DEPARTMENT OF ECONOMICS
Professor Tomas Nonnenmacher
You may not take this exam off of the 2nd floor of Quigley Hall. If you do, you will
Mr. Wile E. Coyote, a resident of Arizona and contiguous states, does hereby bring suit for
damages against the Acme Company, manufacturer and retail distributor of assorted
merchandise. Mr. Coyote seeks compensation for personal injuries, loss of business income,
and mental suffering caused as a direct result of the actions and/or gross negligence of said
Mr. Coyote states that on 85 separate occasions he has purchased of the Acme Company
through that company’s mail order department, certain products which did cause him bodily
Mr. Coyote states that on December 13
he received of Defendant via parcel post one Acme
Rocket Sled. The intention of Mr. Coyote was to use the Rocket Sled to aid him in pursuit of
his prey. Upon receipt of the Rocket Sled Mr. Coyote removed it from its wooden shipping
crate and, sighting his prey in the distance, activated the ignition. As Mr. Coyote gripped the
handlebars, the Rocket Sled accelerated with such sudden and precipitate force as to stretch
Mr. Coyote’s forelimbs to a length of fifty feet. Subsequently, the rest of Mr. Coyote’s body
shot forward with a violent jolt, causing severe straining to his back and neck and placing
him unexpectedly astride the Rocket Sled. The Rocket Sled soon brought Mr. Coyote
abreast of his prey. At that moment, the animal he was pursuing veered sharply to the right.
Mr. Coyote vigorously attempted to follow this maneuver but was unable to, due to poorly
designed steering on the Rocket Sled and a faulty or nonexistent braking system. Shortly
thereafter, the unchecked progress of the Rocket Sled brought it and Mr. Coyote into
collision with the side of a mesa.
In addition to reducing all Mr. Coyote’s careful preparation to naught … the Defendant’s
product[s] resulted in the following disfigurements to Mr. Coyote:
1. Severe singeing of the hair on the head, neck, and muzzle, 2. Sooty discoloration, 3.
Fracture of the left ear at the stem, causing the ear to dangle in the aftershock with a
creaking noise, 4. Full or partial combustion of whiskers, producing kinking, frazzling,
and ashy disintegration, 5. Radical widening of the eyes, due to brow and lid charring.
(excerpted from Ian Frazier (1996)