Exam 22: B: Warranties and Product Liability

In most sales,sellers warrant that they have good and valid title to the goods sold.

Promises of fact made during the bargaining process are not express warranties.

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

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?

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.

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

Sellers or lessors are liable only for products that are reasonably dangerous.

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

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.

Goods that are merchantable are fit for any purpose.

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 product liability action may be based on warranty theories.

Woodgrain Products Company and Sylvia enter into a contract for a sale of lumber.Woodgrain knows the purpose for which Sylvia will use the goods.Under the UCC,an implied warranty of fitness of a particular purpose arises

GR8 Skates Company makes and sells a pair of skates to Homer.GR8 fails to exercise "due care" to make the skates safe,and Homer is injured as a result.GR8 is most likely liable for

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

Imported Carpets Store and Jill enter into a contract for a sale of an Oriental rug.Imported Carpets,a merchant who deals in goods of the kind sold,generally describes the goods,details technical specifications,and shows a sample.Under the UCC,if these are inconsistent

An action in strict product liability requires that the product not be in a defective condition when the defendant sells it.

Dependable Appliances,Inc. ,and Elain enter into a contract for a sale of kitchen appliances.Dependable,a merchant who deals in goods of the kind sold,notes that its goods come with an implied warranty of merchantability.Under the UCC,this means that the goods are reasonably

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