10/17/13 Flashcards
What are the 3 theories to sue?
1) Warranty theory
2) Negligence
3) Strict product liability
What is a merchant?
One who regularly deals in goods of a particular kind and who represents themselves as having special knowledge/skills/expertise pertaining to those goods (manufacturers, wholesalers/distributors, retailers)
What is the warranty law?
In virtually every contract for the sale of goods, there is any one or a combination of warranty laws
What are the warranty laws?
1) Implied warranty and merchantability
2) Implied warranty of fitness for a particular use/purpose
3) Warranty against encumbrances
4) Express warranties
5) Warranty of title
What is implied warranty and merchantability?
Can only be given by a merchant; satisfy qualitatively the ordinary intended purpose for which they are sold; food and beverage are covered; caviat emptor: let the buyer beware
What is implied warranty of fitness for a particular use?
Can be given either by a merchant or non-merchant; goods are also going to be appropriate for someone’s particular needs & purposes
What is warranty against encumbrances?
Goods being sold to the buyer are going to be free of any legal encumbrances (impediments)
What are express warranties?
Affirmation of fact regarding the product (generally appear in some form of the media: catalogue, paper,…) -> Seller is in breach of an express warranty if product does not look what it’s supposed to look like
What is a warranty of title?
Seller is transferring valid and legal title of goods to buyer (can’t be waived/disclaimed)
What are defenses that relieve seller of liability?
1) assumption of the risk
2) unforeseen misuse of the product
3) failure to give timely notice to each potential defendant
4) statute of limitations
5) Government contractor’s defense
What is assumption of the risk?
Someone voluntarily and unreasonably uses the product in a way for which it was not intended
What is unforeseen misuse of the product?
Product must be made safe for its unintended, though foreseeable use
What do you have to show?
Direct privety of contract (direct legal relationship between plaintiff and defendant)
Who can sue under horizontal privety and what is it?
Anyone who reasonably or foreseeably would’ve used a product (resulting in physical injury)
What is vertical privety?
You can sue anyone who had any responsibility for placing those goods in the stream of commerce