Philip Laws Leased an Apartment from Candice Sutton

question 37

Essay

Philip Laws leased an apartment from Candice Sutton. Laws had notified Sutton on more than one occasion that the wooden steps to his apartment were decaying and in need of repair. Laws claimed that he had to leave the outside light on to avoid portions of the steps that no longer would bear his weight when he came in at night. Sutton promised to repair the steps while Laws was away on a business trip. Accordingly, Laws did not leave lights on during his absence. When he returned three nights later, Laws was injured when one of the steps broke under his weight as he was entering his apartment. Laws sued Sutton. Sutton replied that she should not bear liability for Laws' injury because Laws knew of the condition of the steps and had not taken the customary precaution of lighting the area. Based on what you have learned in this chapter, decide the case.

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Definitions:

Utility Function

Reflects the consumer's preferences, assigning values to combinations of goods and services to indicate the satisfaction gained from them.

Compensating Variation

An economic concept that quantifies the amount of money needed to compensate someone for a policy change, maintaining their original utility level.

Consumption

The process by which goods and services are utilized by individuals or households to satisfy their needs and wants.

Utility Function

A mathematical representation that assigns numerical values to different bundles of goods, showing the satisfaction or utility those goods generate for a consumer.