W5A2 Part 5 – Insurance and Agency Mitch Dawson is a delivery driver for [Restau
ID: 361143 • Letter: W
Question
W5A2
Part 5 – Insurance and Agency
Mitch Dawson is a delivery driver for [Restaurant Name]. While delivering orders within the scope of employment, Mitch rear-ended a car driven by Nick Smith. Mitch was insured by Nationwide Insurance and his policy contained the following information.
Exclusions—What is not Covered
Nationwide will not pay for any damages an insured person is legally obligated to pay because of:
Bodily injury or property damage arising out of the use of your insured auto while used to carry persons or property for a charge, or any auto you are driving while available for hire by the public.
Analyze the liability on the part of Mitch, Nick Nationwide and [Restaurant Name]. Be sure to cover issues related to both insurance and agency.
Part 6 – Agency
Because of some recent thefts in the area, the restaurant hired Cross Security Service (CSS) to provide security for the property and deter thieves and vandals. The security guards were required to carry firearms; however, they had to be certified. Jeff Liddell was the security guard assigned to watch the restaurant. Even though Jeff Liddell was not certified, he brought his gun since he was only two days away from qualifications with the firearm. On December 31, Liddell fired his weapon at Martin West, in the belief that West was attacking a female patron who was trying to unlock her car. West died and his mother filed a lawsuit against CSS and the restaurant, claiming her son’s death was a result of negligence for which CSS and the restaurant were responsible.
Justified the arguments for each party.
Explain the restaurant’s best defense.
Part 7 – Consumer Protection
[Restaurant Name] does not publish the prices of drinks on the menus. Brad Dickens, a customer of the restaurant filed a lawsuit claiming that failure to provide drink prices on the menu constitutes an unfair business practice because customers must make quick decisions about ordering drinks after asking about the price. Another plaintiff, Charles Pirtle, claimed that he was not provided with a cost for his drink until after he ordered it, which constitutes consumer fraud.
Analzye the applicability of state and/or federal consumer protection laws that Dickens and Pirtle can assert against [Restaurant Name]. Select which party should win and support your answer.
Part 8 - Recommendations
Conclude your paper by jusifying suggestions for [Restaurant Name] to help prevent future occurrences of these types of legal problems and ethical issues, if applicable. Be specific in your recommendations.
Support your answers with appropriate research, reasoning, cases, laws, and other relevant examples.
Explanation / Answer
Solution:-
PART5: INSURANCE AND AGENCY
In the context where Mitch Dawson who was employed by DJC venture as a delivery driver rear ended a car driven by Nick Smith while delivering orders within the scope of employment.
Since Mitch Smith was insured by National wide insurance company. It is therefore evident that National wide insurance company will not pay for damages in the context that the terms and conditions of insurance outlines that the company will not be liable for any damages arising out of use of insured auto which is carrying property for a charge.
This is clearly indicated by the fact that Mitch was driving a company automobile that DJC ventures where at the end of the month expects a monthly salary thus National wide insurance is not responsible for the damage.
Mitch as an agent is liable for the damages in the context that as an agent he has authority he has the role and responsibility to discharge his duties with appropriate care and diligence. Thus in this case he should be part of the damage.
However, the DJC venture is also liable for the damage this is clearly outlined by the fact that since the agent (Mitch Smith) caused the accident during the context of his duties delegated by DJC ventures the company (DJC ventures) should indemnify that is (protecting Mitch Smith against losses) considering the relationship between the two parties is legally bided as the two parties are an employer and an employee.
PART 6: AGENCY
In the context where DJC ventures hired cross security services (CSS) in the context of providing for the property and deter thieves and vandals. This is where the security guards were required to carry a firearm which was to be certified.
Jeff Liddell was the main security personnel that were assigned to watch the restaurant. It is clear that Jeff was not certified and in the context of facilitating the duties that had been bestowed onto him by DJC ventures he carried his gun where he was only two days from qualifications with firearm.
On 31st December Jeff fired his gun at Martin West in the belief that West was attacking a female patron who was unlocking her car. West died and his mother filed a lawsuit against cross security service (CSS) and the restaurant claiming that her son died as a result of negligence for which CSS and the DJC ventures restaurant was responsible.
In the context of the cross security services it is clear that Jeff can argue he was expressing actual authority as expressed by his agent that is DJC ventures restaurant.
This then being the case, the law can view the act from the authority point of view.
However, Jeff in the context of cross security services is liable in the context that the gun he used was not licensed and as a security guard he should act with care and due diligence such as make an arrest rather than just shooting since the case has not indicated preliminary efforts such as surrender before shooting.
Jeff can also argues that he acted as outlined by the their principle that is DJC ventures restaurants in their terms as specified in terms of agency which was to protect against theft and vandalism which was the main action that was exhibited by West.
In the context of the DJC ventures restaurant it is clear that the company despite the existence of the mutual relationship between cross security services it’s the duty of the operations of the restaurant to ensure that they hire verified personnel’s thus the care and negligence exhibited by Jeff can be blamed on the operations of the company.
It is also clear that agency should act with care and due diligence which was main reason for DJC to hire CSS Company in the context of protecting property and stakeholders related with the operations of the company.
Finally, DJC ventures restaurant can argue that it’s the role and responsibility of CSS operations to ensure they allow and contract employees to various organizations that are competent and capable to handle security capacities with care and diligence.
This then being the case it is clear that Jeff never acted with optimal care to effectively all rights of the stakeholders.
However, the court can rely and prosecute both the companies that are DJC venture restaurant and CSS in the context of gross negligence based on the fact that CSS allowed the hiring of one of their employees that was not licensed and on the other hand to DJC ventures which is a violation of law and order.
CONSUMER PROTECTION
In regard with two separate cases that were exhibited where DJC ventures restaurants has been charged with claims that is does not publish the prices for on the menus.
This is where in the first case, Brad Dickens filed a lawsuit claiming that failure of DJC venture restaurant constituted a an unfair business practice in that he was not able to make quick decision about ordering drinks about asking the price.
The second lawsuit by Charles Pirtle, who also filed a lawsuit arguing that he was not provided with his cost of drink until he ordered it which constitutes a business fraud.
It is clear in the context of the two cases it is clear that the two filed cases constitutes a violation for instance it is the role and responsibility of DJC venture restaurant to display prices for their various items since they have not advertized their products in the context of informing the customer about the minimum prices of their products for decision making process.
This is where the law requires restaurants and cafes to provide menus or price list or a separate surcharge including the name of the product.
In regards with federal trade commission act chapter 15 &45 (a)(1) it is clear that it is the mandate of any consumer to commence lawsuits over false or deceptive lawsuits advertisments,or other unfair and injurious consumer practices. Craft. 1991. "State Consumer Protection Enforcement: Retrieved from Recent Trends and Developments." Antitrust Law Journal p.p. 59.
Charles lawsuit is less of applicable in this context this is related with the fact that he already ordered the product without even considering the price of the drink where he considers the price later this is not a violation.
In regards with the above analysis it is clear that Brad Dickens would win the lawsuit case against the DJC ventures in that his agreement is outlined in the consumers act as compared with Charles argument.
RECOMMENDATIONS
In the context of the DJC ventures which has been related with various issues the main considerations that the company should consider includes;
The company should familiarize its operations with federal and the state rules related with restaurant operations.
The company should also consider designing its internal operational guidelines based on laws that are in consistent with federal and state guidelines thus easily achieving their operational goals.
DJC ventures should also consider the various lawsuits that it has been related within the context of their operations where various remedies should be adapted thus aligning unethical operations.
The company has also great role and responsibility to coordinate with various societal stakeholders to ensure compliance which is the main requirement for effective operation.
It is also clear that there is need for the company to adapt and consider workplace integration through cultural hiring thus achieving diversity in their operations which has potential to expand improve their operational status quo.
The company management will also have great role in considering regularities and extends of their operations based on legal consideration and guidelines of various parties that has capabilities affecting their operations.
Finally DJC ventures must align their operations through creating better reputations this is clearly based on the reputation of various lawsuits which has the capabilities of tarnishing their effective operations leading to failure of their business in future.
REFERENCES
Craft. (1991). "State Consumer Protection Enforcement: Recent Trends and Developments." Antitrust Law Journal 59
John Bouvier.(1856). A guarantor of another's obligation. Retrieved from Constitution and Laws of the United States
Dave Ramsey. (2014). Subrogation in sureties and guarantees. Retrieved from https://subrogation.uslegal.com/subrogation-in-sureties-and-guarantees
Hodgson Russ Attorneys’. (2010). Preserving the Privities Defense. Retrieved from http://www.hodgsonruss.com/newsroom-publications-PreservingthePrivityDefense.html
FASB. (2016).Accountants’ duty of care. Retrieved from http://www.shsu.edu/~klett/accountant%20issues.htm
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