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. | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 4 Formation and Terms of Sales Contracts Product Liability Performance of Sales Contracts Remedies for Breach of Sales Contracts Sales P A R T 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 (co-written with Samuel Crowther, 1922) Learning Objectives 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 Product liability law is partly grounded in contract law and partly grounded in tort law Contract theories are based on an express or implied warranty Tort theories are based on arguments of negligence or strict liability . | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 4 Formation and Terms of Sales Contracts Product Liability Performance of Sales Contracts Remedies for Breach of Sales Contracts Sales P A R T 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 (co-written with Samuel Crowther, 1922) Learning Objectives 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 Product liability law is partly grounded in contract law and partly grounded in tort law Contract theories are based on an express or implied warranty Tort theories are based on arguments of negligence or strict liability Product Liability Theories UCC 2–313(1): express warranty may be created in any of three ways: 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 Express Warranty Two other express warranties: 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 Express Warranty Implied warranties are created by operation of law rather than seller’s express statements Warranty of merchantability [UCC 2-314(1)] Seller must be a merchant in the goods of the kind sold Warranty of fitness for a particular purpose [UCC section 2–315] Seller must know the goods are to be used for special purpose Implied Warranties In implied warranty .
