First Principles of Business Law

The tort of Negligence

4. 3. Recognised duty situations or relationships

4.3.7. Employees

 

 

 

Read the facts below and then answer the question.

A owns a business that manufactures canned foods. Cases of the canned foods are kept stacked in a large warehouse. A employs B as a security guard to patrol the warehouse at night and ensure that no goods are stolen. Because A allows the cases of cans to be stacked too high, they are unstable and one night a tall stack of cases collapses without warning on top of B, causing him serious and permanent physical injury.

A argues that even if he owed a duty of care to B, B is entitled to benefits under a workers' compensation scheme. A says this fact may limit his liability to pay compensation to B.  Is A correct? 

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