Fact Pattern 10-1 Polly Buys a New Iron and Uses It for a It

question 12

Multiple Choice

Fact Pattern 10-1
Polly buys a new iron and uses it for a few months without incident. She was surprised, however, when one day the iron gave her a significant shock. She suffered no lasting damages, but did have some pain from the incident. A few weeks later she read in the newspaper that the manufacturer had known for over a year about the iron's propensity to shock users, but had refused to take recall measures. She also read that some users had been severely shocked. Polly was outraged but wondered if she could sue because she really did not have significant injuries.
-Refer to fact pattern 10-1. What type of damages would likely give Polly the most significant recovery?

• A) Punitive
• B) Compensatory
• C) Nominal
• D) Benefit of the bargain

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Definitions:

Winding Up Process

The procedure of settling the accounts and liquidating the assets of a company for the purpose of distributing the net assets to shareholders and dissolving the business.

Dissolution

The process of formally ending or dissolving an entity such as a business or partnership.

Competing Business

A company or enterprise that operates in the same industry or market as another and vies for the same set of customers.

Uniform Partnership Act

A standard set of laws adopted by states to regulate business partnerships, aiming at consistency across jurisdictions.