Tom Purchases a New Set of Tires for His Vehicle

question 65

Multiple Choice

Tom purchases a new set of tires for his vehicle. He informs Richard, the vendor who specializes in such goods, that he intends to use it in snowy conditions. The tires do not provide sufficient grip in snow, and his vehicle meets with an accident. Which of the following statements is true of this scenario?

• A) Richard cannot be held liable as Tom voluntarily assumed the risk of driving in snowy conditions.
• B) Richard cannot be held liable if an express warranty was not issued with the product.
• C) Richard is liable on the basis of negligent design.
• D) Richard is liable as he breached an implied warranty of fitness for a particular purpose.

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Definitions:

Competitive Advantage

Circumstances or factors that place an enterprise at a beneficial or higher standing against its competition.

Focus Strategy

A competitive approach where a firm concentrates its resources on entering or expanding in a narrow market segment to achieve a competitive advantage.

Market Segment

A sub-group of a larger market made up of consumers or organizations with similar characteristics that lead them to have similar product and service needs.

Niche Customer Group

A specific segment of the market targeted by businesses for their specialized product or service needs.