A and B Entered a Variety Store Owned ByC

question 33

True/False

A and B entered a variety store owned byC. A purchased two chocolate bars from C, and gave one toB. Unknown to A, B, or C the chocolate bar which A gave to B contained a piece of metal that had fallen into the chocolate mix when the candy bar was made. When B attempted to eat the chocolate, she damaged one of her teeth. She was obliged to have the tooth repaired by a dentist, and in addition, lost a day's work because of the painful injury to her mouth. Her total loss amounted to $300.00.
B may take legal action against the manufacturer of the chocolate bar, because the manufacturer was careless in making the bar.

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Definitions:

Collateral

An asset that a borrower offers to a lender as security for a loan, which may be forfeited in case of default.

Debtor Default

A situation in which a debtor fails to meet the legal obligation of debt repayment, possibly leading to legal action by the creditor.

Secured Party

An individual or entity that holds an interest, typically a security interest, in the debtor's collateral to secure payment or performance of an obligation.

Purchase-Money Security Interest

A legal claim or lien on collateral that secures payment of the price of goods bought.