Download Product Liability Law: Function, Warranties, and Strict Liability - Prof. John Cates and more Study notes Business and Labour Law in PDF only on Docsity! Sales and Products Liability BLS 211 Function of Product Liability Law 1. Distribution and allocation of losses 2. The person who suffered the loss • Industrial Revolution • Railroad building • Mining and manufacturing 3. Privity of contract Implied Warranty of Title 1. Automatically arises in most commercial sales transactions. 2. UCC-312 creates 3 warranties: Good Title. No Liens. No Infringements. 3. Disclaimer of Title warranty can generally be disclaimed only with specific language in contract. – Circumstances may be obvious to clearly indicate disclaimer of title, such as a sheriff’s sale. Implied Warranty of Merchantability 1. Made by a merchant. 2. Warrants that goods are fit for their ordinary purpose. Adequately packaged and labeled Conform to promises on label. Consistent quality and quantity among commercial units. 3. Product must be unmerchantable, or not fit for its ordinary purpose. 4. Plaintiff must give notice to the defendant of a breach of this warranty. 5. This is a good warranty for purchasers of defective products. Implied Warranty of Fitness for a Particular Purpose 1. Defendant, not necessarily a merchant, sold the product to plaintiff. 2. Defendant knew or should have known plaintiff had a particular purpose for the goods. 3. Defendant knew that plaintiff was relying on his skill and judgment to select or furnish the goods. 4. Plaintiff used the goods for the particular purpose. 5. The goods were not reasonably fit for that particular purpose. 6. Plaintiff must give notice to the defendant of the breach. 7. This can be a good warranty in certain situation. Magnuson-Moss Warranty Act Federal warranty statute Requires written warranties to be “full” or “limited.” “Full” warranties - Don’t limit implied warranties. Warranty service is free. requires full refund or replacement, at consumer’s discretion, in a reasonable time if repairs can’t be made. Strict Product Liability 1. Product sold in a defective condition. 2. Defendant engaged in manufacturing or sale of the product. 3. Product is unreasonably dangerous to the user or consumer because of its defective condition. Defect can be a product or manufacturing defect, or a design defect. A “user” can be anyone effected by the product. 4. Proximate cause. 5. The product has not been substantially altered since leaving the manufacturer. 6. If there are dangers from a product, then the manufacturer must warn about possible dangers that are not obvious. 7. Drug cases. 8. Grimshaw v. Ford – Ford Pinto case; expert witness allowed to testify who was fired for advocating greater safety; film showing exploding Pinto allowed; cost of minor repair considered and rejected Strict Product Liability Defenses 1. Assumption of the risk. 2. Comparative negligence 3. Misuse of the product
