Suppose That Initially the Price of a Bag of Jellybeans

question 62

Multiple Choice

Suppose that initially the price of a bag of jellybeans is $6, and the price of a bottle of Jolt cola is $2. If the price of a bottle of Jolt cola increases, then the relative price of jellybeans

• A) decreases.
• B) stays the same, but the relative price of Jolt cola decreases.
• C) increases.
• D) stays the same, but the relative price of Jolt cola increases.

Understand the concept of product liability and the conditions under which a person can claim a defective product.

Identify different types of product defects: manufacturing defects, design defects, and failure to warn.

Comprehend the nuances of horizontal privity and its relevance to product liability.

Recognize the existence and creation of implied warranties in sales contracts.

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Definitions:

Clickwrap Contracts

Agreements where acceptance is signaled by the user clicking an "I accept" button on a website, commonly used in software licenses and online transactions.

Shrinkwrap Contracts

Agreements whose terms are only revealed after opening the packaging of a product, often enforceable once the package is opened.

Duress

A condition where a person performs an act as a result of violence, threat, or other pressure against them, raising questions about the voluntariness of the act.

Voidable

Capable of being made void; not utterly null, but annullable, and hence that may be either voided or confirmed. See also void.