Tort / Business Law Questions Chapter 24

Tort / Business Law Questions Chapter 24 Product Liability: Warranties and Torts The issue in this case is whether or not Maria Gonzalez and/on behalf of Angel would recover in a lawsuit against either Morflow or Robertshaw, alleging defects in the design of the water heater and failure to warn.

The law of strict liability states that one who sells any product in a defective condition unreasonably dangerous to the user or consumer is subject to liability for physical harm caused to the user if the seller is engaged in the business of selling such a product and it is expected to or does reach the customer without substantial change in the condition in which it was sold.

Failure to warn or give adequate directions involving an unreasonably dangerous product may provide grounds for strict liability, even where the product is not defective. In this case, both Morflow and Robertshaw would be potential defendants, because both are engaged in the business of selling such products. However, there is nothing in the facts to indicate that the water heater had a defective design- Angel was scalded as a result of Daniel leaving him alone with the water running.

Although the water heater may be considered as an unreasonably dangerous product, plaintiffs would not be able to recover under the failure to warn. The temperature device had an adequate warning on it, and the heater itself contained a picture of hot water coming from a faucet with word "DANGER" printed above it. In addition, the water heater had an adequate warning statement on it, and a warning also appeared in the Morflow manual. Thus, plaintiffs would not be able to recover. 7.

Avery was incorrect in her assumption that the exclusion of warranties made by the contract were unconscionable. Under the warranty of fitness, sellers are liable for goods found unfit for their intended purpose where the seller knows the particular purpose for which the goods are required and the buyer relies in fact on the seller's skill in supplying the goods. Liability will result under the warranty of merchantability where the goods supplied are not of fair, average quality or are not generally fit for normal use.

In this case, the written contract stated that the refrigerator was sold "as is" and that the warranty of merchantability and all warranties of fitness were excluded, in large capital letter printed just above the line on which Avery signed her name. Under the law, disclaimers for warranties may serve as valid defenses, either orally or in writing, only of the word "merchantability" is used. In this case, Avery was given notification of a proper disclaimer, thus the exclusion was legally binding. 10.

Zogarts defense, that the statements were merely matters of opinion, is not a valid defense. Under the law, failure to warn or give adequate directions regarding an unreasonably dangerous product may provide grounds for strict liability even where the product is not defective. Although the device may have been completely safe, Hauter could argue that the statement that a player could never be struck by the device's golf ball was an inadequate warning. Thus, Hauter would have a potential lawsuit against Zogarts for liability, or at the very least, negligence. 11.

In this case, the seller will be liable based under a warranty of merchantability, but not under a warranty of fitness. Under the warranty of fitness, a seller will be liable for goods found unfit for their intended purpose where the seller knows the particular purpose for which the goods are required and the buyer relies in fact on the seller's skill or judgment in supplying the goods.

In this case, the seller will not be liable under warranty of fitness because the seller did not know of the use to which the buyer intended to put the engine and the buyer had not relied on the seller's skill and judgment in selecting the particular engine. Under the warranty of merchantability, liability will result where the goods are not of fair, average quality or are not generally fir for normal use. In this case, the label.