Exam 17: Warranties and Product Liability

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

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

Open Country,Inc.,makes grills,camp ovens,and other outdoor cooking appliances.Under the Restatement (Third)of Torts: Products Liability,Open Country could be liable for a warning defect if there is a foreseeable risk of harm posed by one of its products and

Sweet Candy,Inc.,and Tasty Treats Stores enter into a contract for a sale of candy.Sweet,a merchant who deals in goods of the kind sold,makes express warranties in connection with the sale.Under the UCC,at the time a contract is formed,an express warranty can be disclaimed or modified

Farm Equip,Inc.,makes farming machinery.Gail discovers that her Farm Equip tractor is defective and sues the maker for product liability based on negligence.To win,Gail must show that

ValuRich Tools,Inc.,sells tools,tool parts,and related supplies under "full" warranties.Under the Magnuson-Moss Warranty Act,this means that ValuRich must provide

A warranty against infringement is a promise by the seller that the product was constructed in a workmanlike manner.

Bob is shopping in Carl's Hardware Store when a nail gun in use by Dan,one of Carl's employees,fires without warning and hits Bob in the leg.Carl checks the gun and discovers that it was assembled improperly.Bob files a suit against Eagle Tools,Inc.,the manufacturer of the gun,for product liability,on the ground of strict liability.What are the elements for an action based on strict liability? In whose favor is the court likely to rule and why?

Strict liability applies to the suppliers of component parts.

Only a statement made after a contract is entered into can be an express warranty.

Fact Pattern 17-1 (Questions 17-18 apply) Bret, a representative of Concrete Products, Inc. assures Dependable Construction Company (DCC) 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 17-1.The court is most likely to rule in favor of

Express warranties displace all inconsistent implied warranties.

A product liability action may be based on warranty theory.

City Car 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,a warranty of title arises

Good Tire Company and Hiway Auto Service enter into a contract for a sale of tires.Good Tire is a merchant who deals in goods of the kind sold.Under the UCC,an implied warranty of merchantability arises

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

A seller must use words such as "warrant" to make an express warranty.

Trucks & Trailers,Inc.(T&T),and United Delivery Service enter into a contract for a lease of trucks.T&T is a merchant who deals in goods of the kind leased.Under the UCC,an implied warranty of merchantability arises

Horizon Corporation makes cell phones.Inez files a product liability suit against Horizon,alleging a design defect.Under the Restatement (Third)of Torts: Products Liability,in deciding whether to hold Horizon liable,the court may consider

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