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UT LEB 320F - Chapter 20

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LEB 320F 1st Edition Lecture 19 Outline of Last Lecture II Discharge a Conditions b Performance c Discharge by Breach d Discharge by agreement e Discharge by operation of law III Interpretation and breach IV Rules V Remedies a Compensatory damages b Mitigation of damages c Nominal damages d Liquidated damages e Specific performance f Injunction Outline of Current Lecture VI Warranties a Express b Implied Warranty of Merchantability c Implied Warranty of Fitness for a Particular Purpose VII Webster v Blue Tea Room VIII Warranty of Title IX Conflicting Overlapping Warranties X Limiting Liability for Breach of Warranty XI Negligence XII Strict Liability XIII Defects XIV Defenses Current Lecture Warranties when employees products harm someone o How hard is it for a consumer to prove a manufacturer s negligence o 3 Theories now available Warranty contract UCC 1 Express do what it says 2 Implied 2 reasonably safe expectation Negligence tort Strict Liability tort o Intersection of contract and tort Express Warranties o Part of the product and or bargain o Slices dices o Statement of writing or model or sample Puffing or warranty Fact v opinion Implied Warranty of Merchantability only applies to Merchants o Applies to merchants in the normal course of business o Not necessarily agreed to o Reasonably fit for purpose sold Peanut butter being safe to eat standard is 5 distinguishable insect parts gallon o Based on role as seller not contract o A state statute puts a term in your contract o Not highest quality reasonably fit o Webster v Blue Tea Room Fish bone in fish chowder Implied Warranty of Fitness for a Particular Purpose o Not limited to merchants but generally o For goods sold to do a certain job Seller must know should have known Mr Dunphy Warranty of Title o What the good of something that you cant own exclude Conflicting Overlapping o 2 or more o Cumulative either all get both or all 3 o Express colliding with implied only get express o Mohasco v Anderson Halverson Corp Not in text Custom made casino carpet Not the expensive twist yarn Have to breach one or the other Limiting Liability for Breach of Warranty o Status contract status o Business loves certainty law is fluid o Not express give with one hand and take with the other o Implied warranties all the time o May be limited by contract As in where is o Do not use your expertise to sell o Unconscionable o What re consequential damages o Easier to limit remedies repair replacement o Price paid Negligence o Design o Manufacture o Manufacturer and seller are liable o Re Ispa loquitor o Duty to warn Strict Liability o Earthen dams o Abnormally dangerous activities Dynamite Pet lions Products Water o Restatement 402A Defective when sold D in the business of selling such goods Product must be unreasonably dangerous in defective condition Beyond the expectation of consumers Less dangerous is economically feasible Physical harm Proximate cause Product not substantially changed o Economics Manufacturers can bear and allocate losses o Strict Liability for defective product The balance utility v damage Fertilizer toys Some products can not be made safe Rarely do we buy from the manufacturer Strict liability extends to all in the chain of commerce How do indemnities play a part Can retailers check products Eliminates privity why Red Hots Defects Types o 1 Design defect foreseeable harm Ford Pinto Is there a reasonable alternative o 2 Manufacturing defect No lug nuts o 3 Failure to warn some products are defective if the customer isn t told how to use them Drugs that make you drowsy Q tips Defenses Comparative fault o What Assumption of risk Obvious Misuse State of the art


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UT LEB 320F - Chapter 20

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