A careful examination of something such as goods, documents, or premises to determine fitness, relevance, compliance, or the existence of defects or damages.
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How its tested
Common Examples
6
Damages Documents Produced
Igor Ito sued Ironwood Capital for breach of contract and claimed lost profits. Under the initial disclosure rules Igor had to compute his damages and make the supporting documents available so Ironwood could examine them and verify the calculations.
Latent Defect Liability
Icarus Aviation manufactured an aircraft component that contained a hidden flaw. Even though a routine inspection by the buyer would have revealed the flaw, Icarus remained liable when the defect caused an accident because the danger existed at the time of sale.
The state of Ionia imposed a fee on imported produce to cover the cost of inspecting shipments for pests. Because the fee was limited to the actual expense of inspection and the net proceeds went to the federal treasury, the charge survived constitutional challenge.
Buyer Security Interest
Isabella Ingram paid for a shipment of machine parts that arrived nonconforming. After rightful rejection she held a security interest in the goods that covered the payments she had made plus the reasonable costs of inspecting and storing them until resale.
Corporate Records Access
Israel Irving, a shareholder of Ironclad Industries, requested access to the corporation's minutes and financial statements. The company kept the records in a form that allowed inspection within a reasonable time after the request was received.
Admission Request Accompanied
Irene Ingalls served a request for admission on Infinity Bank asking it to concede the authenticity of a loan agreement. She attached a copy of the document because it had not previously been furnished or made available for inspection.
5 common questions
Students Frequently Ask...
What documents must a party produce with its damages computation?
A party claiming damages must make available for inspection the documents supporting each category of damages, including materials showing the nature and extent of injuries, unless the materials are privileged.
Does a manufacturer escape liability when a defect is discoverable by inspection?
No. A manufacturer remains subject to liability for a dangerous chattel even if the defect could have been discovered by an inspection that a seller or other person had a duty to perform.
When may a buyer recover inspection expenses after rejecting goods?
A buyer who rightfully rejects or revokes acceptance obtains a security interest that includes reasonable expenses incurred in inspecting, receiving, transporting, and caring for the goods.
How must a corporation keep records subject to shareholder inspection?
A corporation must maintain the required records so they can be made available for inspection within a reasonable time after a proper request.
What must accompany a request to admit the genuineness of a document?
The request must be accompanied by a copy of the document unless the document has already been furnished or made available for inspection and copying.
424 U.S. 1 (1976)
…as well as the amount and date of the contributions. § 434 (b). They are to be made available by the Commission "for public inspection and copying." § 438 (a) (4). Every candidate for federal office is required to designate a "principal campaign committee," which is to receive reports of contributions and expenditures made…