Question

In: Economics

1. Samira, a business law student, went to a well-known clothes shop to buy a pure...

1. Samira, a business law student, went to a well-known clothes shop to buy a pure (natural) silk shirt. She specifically told the shop-owner that she is allergic (sensitive) to (unnatural) silk and that she wants only natural silk. The shop owner then sold Samira a shirt telling her it is 100% natural and pure silk. A week after wearing the shirt Samira suffered from extreme allergic condition. Advise Samira as to her options.

2. Nora, the CEO of a company, was on a business trip for six days. During that time Jamal, who is Nora’s office manager, sold five tons of potato that were about to perish (expire) in the company’s warehouse for 75 % of their market price. When Nora returned she asked Jamal to compensate the company for the losses incurred by selling at that price. Can Nora do that? Why?

3. Khalid and Jasim had formed a Limited Partnership in which Jasim was a limited partner, while Khalid was a general partner. Each of them contributed 4 million AED to the capital. The Partnership suffered losses amounting to 10 million AED. What is the extent of Khalid’s liability for the losses? Why?

Solutions

Expert Solution

QUESTION-FIRST-

Samira can definitely claim for a compensation from the cloth shop owner,only if she could prove that this allergy is caused by the cloth given to her and if it is unnatural silk.because she has clearly revealed that she is allergic to unnatural silk,and after revealing this if she was still given unnatural silk,she can get the compensation.

QUESTION-SECOND

there seem no great possibility to get a claim because she got the delivery of the potato,"which were about to expire",not expired at that time,further she was given deal at 75% of the value,and in the mentioned deal,there is no where mentioned that company would compensate her if it got spoiled.

QUESTION-THIRD

  • in a limited liability partnership generally the partners are liable for a certain amount contribution if the partnership suffered losses,but here one partner is limited liable and other one is general.
  • assuming the situation,if a firm has suffered a loss of 10 million AED then the limited partner (Jasim) is only liable for the share contributed by him that is only 4 million AED,
  • but Khalid being the second partner, and in general partner in nature, he will have to suffer a loss of 6 million AED and furthermore to recover the excess amount his private assets can be liquidate by the law.

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