bus 340 exam # 3

ESSAY QUESTIONS ANSWER  TWO (2) QUESTIONS PLEASE BE SURE TO READ WHAT IS REQUESTED  OF  YOU  AND  ANSWER  ALL  QUESTIONS  AND  DEFINITIONS  COMPLETELY.

1. Thompsons  house  was  destroyed  by  fire  and  claims  were  filed  with  the  insurance company.  The insurance company (insurer) hired Cannon to investigate the fire as it  was  suspicious  about  the  cause.    Subsequently,  the  insurer  denied  the  claims based  on  Cannons  report.    Thompson  sued  the  insurer  and  Cannon.    Thompson claimed to be a third party beneficiary of the Cannon-insurer contract.  

Is Thompson correct?  If not, what type of beneficiary is he and why? 

2. Kwan purchased a new Mercedes Benz automobile from a dealership for $46,370.24.  During  the  first  year  of  ownership,  he  returned  the  car  at  least  10  times  for numerous  repairs,  some  of  which  Kwan  complained  were  repeat  problems  that were never fixed correctly.  Ultimately, Kwan returned the car for a refund, which was refused.  Kwan sued for a refund and for damages for emotional distress.  Kwan testified  that  the  repeated  efforts  to  get  the  car  repaired  and  the  operational problems he considered un safe, made him frustrated and mad, sad, nervous, and worried about the safety for the family.  The jury awarded Kim $10,000 for emotional distress. 

First, which warranties can Kwan claim have been violated?  Why?  Under which law might Kwan be entitled to damages for distress?  Why?