Law/531 Lt Erm

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Category: Business and Industry

Date Submitted: 09/16/2013 01:09 PM

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ERM Paper

Team A

LAW/531

ERM Paper

Quick Takes Video is video editing company which, leased a new editing system from Non-Linear Pro with the understanding that the program is user-friendly within days of purchase and would save the company time on each project. Several Quick Takes Video employees get frustrated after two weeks of multiple attempts to learn the system with training, watching video tutorials, and reading the manuals with no success on the new system. The inability of Non-Linear Pro’s product to perform as stated when the product was sold, opens itself to liability and to tort risks. This paper will discuss the potential tort risks that arose in the product liability video with the leasing of the new editing system and also identify a tort violation. Also this paper will mention the use of the seven step process as indicated in the Harb article to apply the risk management process to mitigate the business risk associated with the violations, and the criterion a business manager would use to determine if legal counsel is warranted.

Tort Risks

The Product Liability video focused on a newly leased video editing system and the key problems Quick Take Videos faced after signing the lease of the product. The video presented few potential tort risks of product liability. One potential tort was of negligence of the product design, when a sharp metal near the CD drive injures an employee’s finger. She was injured by a defective product manufactured by Non-Linear Pro that may potential lead to action for negligence. Negligence can be defined by a defect that occurs when the manufacturer does not place a warning label on the packaging of the product that could cause injury if the danger is unknown (Cheeseman, 2010).

The employees at Quick Takes Videos failed to understand how to use the product due to lack of documentation and help. So clearly the product did not live up to the standard that was set forth in the warranty. If a product does not live...