1. Cutter Company makes afnd sells-tablesaws, which” are designed to be. safe if
used properly. Erin buys a’ Cutter saw’an’d’ [ends it. to her- neighbor Frank. To
reach a toolbox on a highshelf in his garage, Frank props-the sawatan
angle. against {a cabinetand ciimbs onto the Saw. Frank loses. his footing, slips
off the. Saw, falls on the blade. and is. injured; H’eflle’s a product liability suit
against’Cutte’r, on the grounds of neg’i’igenCe. On what basis could the maker
2. Signal Sets Company Contracts to deliver-One hundred 52-inch plasma high-
definition television sets to a new retail customer, Tuner TV’Store, On May 1,5
With payment to be made On delivery. Signal tenders delivery in its. own
track. Tuner’s manager notices that-some of the” cartons; have; scrape marks.
Tu’ner’s owner phones- Sigma-Vs office and asks. Whether the sets might have
been damaged as they were being loaded. Signal assures Tuner that the. sets


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