Fundamental Rules of Ethics and Business Law

1370 Words6 Pages
Ethics and Business Law Fundamental rules for interpreting contracts in general, including defense and indemnity, provide that parties have great freedom to assign rights and responsibilities as they see fit, including the right to allocate risk through indemnity and defense provision (Loveman 2010). The parties have the right to impose limitations on the applicability of those provisions. Whether an indemnity or defense applies depends on the initial intent of the parties as expressed in the contract. The contract between Robins and Robins and Casings, Inc. stated in section 14 B.2.a. the remedy for defects in supplies shall be limited to the cost of the parts supplied. With this clearly stated in the contract, Casings, Inc. has the defense of the limitations in the contract. Robins and Robins understood this when the contract was signed and initiated. Regardless of the harm done, Casings, Inc. would only be liable for the costs of the casings to Robins and Robins. Without the contract stating that Casings, Inc. would be responsible in case of injury, Robins and Robins would be held responsible for the damages. A person can be sued in the State of their residence regardless of where the person is located doing the suing. State courts have jurisdiction over people and things in their own state. Federal courts have the jurisdiction over people and things in the entire country. A non-US citizen can sue a US citizen in the Federal or State court where the party being sued

More about Fundamental Rules of Ethics and Business Law

Get Access