We really can't tell given your description, but it sounds like the product was defective, in which case the manufacturer would have some liability. Supposing that you decided to sue them, the defendant would no doubt argue that it's not their fault, it's yours (at least in part) by not removing water flowing inside your car (??), or the fault of the car ...
Your friend can get into a lot of trouble for this. Those stickers were given to you for renewing your registration. The stickers are meant to be a quick way for police to tell whether your license plates are still valid, but applying them does not make the plates valid - they are only stickers that have no legal meaning as standalone devices. You still need ...
Long story short, the police can ask you your name if they have a reason in any state.
For example if they are chasing someone matching your description, they can ask you to identify yourself, etc, etc.
If they just stop you for no reason you can refuse unless you are in a state that legally requires you to answer.
New York has a "stop and identify" law which says that
a police officer may stop a person in a public place located within
the geographical area of such officer's employment when he reasonably
suspects that such person is committing, has committed or is about to
commit either (a) a felony or (b) a misdemeanor defined in the penal
law, and may ...
Ok so after some searching I found out this link: http://www.mva.maryland.gov/vehicles/registration/title-registration-info.htm
In here there is a last section as follows:
All other transfers as gifts are subject to the state inspection laws.
Gifts of vehicles that are titled out-of-state are not accepted.
So it seems I have to have the title under ...