Kate owned a small grocery store. One day John went to the store and purchased a can of chip dip that was, unknown to Kate or John, adulterated. John became seriously ill after eating the dip and sued Kate for damages on the grounds that she breached an implied warranty of merchantability. Is Kate liable? Why?
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- Bob went out with his friends to celebrate his birthday. They went to a bar where they drank copious quantities of alcohol. In the morning, Bob had not slept and was still obviously intoxicated. He found his way to a car dealership near his house and entered into a contract to buy a Mercedes Benz SUV for the cost of $140,000.00. The car salesman could smell alcohol on Bob's breath, he noticed his eyes were bloodshot and "glossy" while they were signing the papers relating to the sale, and when Bob left he could see that he was unsteady on his feet. Bob left the dealership and went home and went to bed. He slept for two days. The car salesman from the dealership called Bob 4 days later to tell him that his vehicle was ready for pick up. Bob had no memory of the buying any car. In these circumstances:A. the contract is void ab initio because Bob lacked capacity to contract due to his intoxicationB. Bob can avoid or repudiate the contract within a reasonable time after he regains capacity…Deborah McCullough bought a new car from Bill Swad Chrysler, Inc. The car was protected by both a limited warranty and an extended warranty. McCullough immediately encountered problems with the automobile’s brakes, transmission, and air conditioning and discovered a number of cosmetic defects as well. She returned the car to Swad for repairs, but Swad did not fix the brakes properly or perform any of the cosmetic work. Moreover, new problems appeared with respect to the car’s steering mechanism. McCullough returned the car twice more for repairs, but on each occasion, old problems persisted and new ones emerged. After the engine abruptly shut off on a short trip away from home and the brakes again failed on a more extensive excursion, McCullough presented Swad with a list of thirty-two of the car’s defects and demanded their correction. When Swad failed to remedy more than a few of the problems, McCullough wrote a letter to Swad calling for rescission of the purchase agreement and a…Ronny goes to his girlfriend's apartment to watch "Hot Coffee" for their Business Law class and puts popcorn in the microwave shortly after he arrives there. Within seconds, the microwave explodes. The sparks and explosion give Ronny severe burns to the face. It turns out that the microwave was manufactured defectively and had injured several others in similar cases before. Ronny's girlfriend had just ordered it off of Target.com the week before. Who can Ronny sue? Group of answer choices a. Target using a negligence claim b. his girlfriend under strict liability c. his girlfriend under a negligence theory d. the microwave manufacturer through strict liability
- On March 17, Peckham bought a new car from Larsen Chevrolet for $16,400. During the first one and one-half months after the purchase, Peckham discovered that the car’s hood was dented, its gas tank contained no baffles, its emergency brake was inoperable, the car did not have a jack or a spare tire, and neither the clock nor the speedometer worked. Larsen claimed that Peckham knew of the defects at the time of the purchase. Peckham, on the other hand, claimed that he did not know the extent of the defects and that despite his repeated efforts the defects were not repaired until June 11. Then, on July 15, the car’s dashboard caught fire, leaving the car’s interior damaged and the car itself inoperable. Peckham then returned to Larsen Chevrolet and told Larsen that he had to repair the car at his own expense or that he, Peckham, would either rescind the contract or demand a new automobile. Peckham also claimed that at the end of their conversation he notified Larsen Chevrolet that he was…Robert sold used cars, but he had little or no knowledge with respect to the technical aspects of any of the vehicles that he sold. Ray was seeking to buy a Honda Civic and Robert gave his opinion as to the speed of the car and its durability. Ray subsequently finalized the purchase and took control of the car. Two weeks after the purchase, the Honda Civic broke down and required extensive mechanical repairs. Ray is angry and is of the view that Robert misrepresented the condition of the car when he sold it. Ray is of the opinion that as a Used Car Salesmen, Robert should have known that the car was indeed in poor mechanical condition. Ray knows that you are studying Business Law at UWI Open Campus and sought your advice on the matter. Please advise Ray.Robert sold used cars, but he had little or no knowledge with respect to the technical aspects of any of the vehicles that he sold. Ray was seeking to buy a Honda Civic and Robert gave his opinion as to the speed of the car and its durability. Ray subsequently finalized the purchase and took control of the car. Two weeks after the purchase, the Honda Civic broke down and required extensive mechanical repairs. Ray is angry and is of the view that Robert misrepresented the condition of the car when he sold it. Ray is of the opinion that as a Used Car Salesmen, Robert should have known that the car was indeed in poor mechanical condition. Ray knows that you are studying Business, and sought your advice on the matter. Please advise Ray.
- Nelson took her computer to ABC Computer for repairs. ABC repaired the computer at a cost of $350 and informed Nelson that her computer was ready. Before Nelson came to pick up her computer, ABC was burglarized and Nelson's computer was taken. ABC had a commonly-used alarm system that was operating properly on the night of the burglary, and all the doors and windows were properly secured. Nelson sued ABC for the cost of the computer. ABC denied any liability and counterclaimed for the $350 in repairs. Who will win? HINT: Address the Bailment Issue.Please use the IRAC format Issue: Call of the Question Rule: Rule of Law to be applied to properly answer the question Analysis: Applying the rule of law to the facts of the problem presented Conclusion: Answer to the IssueRobert sold used cars, but he had little or no knowledge with respect to technical aspects of any of the vehicles that he sold. Ray was seeking to buy a Honda Civic and Robert gave his opinion as to the speed of the car and its durability. Ray subsequently finalized the purchase and took control of the car. Two weeks after the purchase, the Honda Civic broke down and required extensive mechanical repairs. Ray is angry and is of the view that Robert misrepresented the condition of the car when he sold it. Ray is of the opinion that as a used car Salesman, Robert should have known that the car was indeed in poor mechanical condition. Ray knows that you are studying Business law and sought your advice on the matter. please advice Ray.Smith, the owner of a craft boutique, spotted Mary's hand-carved bookends at a crafts fair. She told Mary that the bookends were just what she was looking for, and promised to buy as many as she could for her boutique. After the fair, Mary sent Smith her entire stock of bookends. Smith refused the shipment, saying that she had never ordered the bookends. Mary sued, claiming that Smith had made a valid contract with her. Who would win the lawsuit?
- Anne Robertson obtained telescopes from the See-Well Optics Company at dealer prices on the pretense of being a dealer in optical equipment. See-Well later determined that Robertson was not, had never been, and did not plan to be a dealer in optics. By the time these facts emerged, Robertson had succeeded in selling the telescopes to several individuals located throughout the country. These buyers had responded to advertisements placed by Robertson, who again had represented herself as a dealer in optical equipment. The buyers had purchased the telescopes in good faith at prices consistent with comparable equipment. See-Well located these buyers and demanded that the telescopes be returned as property obtained through fraud. Do the buyers of these telescopes have to return their purchases?Liability for a Lost ATM Card Joshua Franz, of Oxford, Mississippi, earned $4,600 during the summer and put $3,000 of the money in a newly opened savings account for use during the school year. It is now November 4th and Joshua went to the bank to withdraw some cash. The teller informed him that there was only $2,100 in the account. When Joshua protested, the teller informed him that there had been three ATM $300 withdrawals from the account on the last day of the month in August, September and October. Joshua typically neglects to open the statements he had received on the third day of each month. When he got home he could not find the ATM card he had received when he opened the account in August and recalled that he had found his car door open in his parking lot in late August but had thought nothing was taken. When he opened the statements he saw the record of each of the withdrawals. He went immediately back to the bank to tell them of the loss. How much money will Joshua lose…Joshua acquired bulk onions as an agent for Sheriffe but couldn’t ship them due of a storm and damaged port infrastructure. Joshua was unable to contact Joshua owing to an interruption in the telecommunications infrastructure, so he sold the onion to a grocery chain and abandoned the rest, which started to rot. Sheriffe has sustained a big loss and is considering suing Joshua to recoup part of it. Advise Sheriffe on the possibilities of recovering lost revenue in this situation.