23) Bella purchases a used GM Chevrolet through Craig's List. While driving down the highway, the electrical system suddenly stops, and Bella is seriously injured. She later learns that GM knew of the faulty ignition switch. In her suit against GM

Select one:

a. Bella will likely win because she fully recovered and therefore has no injury.

b. Bella will likely win because GM designed and manufactured an unreasonably dangerous product.

26) Garden Tool Company makes chain saws. Hadrian is injured when the chain on the chainsaw snaps as he is cutting a tree stump. When Hadrian sues Garden Tool for negligence, he must show that

Select one:

a. Garden Tool used puffery in its advertising.

b. Garden Tool failed to use due care in designing or manufacturing the chain saw.

c. He was not experienced in the use of chain saws.

28) Xavier, owner of a manufacturing plant, secures aline of creditfrom Stroh's Bank in the amount of $500,000, putting up all of his equipment as collateral. The security agreement includes any future advances Xavier takes. On February 1, Abe takes $100,000 from the Bank. On June 15, he takes another $100,000 from the Bank. Which of the following is true?

Select one:

a. Because Xavier defaulted in February, the Bank should not have allowed him to take more money in June.

b. Stroh's Bank does not need to execute additional security agreements after the line of credit is granted.

c. Stroh's Bank must execute a security agreement in both February and June to preserve its interest in the equipment.

29) Squigword owns 68% of outstanding shares of Waterworld, Inc. The remaining shares are owned by Bob and Patrick. At the annual meeting of shareholders

Select one:

a. Bob's and Patrick's votes have more weight because they are 2 against 1.

b. Squigword's vote has more weight because he owns more of the corporation.

c. The shareholders typically draw straws to see who wins.