Exam 22: Product Liability: Warranties and Strict Liability

Under Alternative A of the Code's horizontal privity provision,a corporation may bring a case against the manufacturer of a defective product for breach of the warranty of merchantability.

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."

The Code does not label the warranty of title as an implied warranty,despite the fact that it arises out of the sale and not from the words or conduct of the parties.

Greg has been in the business of selling collectible figurines for twenty years.Margaret agreed to buy a set if Greg would also bring her a display case for them.Greg bought one and sold it to Margaret along with the figurines.While placing the figurines 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 Margaret sue Greg under strict liability?

The liability of manufacturers and sellers of goods for a defective product or for its failure to perform adequately may be based on one or more of the following: negligence,misrepresentation,violation of a statutory duty,warranty,and strict liability in tort.

Matt tells Ron that the snow boots he is selling are capable of protection at temperatures of 20° below zero.Ron orders a pair for his trip to Greenland.Upon delivery the box states "will protect your feet in temperatures down to 30° below zero." The first night's temperature goes down to 27 below.Ron suffers frostbite on all of his toes.Ron then sues for breach of warranty.What is the result?

Under the CISG,the seller must deliver goods,unless otherwise agreed,that are fit for the purposes for which goods of the same description would ordinarily be used.

The main provision of the Restatement (Third)of Torts,Section 2,recognizes three types of product defects: manufacturing defects,design defects,and failure to warn,but it imposes strict liability only for manufacturing defects.

Strict product liability exists if:

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?

Which of the following would constitute a defect within the meaning of 402A of the Restatement?

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

A salesperson at Lakeview Furniture showed Camila a cherry end table and she ordered one like it to be delivered to her home four weeks later.When the table arrived,it was not made of cherry wood,but of pine.If Camila fails to notify Lakeview of the breach within a reasonable time,she will be barred from any remedy against Lakeview.

Which of the following is NOT included within the Code definition of merchantability?

Implied warranties under the Code:

Horizontal privity pertains to remote sellers within the chain of distribution.

If the seller of goods is an expert and gives an opinion with regard to the goods,the seller may be liable for breach of warranty.

Karen decided to sell her stair step exerciser,because she wasn't using it as much as she thought she would.Her friend Lydia bought it from Karen for $100.The first day that Lydia used the exerciser,it fell apart,injuring Lydia's ankle.Lydia:

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

Misuse or abuse of the product is a defense to an action brought under 402A of the Restatement (Second)of Torts.