Student Number ___17318717 U.S. Consumer Law Winter 2011 Dean Richard M.

Alderman University of Houston Law Center

After you complete this exam, you will submit it through Moodle. All answers must be placed on the exam.

The exam has a total of 100 points, and is divided into two parts. Part I is multiple choice and true/false. Each question is worth one point, for a total of thirty points. Clearly mark the answer that you believe is the most correct for Part IA. You can do this by marking the correct answer in bold or underline.

Instructions

Part II is worth a total of 70 points. Point values for each of the three questions are indicated at the beginning of the question. Be sure to limit your answer to the number of words stated in each question. Your answer should be double space. And written in the space following the question. Remember, you have 30 days to complete this exam. Take time to review and proof read and edit your answers. Always assume that federal and Texas law applies, unless the question indicates otherwise. Please be sure you have the entire exam. It has 10 pages.

1. The U.S. Supreme Court held that state unconscionability law cannot be used to establish a per se ban on class action waivers in arbitration clauses because: 1. Arbitration is federal law and states cant change it 2. The state law interferes with arbitration 3. Class actions are a matter of federal law and cannot be affected by state laws 4. Arbitration is more effective than a judicial lawsuit

[Mark the best answer in bold or underline]

Part I A Multiple Choices One Point Each 20 Points

2. The economic loss rule is a judicially created rule that: 1. Requires claims for pure economic loss must be brought in contract not tort 2. Limits tort claims to only economic loss 3. Prohibits recovery of mental anguish damages for breach of contract 4. Requires that claims for economic loss must be brought in tort not contract 5. None of the above

3. Which of the following is not a prerequisite for a credit card holder to assert claims and defenses he would have against the merchant, against the credit card company? 1. The transaction must be over $50 2. The consumer must make a good faith effort to settle with the merchant 3. The transaction must be in the consumers state or within 100 miles of his home. 4. The consumer must report it to the credit card company within ten days. 5. None of the above 4. The statute of limitations for a breach of warranty in Texas is: 1. I year. 2. 2 years 3. 3 years 4. 4 years

6. In class, I used the term soft damages to include: 1. Lost profits 2. Cost to repair 3. Medical bills 4. Pain and suffering 5. More than one of the above

5. Which of the following is not a good under the Uniform Commercial Code (UCC)? 1. A car 2. A house 3. Oil 4. A dog

8. Which of the following is not a credit bureau in the United States? 1. Experian 2. Trans Union 3. American 4. Equifax

7. A fee-shifting statute is one that, 1. Shifts attorneys fees to the other party 2. Shifts the burden of proof to the other party 3. Shifts jurisdiction to another court 4. Shifts damages from one defendant to another

9. Under the Fair Debt Collection Practices Act, a debt collector may: 1. Never call a consumer at work 2. Call a consumer no more than once a day at work 3. Not call a consumer once the consumer tells the debt collector that the employer does not allow such calls 4. Call a consumer at work any time he wants 10. Which of the following is not included within the term actual damages? 1. Cost to repair a product 2. Lost income 3. Pain and suffering 4. Lost profits 5. None of the above. 11. The term under-water means that the consumer: 1. Was flooded with facts she couldnt understand 2. Was tricked into buying the house by the seller 3. Is so confused that she could not protect herself 4. Owes more than her house is worth

12. Consumer owes lender $10,000 on her car note when she stops paying. The lender repossesses the car. The cost of the repossession is $500. The lender holds a sale and sells the car to a buyer for $5,000. The lender has expenses of $500 to hold the sale. At this point, consumer still owes: 1. Nothing, the car has been repossessed 2. $5,000, the difference between what the car was sold for, and what she owed 3. $5,500, the difference between what she owed and what the car was sold for plus the cost of the repossession 4. $6,000, the difference between what she owed and what the car was sold for, plus all the costs 13. Which of the following is not a billing error under the Fair Credit Billing Act? 1. A charge for goods not received 2. A charge for goods that are defective 3. A charge for more than the contract price 4. A charge for a bill that was paid the prior month 5. None of the above

14. Which of the following involves a voluntary dispute resolution process that is not binding unless the parties agree? 1. Arbitration 2. Mediation 3. Negotiation 4. All of the above 5. More than one of the above 15. In an action for breach of warranty under the UCC, which of the following damages may not be recovered: 1. Damages for mental anguish 2. Damages for lost profits 3. Damages for the cost to repair a defective product 4. Damages for medical bills 5. More than one of the above

16. NAF stands for 1. National Arbitration Fund 2. Nevada Agency for Fairness 3. National Arbitration Forum 4. National Agency for Families 5. National Association for Fairness

17. For a misrepresentation under the Texas Deceptive Trade Practices Act, which of the following type of damages may not be recovered? 1. Damages for pain and suffering 2. Economic damages 3. Damages for mental anguish 4. Punitive damages 5. More than one of the above 18. The Texas Deceptive Trade Practice Act requires notice be sent to the defendant how many days before a lawsuit is filed? 1. 60 2. 50 3. 40 4. 30

19. Which of the following has been enacted into law in the U.S.? 1. Credit CARD Act 2. Arbitration Fairness Act 3. Consumer Financial Protection Bureau Act 4. More than one of the above 5. All of the above

20. Which of the following is not an appropriate standard by which to evaluate the constitutionality of punitive damages under the U.S. Constitution? 1. Net worth of the defendant 2. Ratio to the amount of damages awarded 3. Degree of reprehensibility of defendants conduct 4. Sanction for similar misconduct

For each of the following questions, highlight whether the statement is true or false. In BOLD. Mark your answer in bold or underline. Then explain your answer in no more than two sentences. Your answer should look as follows: 1. T Explain the reason why it is true. 1. If a father buys a toy for his son, the son is not a consumer under the Texas Deceptive Trade Practices Act because he did not pay for the toy? T/F

Part B True/False Explain One Point Each 10 Points Total

2. A good way to prevent identity theft is to review a copy of your credit report? T/F 3. In an American jury trial, the jury decides issues of fact and law? T/F ANS. F. Jury decides only issue of fact. Ans. T. Because it provides an opportunity to everyone review his own current credit history regularly.

Ans. F. A qualified entity must seek or acquire, by purchase or lease, goods or services to be a consumer. Here Boy is consumer under the head of Acquire.

4. Under the Deceptive Trade Practices Act, if a consumer recovers economic damages of $10,000, and shows that the defendant acted knowingly, he may recover up to a total of $40,000? T/F ANS. T. Mental anguish Up to 3x economic damages.

5. If you buy something online, it is better to use a credit card than a debit card? T/F 6. Voire Dire is part of the discovery process in an American trial? T/F ANS. T. Credit card is more secure method of payment then Debit Cards.

7. In Texas, strict Products Liability, 402A, applies to only the consumer or the user? T/F ANS. F. Strict Product Liability Applies to the seller.

ANS. T. Because it is a process in which prospective jurors are questioned about their backgrounds and potential biases before being chosen to sit on jury.

8. A bank always has the right to charge a customer an over-the-limit fee if she exceeds the agreed upon credit limit? T/F

9. Any business may be a consumer under the Texas Deceptive Trade Practices Act? T/F 10. UDAP means You Dont Attack Professors? T/F ANS. F. A business entity with assets of $25 million or more, is not a consumer for purposes of the DTPA. ANS. F. It means Unfair and Deceptive Acts and Practices laws

F. Federal law prohibits credit card issuers from charging you an over-thelimit fee unless you've opted-in to have over-the-limit transactions processed.

Point values for each of the following questions are indicated at the beginning of the question. You may take as much time as you want to prepare your answer but it must be limited to the number of words stated in the question. Be sure to discuss all relevant law, and support your conclusions. Take time to outline and edit your answer. Your answer should be type double space. Your grade will be based on your knowledge of the law and your application of the law to the facts.

Part II Essay Questions

ANSWER ANY TWO QUESTIONS FROM A, B AND C. EVERYONE MUST ANSWER D

Question A 20 Points Maximum 1200 words

Casey Consumer just moved to Houston, Texas, USA, from Vietnam. She has been searching for a new house for two months. Casey has never owned a house and is very excited about buying her first home. She has visited about 10 houses, but has not found one she likes. Recently, Casey saw an advertisement for a local house that seemed perfect. The advertisement said the house had just been painted, was a great deal, and was in excellent condition. The price of the house was $200,000, much lower than most of the similar homes she visited. She went to see the house and spent an hour with the seller looking at the property. She did not talk too much with the seller because her English is not very good, and the seller had a real Texas accent that was hard to understand. She did notice that everything had just been painted and looked like it was in very good condition. She didnt ask any questions. The next day, she decided to buy the house and signed a contract. A week after she moved in, the neighbor came by to visit. The neighbor said, I am so glad he finally sold this house. What happened to his mother was terrible. Casey said, What do you mean? The neighbor then told Casey the story of how the sellers mother had been brutally murdered in the house. In fact, she said, her blood had covered most of the walls of the house. Casey was obviously upset. Casey cant even sleep in the house. She has nightmares about what happened in the house, and has lost her job because she has been so distracted. She 8

wants out of the house. She tries to sell it, but no one will pay more than one-half what she paid. What legal claims might Casey have under the Deceptive Trade Practices Act, and against whom? Fully discuss the claims and the likelihood she will prevail. What damages could she recover if she prevailed? Write answer here:

Casey Consumer runs a small restaurant. She lives in her apartment above the restaurant. Last month, Carey went to the local appliance store to buy an oven for her business. Casey agreed to pay $150 a month for one year to pay for the oven. On the way home, she stopped in a local electronic store and bought a new TV for her bedroom that cost exactly the same thing as the oven. She agreed to pay $150 a month for one year for the TV. Casey is very satisfied with both the oven and the TV, but unfortunately, business is not good and she cannot make the payments. The stores have asked her to pay, and now the matter has been turned over to debt collectors. RGM Company is collecting the debt for the oven, and GBH Company is collecting the TV debt. RGM wrote a letter to Casey, telling her that unless she pays within 30 days, they will send the sheriff to put her in jail. They also called her father and told him his daughter was a deadbeat. GBH has used similar tactics. GBH wrote a letter to Casey telling her that she will lose her house if she doesnt promptly pay, and they called her mother and told her that she was a bad mother because her daughter didnt pay her bills. Both collectors call at all hours of day and night and let the phone ring if she doesnt answer. Casey is very upset by all of this. She had to close her restaurant for several days, and cant sleep or eat. When she called the debt collectors to work something out, they both yelled at her, called her names, and told her that all they would accept is payment in full and if she didnt pay soon she would lose everything she owns. After hearing this, Casey fainted and was brought to the hospital. They psychiatrist kept Casey in the hospital for two days. You work for a law firm that Casey contacted. The firm has asked you whether Casey has any claims against either RGM or GBH, and what damages she might be able to recover if she won a lawsuit. Discuss what law applies, what claims Casey may have, and what damages she could recover if she prevails. 9

Question B 20 Points No more than 1200 words

Write answer here: Introduction: Debt Collection in United States is a big business. Americans owe trillions of dollars in consumer credit, and almost $ 25 billion is on default. With that much money at stake, debt collectors become very innovative when it comes to collection. Harassing phone calls and letters, threats and deceptive, misleading and unfair practices are all part of the debt collectors tool box. To regulate theses abusive practices, Congress enacted Fair Debt Collection Practices Act (FDCPA).

There are many Government agencies and Laws, which are working to protect the consumers from abusive and harassing behavior and illegal debt collection practices of debt collectors. The Federal Trade Commission (FTC), the nations consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you. Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis and companies that buy delinquent debts and then try to collect them. Facts of the case: Following are the brief facts of the case; Casey owed the money Casey was willing to pay Illegal collection practices and harassment by the debt collectors As of result of illegal collection practices and harassment Casey suffered mentally as well as financially. There are following ways for Casey to act;

10

At first instance Casey can report an alleged violation of her rights and file a complaint against a debt collector, start by contacting her states Attorney General. Secondly it is illegal for debt collectors to make empty threats about serving people with a lawsuit or seizing their home or to harass them so as it is case with Casey, she may sue the debt collectors for harassment and illegal collection practices. Thirdly the FDCPA prohibits contacting consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. local time so the debt collectors are here too in violates the terms of FDCPA. Fourthly by causing a telephone to ring or engaging Casey in telephone conversation repeatedly and continuously with intent to annoy, abuse, or harass her as did both the debt collecting agencies another violation of FDCPA. Fifthly Abusive and profane language used in the course of communication related to the debt with Casey by both debt collectors is another violation of FDCPA. Sixthly the debt collectors violates the terms of FDCPA by communication with third parties like Caseys father and mother, because the Collection agencies are allowed to contact neighbors or co-workers but only to obtain location information and nothing more and revealing or discussing the nature of debts with third parties (other than the consumer's spouse or attorney)is strictly prohibited by FDCPA.

She should file a lawsuit and take the case to court under the claim of harassment and illegal collection practices. Violation of Section 1692b &c of The Federal Fair Debt Collection Practices Act also the debt collectors violated the provisions of 808. Unfair practices [15 USC 1692f] which states as follows; A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt.

11

According to FDCPA a debt collector who violates the terms of FDCPA is civilly liable for damages, including attorneys fees. A violation is also considered an unfair or deceptive act or practice, in violation of Federal Trade Commission Act. The Federal Trade Commission may thus seek a variety of remedies against debt collector that violates FDCPA.

From all the discussion above it is quite clear that FDCPA offers some of the strongest protection for consumers provided by any federal or state law regulating the activities of debt collectors. In addition, private remedies provided by the Act are available to any person, including employers, creditors, relatives, friends and neighbors, who are affected by violations connected with consumer transactions. Casey can file a private lawsuit in a state or federal court to collect damages (actual, statutory, attorney's fees, and court costs) from third-party debt collectors. The FDCPA is a Strict liability law, which means that a consumer need not prove actual damages in order to claim statutory damages of up to $1,000 plus reasonable attorney fees if a debt collector is proven to have violated the FDCPA.

Question C 20 Points Maximum 1200 words

You work for your countrys Consumer Law Commission. The Commission has been asked to propose new consumer laws for the country to regulate payday loans, debt collection, and unfair and deceptive acts and practices. Everyone agrees on what the law should say, but there is disagreement over how the laws should be enforced. Some of the members of the Commission want the laws to all be enforced by private lawsuits filed by consumers. Others think the best way to enforce the law is to have a large staff and allow the staff to sue to enforce the laws. Still others have mentioned that maybe lawsuits are not the best way to enforce the law, and that a licensing system should be set up to enforce the laws. 12

Discuss the pros and cons of the various enforcement methods, and explain which option or options you think is best and why. Write answer here: INTRODUCTION: Before going in to the detail of recent law reforms and what should we do regarding various methods to enforce the laws, we first should look into the prevailing Statutes and procedure in US and why the new Statute and procedural methods were indeed the need of an hour. Unfair and Deceptive Acts and Practices (UDAP) statutes in each of the fifty states and the District of Columbia constitute the main lines of defense protecting consumers from predatory, deceptive, and unscrupulous business practices. This following examples documents how widely and frequently those lines have been breached, and finds that in almost all states significant gaps or weaknesses undermine the promise of UDAP protections for consumers. UDAP laws prohibit deceptive practices in consumer transactions and, in many states, also prohibit unfair or unconscionable practices. Yet despite their critical role in ensuring marketplace justice and fairness, the effectiveness of UDAP laws varies widely from state to state. The holes are glaring. Legislation or court decisions in dozens of states have narrowed the scope of UDAP laws or granted sweeping exemptions to entire industries. Other states have placed substantial legal obstacles in the path of officials charged with UDAP enforcement, or imposed ceilings as low as $1,000 on civil penalties. And several states have stacked the financial deck against consumers who go to court to enforce the law themselves. A number of states impose special procedural obstacles on consumers that can hinder or even prevent them from enforcing the UDAP statute.

Now as the new laws have been incorporated keeping in view the lacunas of current statutes and now the only disagreement is over how the laws should be enforced, To decide on the issue we should first answers the two very important 13

questions the first is Why do Consumers Need Special Protection? And second is being, why we need consumer protection laws? Because at the end of day all the hard work and efforts put in this whole exercise is done keeping in view only one aspect and i.e. the protection of consumer. The answer to first question why do Consumers Need Special Protection? Lies in following points; Significance of purchase: The purchase involves the hard earned money of consumer. Insufficient information: The consumer in almost majority cases does not have the sufficient information in respect of his purchase. Lack of expertise: Lake of expertise regarding the purchase item is also an important reason to protect the consumer. Consequences: Insufficient redress: Before the laws the seller provided insufficient redress to consumer and no compensation for the damages suffered by the consumer by the use of sellers product. And now we come to the question why we need Consumer Protection Laws; Firstly because only through effective laws can we assure that consumers are treated fairly and that products are safe and effective. Secondly business needs effective consumer laws to insure equal competition and that they do not lose business to others who mislead and deceive consumers; and Thirdly effective consumer laws reduce costs by bringing certainty to the marketplace and insuring prompt low cost dispute resolution.

Now from the discussion of members of the Commission we come to the conclusion that the view of members can easily be divided in to two majors categories. The one group of member wants that the laws should be implemented by private law suits i.e. Individual makes enforcement decision; and

14

On the other hand the other group thinks that the best way to enforce the law is to have a large staff and allow the staff to sue to enforce the laws i.e. in their point of view is that the lawsuits are not the best way to enforce the law, and that a licensing system should be set up to enforce the laws. Below we discuss the two aspects in brief; Public Enforcement: In case of public enforcement the Government make decisions based on Public good, and effect the public at large. All consumers are protected equally in public enforcement as government treats everybody at equal levels. Government bears cost of enforcement in all such cases. Any wrongful conduct may be punished civilly or criminally. Decisions are often politically influenced or motivated, because no Government can afford to lose public support.

Private Enforcement: In case of Private enforcement Individual makes enforcement decision on its personal injury or damage. Compensation goes to directly to injured consumer Punishment is only of civil nature and offender is punished through punitive damages No cost to government exchequer so good for community at large. Decision to sue in private litigation is not politically motivated or influenced, but driven on the personal grievances.

Now we look closely all the view points and come up with the best possible scenario; as the making these laws means how can we effectively protect the consumer and provide a level playing field for all buyer and seller. The litmus test of consumer protection can be gauged by following elements; Simplify process: 15

The most important question to consider while drafting any consumer protection law is how simple the process is for consumer protection? The simple the process greater is the value and protection of the consumer. Fully compensate: Second most important element is how much the law or process compensate the consumer or punish the entity on wrong side of the affairs. Deter wrongful conduct: Deterring the wrongful conduct is the third most effective means of consumer protection. Substantially increasing costs: Increasing cost to avail the remedy hinders the goal of achieving consumer protection. So the right steps should be taken to reduce the cost of increasing costs of redress.

CONCLUSION: From the above discussion it can safely be concluded that the effective consumer protection cannot be safely guarded without private and public partnership. That it is the duty of Government to enact statute and established a constitutional body to safeguard the rights of consumer and as the time has passed on consumers are also getting not only familiar with their rights but also actively claiming them too. So it is safe to conclude that the best policy is to adopt is to let consumer file private law suits as it is the most effective method of ensuring the consumers rights and where Government or the consumer protection agencies think fit to make a move they should be allowed to as in the end the meaning of this whole exercise is the protection of the consumer.

16

Bob and his sister Mary each recently bought a new Tempest automobile from the local car dealer. Tempest is manufactured by Ford and has been on the market for about six months. They each paid $20,000 for their car. The salesperson told them that the Tempest was one of the best manufactured new cars on the market, and that all of his customers loved it. [In fact, there have been many problems with the brakes on the Tempest, and many customer complaints.] Last week, while driving to work, the brakes on Marys car became stuck, and the car skidded to a stop, hitting a light pole. Marys car was completely destroyed, as was her computer and briefcase. Mary was injured and hospitalized for four days. She had several broken ribs, and a broken leg as well as serious head injuries. After she was released from the hospital, Mary missed two weeks of work. She has since gone back to work, but has not been as productive because she often has flashbacks to the accident and cannot concentrate. The doctors say it will be a year before Mary is fully recovered. Fortunately for Bob, he has not had any problems with his car. But after what happened to his sister and the publicity about problems with the brakes on the Tempest, Bob is afraid to drive his car and sold it. Bob received $5,000 less than he would have if there had not been any bad publicity. Bob is very upset that he has lost this money, and often cannot sleep well. He is really mad about the whole thing and feels like the car company cheated him. He is also embarrassed in front of his friends who think he was dumb to buy a Tempest. Both Bob and Mary want to sue the dealer who sold them the car. (They do not want to sue Ford) For Bob and Mary, fully discuss what claims they may have against Ford, what they will have to prove to win a lawsuit, the likelihood they will prevail, and what damages they each may recover if they prevail. Write answer here: As for the first step it is essential to suggest and urge Bob and Mary to sue both Ford and car dealer both. One simple reason is the financial position of both parties as damages can certainly be recovered from Ford. Secondly according to Product Liability Act [Chapter 82] Manufacturer must indemnify any loss and Sellers have limited liability towards Consumer and according to the rule stated 17

Question D 30 Points No more than 1200 Words EVERY ONE MUST ANSWER THIS QUESTION

in this section 402A the term seller applies to any person engaged in the business of selling products for use or consumption. It therefore applies to manufacturer (As in this case the Ford Co.) of such a product, to any wholesale or retail dealer or distributor (the Car Dealer) and to operator of a restaurant Thirdly car dealer will put the blame on manufacturer so having both on the suit will be convenient and time saving and thirdly it is a clear case of defective product. The case deals with the issues of breach of warrant under Business and Commerce Code, negligence and strict products liability. The most common situation where all of the above claims exits in the case of defective product, exactly the case we are dealing right now. The Texas Deceptive Trade Practice Act also applies in this, as DTPA applies in many cases when other causes of action will also exits.

Issues to be presented: Now the issues to be presented here are; 1. Who is responsible for the loss suffered by Marry and Bob? 2. Under what Law and Principle of law the proceedings will be carried out. And if the fact no 1 is established 3. What type of damages should Marry and Bob recover?

The DTPA applies in many cases when other causes of action will also exit. Thus, it is not unusual to find a petition asserting a claim for misrepresentation under the DTPA, breach of warranty under the business and Commerce Code, Negligence and Strict products liability. As provided in Chapter One, Section three, the definition of economic damages and subsection 17.49(e) somewhat limit the DTPA in cases involving personal injury. The Act still applies to such claims, however, and will continue to be asserted in product suits involving consumers. It is therefore, necessary to have at least some familiarity with the claims most commonly asserted in connection with DTPA claim arising out of defective product. 18

Product liability is the term used to refer to that area of law dealing with injuries arising from a defective product. Examples include liability imposed upon the manufacturer of an exploding bottle, the seller of the car (as in this case), and the seller or manufacturer of an unsafe food product. The most common causes of action asserted in a case involving defective product are Warranty, Negligence and Strict Product Liability. Negligence is established by providing a duty, a breach of that duty and proximately caused damages. As in this case the car manufacturer has the duty towards consumers that the car will be defect free and safe to drive and there is no proximate damage.

The doctrine of strict products liability is incorporated into Restatement (Second) of Torts, Section 402A. Section 402A states the responsibilities of seller as follows;

S. 402A. SPECIAL LIABILITY OF SELLER OF PRODUCT FOR PHYSICAL HARM TO USER OR CONSUMER (1) One who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property, if (a) the seller is engaged in the business of selling such a product, and (b) it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold. (2) The rule stated in Subsection (1) applies although (a) the seller has exercised all possible care in the preparation and sale of his product, and (b) the user or consumer has not bought the product from or entered into any contractual relation with the seller. This section states a special rule applicable to sellers of products. The rule is one of the strict liability, making the seller subject to liability to the user or consumer, even though he has exercised all possible care in preparation and sale of the 19

product. The section deals with the negligence liability of suppliers of chattels, for convenience of reference and comparison with other sections dealing with negligence. Business of selling: The rule stated in this section the term seller applies to any person engaged in the business of selling products for use or consumption. It therefore applies to manufacturer of such a product, to any wholesale or retail dealer or distributor and to operator of a restaurant.

Although it was originally intended to apply only to products with latent manufacturing defects, 402A has also formed the basis for finding manufacturers liable for design defects and for failure to warn. It established a standard under which a manufacturer was to be held strictly liable if its product was sold in a defective condition unreasonably dangerous to the user. as the case with Marry and Bob to whom a defective product with proximity of damages was sold and later they suffer the proximate damages. From the above discussion it is quite clear that the Marry and Bob can sue the Manufacturer and Dealer firstly under Texas Deceptive Trade Practice Act (DTPA) there was a product defect and every according to definition of Product Defect under DTPA a product is defective if it is unreasonably dangerous and unfit for its ordinary purpose. And the accident to Marys car and other complaint the Ford and Car dealer has about the car are an ample proof of the fact that the Tempest was a defect product which was unreasonably dangerous and unfit for its ordinary purpose. Secondly the most common causes of action asserted in a case involving defective product are Warranty, Negligence and Strict Product Liability. They can sue for following damages Section 17.50(b) Consumer may recover: Economic damages

20

If knowingly as that condition is satisfied by the fact that Ford and Car dealer has had a large number of complaints regarding the defect in Tempest so they can recover Mental anguish Up to 3x economic

If intentionally that fact proves with the fact that the car dealer and Ford hide the information which under law they were bound to Disclose, that the product has defects, and they will recover Up to 3x mental anguish and economic, and the

Attorney Fees Which is reasonable and necessary: Must be awarded on an hourly basis. From the above discussion it is pretty much certain that the Bob and Marry will succeed in their law suit and as to the extent of Marry she will recover or can

recover all the damages while bob may not be entitle to the mental anguish damages as to get the mental anguish damages it is the established rule that the certain event or act disrupts ones daily routine, and as it is proved to the extent of Marry it cannot be said Bobs daily routine was disrupted.

21