Exam 22: Product Liability Warranties and Strict Liability

An implied warranty exists by operation of law.

Despite 402A's bar of contributory negligence in strict liability cases, some courts apply comparative negligence to strict liability cases.

The Magnuson-Moss Warranty Act is administered by the Federal Trade Commission.

Comment (m) to Section 402A provides that the basis of strict liability rests solely in tort and, therefore, is not subject to contractual defenses.

Leslie purchased 100 flower pots from a local merchant. Warranties which are not included in her sales contract, but exist by "operation of law," are the:

A warranty of title may be included only by specific language or by certain circumstances.

Hubert bought heavy-duty, sharp hedge clippers to trim the hedges in his yard. In the process of using the clippers, he severely cut his hand. He is now suing the manufacturer because the clippers are unreasonably dangerous. Can he recover? Explain.

The word "merchantability" must be mentioned in a disclaimer of an implied warranty of merchantability.

In the In Re L. B. Trucking, Inc. case:

Section 402A provides that liability exists only if the product reaches "the user or consumer without substantial change in the condition in which it is sold."

Oral warranties made before the execution of a written agreement containing an express disclaimer are subject to the parol evidence rule.

Define and discuss horizontal and vertical privity. Explain the effect of the Code and the courts on the concept of privity of contract.

Under comparative negligence, the court apportions damages between parties in proportion to the degree of fault or negligence it finds against them.

Lucille bought a new lawn mower on sale at a local discount store. The mower did not come with an instruction book nor did it have warning labels placed near dangerous parts of the mower. If Lucille injures herself while using this mower, she can claim that she purchased a defective product.

George has been in the business of selling collectible model ships for twenty years. Ashley agreed to buy a set of Colonial Era ships if George would also bring her a display case for them. George bought one and sold it to Ashley along with the ships . While placing the ships in the display case, she ran her hand over the back edge of one of its shelves and cut herself severely. The wood was not finished on that side and nails were protruding through the shelf. Can Ashley sue George under strict liability?

The Restatement (Third) of Torts: Products Liability, which supersedes Section 402A of the Second Restatement of Torts, is far more comprehensive than the Second Restatement in dealing with the liability of commercial sellers and distributors of goods for harm caused by their products.

Whether an implied warranty arises out of the circumstances under which the parties enter into a contract may depend on:

Which of the following does not have to be proved when a buyer brings a warranty action?

Implied warranties may be excluded by course of performance, course of dealing, or usage of trade.

Sandy rented a lawn mower from Scott Rentals. The lawn mower wheel was loose when Sandy picked up the mower. When she began to use it, the wheel fell off, causing the mower to tip over onto her foot. Under what theory can Sandy hold Scott liable for her injuries?