The customer bought an action against the manufacturer on the basis that there had been a fault in the hardware of the computers. The fault meant that the computer could not be repaired in time and this resulted in considerable loss to the customer, as its business had to meet a crucial deadline.
The customer claimed that there had been a breach of contract because the computers were not of satisfactory quality which is an implied term in the contract and moved on to say that there had been negligence on part of the manufacturer as he had made defective products and thus they wanted the cost of the computers as well as the lost profits. The legal basis of the claim would thus be for breach of an implied term and if there are any express terms as to the quality of the products and negligence on the part of the manufacturer in making the product. Finally if the computer would have caused any other damage, there might have been liability under product liability.
The manufacturer has limited his liability in the first clause only to the total cost of the computer and so if either a breach of contract or negligence is proved, he must pay for the total cost of the computers. However, under clause 2 since the loss was incidental or as a consequence of the fault, the manufacturer would not be held liable as the clause has limited liability for such damages, whether it is tort or contract.
Under the Data Protection Act 1998, the data has to be processed in accordance with the law and in a manner which is fair and proper. As for the application of the Act, if the firm is small the act applies to both, customer as well as existing and former employees. If information is collected from employees they must be informed of the use that the information is going to be put to and provide them with the right to access such information and correct it in the future. Further, such use of passed on information is done fairly. Any information being passed on to third parties must be