The Legal Environment of Business: Text and Cases (MindTap Course List)
The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
Question
Chapter 7, Problem 1IS
Summary Introduction

Case summary: The company R manufactures tire rims and sells it to the company S that installs them on cars. One set of rims was defective and was installed on the car by the company S without any inspection. Then, the car with the defective rims was sold to the company T that further sold the car to the person U. The car got involved in an accident due to the defective rims and the person U got injured.

To find: Liability of the company S.

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Students have asked these similar questions
Rim Corporation makes tire rims that it sells to Superior Vehicles, Inc., which installs them on cars. One set ofrims is defective, which an inspection would reveal. Superior does not inspect the rims. The car with the defectiverims is sold to Town Auto Sales, which sells the car toUri. Soon, the car is in an accident caused by the defective rims, and Uri is injured. Is Superior Vehicles liable?Explain your answer. (See Strict Product Liability.)
Drew is an officer of Energy Fuel, Inc. Drew knows that an Energy engi­neer recently developed a new, inexpensive method for converting hy­dro­gen into fuel. Drew takes advantage of this information to buy Energy stock from Gert and, after the discovery is announced, to sell the stock to Holly at a profit. Gert claims that this is a violation of federal law. Is Gert correct? If so, what federal law has Drew violated, and what are its possible penalties?
Trevor Rowe a well known businessman saw an article in the gleaner that indicated that he was a jail bird. As a result, he lost customers. He wrote to the gleaner, seeking a retraction of the story, and found out that there was in fact another man in the community with the same name who had gone to jail. What is the position of either party?   The Gleaner can prevent litigation by offering to make amends. The Gleaner doesn’t have to retract the story as it was true for one of the men. There is no action as the story was already published. The businessman can go straight to Court. There is no action at there are two persons with the same name.
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