Question

In: Economics

Hot Coffee is the name of a corporation that manufactures coffee mugs. Each Hot Coffee mug...

Hot Coffee is the name of a corporation that manufactures coffee mugs. Each Hot Coffee mug is labeled as being dishwasher safe but does not have any labels indicating that it is oven or microwave safe.  Hot Coffee received a complaint from John Smith, a consumer whose coffee mug shattered and cut his hand. Mr. Smith stated that he had warmed up his coffee in the microwave and was carrying it back to his desk when it broke. He required stitches in his hand as a result.

Choose either Hot Coffee or Mr. Smith to argue for. In your post, describe your best argument for your chosen side. For full points, you must use the concepts and terminology from the textbook in your post and responses to other students. Also, identify what additional information you would need to make your argument complete.

Solutions

Expert Solution

In the case provided if we argue from the side of Hot Coffee as the company, then we can state the following points:

1) Since the label for microwave or oven safety was not provided for,any damage caused from the same is not subject to the companies terms and conditions and the company is thus not liable for the damage caused.

2) Since the damage is not caused by use in dish washer, the company is not liable to listen to any complaints from the customer.

However, if we argue from the customers point of view, we may put up the following points :

1) Since no information was provided on the use of oven or microwave safe options, the use of the product in the microwave was justified and the damage caused shall thus be compensated for.

2) If the product was not microwave safe, then the company shall have mentioned it on the product and since it was not mentioned, the company is liable to the damage caused.

However, even when we put the following points from both the perspectives, we still don't know whether the seller provided any information about safety issues to the buyer or not. Also, additional information as to what all damages are covered under the companies policy shall be known prior to filling a complaint and thus choosing who is right and who is wrong.  

Thus, from the given scenario, it is difficult to choose one side as both can put up their best arguments possible on the table.


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