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Legal Liability

Case Study 1

Erica contracted to purchase a giant 72" television from Hometown Electronics, a large retailer for appliances and electronics. Hometown agreed to deliver the television to Erica's home. On the way to Erica's house, the delivery truck, subcontracted by Hometown, was hit by another truck and all of the contents were destroyed. Who bears the risk of loss? What is the status of the contract? What if there is no visible damage to the television when it is delivered to Erica? Please be sure to answer thoroughly and completely, citing scholarly sources to support your response.

Case Study 2

Wendy was addicted to her morning cup of coffee. She had one cup before leaving the house and usually picked up another cup from the coffee shop on her way to the office. This morning, the line at the coffee shop was too long; therefore, Wendy decided to get a cup of coffee from the vending machine at work. The coffee was so hot that Wendy dropped it all over herself and was badly burned. Wendy filed suit against the vending company, the manufacturer of the vending machine, the owner of the building and the distributor of the coffee. What rights does Wendy have? Explain Wendy's case against each party and possible defenses by each defendant.

Solution Preview

Case Study One: In this situation there is a dual bearing of the risk of all responsibility of loss in this case. This is largely due to the fact that the owner of the truck that hit the truck that was subcontracted by Hometown Electronics is liable to Hometown Electronics for the loss that was incurred due to the accident. This is assuming that the truck that was subcontracted by Hometown Electronics was driven by an individual that was obeying all traffic laws, and was not at fault in causing the accident by engaging in activities such as running a red light and thereby causing the other truck to hit his or her truck, for example. Due to the fact that there is no indication that the Hometown Electronics truck's driver was at fault in causing the collision, the owner of the truck that hit the truck that was subcontracted by Hometown Electronics is liable to hometown electronics for the property loss that was incurred, and Hometown Electronics is liable to Erica for the 72 inch television that she purchased from Hometown Electronics. This is due to the fact that upon the purchase of the television there was contracts will agreement between Erica and Hometown Electronics for the purchase of the television but Erica, and the delivery of the ...

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