W8 Supplemental DQ 1 @ DQ2 - Case Study Example

Discussion Question 2 Discussion Question 2 DQ1: AOL’s Case and Economic Loss Rule in Protection of ConsumersThe AOL case sounds familiar to the events of the Toyota recall on defective brakes. In the event that Toyota is sued by his customers, it might be tempted to seek cover for the damages through the insurance firm which might argue in the similar direction. The insurance firm has a contract with the company to cover their vehicles as to provide warranty and therefore does not have a contract with the third party (Boggs, 2011).

This is quite discouraging as the company may not be able to be compensated for the damages as this will obviously be considered under tort. Since the effect of the software AOL 5.0 was not to cause physical damage but to affect other programmes which inadvertently led to the malfunctioning of the computers, the damages can not be considered under tort but economic loss for which they actually are (Scheb & John, 2011). By using the defective goods, the consumers suffer economic loss especially in the case where life is lost.

This should be taken care of. The rule therefore discourages such a suit which actually should its responsibility because the person injured in this case, though not having any contract with the contractor, has suffered economic losses as a result of the contractor’s attempts to fulfill his contractual obligations.DQ2: Provision of Cheap Medicine to Citizens and Insurance Companies Paying BillsIt is the responsible of America to provide quality medicine at affordable costs to its citizens. With the available human and technological resources within America, it is possible to provide the medicine to the citizens at the low costs without looking forward to other countries.

This is possible through a better medical plan to cover the citizens against all kind of medical conditions. Since the patients are insured, they should not bargain for the pay of the hospital bills by the insurance firms (Adams, 2003). The insurance covers their illness to the point of all these illness and being forced to pay additional amounts for such insurance will mean limiting the extent of the insurance to only minor illness. It is clear that the serious or long illnesses if not terminal illness will incur economic loss to the person and so the economic loss rule can be an avenue to sue for such losses so that the firms, with whom they have insurance contract will pay for the damages (Davis, 2010).

The government should ensure, through appropriate legislations that insurance companies pay the bills for the clients in order to make the cost of medication cheap and affordable and avoid situations where clients have to bargain for such bills to be paid.References Adams, C.. (2003). Does Your Insurance Policy Cover You? The Question of Computer Data as “Tangible” or “Intangible” Property Under Insurance Law. Retrieved from website: http://www.dww.com/?page_id=1056 Boggs, W. S.. (2011).

Evolution of the Economic Loss Doctrine in Information Age Disputes Involving Electronic Data Storage Products. Retrieved from website:Davis, J. C.. (2010). Living in the USA. New York: Nicholas Brealey Pub.,. Scheb, J. M., and John, M. S..(2011). Criminal law and procedure. 7th ed. Belmont, CA: Wadsworth Cengage Learning,.