1. Amy bought a phone made by WiFi Communications, Inc. Three months later, afte
ID: 469195 • Letter: 1
Question
1. Amy bought a phone made by WiFi Communications, Inc. Three months later, after recharging the battery through a power jack, Amy picked up the phone only to have it ignite in her hand. Suffering a severe burn, Amy filed a suit against WiFi, alleging that a design defect in the phone weakened the connection between the power jack and the motherboard, causing the wiring to overheat and creating an unreasonable safety hazard. Could Amy succeed on her strict product liability claim? Explain.
2.Town Loan Center agrees to loan Sara $1,500, accepting as collateral her car. They put their agreement in writing and sign it. Sara keeps possession of the car. Does Town Loan have an enforceable security interest? Why or Why not? How can Town Loan let other creditors know of its interest in the car?
Explanation / Answer
The phone does not have safety standards, a product liability occurs when maker is accountable for injury due to defect product, hence, Amy is liable to sue and will be win the case.
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