Take Note Week 8 and 9_Notes - Mar. 24 - Mar. 28 Lecture 1...

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Mar. 24 - Mar. 28 Lecture 1 of 2 WEEK 9 1. Today we'll begin our discussion of product liability. I. The public policy of product liability requires courts to balance the rights of business and consumers. J. Product liability means civil liability for damages caused by a defective product, where a product is broadly defined as anything processed by human enterprise. B. Every single party in the supply chain can be potentially liable. C. Anyone whose use of the product is reasonably foreseeable can be a plaintiff. D. Median product liability judgments are about $400 , 000 and about 1 / 3 of plaintiff's suits are successful (not counting settlements). E. Contractual privit y is no longer required; people other than the purchaser can be plaintiffs. F. There are two theories of recovery. 1. The contract basis covers express and implied warranties. 2. The tort basis covers negligence and strict liability. The purchase of most goods will be covered by the UCC and our contract theory of recovery originates there. A. Warranties are promises regarding the quality or characteristics of a product being sold . , B . The UCC §2-3l8 has three different consumer protection options which are used in different jurisdictions: 1. Family and members of the buyer ' s household or his guests are protected if their use is reasonably foreseeable. 2. Any natural person is protected if their use is reasonably foreseeable. 3. Any legal person (including corporations) is protected if their use is reasonably foreseeable .
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2. 3. 4. Mar. 24 - Mar. 28 Lecture 1 of 2 The U C C has three different types of warranties , listed in Appendix B of the textbook . A. UCC §2-313 covers express warranties. 1. These warranties are explicitly stated representations made by the seller to the buyer about certain characteristics or qualities of the product . 2. Where do you draw the line between a warranty and sales "puffing"? a) The seller's observations or opinions (as recognized by a reasonable person) do not constitute a warranty if they are not the basis of the bargain. a) If the buyer relies on claims made by the seller, this is evidence of an express warranty; esp. in situations where the seller has greater knowledge of the product than the buyer . 3. Proving a breach of this warranty requires the buyer to prove that he relled on representations that the seller made and that his injury was caused by the product's failure to measure up to those representations. 3. In Felley v. Singleton, a seller of a used car claimed his vehicle was in "good mechanical condition." a) The clutch failed several days after purchase , so the buyer sued the seller . b) The defendant argued that he had never had any problems with the car and was only speaking based on his experience . a)
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This note was uploaded on 02/20/2009 for the course AEM 3210 taught by Professor Grossman,da during the Spring '07 term at Cornell University (Engineering School).

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Take Note Week 8 and 9_Notes - Mar. 24 - Mar. 28 Lecture 1...

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