Exam 12: Sales and Product Liability

In strict liability cases,most courts use which of the following tests for design and warning cases?

Office Plus,an office supply store,ordered 600 blank CDs from Curtis Co.,a manufacturer of computer products.Office Plus placed the order using a preprinted purchase order form;Curtis acknowledged the order by sending a preprinted acceptance form back to Office Plus.Unlike Office Plus' form which says nothing about packaging,Curtis's form specifies that the CDs will be packaged with 10 per box,30 boxes per case.Which statement is correct?

Strict liability is based on contract law.

Wimble ordered $800 worth of pro-quality luminescent orange tennis balls from Sports Unlimited.On June 1,Sports Unlimited shipped standard white tennis balls that were rejected by Wimble.Wimble bought the same number of pro-quality luminescent orange balls from another supplier the same day for $550.In a suit against Sports Unlimited,Wimble may recover $800.

Thompson buys a used paint sprayer from the local paint store.The sprayer had a large sign on it which said "AS IS." The dealer made no promises or statements concerning the performance of the paint sprayer.When Thompson attempts to spray paint his house,the trigger on the sprayer sticks in the "on" position and before Thompson can pull the electrical cord to cut the power,paint is sprayed all over the neighbor's house and prize Borzoi dog that is scheduled to be shown in a dog show the next day.Thompson sues the seller.Who wins?

Which of the following contracts requires a writing under the UCC,Article 2?

Lorene,an artist,orally agrees to sell Sabrina a painting for $600.While Lorene is busy talking on the phone,Sabrina writes her a note on the back of an envelope she finds in her purse.The signed note states that she will stop by the studio to pick up the painting within the week.Sabrina changes her mind about the painting,and when Lorene sues to enforce the contract,Sabrina defends on the basis of the statute of frauds.Sabrina will succeed with this defense.

Stanziano Construction needs a backhoe to complete a project.If it pays Hofmann Rentals for temporary use of the equipment,the transaction will be governed by:

Identify and explain the two tests courts have adopted for design and warning cases under strict liability.

A product liability case may be brought in warranty,negligence,or strict liability,but it must have the element that a person or business has been hurt by goods.

Megan agrees to sell Neff her quartz watch but they do not specify a price.In such a case,the court would not enforce the agreement because all of the essential terms are not present.

Mason bought a rotisserie in preparation for a party he was planning.When he put a chicken on the rotisserie,it would not rotate,but stayed in one position where it burned the chicken on one side and left it raw on the other.When he returned the rotisserie to the store,the salesperson disclaimed any responsibility because he had never told Mason the rotisserie would rotate the food as it cooked.Does Mason have any recourse?

The UCC:

In order for a warranty of fitness for a particular purpose to be in effect:

Rachel,a retailer,sends a preprinted purchase order offering to buy goods from Snidley Supply.Snidley acknowledges Rachel's offer with a preprinted acceptance form.The terms of the two forms do not mirror each other.To analyze whether an enforceable contract exists,one must first determine whether the new language in the acceptance is an additional term or a different term.

Elizabeth worked as a salesperson in a carpet store.She was in the process of divorcing her husband and needed some money.Elizabeth sold her wedding ring.Elizabeth is considered a merchant with regard to the sale of the ring.

Master Glue Hairspray,Inc.contracts to purchase 100 umbrellas with its logo and slogan,"A spray a day keeps the rain and wind away!" specially printed on the umbrellas and its 1-800 telephone number on the umbrella handle.After the seller completes the order,Master Glue refuses to accept or pay for the umbrellas.Because of the special logo and telephone number,the seller has been unable to find a new buyer.If the seller sues Master Glue,what is the proper measure of the seller's damages?

Sean of Sean's Shrimp House was enjoying a cup of cappuccino while visiting with Ollie at Ollie's Ocean Front Bar & Grill.During the course of their conversation,Sean agreed to supply 100 pounds of shrimp per month for the next year to Ollie's restaurant at the price of $2.50 per pound.When Sean got back to his office,he sent a written confirmation of the agreement to Ollie.Six weeks after receiving the confirmation Ollie wrote back,stating that he had not agreed to the price of $2.50 per pound.Is Ollie bound to the confirmation?

Glenn,a housewares buyer,goes to a trade show where he visits a booth sponsored by a large manufacturer.He inquires about some food processors,but does not place an order.A week after the trade show,Glenn receives a fax from the manufacturer showing that Glenn ordered six dozen of the food processors at the special show price.Glenn needs to object within ten days or he could be held to the purchase,even though he knows the fax is incorrect.

Jasmine agrees in writing to purchase 1,500 tons of recycled glass from Louie,the price to be determined at the time of delivery.Is such an agreement enforceable? Compare the common law with Article 2 of the UCC.