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Lecture Three - L AW 525 L aw of t he M ar ket place Class...

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LAW 525 – Law of the Marketplace Class Three Tuesday, September 16, 2008 Dr. Kernaghan Webb School of Business Management Faculty of Business Ryerson University
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Last week – constitutional law Constitutional law and the business- consumer market relationship: Constitutional Act, 1867 (division of powers) and Charter of Rights and Freedoms aspects Began discussion of court decisions: Videoflicks, Hy and Zels, I mperial Tobacco, Labatt’s Lite, General Motors, Cosman’s Furniture, Canadian Western Bank, I rwin Toy
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This week Finish constitutional law of the marketplace Then discuss product liability Products Liability Litigation – recent developments Regulatory law of post-sale notice and product recalls in Canada Hazardous Products Act , Reference Manual, and Quick Reference Guide Ontario Sale of Goods Act Resch/Canadian Tire case Toy Magnets article
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Product Liability -- Basic questions What is product liability law? What responsibilities do the federal and provincial governments have re: product liability? What types of product liability law are there? How is product liability law relevant to business-consumer relations? How can businesses apply product liability law as part of risk
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Product Liability – more questions When do product liability issues arise? What happens when multiple parties are responsible for liability issues? What role does common law play? What role does contract law play? What role does tort law play? What role does regulatory law play? What role does government play?
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Eizinga/Peerless -Products Liability Litigation: Recent developments Product liability can be framed in either contract or tort Product liability in contract – express or implied warranties Product liability arising out of statutory causes of action, manufacturing defect, defective design, and failure to warn Choosing the right defendants Choosing the right plaintiffs Choosing the right procedure
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E/P–product liability in contract law can arise out of express or implied warranties made by the vendor of the product. Sale of Goods Act stipulates implied warranty, referring to product’s merchantability and its general fitness for purpose: restricts circumstances in which implied warranties may be used to impose liability (e.g., if buyer has conducted an inspection of the product which ought to have revealed the defect). Actions can only arise where all parties involved in the lawsuit were privy to the contract.
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E/P: Product liability can arise out of: Statutory causes of action Manufacturing defect Defective product design duty to warn
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E/P: Statutory Cause of Action: Fitness for purpose
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