ERM And Product Liability Tort: Case Study

ERM and Product Liability Tort
LAW 531/Business Law

ERM and Product Liability Tort
The product liability video scenario presents a dispute between Quick Takes Video and Non-Linear Pro. Non-Linear Pro leased a video editing system to Quick Takes Video. It is the opinion of Quick Takes Video that the editing system is not performing as promised. Since it appears that Non-Linear Pro has misrepresented the quality of the product, Quick Takes Video can bring a lawsuit to Non-Linear Pro for breach of warranty and attempt to recover damages.
Lease Agreement and Provision of Uniform Commercial Codes
Non-Linear Pro as lessor made statements of fact about its product performance, its operations or features, and provided express warranty
applicable to the specified product. The express warranty is essentially a guarantee that the lessor product will perform in a certain system. The Uniform Commercial Code (UCC) warranty section applies to leases and has a particular provision for express warranties. If the product offered by Non-Linear Pro fails to perform to the standard set forth in the express warranty, the lessor is legally liable for damages.
Non-Linear Pro promised the staff of video editors at Quick Takes Video, the lessee would have the system active and operational within a day and a half with functions at twice the speed as before. Two weeks later, the editors still did not have the video editing system performing despite the viewing video tutorials, guidance of the operating manual, and training courses.
The staff at Quick Takes Video made every reasonable effort to get the Non-Linear Pro system to work as promised. Since the product leased by Non-Linear Pro did not live up to the standard set forth in the express warranty, Quick Takes Video can therefore sue for breach of warranty to recover damages. Whether the client is the plaintiff or defendant, everyone has to deal with damages. There are two types of damages in a civil lawsuit, actual and punitive damages. Actual damages are the precise dollar amount that has been suffered by the plaintiff. Actual damages are profoundly different from punitive damages and need to be litigated differently on both sides. Actual compensation is determined by actual proof of damages and not losses such as mental anguish or pain and suffering. Once the actual damages amount has been settled then the plaintiff can move to recover punitive damages. Punitive damages are a monetary dollar amount awarded to the plaintiff to compensate for the negligence and misconduct. To far more complicate the process, the plaintiff must recap the event to give the Judge and/or jury a vivid picture of the events.
Quick Takes Video will pursue a breach of contract in court against Non-Linear Pro. Quick Takes Video will have the burden of proving the misrepresentation of the video editing software. Non-Linear Pro may have to reimburse the actual damages but could potentially owe punitive damages. The court will generally award compensatory damages that are adequate to help Quick Takes Video and penalize Non-Linear Pro. Tort Liability and Seven Step Process of an ERM
The risk management of Quick Takes Video is to assess and address the sources for its organizational structure and objectives to the customers, shareholders, and stakeholders.
The management of Quick Takes Video is to streamline and give the enterprise consistency of its framework with editing and production of videos processes. The risks and opportunities for its video company and staff is to apply in the setting the best strategy in all departments of the enterprise. Its goal is to give assurance of the quality, methods, and objectives for achieving the enterprise of Quick Takes Video to meet the entity’s potential and identifiable
occurrences.
The responsive actions for Quick Takes Video on the video editing system with the lessor, Non-Linear Pro are to assess and decide the affected threats on the objectives of the enterprise. The seven elements of successful enterprise risk management (ERM) are:
1) Management Commitment,
2) Communication and Consultation,
3) Policies and Procedures,
4) Training and Education,
5) Effective and Efficient Framework,
6) RM Application and Practiced, 7) Ongoing Monitoring and Review.
This framework assists in the product liability scenario of Quick Takes Video and Non-Linear Pro with essence to applying the process of ERM and violation of the warranty. The elements were met with the enterprises objectives by the staff of Quick Takes Video. The lessee’s company pursued the ERMs elements in proposing new methods for the lessor’s product and warranty for its video editing system. The management of Quick Takes Video and applying ERM elements for the company with production of video editing and production is to maintain the objectives of the enterprise. The lessor, Non-Linear Pro had given its product, the warranty, and statement of reliable performance and streamline process of the leased video system. However, the company of Quick Takes Video was unable to utilize and apply the product after extensive and unproductive time and resources. The lessor in this case scenario is liable for tort and pursuant to claims of unreliable and unwarranted product leasing.

References
Cheeseman, Henry R., (2010) Business Law. Legal Environment, Online Commerce, Business Ethics, and International Issues, Seventh Edition, published in 2010 by Pearson Education. Retrieved from University of Phoenix website
link:
https://ecampus.phoenix.edu/content/eBookLibrary2/content/TOC.aspx?assetdataid=0ce33f2d-e174-4d41-bdb6-322b55e42c8e&assetmetaid=b237c002-ec4d-4c9b-b40f-03984f9983f3