Chapter 20: Warranties and Products Liability

Breach of warranty

3 Legal Theories for Recovery:

____ of ____- express/implied. Express and implied warranties

Negligence

3 Legal Theories for Recovery:

_____- but must prove all elements, which can be hard. Not ideal for proving products liability

strict liability

3 Legal Theories for Recovery:

____ _____- Like negligence but the standard of proof/elements are much less

• As long as the product is defective, there is not a requirement to prove that anyone in the chain of sale breached duty.

disclaimed

In some cases, warranties can be _____ (that is, the parties can say they do not apply)

express warranty

____ ____- originate from the words and actions of the seller

Implied warranty of merchantability

___ ____ of merchantability - applies if:

The item must be “merchantable = fit for the ordinary purpose for which such goods are used.

1. Contract for the sale of goods, and

2. Seller is a “merchant” i.e., makes living selling this particular item.

implied warranty of fitness for a particular purpose

Implied warranty of ____ for a ____ ____

Applies if:

1. Seller has reason to know Buyer’s particular purpose

2. Seller has reason to know that Buyer is relying upon the Seller’s skill or judgement to furnish appropriate goods;

3. Buyer must, in fact, reasonably rely upon the Seller’s skill or judgement;

4. The goods are not, in fact, fit for the purpose intended by the Buyer

sales contract

Warranty disclaimers are most often done in the ___ ____.

express, inconsistent

____ warranties cannot be disclaimed if ____ with the words or conduct that created the express warranty

implied, as is

_____ warranties can be disclaimed “___ ___” or “with all faults”

Design defects

3 types of product defects:

____ ____- inherent danger in that such flaws exist before product is manufactured

manufacturing defects

3 types of product defects:

____ ____- occur during the construction or production of the item; only some products in batch are flawed

defects in marketing

3 types of product defects:

____ in _____- improper instructions and failures to warn consumers of dangers associated with use of the product

very hard, res ipsa loquiter, shifts

Problems with products liability: suing for negligence

• Proving that D manufacturer breached its duty of care by acting unreasonably- in the design or manufacture of a product it is ___ ____ to prove

• But the doctrine of ___ ____ ____ can be helpful in proving negligence

• However, it merely ___ the burden and D can still show that its conduct was reasonable. We still may want P to recover in such a case, even if D acted reasonably

regardless

Strict liability is ____ to prove than negligence. Manufacturers and sellers are held liable ____ of fault.