Fraser Jewelers vs. Dominion Electric Protection Co.

Business law case: Fraser jeweller’s ltd. Vs. Dominion electric protection Co

Issues:

The issue in this case is one of the employees of Fraser Jeweller’s pushed the button on the alarm system during a robbery that was taking place at the plaintiff’s store. The negligence of the employee at Dominion Electric Protection Co. allowed for the intruders to escape. Also if the police were contacted right away the intruders would have been caught and arrested. But the employees of the defendant failed to contact the police for a full 10 minutes. Fraser Jewellers is suing Dominion Electric Protection Co. for clause limiting the defendant’s liability enforceable despite the plaintiff being unaware that such a clause is included in the agreement.

Reasons for the Decisions:

The plaintiff is suing on the basis of the fundamental breach of contract when in fact the defendant did not violate the terms of the agreement because of the exemption clause. However the employees of the defendant were negligent in waiting ten minutes to call the authorities. A person or company who fails to read the exemption cannot be put in a better position than a person or company who read the terms of the agreement. There was no inequality in bargaining power because it was a contract between two companies not a person and a company. The courts also went on to say that it is unreasonable to make the security company an insurer at a rate of $75 a month. If it had intended to be an insurer, it would have charged a higher rate.

Impacts:

Fraser Jewellers will be impacted negatively because they have lost $ 40,000 in potential revenue in which they could buy more jewellery or expanding their business. Also if they are trying to create to profit they have to raise the price on all or most of their product. They will also replace the jewellery that they lost during the robbery. Also this could shy away future investors because they are not taking the proper steps in protecting their store...