Reference no: EM131039208

?Detailed Question: As you go through the legal issues for your manager (as described) please make sure to:

Include an introductory paragraph giving the manager the context for your report why it is important.

Bunch the issues by category (e.g. contract-related, liability-related, etc.) in well-written paragraphs with topic sentences. You may need more than one paragraph to cover issues related to different themes or aspects of the project.

Identify all the reasons why you think these issues need to be addressed (i.e. using evidence from the case study). If you don't identify enough good reasons for your concern.

Include a conclusion that briefly summarises and suggests next steps.?Case study - Mechanical Engineering

Shortly after leaving UCL, you and two colleagues (Bridget and Dev) develop an idea for an innovative new adhesive product which you have decided to call "DuraFix Resin". You believe that the precise chemical make-up of the product you have refined sets it apart from the competition. It is extremely quick drying, acts as a waterproof sealant, is resistant to corrosion, and provides durable and long-lasting adhesion. The product can be used by individuals for domestic DIY as well as having various industrial applications in the commercial construction trade.

In order to commercialise your new product and with a view to developing further products you form a company, "Duracom Ltd". After spending some time refining the exact formula for "DuraFix Resin" and working through various prototypes you are now at a stage where you have a settled final version and are ready to release the product on to the market.

Throughout the prototype phase you have been having some initial discussions with various DIY outlets. Allan's, a nationwide chain of DIY stores is keen to enter into an agreement to supply DuraFix Resin in all of its 130 outlets; however, they have concerns about Duracom's ability to meet the demand (see documents one and two).

Christophe, a friend from your time at UCL, has set up his own architecture and design company "Azure". During your weekly coffee catch-ups with Christophe you have informally discussed the idea of supplying "DuraFix Resin" to "Azure" for use in the building of their prototype design models and on larger scale architecture projects. Since the formula for "DuraFix Resin" was finalised "Duracom Ltd" has therefore been supplying 100 bottles of "DuraFix Resin" per week to "Azure" on an informal basis but no agreement has been committed to writing as yet. You have agreed to formalise this relationship once things with "Duracom Ltd" "are properly up and running".

One year later, your company signs a major contract with "Top Tracks Limited" to provide "DuraFix Resin" to High Speed 3 ("HS3"), a high speed rail network connecting the south west of England to Birmingham (see document three). The major design and construction elements of the project were all managed by "Top Tracks Limited" who were commissioned by "Westworks Rail". Passengers on HS3 buy their tickets from "Westworks Rail".

During the course of construction a bridge ("the Bridge") was built across part of the estuary of the river Exe. An expert survey was undertaken by Robert Cliff, an employee of "Geo Folks Limited". The question of the suitability of the resin was covered in Mr. Cliff's Report (see document four). "Top Tracks Limited" subcontracted provision of some of the construction staff and the structural adhesive resin to your company.

Three weeks into construction, progress stalled when Exeter and the surrounding area was battered by torrential rain for seven days (see document five). This made working conditions too dangerous to continue construction of the Bridge and the employees of your company had to "down tools". During the seven day interruption, Goldie Gate (one of your employees) had sealed the special resin used for securing the concrete sections of the bridge in tarpaulin bags and ensured that they were air and water tight. Goldie had not read the storage instructions for the resin which advised that it must not be stored in an environment with temperature less than 10 degrees centigrade. When construction continued however Goldie did not notice that anything was wrong with the resin and so it was used in the construction of the Bridge. Notwithstanding the extreme weather, the project continued at the end of the bad weather and, eventually, completed on time in November 2015.

Two weeks ago a severe storm hit the south coast of England, the coast along the river Exe was badly affected and, a HS3 train partially derailed on the bridge. The cause of the accident is being investigated (see document six).

"Westworks Rail" had to repair the Bridge, the cost of the repair works totalled £1.35 million. During the repairs the HS3 network was shut for six weeks during which time it could not sell tickets to any passengers on the network. "Westworks Rail" estimates that during the six weeks the Bridge was closed for repair works it lost £450,000 of profits.

Question

Dev is due to attend a meeting with the company's lawyers, Bright & Co next week. You have agreed to produce a short report for Dev to help him to prepare for the meeting. Read the case study carefully and write the report, which should be no longer than 800 words, pointing out the various legal issues (in contract and liability) that Dev might want to discuss with Bright & Co.