Bob Is Shopping in Carl's Hardware Store When a Nail

question 37

Essay

Bob is shopping in Carl's Hardware Store when a nail gun in use by Dan, one of Carl's employees, fires without warning and hits Bob in the leg. Carl checks the gun and discovers that it was assembled improperly. Bob files a suit against Eagle Tools, Inc., the manufacturer of the gun, for product liability, on the ground of strict liability. What are the elements for an action based on strict liability? In whose favor is the court likely to rule and why?​

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Definitions:

Normal Profit

The level of profit necessary for a company to remain competitive in the market, covering opportunity costs, but not creating economic profit.

Economic Profit

The difference between the total revenue generated by a business and the total costs of production, including both explicit and implicit costs.

Entrepreneur's Potential Earnings

Represents the possible income or profits an entrepreneur can expect to make from their business ventures, considering risks and the opportunity cost of alternative employment.

Annual Lease

An agreement where a lessor allows a lessee to use a property for a period of one year in exchange for payment.