Ch 24 Flashcards
Theories or liability
-warranties are expressed or implied and can be found in the UCC
-many courts have created the additional concept of strict tort liability for defective goods
-five theories of product liability: express warranty, implied warranty, negligence, fraud, and strict tort liability
nature of harm
a defective product can cause harm to person, property, or economic interests
who is liable in product liability
-who can recover under UCC warranties: in most cases, anyone harmed by a defective product may recover
-who is liable under UCC warranties: injured parties may recover from the seller, manufacturer, or manufacturer of a component part
definition of express warranty
a statement of fact or promise that becomes a basis of the buyer’s bargain
form of express warranty
sufficient that seller asserts a written or oral fact that becomes a basis of the bargain or transaction
seller’s opinion or statement of value
seller is generally not liable for “sales talk” based on opinion, unless a reasonable person would rely on such statements
warranty of conformity to description, sample, or model
when a contract is based on an understanding of conformity, seller is bound by express warranty of confirmation
federal regulation of express warranties
full warranties: seller is obligated to fix or replace a defective product
limited warranties: must be conspicuously described by seller
international product safety laws in US: the consumer product safety improvement act sets product safety standards, mostly for children under 12
effect of breach of express
if an express warranty is false there is a breach and the warrantor is liable
definition of implied warranty
not expressly made but implied by law because a sale has been made
implied warranties of sellers
-warranty of title: seller has the right to transfer the good title - may be disclaimed by words or circumstances
-warranty against encumbrances: goods will be delivered free of any security interest of lien
-warranty of fitness for particular purpose: enforceable only if the seller knew of the intended use and the buyer relied on the seller’s expertise
implied warranties of merchant sellers
-warranty against infringement: unless otherwise agreed, merchant sellers warrant that the goods are free of patent, copyright or trademark infringement
-warranty of merchantability or fitness for normal use: merchant seller warrants that goods are fi for the ordinary purpose for which they something
implied warranties in particular sales
-sale on buyer’s specifications: same warranties as other sales except fitness for a particular purpose
-sale of secondhand or used goods: warranty of merchantability for used goods unless disclaimed. lower standard for what is considered “fit for normal use”
-sale of food or drink: food must be fit for human consumption
necessity of defect
-buyer must show defective product caused harm
-products may be defective due to manufacturing, design, inadequate instructions, or inadequate warnings against product dangers
warranties in the international sale of goods
warranties exist under the convention on contracts for the international sale of goods. sellers can expressly disclaim the warranties
