Indira Has Informed the Bogus Corp That She Intends to Sue

question 32

Essay

Indira has informed the Bogus Corp that she intends to sue it for product liability, but she has not yet provided details of her claim.The company is curious as to whether she is claiming negligent manufacture or negligent design.What is the factual difference between those two possibilities? What is the legal difference? Which type of claim do courts approach more carefully?

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Definitions:

Elastic Supply

The responsiveness of the quantity supplied of a good or service to a change in its price, with a high elasticity indicating that supply can adjust quickly to price changes.

Subsidy

A financial contribution provided by the government to support or promote a particular economic activity or sector.

Elastic Demand

A market condition where the demand for a product changes significantly in response to changes in price.

Inelastic Supply

Refers to a market scenario where the quantity supplied does not change significantly when the price of the product changes.