LAW 122 Study Guide - Midterm Guide: Punitive Damages, Tony Twist, Precedent
15 Oct 2017
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Nagatomi is not under any legal obligation to deliver the machine to inga without any prior payment. However, they have a moral obligation because they know about inga"s situation and reselling the product would cause more expenses towards inga. Company can instead agree to inga"s plead and make another product for the colorado buyer that needs it the next autumn. His software will erase information from customer"s computers. Rabby need to evaluate the problem as accurately as possible. Before it can formulate a sensible response, it needs to know the appropriate number and value of claims that it may face. Based on the information gathered, rabby needs to respond in the best way possible that best suits its needs. Risk avoidance: rabby may recall all units that shipped to stores but that may deal with a high expense. Risk reduction: rabby should decide to recall products or deal with the claims.
