Chapter23 - CHAPTER 23 WARRANTIES AND PRODUCT LIABILITY...

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183 C HAPTER 23 W ARRANTIES AND P RODUCT L IABILITY A NSWERS TO C RITICAL A NALYSIS Q UESTIONS IN THE F EATURE EMERGING TRENDS FOR CRITICAL ANALYSIS QUESTION 1 (PAGE 471) Do you agree that the CAFA will be effective in curtailing frivolous lawsuits? What other methods can you suggest to stop plaintiffs from filing suits that have no merit? Yes, because it curtails the ability of plaintiffs to litigate such suits. No, because, as noted in the feature, product liability actions may still be tried in state courts. The CAFA only applies to class actions in which the plaintiffs seek damages of $5 million or more. To reduce the number of such suits further, Congress might lower the dollar amount or narrow the theories under which the suits can be brought. EMERGING TRENDS FOR CRITICAL ANALYSIS QUESTION 2 (PAGE 471) Critics of the CAFA argue that the legislation deprive Americans of ―their day in court‖ when they are wronged by powerful corporations. Under what circumstances could this criticism be justified? This criticism would be justified if CAFA ultimately curtails the ability of plaintiffs to litigate such suits. As noted in the feature, however, product liability actions may still be tried in state courts. The CAFA only applies to class actions in which the plaintiffs seek damages of $5 million or more. To reduce the number of such suits further, Congress would need to lower the dollar amount or narrow the theories under which the suits can be brought. A NSWERS TO Q UESTIONS AT THE E NDS OF THE C ASES CASE 23.1 (PAGE 462) THE ETHICAL DIMENSION Should Shoop’s trade -in of the Dakota preclude his recovery in this case? Why or why not? DaimlerChrysler made this argument in Shoop‘s case. The court disagreed, however, and explained, ―The buyer's damages for breach of war ranty are not lessened because the buyer has resold the goods at an enhanced price. Had the goods
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184 UNIT FOUR: DOMESTIC AND INTERNATIONAL SALES AND LEASE CONTRACTS been as warranted, they might have been resold at a still higher price.‖ Furthermore, it should not matter whether ―the goods were actually worth the price fo r which they were resold. Whether the price received on a resale is evidence of the value of the goods at the time of the breach is another question.‖ THE LEGAL ENVIRONMENT DIMENSION If Shoop is allowed to recover damages for breach of warranty, what should be the measure of those damages? Under UCC 2 714(2), the measure of damages for breach of warranty when the buyer has accepted goods and given notice is the difference at the time and place of acceptance between the value of the goods accepted and the value they would have if they had been as warranted. In other words, the damages in this case should be measured as of the date that Shoop bought the truck. The court in Shoop‘s case acknowledged, however, that ―an award should not put a
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Chapter23 - CHAPTER 23 WARRANTIES AND PRODUCT LIABILITY...

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