MT 2 Cheat Sheet

MT 2 Cheat Sheet - Tort Reform applies to insurance system...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Tort Reform applies to insurance system o Recent t rends in: Gre ate r imp osit ion of stri ct liab ilit y Incr eas e fre q. & size of pun itiv e da ma ge Incr eas es in aw ard s for non eco no mic har ms suc h as pai n & suff eri ng o Greatest trend: I ncrease in price & diminish the availability of liability in insurance. Busi nes s can acq uir e ins ura nce , but at a pric e tha t can t be pas sed ont o con su me rs Imp ede s abil ity to ma ke ne w pro duc ts tha t res ult in hug e aw ard s for inj ure d PL TFs o Reform occurs in two strategies: Limi tin g def end ant s tort liab ilit y (PL TF s abil ity to obt ain a jud gm ent ) Limi tin g da ma ges PL TFs rec ove r upo n jud gm ent Ch. 20 Product Liability Warranty: An express or implied promise about the nature of the product sold. o Warranty Cases: PLTFs claim product fails sellers promise o Tort Cases: PLTFs argue that defendant was negligent or that strict liability to apply. Express Warranty: UCC Section 2-313(1) o I f an affi rmation of fact or promise regarding goods becomes part of the basis of bargain. o Any description of the goods becomes part of the basis of the bargain Stat em ent s of bra nd, typ e or mo del Adje ctiv es cha rac teri zin g pro duc t (sh att er- pro of gla ss) Dra win gs, blu epr ints , tec h. spe cs o Sample or Model Statements of value or opinion dont create express warranty. Including sales talk or puffery. Basis of Bargain Requirement: UCC requires that the affirmation, promise, description, or sample or model have become pa rt of the basis of bargain in order for an express warranty to be created. Ads may express statements that express wa r ranty , but they may also be sales talk. Multiple Express Warranty: UCC Section 2-317: o Such warranties should be read a consistent with each other & as cumulative if this reasonable. If not, parties intention controls. Intention defined as: Exa ct or tec h. spe cs > a sa mp le or mo del Sa mp le > des cri pti ve lan gu age . Implied Warranty of Merchantability o I mplied Warranty: Operation of law rather than the sellers expressed statements o UCC Section 2- 314(1) created the Codes implied wa r ranty of merchantab ility [A] war ran ty tha t the goo ds sha ll be me rch ant abl e is imp lied in a con t ra ct for the ir sal e if the sell er is a me rch ant wit h res pec t to goo ds of tha t kin d. o UCC Section 2- 314(2) states that to be merchantabl e, goods must: Pass wit hou t obj ecti on in the t ra de Be fit for the ord ina ry pu rp ose s for wh ich suc h go ods are use d Be of eve n kin d, qua li ty, & qua ntit y wit hin eac h uni t (cas e, pac kag e, or car ton ) Be con tai ned , pac kag ed, & lab ele d Conf or m to any pro mis es or stat em ent s of fact ma de on the con tai ner or lab el Fair ave rag e qua li ty for fun gibl e goo ds Implied Warranty of Fitness:...
View Full Document

This note was uploaded on 09/07/2011 for the course BMGT 380 taught by Professor Mark during the Fall '08 term at Maryland.

Page1 / 13

MT 2 Cheat Sheet - Tort Reform applies to insurance system...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online