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Bud Johnson owns a General Motors dealership in Pierre, South Dakota. At the request and expense of General Motors, Bud traveled to Phoenix, Arizona, for purposes of the demonstration of a new vehicle called the Roughrider, designed to compete against the current offering of SUVs. Bud went to the proving grounds in the desert around Phoenix, and spent a day watching the vehicle demonstrations. Bud and other dealers drove the vehicles, and much dust resulted from their driving. A few weeks later, Bud became ill with flu-like symptoms. He was finally diagnosed as having coccidioidomycosis or "Valley Fever." Valley Fever is a disease well known to Arizona residents, and most have had it if they have lived there over ten years. Newcomers are particularly vulnerable to the disease since the exposure to dust seems to build up immunity among the residents.

Bud became quite ill and brought suit against the car manufacturer that invited him, for its failure to warn him about the Valley Fever phenomenon before he came out to the testing grounds. Answer the following questions, and use cases and theories from the text to support your arguments:

Was there negligence in the failure of General Motors to warn Bud?

Discuss all defenses General Motors may have.

Does strict liability in torts apply to this situation? Why or why not?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M9396027

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