Unformatted text preview: product and walking out of the department store. As long as a type of agreement can be proven a contract has been signed. We all have heard the warning “Use only as directed”, this is informing the consumer that the company is not responsible for any misuse of their products. My example is drug companies that advertise on television. The product is produced to cure or prevent an illness but may cause several other unwanted symptoms. Third is the strict liability theory. This theory holds the manufacturers responsible even after due care and contractual responsibility have been exhausted. It is the fact that the product in the hands of consumers can cause risks or dangers. My example of this theory is tobacco companies. Everyone knows that smoking causes lung cancer and respiratory problems with all of the surgeon generals warnings printed on the side of the pack. There have been several lawsuits from spouses of deceased smokers as if they have no clue it could cause death....
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- Spring '11
- Macroeconomics, sales contract, James Tilley