A bicycle retailer lets customers test electric bicycles outside its shop. A customer falls during a test ride and says that the business should pay for med...
Question 1 Report
A bicycle retailer lets customers test electric bicycles outside its shop. A customer falls during a test ride and says that the business should pay for medical treatment. The retailer is reviewing its risks before renewing insurance cover.
(a) Identify the person who could make a claim against the retailer in this situation. [1]
(b) State one type of cost the retailer may face if it has no suitable insurance. [1]
(c) Give two reasons why the retailer should keep records of each test ride. [2]
Answer Details
(a) The person who could claim against the retailer is the customer who was riding the bicycle. [1]
(b) Without suitable insurance, the retailer may have to pay compensation, legal costs or medical costs itself. [1]
(c) Test-ride records provide evidence of what happened and confirm the customer's identity. They can also record the bicycle's condition or that a safety briefing was given. This evidence is useful if liability is disputed. [2]
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