Question

TLG has scheduled another meeting with the GC owners to further discuss the risks and liabilities of tort law. This meeting will focus specifically on product liability.

Winnie and Ralph asked you to participate in the GC meeting and to be prepared to discuss specific product liability risks related to GC's use and resale of EPI cleaning products.

Instructions: To prepare, review all assigned materials in Overview, including Instructor Notes. These materials cover product liability law, product liability claims, and parties who can be sued in product liability cases.

Write a summary report addressing the following questions to use as a basis for discussion in the GC meeting with TLG and to educate GC owners about potential risks and liabilities under product liability law.  Focus only on product liability law.

A. Analyze and explain specifically the possible liabilities and product liability claims (EXCEPT omit warranty liabilities) GC could face under product liability law for reselling EPI cleaning products directly to customers from its public place of business.

B. Discuss in detail and explain how and why GC could face the possible liabilities identified in A. above.

DO NOT discuss the warranties liabilities GC could face as warranties will be addressed in Discussion this week.

Answer 1

An express warranty is created whenever the seller affirms that the product will perform in a certain manner. Formal words such as “warrant” or “guarantee” are not necessary. A seller may create an express warranty as part of the basis for the bargain of sale by means of (1) an affirmation of a fact or promise relating to the goods, (2) a description of the goods, or (3) a sample or model. Any of these will create an express warranty that the goods will conform to the fact, promise, description, sample, or model. Thus a seller who states that “the use of rustproof linings in the cans would prevent discoloration and adulteration of the Perform solution” has given an express warranty, whether he realized it or not.

Express warranties are those over which the parties dickered—or could have. Express warranties go to the essence of the bargain. An implied warranty, by contrast, is one that circumstances alone, not specific language, compel reading into the sale. In short, an implied warranty is one created by law, acting from an impulse of common sense.