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You have been appointed as the business adviser to Whizz Kid Industries. They have tasked you to write a report dealing with the following pressing issues.

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Contents Page 1. TERMS OF REFERENCE 3 2. PROCEDURE 3 3 PRODUCTION LIABILITIES 3 3.1. CONCEPT OF THE TERM "DEFECT" 3 3.2. TYPES OF DEFECTS 3 3.2.1. MANUFACTURING DEFECT 3 3.2.2. DESIGN DEFECT 4 3.2.3. FAILURE TO WARN 4 3.3. DAMAGE 4 3.4. DEFENCES TO PRODUCT LIABILITY 5 3.5. WHAT CAN A MANUFACTURER OR IMPORTER DO TO REDUCE THE RISK OF ACTION? 5 3.6. CONCLUSION 5 4. IMPROVING COMPETITIVENESS 5 4.1. SUPPLY-SIDE VIEW 5 4.1.1. FACTORS OF PRODUCTION 6 4.1.2. MINIMISE GOVERNMENT INTERVENTION 6 4.1.3 OTHERS 6 4.2. GOVERNMENT INTERVENTION 6 4.2.1. DEREGULATION 6 4.2.2. PRIVATISATION 7 4.2.3. OTHERS 7 4.3. CONCLUSION 7 RECOMMENDATIONS 7 REFERENCES 8 You have been appointed as the business adviser to Whizz Kid Industries. They have tasked you to write a report dealing with the following pressing issues. 1) The first relatives to a legal issue. The company is intending to import a unique new toy for the Christmas market. Their concern relates to their potential legal liabilities should any toy prove to be faulty resulting in damage to property or injury to the use. 2) The second is in regard to statement made by the government that a key policy objective is to improve the supply-side of the economy to make industry more competitive. ...read more.


We should always keep in mind this important legal issue: The right to recover the damaged property is restricted. Even, there is no liability for the damage to the product itself and any thing included in the property. Claim only can be made when the amount claimed is equal to or more than 275 pounds. Also, a claim for damage to property can only be made if the property is ordinarily in tended for private use, occupation or consumption and is intended by the plaintiff mainly for his own private use, occupation or consumption. 3.4. Defences to Product Liability A defendant can raise many traditional tort defences to a product liability action. Damages can be reduced by a plaintiff's own negligence depending on the degree of his fault. Manufacture should not be liable to potential injure to his costumer, as long as there is no more advanced technology to make the product safer, and the manufacture makes the warning when the product is made. For example, if a person smoke too much and dies, the smoke maker should not be liable to the hurt to the smoker's lung. 3.5. What can a manufacturer or importer do to reduce the risk of action? ...read more.


Also, industrial relations and productivity should improve as workers recognise that there is no state support if the company fails. Managers will also have greater responsibilities for ensuring continuity of production. 4.2.3. Others In addition, the policies which can increase competitiveness also mention in the Business Environment (Leigh Davision, 2004, P.336): introducing market relationships, the private finance initiative and free made and capital movements. 4.3. Conclusion In the supply-side view, it is important to consider the production and the government interventation. As for the production, trainin staff, education, and other ways to increase the production should be considered. The government interventation is a negitive factor to company. Deregulation and privatisation are two key factors. Recommendations I recommend the following actions related to legal part and supply-side part: 1, Consult to expert about the risk of fault on the design and the manufactoring of the toy, ask them to put the conclusion in writing and file them. 2, Only if the conclusion from the first prove the toy safe, the proceed should be go on. 3, Confirm with the manufacture that the property warning is put on toys. 4, Train staff to manage the importing and the selling of toys. 5, Be careful about the information about the related. attitude and policy of the government. ...read more.

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