Chapter 20 - Product liability. Learning objectives of this chapter include: Explain what is required to create an express or implied warranty, identify major categories of product liability claims based in negligence, differentiate strict liability claims from those based on negligence theory, describe the role of comparative negligence. | Sales Formation & Terms Product Liability Performance of Sales Contracts Remedies for Breach of Sales Contracts 4 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Product Liability P A E T R H C 20 “A manufacturer is not through with his customer when a sale is completed. He has then only started with his customer.” Henry Ford, founder of Ford Motor Company, in My Life and Work (cowritten with Samuel Crowther, 1922) Learning Objectives Evolution of product liability law Theories of product liability recovery: Express warranty, implied warranties, negligence, strict liability Other theories of recovery Time limitations, disclaimers, defenses Damages 20 - Express warranty created in three ways: If affirmation of fact or promise about goods becomes part of the basis of the bargain A description of the goods that becomes part of the bargain warrants that goods will conform to description A sample or model of goods warrants that goods . | Sales Formation & Terms Product Liability Performance of Sales Contracts Remedies for Breach of Sales Contracts 4 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Product Liability P A E T R H C 20 “A manufacturer is not through with his customer when a sale is completed. He has then only started with his customer.” Henry Ford, founder of Ford Motor Company, in My Life and Work (cowritten with Samuel Crowther, 1922) Learning Objectives Evolution of product liability law Theories of product liability recovery: Express warranty, implied warranties, negligence, strict liability Other theories of recovery Time limitations, disclaimers, defenses Damages 20 - Express warranty created in three ways: If affirmation of fact or promise about goods becomes part of the basis of the bargain A description of the goods that becomes part of the bargain warrants that goods will conform to description A sample or model of goods warrants that goods will conform to sample Express Warranty 20 - UCC 2–313(1) applies to express warranty Felley v. Singleton: Felley bought a used car from the Singletons based on statement of “good mechanical condition” Car actually was in poor condition Court: “In the context of a used car sale, representations by the seller such as the car is ‘in good mechanical condition’ are presumed to be affirmations of fact that become part of the basis of the bargain If affirmation of fact or promise about goods becomes part of the basis of the bargain Statements of value or opinion and sales puffery do not constitute a warranty Advertisements may contain statements of warranty as well as sales puffery A description of the goods that becomes part of the bargain creates an express warranty that the goods will conform to description A sample or model of goods to be sold creates an express warranty that goods will conform to sample Implied warranties are created by operation of law rather than seller’s express .
