2. Statutory
Liability
Statutory Liability is a legal term indicating
the liability of a party who may be held
responsible for any action or omission due to
a related law that is not open to
interpretation.
3. It refers to holding an individual, company, or
other entity accountable for an action or omission
because of a related law.
Due to statutory liability, companies can be held accountable if
they are found lacking in their adherence to laws regarding a
variety of business activities. These include (but are not limited to)
laws and regulations regarding the environment, workplace safety,
advertising, licensing and permits, zoning restrictions, and
consumer privacy.
As part of their business development plan, many
startup businesses and novice entrepreneurs will seek legal
advice early on to ensure their company structure and strategies
comply with government regulations.
4. Types Of Statutory
Liabilities
• Professional
liability
• Employee
benefits
liability
• Vehicle liability • Media liability
• Medical malpractice liability
5. Professional liability:
A company that offers professional services (such as
accountants, financial advisors, or lawyers) may be held
liable should it be deemed they provided inadequate or
erroneous advice or services.
Employee benefits liability:
Companies can be held accountable if they fail to meet
federal laws regarding employee benefits, such as
health insurance.
6. Vehicle liability:
Companies can be held responsible for property damage
and medical bills if a company vehicle cause an accident.
Media liability:
Companies that violate media or advertising laws
face potential lawsuits filed on behalf of the
damaged party. An example of this would be a
lawsuit for copyright infringement.
8. Examples for Statutory
Liability
Historic Places Trust Act
Whilst preparing a new property development, historic bones
were uncovered by a contractor. The contractor continued to
work on the site causing damage to the remains before the
Historic Places Trust had an opportunity to investigate. The
contractor was prosecuted and fined $55,000 under the
Historic Places Trust Act for knowingly damaging and
destroying a burial area.
9. Sale of Liquor Act
A liquor store owner sold alcohol to a young woman whom
he thought to be over 18. However, he failed to ask for
identification. It transpired that she was only 16 years of age
and the owner was prosecuted and fined $1,000 under the
Sale of Liquor Act for breaching the terms of his licence by
selling liquor to minors.
Building Act
A property owner changed the use of his premises without
obtaining proper consent. Although the building was situated in a
commercial zone and was used partially for commercial purposes,
the local authority discovered that part of the building was being
let out for residential purposes. The property owner was
prosecuted and fined for breaches of the Building Act.
10. Liability of Employer to pay
compensation under the
Employees Compensation Act
According to Section 3 of the Act, an Employer is held liable
to pay compensation to the employee in respect of:
1.Personal injuries caused by an accident arising out of and in
the course of employment and
2. for occupational diseases contracted to the employee. The
term ‘personal injury’ includes physical, bodily, psychological
or mental injuries like nervous shock etc.
11. 1. Liability for personal
injury
An employer is held liable for the personal injuries caused
to the
employee by an accident arising out of and in the course of
employment
Indian News Chronicle Ltd. Vs. Mrs. Lazarus-
In this case, theworkman in the course of his duties,had to go
frequently into heating
and thereafter to cooling room. One night, he went to cooling
and got pneumonia and died. It was held that the injury was one
arising out of employment.
12. 2. Occupational Diseases
In certain Industries, workers employed in certain
occupations are exposed to certain diseases. Certain
diseases are inherent to certain occupations in the
Industries. Such diseases are called ‘occupational
diseases’. Section 3 (2 to 4) of the Employee’s
Compensation Act, 1923 deals with relevant provisions.
Schedule IlI of the Act contains the list of occupational
diseases.
