Case Studies

Select two of the three case studies.  Post your document to the W2: Assignment 2 Dropbox by Tuesday, June 2, 2015. It is not necessary to copy the case study into the paper. Cite your sources in APA format on a separate page.

Name your document SU_BUS3055_W2_A2_LastName_FirstInitial.doc.

Case Study 1

Shayna was starting her junior year at Northern University in Michigan in August.  On June 30, Shayna’s father purchased a new iPad Air for her to take to school.  The iPad was purchased from Best Buy for $599. Best Buy offered a 30-day limited warranty that allowed the purchaser to return the iPad to Best Buy within 30 days. Apple offered a one year limited warranty; however, purchasers must agree to the warranty conditions online or by sending in the completed warranty card. Shayna did not open the new iPad because she wanted to do so when she was settled in her dormitory.

Shayna packed for college and remembered to include her old iPad mini 2 to sell to one of the new students.  Unfortunately, Shayna forgot to pack the new iPad Air; however, she decided that she could use the old one until her father shipped the new one.  The iPad arrived in the mail on August 10.  When Shayna finally opened the iPad, it didn’t work.  Shayna contacted the store where her father purchased the iPad.  The manager said that there was nothing they could do since the 30-day period expired.  Discuss Shayna’s rights related to Best Buy and Apple.  What arguments would the companies make?  Discuss the probable outcome and support your answer with appropriate laws, cases and/or examples.

Case Study 2

Carol gained 30 pounds while in law school and could not fit into any of her business suits.  Carol tried to cut back on the amount of food she ate and made an effort to take a walk every day, but she only lost 3 pounds in four weeks.  After seeing a commercial for a new weight loss center, Carol made an appointment.  The doctor provided Carol with a booklet that explained the components of the weight loss program, which included drinking a certain amount of water, eliminating sugar, exercising and taking supplements.  The doctor collected blood and did an EKG in the office and then prescribed Beltermine, an appetite suppressant manufactured by GenPharma.  Although the bottle containing medicine did not contain any information about side effects, the booklet listed side effect that included dizziness, trouble sleeping, dry mouth and increased blood pressure.  Additional information stated that less than 5% of the population may experience damage to the mitral valve or severe liver injury.  Excited about losing weight, Carol did not read the entire booklet.  Carol lost 10 pounds the first week, 2 pounds the second week and 5 pounds the third week. Weight loss dropped to 1 pound a week for the next few weeks and Carol noticed she was having trouble breathing when working out.  Carol’s family physician noticed an abnormality in an EKG and made an appointment for Carol to see a cardiologist.  The cardiologist determined Carol had severe damage to her mitral valve.

• Is Beltermine a defectively designed drug?
• What theories of product liability law might Carol use to recover against the doctor or GenPharma?
• Discuss the arguments for each party, determine which party should win, and provide legal support for your decision. 

Case Study 3

Greg and Denise Lawson lived out in the country on a 10 acre lot.  The couple planned a huge party for their 5 year old son, Rick.  Greg rented a bouncy house and some other equipment from Palm Bay Party Rentals (Palm Bay).  Since Greg declined the offer to have one of Palm Bay’s installers set up the bouncy house, the company provided Greg with written instructions for use and safety.  The rental also came with warning and safety signs. 

Greg followed the installation instructions and placed the sign on a post with the following warnings.

• Maximum Capacity 500 lbs
• Occupancy Limited to 4 Children
• No Children under Age 5
• Remove Glasses and All Items from Pockets
• Zip Panel Closed When Entering and Exiting the Bouncy House
• Children Must Be Supervised By An Adult

Despite these warnings, one of the parents who agreed to supervise the children allowed 6 kids in the bouncy house at one time.  Jake pushed little Johnny and a fight ensued.  Bobby, a four year old was pushed out of the house and broke his arm when landing on the ground.  Bobby’s parents took him to the emergency room.  After the accident, the party ended and everyone went home.  Greg and Denise went to the hospital to check on Bobby, without deflating the bouncy house, as required by the rental contract and instructions when the house was not in use.  Two 10 year old boys from the neighborhood saw the bouncy house and noticed the Dawson’s were not at home.  The two boys jumped around in the house; however, a strong wind caused the house to fly 50 feet into the air.  The boys were injured when the house bounced off the roof and landed on the driveway.

Discuss the potential liability of the rental company, the Dawsons and anyone else you feel may be held accountable for the injuries to the boys.

Does the rental contract between Greg Dawson and Palm Bay influence the case in any way?  If yes, how?  If not, explain why.

Support responses with examples and use APA formatting in the paper.  Name your document