law3800 notes - Chapter 21 Study Slides Product Liability...

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Chapter 21 Study Slides Product Liability Arising From Warranty under the UCC What is an “express” warranty? A warranty that the seller creates with his words or actions. §2-313: Express Warranties by Affirmation, Promise, Description, Sample. §2-314: Implied Warranty: Merchantability; Usage of Trade. §2-315: Implied Warranty: Fitness for Particular Purpose. §2-316: Exclusion or Modification of Warranties. List 3 ways you can make an express warranty under 2-313: 1. Sample of product. Give a sample and product must be equal to sample. 2. Affirmation of fact 3. Description- if I say stainless steel, it must be stainless steel. Implied Warranties Explain an implied warranty of merchantability 2-314: Unless excluded or modified, a warranty that the goods shall be merchantable is implied in a contract for their sale, if the seller is a merchant with respect to goods of that kind. Seller must be merchant; Buyer or sellers agree otherwise, there is a warranty. Explain an implied warranty of fitness for a particular purpose 2-315: When the seller at the time of contracting knows about a particular purpose for which the buyer wants the goods, and knows that the buyer is relying on the seller’s skill or judgment, there is (unless excluded or modified) an implied warrant that the goods shall be fit for the purpose. Can you disclaim an expressed warranty 2-316? No. Why? Because it is deceptive and you would be in conflict. Can you disclaim implied warranties 2-316? Yes. How? Can you limit or exclude Consequential damages? Is there any exception? Yes, and it is a good idea; it helps to cover your ass. What is Privity of Contract? If you are part of the contract, then you are in privity. When 2 parties contract, they are in privity.
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How does Privity affect: A personal injury claim? When a product causes a personal injury, most states permit a warranty suit even without privity. A consumer products claim? If buyer suffers economic loss, privity may still be required to bring suit for breach of warranty. If the buyer is a business, the majority of states require privity. Requirements for Strict Product Liability – if you engage in activity and somebody gets hurt, you are liable. 1. Defective when sold it was broken/defective when I bought it, I didn't break it. 2. Defendant in the business of selling or distributing the product. They must be a legitimate seller of the goods. 3. Unreasonable dangerous to user because of defective condition. 4. Physical harm to Plaintiff as a result of use. Must be physical harm, not emotional/psychological harm. 5. Defect must be proximate cause of injury. Must be a cause and effect between defect and injury. 6. No changes or modifications made to product since sale. If you modify the product after the sale to cause a defect or danger to the product, you have no standing. This will almost always void the warranty.
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