Exam 23: Warranties and Product Liability

Country Style, Inc., makes landscaping tools. Under the Restatement (Third) of Torts: Products Liability, Country could be liable for a warning defect if there is a foreseeable risk of harm posed by a product and

An implied warranty of merchantability arises in every sale or lease by a merchant who deals in goods of the kind sold or leased.

Regional Lumber Company and Superior Builders Corporation enter into a contract for a sale of wood products. Regional, a merchant who deals in goods of the kind sold, makes implied and express warranties in connection with the sale. Under the UCC, if these are inconsistent

To support the imposition of strict product liability, a product must be substantially changed from the time it is sold to the time an injury occurs.

Ceramic Tile Company designs and makes floor tiles. In a product liability suit based on negligence, Ceramic could be liable for vio?lating its duty of care with respect to

Safe-Rite Company makes electrical cords and other connectors for elec?tronic devices. Tina files a product liability suit against Safe-Rite, alleg?ing a warning defect. Under the Restate?ment (Third) of Torts: Products Liability, in deciding whether to hold Safe-Rite liable, the court may consider

Fact Pattern 23-A1 Bret, a representative of Concrete Products, Inc. assures Dependable Construction Company that Concrete's cement will not crack within a certain range of temperatures. DCC uses the product. When cracks develop within the stated temperature range, DCC files a suit against Concrete. -Refer to Fact Pattern 23-A1. The court is most likely to rule in favor of

Alpha Company, Beta Corporation, and Gamma, Inc., are drug makers. Kappa Company and Omega, 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

General Construction Company (GCC) tells Industrial Supplies, Inc., that it needs an adhesive to do a particular job. Industrial provides a five-gallon bucket of a certain brand. When it does not perform to GCC's speci?fications, GCC sues Industrial, which claims, "We didn't expressly promise anything." What should GCC argue?

Warranties of title do not arise in most sales contracts.

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?

Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers. Merchant assures National that it has valid title to the goods. Under the UCC, a warranty of title arises

A product is not so unreasonably dangerous as to support the imposition of liability in a strict product liability suit solely because a less dangerous alternative was commercially feasible but was not produced.

Express warranties displace all inconsistent implied warranties.

A contract can contain both an implied warranty and an express warranty.

The Magnuson-Moss Warranty Act modifies UCC warranty rules to some extent in consumer transactions.

Advertisements can include express warranties.

Oceanic Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Oceanic is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached

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

In many states, the plaintiff's negligence is a defense that may be raised in a product liability suit based on strict liability.