What Is Management Liability?

What Is Management Liability?

Overview – In this assignment you apply contract and product liability law to a business scenario.


Mowers, Inc., a fictional company, has a flourishing lawncare business. The business has two full-time employees who have been with the company for five years.

All employees are trained on using the lawn equipment and, upon being hired, signed a waiver-of-liability contract limiting liability for the company.

The owner, Brian, tells his employees “Not to worry—the company will protect you!”

One employee, Lori, was on the job cutting a lawn.

Lori was riding a mower, a Ferrari 2000, which was three years old and in good working condition.

The step-up on the mower had writing on it with a warning sticker to replace the sandpaper liner for traction every three years due to normal wear and tear.

It was replaced every three years as required.

Lori stepped down off the rider, slipped because of moisture from the grass, and severed her pinky toe on the mower blade.

When she fell to the ground, the mower continued through the grass and proceeded by itself to cut and mulch a neighbor’s prize roses.

Peta, the neighbor, was preparing for a rose competition with a potential grand prize of $10,000.


Consider the above scenario and write 3–4 pages in which you make the following determinations:


Pursuant to contract law requirements, determine the legality of the waiver contract and whether verbal assurances become part of the written contract. Support your response.

Determine whether the plaintiff Peta has a product liability case against the manufacturer Ferrari for each of the following defects. Support your response.

Is there a “Design defect?” (Be sure to define these terms and explain them)

Is there a “Manufacturing defect?”

Is there a “Failure-to-warn defect?”

Determine whether the employee Lori has a claim for injuries and whether the employee Lori can recover pain and suffering damages per tort law or worker’s compensation law. Support your response.


Remember, you are demonstrating your understanding of the law, so explain the law first and then make your determination. Be informative and show what you know! References should be from credible and reputable legal sources.

Formatting Requirements

3–4 pages, double-spaced, Times New Roman font (size 12), 1-inch margins on all sides.

Include at least three (3) quality references. The textbook for this class is a required source for this assignment. Note: Wikipedia and similar websites do not count as quality references.

Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the Sources list are not included in the required assignment page length.


Use the Strayer Library to conduct your research.

In addition to your textbook, you have access to Nexus Uni through the Strayer Library. You are encouraged to use the Strayer Library to conduct your research. The textbook for this class is a required source for this assignment.

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is as follows: Analyze the legal standing and situation of a specific business to achieve a defined result.

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