Name, name, name, name
Janet Yoon, CEO, Colossal Corporation
Dualplex 360 Case
December 3, 2019
New Brand Design (NBD) is a subsidiary of Colossal
incorporated in Delaware. NBD de
signs and manufactures a popular laptop,
360. Before the product came to market, the R&D
team was aware of a design defect, is that the battery would overheat and ignite if plugged too long to a
power source. Instead of fixing the design, the company decided to accept the potential cost of lawsuits
and included a disclaimer in the manual stating: "DO NOT LEAVE THE DUALPLEX 360 PLUGGED
into A POWER SOURCE AFTER THE BATTERY IS FULLY CHARGED. SELLER EXPLICITLY DIS
CLAIMS ALL WARRANTIES. SELLER MAKES NO WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR USE. NOR IS THERE ANY OTHER EXPRESS OR IMPLIED WAR
RANTY." Many consumers did not read the manual and complained about the overheating issue.
it is foreseeable and reasonable that more injuries and damages will result in the continued sale and use of
Will NBD be held liable for the overheating laptops, resulting in injuries and property damages?
Product liability is derived from tort law (Torts §402A). Products liability refers to the liability of
any or all entity involved in the chain of manufacture of any product for damage caused by that product.
This chain includes the manufacturer, distributor, and retailer. Products containing inherent defects that
cause harm to a consumer (or someone to whom the product was loaned, gifted, etc.) of the product
would be the subjects of products liability suits.
This situation also deals heavily with the concepts of express warranties, as well as implied
warranties for both fitness and merchantability.
All three of these areas are also covered within the
Dualplex 360 Case