Law of Tort
Introduction
Tort is an infringement of a person’s right especially under a contract that results in legal liability to the person who breach the contract terms (Bermingham, & Brennan, 2012). The person in this circumstance refers to a natural person or artificial person that is legal business entities such as companies and other bodies. Coca-Cola Company is incorporated in the United States of America and has a large network of manufacturing subsidiaries across the globe. The company operates in beverages industry and deals with manufacture on non-alcoholic drinks. It main products brands are Coke, Fanta, Sprite, dietary Coke, sports drinks, and a wide range of soft drinks (Coca-Cola, 2012).
Since the company operates in different countries through subsidiaries that bottle, package, and markets its products it has to sign contractual agreements with the companies with regard to patent, trademark, and copyright. The common tort liability that can arise in the Coca-Cola Company is product liability. There are a number of legal principles that can apply to product. They include payment of damages and other legal remedies.
Intentional tort and unintentional tort
Intentional tort is committed when persons deliberately commits an act that infringe the rights of another person or persons. On the other hand unintentional tort arises due to either negligence or recklessness of one party in a contractual obligation (Best & Barnes, 2007). Unintentional tort arises when a person (tortfeasor) fails to exercise his duties in a contractual agreement thereby causing injury to another party or parties included in the covered within the contract. Alternatively unintentional tort arises when one party’s recklessness causes injury to other people that are part of the contract.
Negligence can affect business in a number of ways. For instance, a business that deals deal with renting out property to clients and fails to notice that that property requires renovation will be liable to pay damages to individuals who suffer damages due to the collapse of the property.
Intention tort on the other hand differs significantly from unintentional tort. Intentional tort is deliberate acts that one party does to hurt or injure another party. Mostly, intentional tort is usual of a civil nature (Best & Barnes, 2007). The tortfeasor are knowledgeable that their acts are going to cause damage to one party and yet go on committing the acts. The most common forms of intentional are libel, battery, assault, trespass, false imprisonment, and intentional emotional distress. An example of intentional tort that might affect the business is trespass that is the intentionally use private property that the company did not originally acquire from the landlord. In this case, the business has to pay damages for trespass into private property.
The most common tort liability for Coca-Cola Company is product liability. The company may be compelled to pay for the health damages caused by the company’s products to customers. For instance, the safety of Coca-Cola brands causing cancer (Poulter, 2012). The Company can mitigate this liability by ensuring that the manufacturing process follows health and safety standards by regular inspections and development of tasted syrups that are used in the manufacture of soft drinks. Furthermore, if in any case there is a reported case of cancer causing chemical in Company products, the company should withdraw brands are mentioned from the market to stop any further damage.
The coke brand health issues have risen of late. There have been calls that Coke should be banned because of the cancer causing chemicals linked to the Coca-Cola coloring (Poulter, 2012). Coca-Cola Company should avoid such product liability by ensuring the chemicals used in the coloration of the drink are safe to the health.
Conclusion
The law of tort can substantially damage the business performance and profitability if neglected. Companies and other business need to be aware of the acts that if committed can amount to gross tort liability. The companies should therefore have an efficient risk management to deal with such eventualities.
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