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iragen [17]
4 years ago
10

Daniel Franco, a free-lance gaming consultant and blogger, needed a new gaming system for his business. After some lengthy revie

w, Daniel decided to purchase a Nintendo Switch system for his business needs. Weeks after the one-year warranty expired, Daniel’s Nintendo Switch failed to operate due to a flaw in the product manufacture. Daniel sued Nintendo, making the argument that the gaming system should have lasted "at least a couple of years," which Daniel viewed as a reasonable consumer expectation for such an expensive gaming system. Daniel argued that Nintendo’s description of the gaming system as "most reliable", and "durable", were affirmative statements concerning the quality and performance of the gaming system, which Nintendo did not meet. How should the court rule? Why?
Business
1 answer:
Law Incorporation [45]4 years ago
8 0

Answer:

Explanation:

Issue: Will the court rule in support of Daniel’s argument that Nintendo breached the warranty based on reasonable expectation on the performance of an expensive system and statements made while selling the gaming system?

Rule:  There is a creation of express warranty when a seller makes a description of the statement quality, condition or performance of goods sold. This warranty is created by the statement of facts and if the seller uses words to designate the value of the supposed goods, it will only be considered as an opinion that does not create any express warranty.

The customer’s reasonable expectation of the existence of the gaming system based on the price leads to implied warranty. The goods sold should be logically fit for the general purpose for which it is sold. It should be of proper quality to satisfy the implied warranty of merchantability and the goods should fit the particular purpose for which the buyer will use the goods to satisfy the implied warranty of fitness for a particular purpose.

Analysis: Here, the argument of Daniel that Nintendo’s description of the gaming system as “most reliable”, and “durable” asserted that the quality and performance of the gaming system will not stay because these words create general statements that are made as part of sale or seller’s opinion about the goods. These words would be considered as puffery and do not create any express warranty. The higher price of the gaming system would create an implied warranty about the performance of the system, but the switch failed only after the warranty period. When the seller has expressly stated the warranty period as one year, any defects that occur after the warranty period will not breach the implied warranty.

Moreover, the gaming system was reasonably fit for Daniel’s business purpose and worked well during the warranty period. Hence Daniel’s arguments will not stay in front of the court.

Conclusion: The court will not rule in favor of Daniel and Daniel will not be able to recover against Nintendo because no breach of warranty had occurred.

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Burkhardt corp. pays a constant $13.50 dividend on its stock. the company will maintain this dividend for the next eight years a
kogti [31]

Answer: Burkhardt Corp.'s current share price is $69.47.

The current share price of a stock can be viewed as the present value of its expected dividends.

In this case, the stock price will be the sum of the discounted value of the dividends over each of the next  eight years.

Mathematically we can express this as:

\mathbf{Current Price = \frac{D}{(1+r)^{1}}+\frac{D}{(1+r)^{2}}+\frac{D}{(1+r)^{3}}......+\frac{D}{(1+r)^{n}}}

Substituting the values we get,

Current Price = \frac{13.5}{1.11^1}+\frac{13.5}{1.11^2}+\frac{13.5}{1.11^3}+\frac{13.5}{1.11^4}+\frac{13.5}{1.11^5}+\frac{13.5}{1.11^6}+\frac{13.5}{1.11^7}+\frac{13.5}{1.11^8}

Solving the above equation we get,

\mathbf{Current Price = 69.47}

7 0
3 years ago
Almendarez Corporation is considering the purchase of a machine that would cost $150,000 and would last for 5 years. At the end
vodka [1.7K]

Answer:

b. $(3,063)  

Explanation:

This can be calculated as the present value of a cost-saving project, with rate of return equal to 13%. In the table, its the cash flow (in thousands of dollars)

Item/Year                    0            1          2         3        4         5

Cost-savings                           39       39       39       39       39

Salvage value                                                                       18

Purchase                  -150

TOTAL                      -150        39       39       39       39       57

With these cash flows, we can calculate the present value discounting at the rate of return of 13%:

PV=\sum_{k=0}^5CF_i(1+i)^{-k}\\\\PV=-150,000/1.13^0+39,000/1.13^{-1}+39,000/1.13^{-2}+39,000/1.13^{-3}+39,000/1.13^{-4}+57,000/1.13^{-5}\\\\PV= -150,000+34,513+30,543+27,029+ 23,919  +30,937 \\\\PV=-3,058

The present value is closest to Option b. $(3,063)  

4 0
3 years ago
Over the past two years a cloud service consumers have made 24,531 attempts to invoke a cloud service's reporting capability. of
Slav-nsk [51]
The reliability rating of the cloud service is about <span>93.37%.</span>
5 0
4 years ago
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increa
torisob [31]

Answer:

a) $       40,480  

b) 17.60%  

Explanation:

Working:  

 

a. Increase in sales a 2,30,000  

Less:    

  • Bad debts expenses

b=a*5% 11,500  

  • Collection costs

c=a*2% 4,600  

  • Production ans selling costs

d=a*71% 1,63,300  

  • Earning before tax

e=a-b-c-d 50,600  

  • Less: Tax @ 20%

f=e*20%

10,120  

Net Income 40,480  

b)Return on sales  

Net Income/Sales  

40480/230000  

17.60%

6 0
3 years ago
How do i get an egg out of my fridge????? HELP NEED TO KNOW ASAP
Tamiku [17]

Answer:

open fridge!!!

Explanation:

STEP 1: open fridge

STEP 2: find the egg then grab with hand!!!!!!!!

(Its really hard!!)

3 0
3 years ago
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