BUSINESS LAW

Business Law

Business Law

Case Study 1: Overview and Summary

An American woman named Paris Hilton encounters a serious accident on a holiday trip in Sydney, Australia. The accident occurred when Paris reported fell from a yacht onto the deck, causing leg injuries. The yacht was a part of a wharf trip offered by WhaleWatch Pty Ltd. Paris had been sold a ticket for whale beach's trip where she intended to see whales throughout the trip. An employee of by WhaleWatch Pty Ltd sold a $50.00 ticket for the trip service. The ticket clearly indicated a disclaimer about any potential liability or loss to the trip passengers in case of any mishap. Additionally, the employee of WhaleWatch Pty Ltd had sold tickets at the time when the whale season had ended. Hence, trip makers, including Paris, did not see a single whale throughout the trip. Paris filed a suit claiming for damages for the injury. The following key points pertain to the case:

Paris ignored the written disclaimer on the ticket that indicated “This ticket constitutes a contract between its purchaser and the operator. We take no responsibility for any injury. You are responsible for any damage you cause.”

The employee of WhaleWatch Pty Ltd misrepresented the basic service feature, that is, 'seeing whales throughout the trip', knowing that whale season had ended.

Paris also ignored the disclaimer at a side wall before entering the wharf that said: “All carriage is subject to the prescribed conditions. See ticket for the conditions.”

Parties in the Case

Two parties are involved in the case. Paris is the plaintiff who is claiming for the injuries; while the management of WhaleWatch Pty Ltd is the defendant in the case. The case represents a situation when a company is held responsible for deliberate or fraudulent misrepresentation by one of its employees in his course of duties.

Legal Arguments by the Plaintiff and Remedies

Paris could proceed with taking assistance to the remedies provided by Sales of Goods Act and the Misrepresentation Act. Under the Misrepresentation Act, a person who entered the contract under false and claims by the seller of goods, is entitled to receive damages. The disclaimer put forward by the WhaleWatch Pty Ltd on its ticket could be subject to question under the present conditions. Field trips like the one here could lead to potential liability if inadequate insurance is not arranged. If the insured has not correctly stated the risk to the insurer, but that this misrepresentation is unintentional (or "good faith"), different penalties apply in relation to the intentional misrepresentation (Little, 2007). The case can be made ??a false statement unintentionally end up the same stages in the life of the contract, namely: 

At the time of purchase, if the insured did not respond accurately to questions put to him by the insurer at the proposal and has therefore been a misrepresentation of the risk; 

Under contract, risk when changes have occurred (increasing the risk of origin or creating a new risk and making obsolete or inaccurate initial declarations) and have not been declared to the insurer in a certain ...