Foundations of Business Law

- "Any deviation from prudence or duty resulting from inattention, incapacity, perversity, bad faith, or mismanagement”

> Any wrong doing commitet out of negligence (Vernachlässigung) or intent

- Negligence: Failure to exercise the standard of care that a reasonable person would have been able to

> gross negligence: failure to exercise basic and simple precautions

- Contributory negligence:

• Plaintiff failed to take reasonable care for his safety or property
• Both plaintiff and defendant are negligent > damage proportionally reduced

- Voluntary assumption of Risk:

• Plaintiff assumes risks linked to a certain activity such as football > liability excluded

- Self defense

-Consent of the plaintiff

- Liability wihtout fault: "wrongdoer" liable without fault

- Strict liability for dangerous activity: operator of nuclear plant, property owners etc.

- Strict liability with reversal of evidence: liable person may provide evidence that he acted diligently (fleissig, sorgefältig)

-Strict liability without proof of care/diligence: Exception: liability without possibility of such evidence

- liability is based on the individual fault of the injuring party

• someone may be held responsible for the injuries of a third party, such as an employee > close relationship
• Precondition is that the employee committed the injury in the course of the work for his employer
• a form of strict liability
• Swiss law: employer may proof that he has chosen, instructed, supervised the employee with due care

• Proof of negligence of the manufacturer
• Liability based on contract v. liability based on tort

important for:

• Any company manufacturing products
• High liability exposure
• Implementation of processes to avoid production of defective products/product monitoring

1. Sales agreement between Manufacturer and Importer

2. Sales agreement between Importer and Seller

3. Sales agreement between Seller and Customer

4. e.g. Product Defect > Customer has a claim based on warranty against Importer and Manufacturer (not Seller)

- payment in case of claims

- Injured party may claim damages based on contract or tort

• Waiver of liability in contracts

• Disadvantage if claim based on tort