evidence regarding the alleged defect in Hot Tamale Given the mix of explicit

Evidence regarding the alleged defect in hot tamale

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evidence regarding the alleged defect in Hot Tamale Given the mix of explicit and implicit representations that Hot Tamales are safe to consume, a jury could reasonably believe that the Hot Tamale at issue did not satisfy a reasonable consumer’s expectations Economic Loss Doctrine Adopted in many jurisdictions to draw a strong line between tort liability and contract liability and it has important ramifications for products liability law Prohibits plaintiffs from recovering in tort economic losses which flow from a breach of contract RED ROSE TRANSIT AUTH. V. NORTH AMERICAN BUS INDUS. Issue: does the Economic Loss Doctrine apply? Plaintiff (Red Rose) purchased a large bus that eventually burned up due to a short in the electrical system damaging his garage and the other busses in it Ruling: Plaintiff’s negligence and strict liability claims are dismissed Plaintiff sued for negligence, strict liability, and breach of warranty Defendant moved to dismiss strict liability and negligence theories based on the economic loss doctrine
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Application/Conclusion: court held that the economic loss doctrine would apply to all types of claims for product failure, and that a manufacturer in a commercial relationship had NO duty under either negligence or strict product-liability theory to prevent a product from injuring itself Plaintiffs argument that the economic loss doctrine should give way to tort remedies based on the nature of the alleged contract violation is also meritless Cant claim that it is property damage bc this would enable manufacturers to structure their business behavior Restatement (Third) of Torts: Products Liability Alleged product defects sorted into three categories: Manufacturing defects Courts use “consumer expectation test” Imposes liability whenever product “departs from intended design even though all possible care was exercised” Product manufactured wrong (put together wrong) Design defects Replaces strict liability with an explicit negligence standard and requires plaintiffs to demonstrate the availability of a reasonable alternative design to show that defendant acted unreasonably in not adopting that alternative designs (rejects consumer expectation test) Designed wrong (pinto) EX) alleging that a machine should have featured a safety device that its design omitted Courts use “risk/utility” Test: plaintiffs are required to demonstrate that the foreseeable risks presented by the product’s current design outweigh the design’s utility EX) lawnmower without a blade would be safe but would not cut much grass Reintroduces negligence factors into its calculation Inadequate warnings Used wrong because the instructions didn’t warn against it Imposes a negligence standard providing that a product is defective because of inadequate instructions or warnings when the foreseeable risks of the product could have been avoided Judicial disagreements on this and other strict liability issues led the American Law Institute to
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  • Spring '08
  • Baker
  • Contract Law, Implied warranty, Product liability

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