Study Guide for Products Liability

Introduction to the connection between torts and contracts in the context of products liability, despite the discussion taking place ahead of contracts coverage.
Emphasis on the notion of harm caused by defective products, such as malfunction due to lack of warnings.

Defective Products:
- Harm can result from a product malfunctioning or being misused due to inadequate warnings.
- Negligent Failure to Warn:
- Definition: A failure to provide adequate warnings regarding potential dangers of a product.
- Consequences: Can lead to property damage or physical harm to individuals.

Tort Theories:
- Negligence: Arises when the plaintiff proves that the defendant had a duty of care, breached that duty, and caused damages.
- Strict Liability: Based on proving that a product is unreasonably dangerous and defective.
- Elements that must be proven by the plaintiff for a strict liability case:
  - The product was defective.
  - The defect made the product unreasonably dangerous.
Contract Claims:
- Two Types of contract claims related to products:
- Express Warranties
- Implied Warranties
- These claims can exist simultaneously with tort claims.

Pleading Multiple Theories:
- Plaintiffs may plead multiple theories in their complaint (e.g., express/implied warranty claims alongside tort claims).
- If they cannot prove all elements of each claim, litigation may involve battles against motions for summary judgment, which can lead to part of the case being dismissed.
Litigation Costs:
- Pleading multiple theories can increase litigation expenses.
- Pure breach of contract cases without an injury component won’t have both tort and contract theories.

Types of Warranties:
- Express Warranties:
- Definition: Clear promises or affirmations made about the quality or performance of goods.
- Can be communicated through:
  - Advertisements
  - Written documents
  - Oral statements
- Example: A warranty stating that a vacuum cleaner is covered for specific problems for a certain duration.
- Implied Warranties:
- Definition: Unwritten, implied promises that the product meets a certain standard.
- Raised automatically in sales by merchants regardless of whether explicitly communicated.
  - Warranty of Merchantability:
  - Implies that the product will meet the reasonable expectations of a consumer.
  - Example: If a t-shirt breaks immediately after purchase, it may breach the warranty of merchantability.
  - Warranty of Fitness for a Particular Purpose:
  - Applies when the seller knows the buyer's specific requirements, and the buyer relies on the seller's expertise.
  - Distinction: This warranty can apply to both merchants and non merchants.
  - Example: A non-merchant selling a bicycle that must meet specific conditions for a race, given proper context and reliance by the buyer.

UCC Overview:
- Governs the sale of goods throughout the U.S.
- Defines goods broadly to include tangible, movable personal property.
- Not applicable to services or real estate sales.
Merchants:
- Defined as individuals regularly engaged in selling specific goods.
- Example: Amazon as a merchant to the widespread variety, shoe stores primarily selling footwear.
Key UCC Concepts:
- Course of Dealing: The habitual way parties interact in transactions, which influences expectations.
- Usage of Trade: Standards of interaction based on industry practices or geographical norms.
- Unconscionability: Imposes fairness standards in contracts and includes a duty of good faith among merchants.

Creation of Express Warranties:
- Affirmations or descriptions of goods establish express warranties.
- An express warranty requires a statement about:
- Quality
- Durability
- Effectiveness
- Distinction between express warranties and mere product descriptions; the latter does not qualify as a warranty.
- Puffery, or exaggerated marketing claims, is generally not enforceable as express warranties.

Brief note indicating the transition to discussions on contracts in the next module, ending the products liability review.