Homework Question - Contract Law

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21 February 2015
1) ProTech Inc. is a young and ambitious start-up company in the field of IT-Security with its headquarters in Los Angeles. One of the key products developed and manufactured by Pro Tech Inc. is the anti-virus wall “Fight Back 2.0”. The company wants to enter a new market with anti-virus product so the price has to be very competitive and much lower than of its competitors’ products. Therefore the company has saved money in the area of research and development.

Bob finished has studies and has got a job at Jupiter GmbH in Stuttgart. He is the head of IT-Security development of his company. Always aware of his company’s advertising campaign “miserliness is marvelous” Bib has decided to purchase the anti-virus software “Fight Back 2.0” for his company in order to save money. He buys the product from his local dealer. Several months later his company suffers a virus attack that damages important data files so that the company has to close for three days. The suffered damage is extensive. The company calls in an expert who detects that the responsible virus has already been known for two years.

Bob is now thinking about his company claims for damages against the ProTech Inc. and other possible defendants. Please give him legal advice and point out the requirements for possible claims?