Four Students Assigned to Examine the Operations of Mr

question 116

Multiple Choice

Four students assigned to examine the operations of Mr. Triffle's restaurant supply company found that the business worked in an inefficient manner. On the students' recommendation, Triffle went to Computerheaven Ltd. and explained to the salesperson the needs of the company. Computerheaven sold the company a Server system for $58,000. The system was in operation less than one hour when it malfunctioned and burned one of Triffle's employees. The malfunction was not the fault of the seller or the buyer, but of the manufacturer. Which one of the following actions arise from these facts?

• A) Triffle's company v. Computerheaven for breach of a warranty because the system was not of merchantable quality
• B) Triffle's company v. Computerheaven for breach of a condition because the system was not fit for purpose
• C) Triffle's company v. the manufacturer for frustration
• D) Triffle's employee v. Computerheaven for negligence
• E) Triffle's employee v. Triffle's company for breach of condition

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Definitions:

Time Inconsistency

The tendency for a person or group to change their plan or perspective over time in ways that can be counterproductive.

Preferences

Individual choices or tastes that determine the selection of goods and services over others based on factors like utility, convenience, or price.

Contextual Information

Contextual information refers to the background or circumstances surrounding an event or situation that helps in understanding its full implications.

Behavioral Economists

Economists who study the psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.