Question

SuperKool is a company that makes air conditioners and sells them out of its SuperKool stores. SuperKool also sells used air conditioners of its own brand, which the company identifies as selling "as is" with no express warranty. For the new air conditioners that SuperKool sells, research and discuss what types of statements, durations, and disclaimers would be typical to put in its express warranties and explain why. What other types of warranties might apply under statute or common law? For the used air conditioners, does the "as is" label absolve SuperKool of all liability if something goes wrong with the air conditioner after purchase?

In addition, discuss what kind of liability does SuperKool have in the following scenario:

An elderly customer buys a new air conditioner and installs it himself, but does not notice that after a month the air conditioner has stopped blowing cool air. Two months after installing the air conditioner, there is a heat wave and the customer dies of heat stroke in the room in which the air conditioner was installed.

SuperKool is a company that makes air conditioners and sells them out of its SuperKool stores. SuperKool also sells used air conditioners of its own brand, which the company identifies as selling "as is" with no express warranty. For the new air conditioners that SuperKool sells, research and discuss what types of statements, durations, and disclaimers would be typical to put in its express warranties and explain why. What other types of warranties might apply under statute or common law? For the used air conditioners, does the "as is" label absolve SuperKool of all liability if something goes wrong with the air conditioner after purchase?

In addition, discuss what kind of liability does SuperKool have in the following scenario:

An elderly customer buys a new air conditioner and installs it himself, but does not notice that after a month the air conditioner has stopped blowing cool air. Two months after installing the air conditioner, there is a heat wave and the customer dies of heat stroke in the room in which the air conditioner was installed.

Answer 1

For every new air conditioner the company sells, it should convey following to the customer.

(a) Instructions of installing / operating the item.

(b) Clauses of warranty - Free repairs, replacements, free servicing, duration to which the clauses will apply from the date of purchase, conditions for the warranty to be valid and the conditions under which the warranty would be void.

The warranty is a promise from the seller to the buyer of the item being in good working condition and provide the intended levels of service for a reasonable period of time from the purchase. Remedial clauses indicate the seller's course of action if the item does not live up to the express warranty. The disclaimers indicate the conditions under which the warranty would be void. Besides express warranty, which is in writing, there is an implied warranty that assures the customer that the item would work in the way as it is purposed for. For an example, it is assumed that an air conditioner will cool down the air of the premises it is installed in, while being safe, noise free and without any ill side effects.

As is warranty is used by the seller to disclaim any implied or express warranty with regards the item's fitness for the purpose or merchantabilty. It is OK with the merchant to use this clause, but he must disclose all defects and shortcomings with the product to the customer before a sale takes place.

The manufacturer is liable under the tort of strict liability because the product failed to work as desired and its implied warranty as breached. However, if the manufacturer instructed the buyer to get the AC installed by a qualified mechanic only, the buyer would be termed as negligent for self installing the machine, an act that could have caused faulty functioning and the consequences.