Exam 22: Warranties and Product Liability

Generally,the implied warranties of merchantability and fitness for a particular purpose cannot be disclaimed.

Rent-all Trucks & Trailers,Inc.(RT&T),and United Delivery Service enter into a contract for a lease of trucks.RT&T is a merchant who deals in goods of the kind leased.Under the UCC,an implied warranty of merchantability arises

An action in strict product liability requires that the defendant fail to exercise reasonable care.

Welding Systems,Inc.(WSI),makes welding torches,masks,and related products.A WSI product may be unreasonably danger?ous due to

City Cab Company and Dave's Autos enter into a contract for a sale of motor vehicles.City assures Dave's that it has valid title to the vehicles.Under the UCC,warranties of title arise

A public policy underlying the imposition of strict product liability is that consumers should be protected against unsafe products.

Courts in many jurisdictions will consider the negligent actions of both the plaintiff and the defendant when apportioning liability in a product liability action.

The types of product defects that have traditionally been recognized in product liability law include inadequate warnings.

A product liability action based on negligence requires the injured plaintiff and the negligent defendant-manufacturer to be in privity of contract.

Mountain Bikes,Inc.(MBI),and Nero enter into a contract for a sale of a mountain bike.MBI,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.The Magnuson-Moss Warranty Act was designed to prevent deception in warranties by

Express warranties can be found in a seller's brochure

Darrow purchases a new car from Slippery Motors.The retail installment contract states immediately above the buyer's signature in large,bold type: "There are no warranties that extend beyond the description on the face hereof" and "There are no express warranties that accompany this sale unless expressly written in this contract." Before purchasing the car,Darrow specifically informed Slippery's salesperson that he wanted a car that could be driven in a dusty area without needing mechanical repairs.Slippery's salesperson said to Darrow,"Nothing will go wrong with this car,but if it does,return it to us,and we will repair it without cost to you." Neither this statement nor any similar statement appears in the retail sales contract.Darrow drives the car into a dust storm.The air filter gets plugged up,and the car engine overheats,causing motor damage.Slippery Motors refuses to repair the engine under any warranty.Darrow claims that Slippery is liable for breach of the implied warranty of fitness for a particular purpose,that the Magnuson-Moss Warranty Act prohibits disclaiming this implied warranty,and that the salesperson's express warranty has also been breached.What are the problems with Darrow's claims?

A warranty is an assurance by the buyer to the seller that he or she will pay valid con?sideration for a product.

Fun Toyz Corporation makes skateboards,which it sells to con?sumers,including Gitana.Gitana is injured due to a defect in the board that causes an accident in which Haley,a bystander,is also injured.In a product liability suit based on strict product liabil?ity,Fun Toyz may be liable to

Longlast Tools,Inc.,sells power tools,power tool parts,and related supplies under "full" warranties.Under the Magnuson-Moss Warranty Act,this means that Longlast must provide

Every sale or lease by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty of merchantability.

Olga,a salesperson for Pre-owned Cars & Trucks,Inc.,tells Quincy,"This is the best car I've ever seen." This statement is

Pharma Company,Quitox Corporation,and Renal,Inc.,are drug makers.Med Sales Company and National OTC,Inc.,are drug dis?tribu?tors.In a suit against all of these parties in which market-share li?ability is imposed,most likely to be liable are

Neil goes to Oil Shop to change the oil in his car.Pat,the service tech?ni?cian,learns that Neil plans to take a trip and advises the use of a certain type of oil.The oil breaks down during the trip,damaging the car.Neil may recover from Oil Shop for breach of

The majority of states limit the application of strict product liability theory to situations involving personal injuries.