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In: Economics

24. On June 1, Bob Burglar induced Sylvia Spangle to sell him goods on a 30-day...

24. On June 1, Bob Burglar induced Sylvia Spangle to sell him goods on a 30-day open account by giving her a false financial statement. This overstated his assets and thus concealed the fact that he was insolvent. Sylvia shipped the goods to Bob on June 5th. Bob received the goods on June 9th. Sylvia learned of Bob's insolvency on June 24th, at which time she demanded the goods back. Bob still had half of the goods in his possession (the other half having been sold to his customers), but he refused to relinquish them. What rights, if any, does Sylvia have?

25. Dave Driver's car collided with Paul Phiddler's car on a freeway injuring Paul. The accident had happened because of a new tire that had blown out on Dave's car. It was discovered that the blowout had been caused by a defect in the tire which was manufactured by Zippy-tread Tire Co. Paul brings suit against Zippy-tread. They defend that Paul never contracted with them. Can Paul recover?

PLEASE ANSWER BOTH QUESTIONS AND BE THROUGH, I HAVE BEEN LOSING A LOT OF POINTS ON THIS BECAUSE THEY HAVE NOT BE THROUGH ENOUGH.

Solutions

Expert Solution

24)

Solution

  • Sylvia can demand money which Bob sold his half of the goods to customer.
  • Also Sylvia can take legal action, if Bob does not pay out full amount within a time period mentioned during contract. Even If there is no contact between them, Sylvia can take legal action against Bob because he can show the false financial statemenet which was given by Bob.

25)

  • Yes, there are good chances that Paul can recover from against Zippy tread.
  • There was an indirect contract between Paul and Zippy when the tire was bought from Zippy.
  • As the tires were sold to Paul by Zippy Tread thus the accountability can be fixed to Zippy.
  • The firm can be made responsible of this incident as the tire was sole with the manufacturing defect.
  • This is the negligence on the part of Zippy. Zippy Tread could take some actions against the manufacture which is not the concern of Paul.
  • Paul had a direct business transaction with Zippy Tread and not with the manufacturer itself.

Rahul Sunny answered 1 year ago
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