WEEK 11.docx - COURSE BADM537-40 Legal Ethical and Social...

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COURSE: BADM537-40 Legal, Ethical, and Social Environment WEEK 11 Chapter 13 Product advertising and liability discusses the unique area of law where product lability is a combination of contract law, tort law, and social responsibility. Development of product liability started with courts following the principle of caveat emptor- “let the buyer beware.” This theory explained that sellers were not liable for defects in their products. It was buyer’s responsibility to be alert for defects and take appropriate precautions. The Restatement of torts allowed the area of product liability from no liability to liability of defective products. Advertising and product liability- An express warranty provided in the Uniform Commercial Code (UCC) is an express promise by the seller for the quality, abilities, or performance of a product. A warranty is granted by displaying a sample or model. Advertisements are one of the forms of express warranties. Moreover, statements made by the seller before the sale that form the grounds for the sale or bargain are express warranties.

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