Final answer:
In cases of inherent defects known by the vendor at the time of sale, the vendor is likely still liable for damages, as seen in automobile defects leading to injuries. If the vendor honestly did not know of the defects, they are typically not held liable. To reassure customers, offering warranties and showing transparency about product quality can be effective.
Step-by-step explanation:
In law, the liabilities of a vendor when the thing sold is lost due to a fortuitous event or fault of the vendee can be complex. If the vendor was aware of a defect in the item sold, such as a faulty brake system in a car, they may still be liable for damages ensuing from that defect, as demonstrated in our reference case. The manufacturer's foreknowledge of the defect and the likely harm it could cause makes them responsible for the resultant injuries and deaths. This falls under Option 1: The vendor is still liable.
However, if the vendor was not aware of the defect at the time of the sale, their liability may be diminished or nonexistent, assuming they had no reasonable way of knowing about the defect. In such a case, according to Option 2: The vendor is not liable, the responsibility shifts more toward the circumstances of the loss and the actions of the buyer.
A seller might reassure a buyer by providing a warranty, conducting and sharing thorough product testing results, or implementing a transparent quality assurance process. These approaches can help build trust and mitigate concerns regarding potential imperfect information.