Quiz 25: Product Liability: Warranties and Torts

Business

a) False. The exclusion of warranty of title need not be in writing. b) False. Merchant sellers can exclude warranty of title as well. c) True. A statement that informs buyer they are buying the right merchant has is exclusion of warranty of title. This is in case which merchants may not have right of title, for example, an item stolen and sold to a pawnshop who sells it to another person. d) False. "As is" disclaimer is only used to describe the condition of the sold item. For example, selling a used computer "As is" means the buyer should be aware of the condition of the computer even if it's broken.

Refer to the case Gonzalez v Morflo Industries, Inc. (931 F Supp 159). Case Issue The issue is whether plaintiff can recover under theory of strict liability when a child is burned when bathing with hot water from heater made by the water heater manufacturer (defendant). Relevant Terms, Laws, and Cases Strict liability - holds a seller responsible for all defects on a sold item. The plaintiff doesn't need to show negligence by seller. Opinion Trial court granted summary judgment in favor of defendant. The court argued that strict liability could not hold because the water heater is supposed to be hot. In deciding this issue, the court argued that while hot water is potentially dangerous it is required to have hot water running for many household applications; hence, the manufacturer did not have a defect in design as water is supposed to be hot and the strict liability can't hold as it is burdensome to public to lower the hot water temperature. Furthermore, the court held that manufacturer had warned about the danger of hot water on the heater itself by stating its dangers. Hence, the plaintiff may not recover under strict liability or negligence.

Express warranty is a stated description verbal or in writing by the seller. Hence, I is a factor. II is not a factor because it is not an expressed to the buyer. Therefore the answer is a factor I only.

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