Ruggers Is a Maker of a Range of Highly Popular

question 45

Multiple Choice

Ruggers is a maker of a range of highly popular cruise motorcycles.Tim buys a Ruggers motorcycle from a dealership and suffers an accident.While recuperating from his injuries, he learns that Ruggers has recalled all motorcycles it had manufactured and sold in the previous two years, owing to a previously unknown defect in their braking systems.Tim brings a product liability lawsuit against the motorcycle manufacturer and claims $50, 000 in damages.The defect in the motorcycle is found to be half responsible for the accident, while Tim's own negligence of traffic rules contributed to the rest.Under the doctrine of contributory negligence, what would be the ruling of the court hearing this case?

• A)Tim can recover $25, 000 worth of damages from the Ruggers and the rest from the dealership from which he purchased the motorcycle.
• B)Tim can recover $50, 000 worth of damages from the motorcycle manufacturer.
• C)Tim can recover $50, 000 worth of damages plus any punitive damages that may be awarded by the jury.
• D)Tim cannot recover any damages from the motorcycle manufacturer.

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Definitions:

Loanable Funds

A term in economics that refers to all the money available for borrowing in the financial markets, determined by the level of savings vs. the demand for borrowing.

NPV

Net Present Value; a calculation used to assess the value of an investment, taking into account the present value of its cash inflow and outflow over time.

Interest Rates

The percentage at which interest is paid by borrowers for the use of money they borrow from a lender.

Credit Card Debt

Money owed due to spending through credit cards, characterized by high interest rates if not paid off promptly.