ACTG Assignment
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School
Carleton University *
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Course
000
Subject
Law
Date
Feb 20, 2024
Type
Pages
4
Uploaded by CommodoreProton13336
ACTG 2P40
ASSIGNMENT NO. 1
1.
After reading the following case regarding the Welland fire that occurred on August 1st, 2023,
and examining the evidence and facts presented I was able to determine who will endure the
liabilities and fault of the damages that occurred during the fire. Andrea, the owner of the Coffee
Shop on 52 Main Street that was damaged in the fire has the complete right to seek legal action
against Bill, the owner of the Home Depot where the fire originated. My reasoning for this will
be explained as I discuss the following legal actions Andrea should consider against Bill for his
part in the cause of the fire.
Firstly Andrea has the right to take legal action against Bill for his negligence in causing the fire
although unintentional, his carelessness was a major factor in the origin of the fire which
ultimately led to Andrea's property being damaged which also caused mental anguish that affects
her life on a daily basis. Bill was negligent in leaving a shed with flammable and combustible
chemicals unlocked and unmaintained which made the shed and its contents easily accessible to
anyone as the shed was located in an unfenced area. He failed to show a duty of care as he knew
an employee was smoking in the shed with combustible chemicals, and other people were
accessing the shed and his careless actions ended up harming others. He failed to meet the
standard of care required of a store manager, as a manager he is aware that he is responsible for
his property and also the actions of his employees. He failed to fulfill his duties in ensuring his
property was secured and that his employees were following safety regulations. The fire caused
considerable damage to Andrea’s business, it destroyed the structure of the coffee shop which
ended up totaling $1,000,000 in damage to the building itself, the fire also damaged around
$500,000 in inventory which totals the physical damage at a cost of $1,500,000. This is only
considering the monetary value lost, as a result of the fire that destroyed Andrea’s livelihood, she
has developed severe mental anguish that affects her every day. The trauma has caused her to
develop a fear of sirens and in turn, she is afraid to leave her house in the event that she hears
sirens, the sounds bring her back to the day she lost her business. Bill’s actions being negligent in
leaving the shed unlocked and unsecured with knowledge people were accessing it was a
principal cause of the damage that Andrea suffered as a result of this fire. Had Bill fulfilled his
responsibilities as store manager and taken more appropriate steps to mitigate the risk of people
accessing the shed with flammable chemicals, and stopped his employee from smoking in the
shed, this fire certainly wouldn’t have happened. Andrea would likely be compensated for the
$1,500,000 loss, and also be compensated for the emotional damage endured after the fire.
Another thing that Andrea should consider is pursuing legal action against Bill for Unlawful
Interference with her business's economic relations. Bill is making a deliberate attempt to
interfere with Andrea’s current coffee supply contracts and is also making comments that could
potentially discourage any potential business. Bill is trying to interfere by offering discounts on
Home Depot supplies in turn for Andrea’s current clients to cancel their contracts with her. This
deliberate attempt to interfere with Andrea’s business can be seen as an attempt to bribe clients
into not doing business with Andrea. The offer of a discount on supplies to her clients would
directly cause a loss of business for Andrea, and the defamation of calling her a bad business
owner could also directly cause a loss of any current or future business. Bill’s attempt to
deliberately interfere with Andrea’s business falls within the criteria of unlawful interference
with economic relations. Andrea should pursue legal action against Bill to not only seek legal
compensation for her economic losses but also to send a message to discourage Bill and any
other business owners from this practice. Andrea would likely be compensated for any current
economic losses incurred, a sum for any potential future business loss, and compensation for Bill
trying to defame her and her business.
Here are two examples of potential legal action Andrea could take against Bill for the fire that
caused damage to her Coffee Shop. She should take Legal Action against Bill for his negligence
in the cause of the fire, and she should also take legal action against Bill for his attempt to
unlawfully interfere with Andrea’s business. She would likely receive compensation for Bill’s
actions as there is a large amount of evidence and facts supporting her claims against Bill.
2.
If Bill needs to manage claims or liabilities stemming from his negligence in causing the fire
and the attempted unlawful interference in Andrea’s business and how to manage commercial
risks effectively, he should do the following. He should first discuss with his attorneys the best
way to move forward with the situation considering all the evidence, and if they determine he is
likely at fault then he should consider the following. He should try to communicate with Andrea
and apologize for his attempt to interfere with her business and his negligence, if able to
communicate with Andrea he should try to negotiate an out-of-court settlement that fairly
compensates Andrea for her losses. He should also take steps to improve the safety and security
measures at the Home Depot and make efforts to secure areas like the shed, he must educate
employees on safety regulations and he must punish offenders who break the safety regulations.
Bill should also ensure that the shed and other structures on the property meet fire safety and
prevention measures and he must take steps to equip areas with the proper fire prevention tools.
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Bill needs to try to work towards a fair resolution with Andrea that gives her the right
compensation for her losses in the fire and his attempts to interfere with her business and her
clients. He must also ensure that all preventative measures are taken, including employee
education, following safety and security protocol, and following fire prevention measures to
protect the lives of people and to also prevent property from being damaged. If all safety
measures are taken, and he makes sure to offer a fair settlement to Andrea, he can mitigate the
risk of an issue like this happening again.