1. In relation to the law of tort explain:
(a) the neighbour principle;
(b) remoteness of damage;
(c) liability for economic/financial loss.
2. In relation to the law of negligence, explain the extent of a company auditor’s duty of care and to whom any such duty is owed.
3. David is driving 25 MPH in 25 MPH zone down a four lane street where there are children playing. One nine-year-old child, Kevin, runs into the street chasing a soccer ball. David, without looking over his shoulder, swerves into the other lane to avoid Kevin and in the process he hits a car, driven by Peter, that was speeding past him in the left-hand lane going in the same direction.
Peter loses control of his car, hits a telephone pole and is seriously and permanently injured. The telephone pole, owned by the local phone company TeleCo, easily snaps into two pieces and hits Kevin, who is still in the street, knocking him unconscious and resulting in permanent injuries.
TeleCo never did any testing of its poles to establish how easily the poles broke. The only factor used in manufacturing the poles was cost. The poles were made of low quality trees and were not treated in any significant manner except for a coating of tar. No reinforcement was used on the poles.
What are the various liabilities and rights of the parties involved?
4. After drinking heavily at Neville's select dinner party, Scholes got into his car (which was uninsured) with his friend O'Shea, who had also been drinking. On their way back to town, Scholes ran down and seriously injured Giggs, a pedestrian on a zebra crossing. The car then spun out of control and crashed into a lamp standard, injuring both Scholes and O'Shea. O'Shea was not wearing a seat belt. Neville knew that Scholes had driven to Neville's country house, though he had made no effort to stop Scholes drinking excessively while there or to prevent him