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?