Contracts Law Chapter 16: Warranties and Product Liability

Express Warranties.

Introduction to Express Warranties.

Express warranties are explicit promises or representations made by a seller regarding the quality, characteristics, or performance of a product. Law students should comprehend the essentials of express warranties:

Nature of Statements: Express warranties can be made through statements, affirmations, or descriptions of fact about the goods.

Basis of the Bargain: The representation must become part of the basis of the bargain, meaning the buyer relies on it when making the purchase.

Implied Warranties.

Implied warranties are inherent in every sale of goods, regardless of whether they are explicitly stated. Law students should understand the two primary types of implied warranties:

Implied Warranty of Merchantability: This warranty assures that the product is fit for its ordinary purpose and meets industry standards.

Implied Warranty of Fitness for a Particular Purpose: This warranty applies when the seller knows the buyer's specific purpose for the goods and recommends a product to meet that purpose.

Disclaiming and Limiting Warranties.

Sellers have the ability to disclaim or limit warranties, but certain rules apply:

Clear Language: Disclaimers must be clear and conspicuous, and limitations must be reasonable.

Implied Warranties: Disclaimers for implied warranties, especially the implied warranty of merchantability, are subject to strict scrutiny.

Product Liability.

Introduction to Product Liability.

Product liability law holds manufacturers and sellers responsible for defects in their products that cause harm. Key points include:

Three Main Theories: Product liability cases typically revolve around strict liability, negligence, and breach of warranty.

Consumer Protection: Product liability law serves as a crucial element in consumer protection, ensuring accountability for the safety of products.

Strict Liability in Product Liability.

The Concept of Strict Liability.

Strict liability holds manufacturers and sellers responsible for injuries caused by defective products, irrespective of negligence. Law students should grasp the elements of strict liability:

Defective Product: The product must be defective, either due to its design, manufacturing, or inadequate warnings.

Causation: The defect must have caused the injury.

Types of Product Defects.

Understanding the types of defects is essential:

Design Defects: Inherent flaws in a product's design that make it unsafe.

Manufacturing Defects: Defects that occur during the production process, making individual products dangerous.

Marketing Defects (Failure to Warn): Inadequate warnings or instructions related to product use.

Negligence in Product Liability.

The Role of Negligence.

Negligence is another theory in product liability cases, involving failure to exercise reasonable care in the design, production, or marketing of a product:

Duty of Care: The manufacturer or seller owes a duty of care to consumers.

Breach of Duty: The breach involves actions or omissions that fall below the standard of care.

Causation: The breach must be the direct cause of the consumer's injury.

Defenses to Negligence Claims.

Defendants may assert various defenses:

Assumption of Risk: The consumer was aware of and accepted the risks.

Comparative Negligence: The consumer's negligence contributed to the injury.