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To avoid liabilities in negligence business law imposes various conditions on businesses such as maintaining a safer business premises and exercising proper care in production. Negligence is a person’s failure to exercise ordinary care to avoid risk of injury to another person or their property, which ultimately causes the foreseeable injury to the other. A “person” in this context includes both natural persons as well as legal persons, such as companies. Thus, where a company acting negligently causes some harm to an individual, the individual who suffer the harm may be able to recover compensation from that company. The plaintiff’s claim may be successful if the plaintiff establishes the four elements in negligence, namely, the duty of care, breach of duty, casual connection and actual loss or harm suffered by the plaintiff. Product liability requires that the manufacturer of a product may owe a duty of care to all foreseeable customers. This view was upheld in the landmark case Donoghue v Stevenson. In addition, operations of a business may create various risks for its stakeholders such as employees, neighbours, visitors, and customers. Thus it may be necessary for the business to make sure that the employees have a safer work environment, business premises are safe for employees as well as the customers and the products and services produced are suitable for use. The standard of care a business is required to exercise may be different depending on the circumstances. For example, the courts may impose a higher duty of care where the business has sufficient capital, expertise and other resources to avoid preventable harm. Getting involved in tort litigation can be detrimental for a business in many ways. First, it can damage the business image and distort the relationship with its stakeholders. Prolonged litigation will cost a lot of money and time. To avoid being liable for negligence business law requires that every business should exercise proper care in their business operations.
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