A person SK bought a spa, of the GL company, from a person VP, and signed an installation contract. After three months, SK’s daughter, L injured her index finger from the spa’s hydromassage jet. She was left alone in the spa at the time. The local police and the rescue team were called for help. They were successful in getting L’s finger free. L was taken to the local emergency room. It was revealed there that L’s finger bone had broken in two places. To explain : The particular theory of product liability that can be used by the person SK to sue the person VP.

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Answer 1

Question

Chapter 7, Problem 1RE

Summary Introduction

Case summary:A person SK bought a spa, of the GL company, from a person VP, and signed an installation contract. After three months, SK’s daughter, L injured her index finger from the spa’s hydromassage jet. She was left alone in the spa at the time. The local police and the rescue team were called for help. They were successful in getting L’s finger free. L was taken to the local emergency room. It was revealed there that L’s finger bone had broken in two places.

To explain :The particular theory of product liability that can be used by the person SK to sue the person VP.

Expert Solution & Answer

Explanation of Solution

According to product liability based on negligence, if there is a failure on the part of a manufacturer or seller to exercise due care to make the product safe to use, he/she can be sued by the person who gets injured by that product. In the given case, the person SK’s daughter got injured from the spa’s jet. She can use the theory of negligence of product liability to sue the person VP and claim that there were design defects associated with the spa and the absence of a proper warning in relation to its use.

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PUG Company's revenue for March is $75,000, but only $15,000 cash is collected. Expenses for March are $41,000, of which $28,000 is paid in cash. During March, additional capital stock is issued in exchange for $5,000 cash. Using the accrual basis of accounting, what would PUG Company’s income statement for March report?

Answer 2

Question

Chapter 7, Problem 1RE

Summary Introduction

Case summary:A person SK bought a spa, of the GL company, from a person VP, and signed an installation contract. After three months, SK’s daughter, L injured her index finger from the spa’s hydromassage jet. She was left alone in the spa at the time. The local police and the rescue team were called for help. They were successful in getting L’s finger free. L was taken to the local emergency room. It was revealed there that L’s finger bone had broken in two places.

To explain :The particular theory of product liability that can be used by the person SK to sue the person VP.

Expert Solution & Answer

Explanation of Solution

According to product liability based on negligence, if there is a failure on the part of a manufacturer or seller to exercise due care to make the product safe to use, he/she can be sued by the person who gets injured by that product. In the given case, the person SK’s daughter got injured from the spa’s jet. She can use the theory of negligence of product liability to sue the person VP and claim that there were design defects associated with the spa and the absence of a proper warning in relation to its use.

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Answer 3

Question

Chapter 7, Problem 1RE

Summary Introduction

Case summary:A person SK bought a spa, of the GL company, from a person VP, and signed an installation contract. After three months, SK’s daughter, L injured her index finger from the spa’s hydromassage jet. She was left alone in the spa at the time. The local police and the rescue team were called for help. They were successful in getting L’s finger free. L was taken to the local emergency room. It was revealed there that L’s finger bone had broken in two places.

To explain :The particular theory of product liability that can be used by the person SK to sue the person VP.

Expert Solution & Answer

Explanation of Solution

According to product liability based on negligence, if there is a failure on the part of a manufacturer or seller to exercise due care to make the product safe to use, he/she can be sued by the person who gets injured by that product. In the given case, the person SK’s daughter got injured from the spa’s jet. She can use the theory of negligence of product liability to sue the person VP and claim that there were design defects associated with the spa and the absence of a proper warning in relation to its use.

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Answer 4

Question

Chapter 7, Problem 1RE

Summary Introduction

Case summary:A person SK bought a spa, of the GL company, from a person VP, and signed an installation contract. After three months, SK’s daughter, L injured her index finger from the spa’s hydromassage jet. She was left alone in the spa at the time. The local police and the rescue team were called for help. They were successful in getting L’s finger free. L was taken to the local emergency room. It was revealed there that L’s finger bone had broken in two places.

To explain :The particular theory of product liability that can be used by the person SK to sue the person VP.

Expert Solution & Answer

Explanation of Solution

According to product liability based on negligence, if there is a failure on the part of a manufacturer or seller to exercise due care to make the product safe to use, he/she can be sued by the person who gets injured by that product. In the given case, the person SK’s daughter got injured from the spa’s jet. She can use the theory of negligence of product liability to sue the person VP and claim that there were design defects associated with the spa and the absence of a proper warning in relation to its use.

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Answer 5

Chapter 7, Problem 1RE

Summary Introduction

Case summary:A person SK bought a spa, of the GL company, from a person VP, and signed an installation contract. After three months, SK’s daughter, L injured her index finger from the spa’s hydromassage jet. She was left alone in the spa at the time. The local police and the rescue team were called for help. They were successful in getting L’s finger free. L was taken to the local emergency room. It was revealed there that L’s finger bone had broken in two places.

To explain :The particular theory of product liability that can be used by the person SK to sue the person VP.

Expert Solution & Answer

Explanation of Solution

According to product liability based on negligence, if there is a failure on the part of a manufacturer or seller to exercise due care to make the product safe to use, he/she can be sued by the person who gets injured by that product. In the given case, the person SK’s daughter got injured from the spa’s jet. She can use the theory of negligence of product liability to sue the person VP and claim that there were design defects associated with the spa and the absence of a proper warning in relation to its use.

Answer 6

Chapter 7, Problem 1RE

Summary Introduction

Case summary:A person SK bought a spa, of the GL company, from a person VP, and signed an installation contract. After three months, SK’s daughter, L injured her index finger from the spa’s hydromassage jet. She was left alone in the spa at the time. The local police and the rescue team were called for help. They were successful in getting L’s finger free. L was taken to the local emergency room. It was revealed there that L’s finger bone had broken in two places.

To explain :The particular theory of product liability that can be used by the person SK to sue the person VP.

Expert Solution & Answer

Explanation of Solution

According to product liability based on negligence, if there is a failure on the part of a manufacturer or seller to exercise due care to make the product safe to use, he/she can be sued by the person who gets injured by that product. In the given case, the person SK’s daughter got injured from the spa’s jet. She can use the theory of negligence of product liability to sue the person VP and claim that there were design defects associated with the spa and the absence of a proper warning in relation to its use.

Answer 7

Chapter 7, Problem 1RE

Summary Introduction

Case summary:A person SK bought a spa, of the GL company, from a person VP, and signed an installation contract. After three months, SK’s daughter, L injured her index finger from the spa’s hydromassage jet. She was left alone in the spa at the time. The local police and the rescue team were called for help. They were successful in getting L’s finger free. L was taken to the local emergency room. It was revealed there that L’s finger bone had broken in two places.

To explain :The particular theory of product liability that can be used by the person SK to sue the person VP.

Answer 8

Expert Solution & Answer

Explanation of Solution

According to product liability based on negligence, if there is a failure on the part of a manufacturer or seller to exercise due care to make the product safe to use, he/she can be sued by the person who gets injured by that product. In the given case, the person SK’s daughter got injured from the spa’s jet. She can use the theory of negligence of product liability to sue the person VP and claim that there were design defects associated with the spa and the absence of a proper warning in relation to its use.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 7 - Prob. 1RE Ch. 7 - Prob. 2RE Ch. 7 - Prob. 3RE Ch. 7 - Prob. 4RE Ch. 7 - Prob. 1IS Ch. 7 - Prob. 2IS Ch. 7 - Prob. 1BS Ch. 7 - Prob. 2BS Ch. 7 - Prob. 3BCP Ch. 7 - Prob. 4BCP

Explanation of Solution

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