The Case of Donaghue V

question 41

Essay

The case of Donaghue v. Stevenson represented a dramatic change in the law regarding defective products. Discuss the similarities and differences between the legal principles established by this case and the operation of modern legislation in this area.
D. v. S., an injured consumer may sue a manufacturer for damages suffered
- Under federal legislation (Food and Drugs Act and Hazardous Products Act), strict liability and penalties are imposed on manufacturers in breach of the Acts' provisions
- The purpose of the legislation is to protect the public from harm but not to compensate injured consumers, its role being regulatory as well as criminal
- Manufacturers may be required to pay penalties for breaches of the legislation whether any injury occurred or not

Understand the relationship between real and nominal interest rates and inflation.

Analyze the impact of interest rates on savings and investment decisions.

Understand the concept of the present value of future cash flows.

Grasp the effects of changes in interest rates on consumer behavior regarding borrowing and saving.

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Definitions:

U.S. Census Bureau

A key institution in the U.S. Federal Statistical System that creates statistical data on the American population and economic activities.

Disposable Income

The total funds available to households for saving and spending after subtracting income taxes.

Necessities

Items or services that are essential for basic human survival and functioning, such as food, water, and shelter.

Gross Income

The total revenue generated from sales or services before any deductions are made for expenses.