Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Case Study 1

Shayna was starting her junior year at Northern University in Michigan in August.  On June 30, Shayna's father purchased a new iPad Air for her to take to school.  The iPad was purchased from Best Buy for $599. Best Buy offered a 30-day limited warranty that allowed the purchaser to return the iPad to Best Buy within 30 days. Apple offered a one year limited warranty; however, purchasers must agree to the warranty conditions online or by sending in the completed warranty card. Shayna did not open the new iPad because she wanted to do so when she was settled in her dormitory.

Shayna packed for college and remembered to include her old iPad mini 2 to sell to one of the new students.  Unfortunately, Shayna forgot to pack the new iPad Air; however, she decided that she could use the old one until her father shipped the new one.  The iPad arrived in the mail on August 10.  When Shayna finally opened the iPad, it didn't work.  Shayna contacted the store where her father purchased the iPad.  The manager said that there was nothing they could do since the 30-day period expired.  Discuss Shayna's rights related to Best Buy and Apple.  What arguments would the companies make?  Discuss the probable outcome and support your answer with appropriate laws, cases and/or examples.

Case Study 2

Carol gained 30 pounds while in law school and could not fit into any of her business suits.  Carol tried to cut back on the amount of food she ate and made an effort to take a walk every day, but she only lost 3 pounds in four weeks.  After seeing a commercial for a new weight loss center, Carol made an appointment.  The doctor provided Carol with a booklet that explained the components of the weight loss program, which included drinking a certain amount of water, eliminating sugar, exercising and taking supplements.  The doctor collected blood and did an EKG in the office and then prescribed Beltermine, an appetite suppressant manufactured by GenPharma.  Although the bottle containing medicine did not contain any information about side effects, the booklet listed side effect that included dizziness, trouble sleeping, dry mouth and increased blood pressure.  Additional information stated that less than 5% of the population may experience damage to the mitral valve or severe liver injury.  Excited about losing weight, Carol did not read the entire booklet.  Carol lost 10 pounds the first week, 2 pounds the second week and 5 pounds the third week. Weight loss dropped to 1 pound a week for the next few weeks and Carol noticed she was having trouble breathing when working out.  Carol's family physician noticed an abnormality in an EKG and made an appointment for Carol to see a cardiologist.  The cardiologist determined Carol had severe damage to her mitral valve. 

  • Is Beltermine a defectively designed drug? 
  • What theories of product liability law might Carol use to recover against the doctor or GenPharma? 
  • Discuss the arguments for each party, determine which party should win, and provide legal support for your decision.  

Case Study 3

Greg and Denise Lawson lived out in the country on a 10 acre lot.  The couple planned a huge party for their 5 year old son, Rick.  Greg rented a bouncy house and some other equipment from Palm Bay Party Rentals (Palm Bay).  Since Greg declined the offer to have one of Palm Bay's installers set up the bouncy house, the company provided Greg with written instructions for use and safety.  The rental also came with warning and safety signs.

Greg followed the installation instructions and placed the sign on a post with the following warnings. 

  • Maximum Capacity 500 lbs 
  • Occupancy Limited to 4 Children
  • No Children under Age 5
  • Remove Glasses and All Items from Pockets 
  • Zip Panel Closed When Entering and Exiting the Bouncy House
  • Children Must Be Supervised By An Adult 

Despite these warnings, one of the parents who agreed to supervise the children allowed 6 kids in the bouncy house at one time.  Jake pushed little Johnny and a fight ensued.  Bobby, a four year old was pushed out of the house and broke his arm when landing on the ground.  Bobby's parents took him to the emergency room.  After the accident, the party ended and everyone went home.  Greg and Denise went to the hospital to check on Bobby, without deflating the bouncy house, as required by the rental contract and instructions when the house was not in use.  Two 10 year old boys from the neighborhood saw the bouncy house and noticed the Dawson's were not at home.  The two boys jumped around in the house; however, a strong wind caused the house to fly 50 feet into the air.  The boys were injured when the house bounced off the roof and landed on the driveway.

Discuss the potential liability of the rental company, the Dawsons and anyone else you feel may be held accountable for the injuries to the boys.

Does the rental contract between Greg Dawson and Palm Bay influence the case in any way?  If yes, how?  If not, explain why.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91354878
  • Price:- $40

Guranteed 36 Hours Delivery, In Price:- $40

Have any Question?


Related Questions in Accounting Basics

Question - on 1 january 2015 image plus ltd acquired

Question - On 1 January 2015 Image Plus Ltd acquired electronic equipment for $18 000, net of GST. It is estimated it will have no residual value. If depreciation is provided at 10% p.a. on the diminishing-balance basis, ...

Question - loan amortization bankrate has a financial

Question - Loan Amortization. Bankrate, has a financial calculator that will prepare an amortization table based on your inputs. First, find the APR quoted on the website for a 30-year fixed rate mortgage. You want to bu ...

Question use the amalgamated hat rack financial statements

Question: Use the Amalgamated Hat Rack financial statements, as detailed in Chapter 1 of the text, to answer the following questions: 1. How much is the Net Income for 2002? 2. List the two types of sales that the compan ...

Question - legacy issues 325000 of 5 four-year bonds dated

Question - Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 and their market rate is 8% at the issue date. Determ ...

Question - the san bernardino county fair hires about 150

Question - The San Bernardino County Fair hires about 150 people during fair time. Their wages range from $6.75 to $8.00. California has a state income tax of 9%. Sandy Denny earns $8.00 per hour; George Barney earns $6. ...

Question - fundamentals of revenue recognition - respond to

Question - Fundamentals of Revenue Recognition - Respond to the questions related to the following statements. 1. A wholly unperformed contract is one in which the company has neither transferred the promised goods or se ...

Question - segment income statementsnutty co gourmet snacks

Question - Segment Income Statements Nutty Co. Gourmet Snacks has two divisions: Gift Baskets and Packaged Snacks. For first quarter 2018, Gift Baskets had a revenue of $1,125,000 and Packaged Snacks had a revenue of $75 ...

Question - on january 1 2015 canden company started to make

Question - On January 1, 2015, Canden Company started to make annual deposits in order to accumulate $1,500,000 by January 1, 2019. This fund will earn annual interest of 8%. What are the four annual deposits that Canden ...

Question - kramer corp reported the following sale and

Question - Kramer Corp. reported the following sale and purchase transactions related to a specific product in January 2017: Date Transaction Quantity Unit Cost Unit Sales Price Jan 01 Beginning inventory 5 $90 Jan 03 Sa ...

Question using the readings about the differences between

Question: Using the readings about the differences between managers and leaders, and grounded in strategic planning, how can one take a leadership role in making yours a plan that works? The response must be typed, singl ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As