INSTRUCTIONS TO CANDIDATES

1.    The University Regulations on academic conduct apply to all assessments. You are reminded that to represent as your own work the

work of another person without acknowledgement is defined as plagiarism and is a breach of these regulations.

2.    Answer the question that appears on the following pages:

Stella operates a delivery business. Stella regulates the activities of her employees through a list of instructions placed on the works’

notice board. Among others, this provides that the drivers are not to race or drive discourteously in company vehicles, and they must not

give lifts to anyone other than company personnel.

Yesterday Arnold, one of the employee drivers, whilst on a delivery route, saw a rival delivery van. He drove at speed on the dual

carriageway deliberately to pass the van, beeping the horn of his vehicle as he passed. In retaliation, the other driver responded in the

same way. As the drivers raced and attempted to pass each other, Arnold lost control of the delivery van, crashing into a hairdressers’

business.

The crash caused significant damage to the frontage of the property and resulted in the business being unable to operate for seven weeks

whilst remedial repairs were undertaken. Inside the hairdressing business was Susan, who was hit with glass from the broken window when

the delivery van ran into the building. Susan had to receive medical treatment for her injuries, and was consequently absent from work for

three weeks.

Stuart was stood just outside of the hairdressers business when Arnold drove into the shop.  Whilst not physically injured, Stuart did

fear that he would be hit by the van and has suffered from stress and nightmares since the accident. It is also affecting his ability to

perform his job adequately and Stuart has been warned he may lose his job if he does not resolve his problems.

Lastly, Robert was stood about 100 yards away from the hairdressers when the accident took place. Robert thought that his wife was still

in the hairdressers when the accident occurred and claims he has suffered from nervous shock since the accident thinking his wife was

badly injured in the crash.

Advise the parties of their legal rights and possible liabilities following this incident.

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