Vanderhoort Contacted Prinz to Buy a New Furnace That Burned

question 122

Multiple Choice

Vanderhoort contacted Prinz to buy a new furnace that burned both wood and oil. Prinz, who bought the furnace directly from the manufacturer, also installed it. The furnace was defective. It malfunctioned and caused a fire that destroyed the house of the buyer and the belongings of a visitor. Which of the following accurately sets out the legal position of the parties?

• A) The visitor could sue both seller and the manufacturer.
• B) Vanderhoort could sue only seller.
• C) The damages to be claimed from the seller are limited to the total charged for the sale and installation.
• D) If the reason for the fire was a defect caused at the factory, Vanderhoort could only sue the manufacturer for negligence.
• E) If Vanderhoort successfully sued the seller, the seller could then sue the manufacturer.

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Definitions:

Market Price

The present cost at which a good or service can be purchased or sold within a competitive market.

Good Weather

Favorable meteorological conditions that positively influence activities, such as agriculture, outdoor events, and general mood.

Consumer Surplus

The discrepancy between the aggregate willingness to pay among consumers for a service or product and their actual payment.

Willingness to Pay

The maximum amount a consumer is ready to pay for a product or service, reflecting the value the consumer places on it.