Exam 22: Warranties And Product Liability

Even though a car has an obvious dent in the rear quarter panel,the salesperson tells a potential customer,"This car has never been in an accident." The salesperson's statement creates a valid express warranty.

Crytrin Manufacturing,Inc.contracted with Molfrey,Inc.to manufacture three large pieces of equipment.The contract contained a clause stating that Crytrin agreed to repair or replace any defective equipment,but that was the only remedy Molfry would have.This clause:

The plaintiff,Donald Laird has a bachelor of science degree in animal science,had previously been employed at the university's swine research center,had managed a feed mill,had been employed as a herdsman for Hog Breeders,Incorporated,had worked for five years for Armour & Company at its feeder pig operations,and was a branch manager of the Scribner Co-op,Inc.for 14 years.Laird's assistant manager while at the Co-op was Gary Ruwe.When Laird quit the Co-op,Ruwe became the manager.Later,Laird went to Co-op to purchase some feed ingredients for his hogs.In speaking with Ruwe,Laird learned that the Co-op grain bin was not operating properly and therefore the corn was not drying properly.If the corn does not dry properly,it can collect mold and insects.Laird said he would take 1300 bushels of corn if Ruwe could pull the corn out of the middle of the grain bin.The corn was delivered to Laird where he noticed some damaged corn and an odor that indicated that the corn may have mold.Laird did not reject the shipment,however.Laird then began to feed the corn to his hogs.The boars began to develop pneumonia,began vomiting,and would not eat regularly.When it was time for the sows to farrow,the sows had an abnormally high number of miscarriages and stillborns.The ultimate conclusion was that the corn delivered was tainted with vomitoxins,a toxic substance that made the corn unmarketable as feed.Laird sued the Co-op for breach of the implied warranties of fitness for a particular purpose and merchantability.In order to recover under the warranty of fitness for a particular purpose what does Laird have to prove? What is the implied warranty of merchantability? Does Laird have a successful claim with this warranty?

The economic loss doctrine states that,when the injured party is a corporation and the harm is purely economic,the only remedies available are those under the common law.

Under the UCC,no warranty of title arises unless the contract is in writing.

A merchant seller who would like to exclude the warranty of merchantability can do so by doing which of the following?

Myrtle walks into Hank's Hardware Store and says,"I need metal storage shelves that can hold 500 pounds." Hank directs her to a metal storage shelving system,which Myrtle buys.When Myrtle puts 475 pounds of weight on the shelves,they collapse.Hank's Hardware breached the warranty of merchantability.

Alice's Aspirin Inc.,produces and packages aspirin for sale to retail stores.Bob buys a bottle of Alice's aspirin at Dahl's Food Stores.Two days later Bob's friend,Hank,takes two aspirin while at Bob's house.Within minutes,Hank is very ill and is rushed to the hospital,where it is found that a defect in the aspirin caused the reaction.Which of the following is correct?

Peter purchased a new car from Monster Motors.As he drove away from the dealership in the new car,the steering mechanism failed.Peter lost control of the car and plunged down an embankment.Peter was seriously injured.If Peter sues the car manufacturer under strict liability,what does he have to prove? Will Peter be successful?

Many states prohibit a seller from disclaiming implied warranties in the sale of consumer goods.

The UCC requires sellers to give written warranties.

Van is using his wrench as a hammer when the wrench breaks and a piece flies off,injuring his neighbor who is helping Van change a tire on Van's car.If Van sues the tool manufacturer,its best defense will be:

In order to disclaim a warranty of fitness for a particular purpose,a merchant:

How do the tort theories of negligent product liability and strict product liability differ from each other? List and describe the elements an injured party must establish for recovery under each cause of action.

Which of the following statements could create an express warranty?

Bill is injured while standing on the corner of Hollyhock and Vine when Mia's new Hog speeds out of control because of a defective part.In most jurisdictions,Bill:

The statute of limitations for breach of warranty under the UCC is?

A product liability case may be brought in warranty,negligence,or strict liability,but it must have the element that a person or business has been hurt by goods.

Which of the following is not guaranteed under an implied warranty?

Which of the following would be a breach of the implied warranty of merchantability?