William, Who Is a Waiter, Is Injured When an Unopened

question 58

Multiple Choice

William, who is a waiter, is injured when an unopened bottle of cola explodes in his hand while he is putting it into the restaurant's cooler. If William wants to sue the bottling company for his injuries:

• A) he will lose, because it will be impossible for him to prove that the bottle was overpressurized by the bottler.
• B) he will lose, because the bottling company has no duty to him.
• C) he will probably win if the court allows him to use the res ipsa loquitur doctrine.
• D) he will win based on the last clear chance rule.

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Definitions:

Marginal Revenue

The increased earnings from the sale of one more unit of a product or service.

Total Revenue

The overall financial gain a business obtains from the sale of goods or delivery of services within a specific timeframe.

Competitive Price-searcher

A market situation where firms have some control over their prices because their products are differentiated, leading them to search for competitive pricing strategies.

Marginal Cost

The cost incurred by producing one additional unit of a product.