1. This is a closed book examination.

2. Total exam time is three hours.

3. The exam consists of two essay questions on three pages.

4. Each of the essay questions will be weighted equally. Each is worth 100 points. We recommend that you spend a minimum of 1.5 hours on each of the essay questions. However, you are free to allocate your time as you wish. 

5. Answer the essay questions in the blue book; please write on every other line and only on one side of the page.

6. Be sure to write your exam number on your blue book.

7. Turn in all questions, scratch paper and blue books at the conclusion of the exam.

QUESTION # 1

Sam Slick was spending his honeymoon at a posh resort on the water's edge in the Bahamas. Mr. Slick, who considers himself quite the athlete, rented the Wave Skipper manufactured by Watercraft Corporation. Mr. Slick paid a deposit for the Wave Skipper and signed a contract given to him by the rental agency which stated, "Beach Rental Corporation is not responsible for any accident or injury from the improper operation of any of our rental watercrafts." There was a sticker on the side of the Wave Skipper which stated, "Operate with extreme caution. These crafts can be unstable in high seas and will flip over if turned too sharply. Please follow all training instructions given to you by rental personnel."

Mr. Slick took his Wave Skipper into the water and immediately opened the throttles and began skipping across the water at a high rate of speed. The Wave Skipper has an inboard motor powering a water jet pump which is its primary source of power. If the power is shut off, the operator has no control of the vehicle because the Wave Skipper is not equipped with rudders. While speeding over the whitecaps at a fast clip, Mr. Slick saw a large ocean liner begin to cross his path. Mr. Slick immediately cut the power to the engine and made a hard left turn to avoid the ocean liner. The Wave Skipper did not turn and smashed into the side of the ocean liner causing Mr. Slick to crack three vertebrae in his back. Crew members of the ocean liner threw a life preserver and rope to Mr. Slick and hauled him 10 stories up to the deck of the ocean liner further exacerbating the back injury Mr. Slick sustained when he ran into the side of the ship. Mr. Slick is now paralyzed and has not been able to return to his job as a lifestyle and career coach. Mr. Slick retained Attorney Travis Tort to file suit on his behalf, alleging that the Wave Skipper is defectively designed and that it does not possess rudders that would allow off throttle steering. Mr. Slick further alleges that there was failure to adequately warn of the need to use power while turning to avoid a collision.

In 1998, the National Transportation Safety Board released a report on personal watercraft safety which notes that steering problems were a significant cause of many accidents.

1. Does Mr. Slick have a viable claim for design defect? If so, against whom should the claim be made? (25 points)

2. Does Mr. Slick have a viable theory for failure to warn? If so, against whom should the claim be made? (25 points)

3. What other possible claims does Mr. Slick have, and against whom? (20 points)

4. What defenses are available to the various defendants? (Please discuss) (25 points)

5. What effect does the National Transportation Safety Report have on Mr. Slick's claims? (5 points)

QUESTION # 2

Suzie Smith visits your law office on February 23, 2001 to discuss an action for damages she wishes to file. She was seriously injured at the house of her neighbor, Nick Neighbor, when a porch swing in which she was sitting suddenly fell to the floor. The incident occurred on October 30, 2000. The swing fell because of a manufacturing defect in a link in one of the chains from which the swing was hung from the porch ceiling. The defect could not have been discovered through a visual examination.

Nick purchased the swing set, which included the chains, from Mission Furniture Store, Inc. He believes the purchase was made in the autumn of either 1991 or 1992. The swing had received little use before it fell with Suzie. A label on the seat of the swing states, "This swing set was manufactured by Quality Manufacturing Corporation and distributed by Wholesale Company, Inc." A metal tag affixed to the chain states, "Chain and hardware manufactured for Quality Manufacturing Corporation by Metal Products, Inc."

After falling from the swing, Suzie asked Nick to drive her to the hospital. Nick told her that he would be happy to take her to the hospital. As they climbed into Nick's used 1998 model Clunker Motors station wagon, Nick told Suzie that he had recently received a recall notice from Clunker Motors stating that the car should be brought into the dealer for repair of a defective master brake cylinder. Nick said to Suzie, "I have been very busy lately and have not had a chance to take the car to the dealer." Suzie said, "I need to get to the emergency room, so I guess we'll have to take a chance." Because Suzie was in such pain, Nick was driving very fast, in fact, going twice the speed limit through a school zone. A school bus pulled out in front of Nick's car and he slammed on the brakes which caused the car to veer sharply to the right and roll over. In addition to the injuries Suzie sustained from the porch swing, she suffered additional internal injuries from the rollover.

1. What theories of liability can be asserted in an action against Mission Furniture Store, Inc.? (Explain) (15 points)

2. What theories of liability can be asserted in an action against Quality Manufacturing Corporation? (Explain) (15 points)

3. What theories of liability can be asserted in an action against Metal Products, Inc.? (Explain) (15 points)

4. What theories of liability can be asserted in an action against Wholesale Company, Inc.? (Explain) (15 points)

5. Might any of the theories of liability be time-barred? (Explain) (5 points)

6. What theories of liability can Suzie assert against Nick for the car accident? (Explain) (10 points)

7. What theories of liability can Suzie assert against Clunker Motors for the car accident? (Explain) (10 points)

8. What claims, if any, does Nick have and against whom? (10 points)

9. What defenses does Clunker Motors have and against whom? (5 points)