Liability Sample

download Liability Sample

of 2

Transcript of Liability Sample

  • 8/3/2019 Liability Sample

    1/2

    1. Pat has just purchased a new suit for work from Melvins.

    The suit was madeby Suitco from a new material called nouveau

    fiber. The fiber is actually a recycled element of petroleum.

    The salesperson described the fiber as ?the best and most

    comfortable stuff ever invented. I own one and it?s cool and

    comfortable.? The first time Pat wore his suit to work he broke

    out in a serious rash and had to be hospitalized. May Pat

    recover for his injuries from either Melvin?s or Suitco? Discuss

    the theory or theories that Pat could use against each

    defendant. What defenses are available? Discuss fully.

    Answer: Pat could attempt to proceed on breach of

    warranty, negligence or strict liability against both Melvin and

    Suitco. An implied warranty of merchantability existed by virtue

    of the sale, and the salesperson also made an express warranty

    regarding the suit. Whether Pat could proceed against Melvins

    based only upon a strict liability claim depends upon whether

    the jurisdiction involved allows such suits to proceed against a

    seller if the manufacturer is available. A significant issue is

    the percentage of consumers who would break out in a rash. If

    the number is high, then the defendants would likely be liable

    for breach of warranty and also for a claim based upon strict

    liability. Additionally, if the defendants either knew or should

    have known of problems with the fabric, they would be liable in

    negligence. If, however, Pat had a very unusual and

    unforeseeable reaction, it is possible that the defendants would

    not be liable under any theory.

    Note: This is a minimally correct answer. To get a highgrade, you would state the elements of warranty, negligence and

    strict liability and explain how each theory does or does not

    apply to this case.

    2. Paula recently went to see her doctor for severe glaucoma.

    He told her that her vision is in danger and prescribed Seerite

    made by Drugco. Seerite was the newest and most promising

    treatment for glaucoma that exists. The product literature

    stated, When used as directed, Seerite is 100% safe andeffective for glaucoma. After Paula read this she put the

    literature in the trash. She overlooked a small statement on the

    back reading Warning: in 2% of the population this product may

    produce uncontrollable weight gain. Three weeks after using

    Seerite, Paula had gained 50 pounds and continued to gain weight

    rapidly. Paula has stopped using Seerite, but she cannot lose

    the weight and this condition is now a separate health risk. Is

  • 8/3/2019 Liability Sample

    2/2

    Seerite a defectively designed drug? What defenses would be

    available to Drugco against this claim? Is there any other

    theory under product liability law that Paula may use to recover

    against Drugco? Discuss fully.

    ANSWER: If the societal value of using an inherently

    dangerous product outweighs the risk of harm from its use, the

    manufacturer may be exonerated from liability for sale of such

    an unavoidably unsafe product. Seerite would likely be

    determined to be an unavoidably unsafe product. Even with an

    unavoidably unsafe product, however, the manufacturer must give

    a proper warning. The warning provided by the drug company was

    probably not sufficiently prominent. Paula would have a cause of

    action in strict liability based upon the failure to provide an

    adequate warning. Paula could also investigate a cause of action

    for breach of the implied warranty of merchantability. An issue

    would be the number of people adversely affected and whether the

    drug was fit for its ordinary purpose.

    Note: Again, you want to explain the elements of strict

    liability and of warranty for a complete answer.