Universal Assembly Company Makes Espresso Machines and Sells One to Vim

question 23

Multiple Choice

Universal Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim.Universal is most likely liable for

• A)a commonly known danger.
• B)fraud.
• C)privity.
• D)puffery.

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Definitions:

Operating Loss

A situation where a business's operating expenses exceed its revenues, indicating that it is not making a profit from its core operations.

Department Stores

Large retail establishments that offer a wide variety of goods and services across multiple departments, such as clothing, household goods, and appliances, under one roof.

Price Gouging

The act of charging excessively high prices for goods or services, usually during times of emergency or shortage.

Outsourcing

The business practice of hiring parties outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.