Jentz 11e-IM-Ch23 - Chapter23 Title BusLawSeal.eps Creator...

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Chapter 23 Warranties and Product Liability    See Separate Lecture Outline System I NTRODUCTION At one time,  caveat emptor  (“let the buyer beware”) was the philosophy in sales contract law. This was a realistic approach when buyers and sellers were equally capable of judging the quality of the goods that were the subjects of their bargains. Today, however, it is likely that a buyer does not comprehend what is behind the goods he or she buys, including the risks and their assumption. Thus,   caveat emptor   was replaced with a consumer-oriented approach. A warranty now covers most goods. The term   warranty  is synonymous with the term  promise .  Breaching a warranty has the same consequences as breaching any contractual promise. This chapter also discusses product liability, according to which manufacturers and other sellers can be held liable to consumers, users, and bystanders for physical harm or property damage that is caused by the goods.  Product liability encompasses the contract theory of warranty and tort theories of negligence, misrep- resentation, and strict liability.   Under a warranty theory, an injured party can recover from a seller on a showing that an injury was a result of goods not being fit for ordinary purposes.  The main difference between the theories of strict liability and negligence is the lesser burden of proof under the former.  Under a theory of negligence, an injured party must show that a manufacturer, for example, did not exercise ordinary care. 191
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192           INSTRUCTOR’S MANUAL TO ACCOMPANY  BUSINESS LAW , ELEVENTH EDITION Under a theory of strict liability, that showing is not necessary (although injury and causation must still be proved).  This different burden of proof makes it easier for injured plaintiffs to recover and makes manufac- turers and other sellers virtual insurers of their products. A DDITIONAL  R ESOURCES A UDIO  & V IDEO  S UPPLEMENTS The following  audio and video supplements  relate to topics discussed in this chapter— PowerPoint Slides To highlight some of this chapter’s key points, you might use the Lecture Review PowerPoint slides compiled for Chapter 23. Drama of the Law Video No. 8, entitled “Warranties,” illustrates—in a supermarket setting—the nature of warranties made by a merchant in the sale of food products.  See the  Instructor’s Manual  for  The Drama of the Law, pages 61-66 (Script) and pages 67-70 (Teaching Points of Law).
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  • Fall '09
  • Gough
  • Business Law, ........., Implied warranty

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