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Unformatted text preview: GB 202 LEGAL ENVIRONMENT OF BUSINESS EXAM 3 REVIEW CHECKLIST Chapter 13 definition of warranty : A promise that the goods are the quality indicated. express warranty : A warranty that is expressed in written or verbal form, or by use of a sample or model. implied warranties : Apply to sales of goods in certain situations and give purchasers important rights. merchantability : The implied warranty given to a purchaser by a merchant – that the item is fit for its ordinary use.- Of fair average quality- Adequately contained and packaged- Would pass without objection in the trade fitness for a particular purpose : the implied warranty given when the buyer needs the item for some particular (not regular) purpose and relies on the seller to furnish such an item. who may enforce warranties (privity) : When two parties have contract with each other. This concept is no longer very important in warranty cases. product liability theory : negligence : strict liability : A legal theory that allows a person injured by a defective product to win a lawsuit against the manufacturer without proving “fault” or lack of due care. strict liability (elements) “tort”: 1. Product was defective 2. Product was unreasonably dangerous 3. Seller was in “business” of selling these products 4. Product reached the consumer without alteration in the distribution chain. definition of a defective product: crashworthiness doctrine: The duty of vehicle manufacturers to build cars, trucks, and motorcycles that do not enhance or worsen the injuries of persons when involved in accidents. defenses to strict liability: Statute of Repose: An outer limit on how many years after a product was manufactured that the maker could be held liable for a defect. misuse: When someone uses a product in a way that the manufacturer could not have reasonably foreseen. assumption of the risk: A common law defense against a personal injury claim that states when an employee knows an activity is dangerous but continues, he/she cannot collect damages. state of the art defense: A defense to liability recognized in some states, if the product was made using the best methods then available. buyer’s & seller’s rights & remedies under the UCC: • Buyer: o Buyer may rightfully reject the goods delivered, or cancel the contract if seller fails to make delivery or repudiates the contract. o Buyer may also cover (purchase substitute goods), recover damages for non-delivery, recover certain goods still held by seller or obtain specific performance. • Seller: o If the buyer wrongfully refuses to accept the goods, the seller can sell the goods and then sue the buyer for any loss. (Resell) o The seller who delivers non-conforming goods to the buyer can correct the deficiency of the contract time limit has not expired. (Cure) Chapters 14 & 16 types of freehold estates: • Freehold Estate : An ownership interest lasting at least for one’s life....
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This note was uploaded on 03/07/2012 for the course GEN BUS 202 taught by Professor Parks during the Fall '11 term at Boise State.
- Fall '11