ethics case study

Unless otherwise stated all written assignments are to be approximately 500 words (there is no penalty for
going over). Spelling and grammar do count and full sentences are expected. You can write in the first
person and references are to be down using the APA format. Turnitin will be used for the assignments.

A8. Real Transit Inc. (“Real Transit”), a company dedicated to the manufacture and installation
of railway systems was awarded a contract by a municipal government to design and build
a transit facility in Ontario. The contract specified electrically powered locomotives. As
part of the design, Real Transit was contractually obligated to design an overhead
connection system in a tunnel. Real Transit subcontracted the subdesign of the overhead
connection system to a consulting firm, Bright Futures, Ltd. (“Bright Futures”).
Bright Futures designed an overhead connection system in the tunnel; however, in doing
so it did not carry out any testing nor did it gather any data of its own relating to the
conditions inside the tunnel. It did not even request copies of the underlying reports
which, had they been examined, would have indicated that there was a large volume of
water permeating through the tunnel rock and that the tunnel rock contained substantial
amounts of sulphur compounds. The project documentation that was turned over to
Bright Futures by Real Transit did not include the underlying reports, but did identify the
existence and availability of the underlying reports.
The construction of the rail system through the tunnel was completed in accordance with
the Bright Futures’ design. However, within eight months of completion, the overhead
contact system in the tunnel became severely corroded and damaged due to the water
seepage in the tunnel.
As a result of the corrosion damage, the municipality had to spend substantial additional
money on redesigning and rewiring the system.
What potential liabilities in tort law arise in this case? In your answer, explain what
principles of tort law are relevant and how each applies to the case. Indicate the
likely outcome to the matter.

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