A Computer Software Company Advertised a New Organizational Program as One

question 43

Multiple Choice

A computer software company advertised a new organizational program as one of the most "user friendly" programs of its kind on the market. The Smallville police department used the program and, during operation, the program collapsed, losing vital information related to the effectiveness of the department in carrying out its duties. Under the law of contract, what is the software company's position with respect to liability?

• A) The company is liable for damages because the program promoted as easy has the capacity to collapse and produce this result when used improperly.
• B) The police department must bear responsibility because it purchased the program and accepted its limitations without question or instruction therefore this is a situation of caveat emptor.
• C) The company is liable because a promise is a promise in contract law in relation to advertising.
• D) The company is not liable because it is permitted to use enthusiasm when describing the product and has made no unproven statements in its contract with the police.
• E) None of the above.

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