Posted: September 27th, 2016

e Board of Directors of BW has requested that you prepare a memorandum to them explaining whether there are grounds for a successful negligence action against BW and the consequences to BW. You are also required to propose recommendations as to how best to resolve this potentially damaging public relations problem

Question 2 20 marks 850 words

Bungee World Ltd (“BW”) is located at Byron Bay, New South Wales and has the world’s highest bungee jumping platform named the Sea Monster. The steel platform is constructed over some cliffs that overlook the bay. Participants have to pay a fee of $50 and sign off on a form prior to bungee jumping from the platform. The form contains amongst other things these words:-
“The participant agrees that he/she will not hold Bungee World Ltd or its agents liable for any death or injury whatsoever or howsoever caused as a result of bungee jumping from the Seamonster.”
One day, Loki an investment banker decided to go for a jump on the Sea Monster. He pays the fee, signs the form and duly walks to the platform. Kate, BW’s professional bungee instructor meets him and gets him ready for the jump by ensuring that his legs are tied securely to the safety rope that is attached to the steel platform.
Loki a first time jumper anxiously asks Kate if this is going to be fine whereupon she assures him that in all her 10 years at BW since it began operations, she has yet to see anyone get physically injured from the jump.
Loki takes a deep breath and dives. Unfortunately, part of the steel platform that is attached to the safety rope breaks loose from the main platform. The steel structure that broke was weakened due to corrosion with the sea moisture in the air. As a result of the detachment, Loki plunges into the sea. Whilst not physically harmed, Loki claims to have suffered nervous shock due to the incident and is about to commence a negligence action against BW.
You are the manager in charge of safety operations at BW. The Board of Directors of BW has requested that you prepare a memorandum to them explaining whether there are grounds for a successful negligence action against BW and the consequences to BW. You are also required to propose recommendations as to how best to resolve this potentially damaging public relations problem. In your analysis you will need to refer to the relevant law (statutory and/or case law).