11Unit 5 TortsProducts LiabilityARE 3062Products Liability• Defective design/manufacture• Strict liability or negligence– Strict liability not available in N.C.3Products Liability (continued)• Express warranties– Subject to negotiation– Interpretation• Usage of the trade• Course of dealing24Products Liability (continued)• Implied warranty of merchantability– Must be expressly disclaimed– Generally acceptable to trade5Products Liability (continued)• Implied warranty of fitness for a particular purpose– Communicated directly– Implied by circumstances6Products Liability (continued)• Defenses– Privity of contract• Extended to family/household/guests– “as is” language– Obvious defects37Products Liability (continued)• Standard– Negligence– Strict liability8Time• Statute of
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