/wEPDwUKLTc4MT ed 24229153 Week 3: Negligence, Product Liability, Warranties, and Really Hot Coffee - Discussion Breach of Warranty (graded) Arvo Lake, a retired 71-year-old man, bought an air conditioner in May. The unit was installed and operated according to the manufacturer's specifications. Unbeknownst to Lake, the unit contained a hole in the refrigeration system that allowed Freon, the coolant, to escape from the unit. By August, the unit had ceased cooling, and Lake's residence reached a temperature of at least 96 degrees Fahrenheit. The heat caused Lake to suffer from hyperthermia, which caused circulatory failure and then death. The executor of Lake's estate sued the manufacturer of the air conditioner for damages resulting from breach of warranty. Which warranties, if any, has the manufacturer of the air conditioner breached? For a manufacturer to be liable for consequential damages caused by a breach of warranty, the consequential damages must be foreseeable to the manufacturer. Was Lake's death a foreseeable consequence of the air conditioner's failure to operate properly? Responses Responses are listed below in the following order: response, author and the date and time the response is posted. Response 410325086,409764 Author 406485825 Date/Time 0 Week 3 Discussion 1 - Legal Professor Devine Claims and Defenses 11/7/2012 8:55:35 AM Class: When an individual is injured, there are often several possible legal claims that can be brought against the wrongdoer. The law of product liability is about ensuring that consumers have recourse if they are injured by an unreasonably dangerous defective product. Manufacturers must understand their potential liability in the event their products are defective and personal injuries occur as a result. The law of negligence is about ensuring that individuals or entities that do not adhere to a "reasonable standard of care" can be held liable for harm they cause. Last, the law of warranty protects consumers and holds product manufacturers responsible for standing by their product warranties. As you look at the Arvo Lake situation, what legal claims do you believe his estate can file on his behalf? Provide support for your answer. Are there different claims that can be brought since he died versus merely suffering injury? Ginger 410325086 406485825 RE: Week 3Discussion James Pha 1 - Legal Claims and Defenses 11/14/2012 9:29:24 PM Modified:11/14/2012 9:32 PM From the reading of chapter 10, I believe that Lake's estates can file base on Product Liability Under Section 402A. As stated in chapter 10: Restatement § 402A: 402A. Special Liability of Seller of Product for Physical Harm to User or Consumer (1) One who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property if (a) the seller is engaged in the business of selling such a product, and (b) it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold. The most common types of product liability cases are based on the following types of defects: 1. Designdefects 2. Dangersofuseduetolackofwarningsorunclearuseinstructions 3. Errorsinmanufacturing,handling,orpackagingoftheproduct If the manufacture knows of this product defect, they should have redisgn the cooling system to prevent this type of failure system like Lake's case here. Depending on where you want to go with this case, I do believe that there are other avenue that you can take this case and make a claim. Jennings, Marianne M.. Business: Its Legal, Ethical, and Global Environment, 9th ed.. 9. VitalSource Bookshelf. South Western Educational Publishing, , Wednesday, November 14, 2012. <http://online.vitalsource.com/books/9781133170624/page/344> 409845670,409982 409764669 406485825 RE: Week 3Discussion Antonia Whittler 1 - Legal Claims and Defenses 11/13/2012 6:47:14 PM Prof. Devine and class, Another legal claim that a family member of Mr. Lake’s can file is a wrongful death suit. “A wrongful death claim generally consists of four elements: (1) the death was caused, in whole or part, by the conduct of the defendant; (2) the defendant was negligent or strictly liable for the victim’s death; (3) there is a surviving spouse, children, beneficiaries or dependents; and (4) monetary damages have resulted from the victim’s death.” Retrieved on November 13, 2012 from www.accidentlaw.freeadvice.com/accident-law/wrongful_death/wrongful_death.htm. With wrongful death suits a family member alleges that their family member died as a result of the negligence of the defendant. Because of the negligence of the manufacturer there was a hole in the refrigeration system of the air conditioner that allowed Freon to escape from the unit. This caused Mr. Lake’s residence to reach 96 degrees Fahrenheit and the heat caused Lake to suffer from hyperthermia, which led to his circulatory failure and ultimate death. 409982388,410073 409845670 409764669 RE: Week 3Discussion 1 - Legal Dana Smicklas Claims and Defenses 11/13/2012 8:47:47 PM Antonia, I thought the same thing when I read the information provided. However, from #1 and #2 above, it doesn't appear as if a wrongful death suit would fit here because the the manufacturer didn't install the unit and the manufacturer was not negligent. 410073761,410970 409982388 409845670 RE: Week 3Discussion 1 - Legal Professor Devine Claims and Defenses 11/14/2012 8:38:34 AM Good point, Dana. That is one of the unanswered questions--who installed the unit and was it done correctly? However, if the unit was defective when it arrived at Mr. Lake's home and caused his injury and death, the negligence, wrongful death, and even strict product liability claims might be proven. Another point is raised here--what about the pain and suffering Mr. Lake suffered prior to his death? Can these types of "damages" be claimed here? Ginger 410073761 409982388 RE: Week 3Discussion 1 - Legal Dana Smicklas Claims and Defenses 11/14/2012 1:05:41 PM I would assume that his estate could sue for any types of damages they want, but would a judge or jury give his estate a favorable ruling based on negligence. The estate would need to bring a personal injury lawsuit against the manufacturer of the unit and/or the installer. Based on this article, I would think that the estate would have a good case because the woman in this article lost full use of her right hand while the man in the story above lost his life: http://www.chicago-personal-injury-lawyerblawg.com/2011/01/illinois_product_defect_case_r_1.html 411006557,411802 410970798 409982388 RE: Week 3Discussion 1 - Legal Jaye Ambrose Claims and Defenses 11/16/2012 7:07:34 AM Professor, Yes, I believe these types of damages can be claimed. If Mr. Lakes estate was able to establish knowledge, then the estate could be entitled to punitive damages as well as compensatory damages against the manufacturer or seller. 411802053 411006557 410970798 RE: Week 3Discussion 1 - Legal Professor Devine Claims and Defenses 11/16/2012 9:06:52 AM Typically, pain and suffering fall within compensatory damages. Would punitive damages be available or warranted in this type of case, class? Ginger 411802053 411006557 RE: Week 3Discussion 1 - Legal Michael Como Claims and Defenses 11/17/2012 10:50:13 PM I do not think punitive damages would be available or warranted because there was not an intent to do harm. I believe each state has its own rules on punitive damages, but overall this was a product defect and not an intent to cause damage to this customer or any customer. 410506053 409845670 RE: Week 3Discussion 1 - Legal Jaye Ambrose Claims and Defenses 11/15/2012 11:07:42 AM Modified:11/15/2012 11:16 AM Dana, I also agree that there is not enough information provided to show that the manufacturer was negligent in this case. I believe the manufacturer could use misuse or abnormal use of a product, contributory negligence, and assumption of risk as a defense, because Lake could have played a huge part in his own negligence by not allowing professionals or a certified individual to install the air conditioner, which may have caused a hole in the refrigeration system that allowed Freon to escape from the unit. 411007158 410823947 409845670 RE: Week 3Discussion 1 - Legal Christopher Nordone Claims and Defenses 11/15/2012 9:28:05 PM I have to agree with Dana on this one, while the victim did die because of hyperthermia and circulatory failure from their residence becoming too hot was a result of the product not working, I do not think the death can be considered a direct cause of the defendant since the victim should have noticed the unit not functioning and should have contacted either a repairman or the company for a replacement unit. If the company did nothing to fix or replace the unit then I would agree that the death was caused by the conduct of the defendant. Also since the company was not contacted, it cannot be considered negligence since they were not aware of the defect. Aside from burial expenses, there are also no monetary damages that resulted from the victim's death, so the only element that really applies without a doubt is number three, there is a surviving spouse, children, beneficiaries or dependents. 411007158 410823947 RE: Week 3Discussion 1 - Legal Professor Devine Claims and Defenses 11/16/2012 9:08:37 AM Christopher: A jury could award compensatory damages for Mr. Lake's pain and suffering and ultimate loss of life. Expert witnesses can prove the "economic value" of his life and award those damages to his estate. If there were a surviving spouse, there might be damages awarded for "loss of consortium." Ginger 409393249 406485825 RE: Week 3Discussion Joseph Waldrup 1 - Legal Claims and Defenses 11/12/2012 9:56:29 PM The legal claim his estate can file on Mr. Lake's behalf is the Strict Tort Liability: Product Liability Under Section 402A. Obviously the unit had a defect, sending Mr. Lake to his early death. Manufacturing defects occur in the manufacturing process and usually involve poor-quality materials or bad workmanship. Design defects occur where the product design is inherently dangerous or useless (and hence defective) no matter how carefully manufactured; this may be demonstrated either by showing that the product fails to satisfy ordinary consumer expectations as to what constitutes a safe product, or that the risks of the product outweigh its benefits. Failure-towarn defects arise in products that carry inherent non-obvious dangers which could be mitigated through adequate warnings to the user, and these dangers are present regardless of how well the product is manufactured and designed for its intended purpose. 409264344 406485825 RE: Week 3Discussion Latrice Donaldson 1 - Legal Claims and Defenses 11/12/2012 7:08:02 PM Good evening Dr. Devine. Product liability law is the body of legal rules governing civil suits for losses resulting from defective goods. After reading Chapter 9 and Chapter 10, I think that the strict liability in tort law embraces this week's scenario. Strict liabillity makes a person legally responsible for the damage and loss caused by his or her acts and omissions. Another key factor is the section that details the explanation regarding product liability, (Section 402A), which states, "(1) One who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property"and based on my interpretation of the reading in regards to the defective unit, clearly there were poor inspections performed on that particular unit. The manufacturers have a duty to inspect all of their products for defects, which could create a reasonably foreseeable risk of harm. References: http://biotech.law.lsu.edu/cases/products/402a-b.htm http://public.findlaw.com/abaflg/flg-9-2c-5.html 408630236,408955 408484765 406485825 RE: Week 3Discussion Jamie Blea 1 - Legal Claims and Defenses 11/11/2012 11:37:53 AM I think the legal claim would be be under strict tort liability or under product liabilitysection 402A. This is a remedy for Arvo's family as this is a theory for defective products. The product could be found under the requirement of unreasonably dangerous defective condition for either design defects or errors in manufacturing, handling, or packgaing of the product. Text. Chapter 10 408955467,408985 408630236 408484765 RE: Week 3Discussion 1 - Legal Conne Mcclure Claims and Defenses 11/11/2012 4:51:29 PM I agree with you Jaime with strict tort liability.The air conditioner was purchased and installed under the manufacturers specifications. Unles there is a disclaimer stating "as is" on the warrenty the manufacturer and the intstaller will both be at fault which is the breach of warrenty. 408985226,409255 408955467 408630236 RE: Week 3Discussion Garrett Jones 1 - Legal 11/12/2012 8:23:38 AM Claims and Defenses I also agree with Jaime. Strict Tort Liability means a party is liable for all damages as a result of their dangerous actions or products. When a product causes a foreseeable harm to a consumer, the maker of the product and the distributor may be liable to pay damages. If find this case interesting in ways though, and am not convinced Strict Tort Liability would apply. Is sound judgement not a factor in this case? Yes the customer bought a product that was defective, but the product itself did not cause the death. How often do products break for one reason or another? It doesn't take a genius to know an air conditioner is not working when it's 96 degrees. Was the product reported by the customer and requested to be serviced/replaced? I am not saying in any way that the manufacturer isn't responsible in some way, but to what extent is the customer responsible for their own actions. Just to play devils advocate say the customer lived in Alaska and cranked it up full blast and froze to death, the product was not faulty but would the manufacturer or seller be to blame? 409255319,409509 408985226 408955467 RE: Week 3Discussion 1 - Legal Professor Devine Claims and Defenses 11/12/2012 9:48:58 AM Jamie, Garrett, and Conne: Good start here in identifying a possible strict product liability claim. So, what are the elements that the Lake Estate must prove to win at trial? Ginger 409509046,409918 409255319 408985226 RE: Week 3Discussion 1 - Legal Jamie Blea Claims and Defenses 11/12/2012 6:56:39 PM If the whole was to to errors in manufacturings, handling, or packaging by the AC company they would need to prove negligence on the company's part. It needs to be proved when and how possibly the product was damaged and where the manufacturere was negligent in their process. This is one of the hardest forms of negligence to prove according to our text. Text Chapter10 409918885,409982 409509046 409255319 RE: Week 3Discussion 1 - Legal Professor Devine Claims and Defenses 11/13/2012 8:36:40 AM Jamie: Good thoughts! This week, we do need to distinguish negligence and strict product liability claims, as negligence requires a showing of conduct that breaches a duty of reasonable care. On the other hand, there is no required showing of fault in the strict product liability claim. Ginger 409982591 409918885 409509046 RE: Week 3Discussion 1 - Legal Julie Hicks Claims and Defenses 11/13/2012 11:35:49 PM Modified:11/13/2012 11:36 PM Jamie and Dr. Devine, Negligence is often difficult to prove and yes, I agree that If a consumer is injured by the failure of a manufacturer to exercise reasonable care in discharging the responsibilities, they may be held liable under negligence. Under strict products liability, however, it is not usually necessary to show that the manufacturer or seller was negligent or breached a warranty in order to recover damages for injuries sustained from a defective product. In a strict liability claim, the injured party need only show that: 1) the product was defective, 2) the defect existed prior to the manufacturer releasing the product, and 3) the defect caused the victim's damages. The product was defective as it contained a hole in the refrigeration system that allowed Freon, the coolant, to escape from the unit. The defect existed prior to the installation. And it did cause fatal damage. The case doesn't provide enough details about the breach in the sales contract e.g..express and implied warranties so I am not sure here if we can apply breach of warranty in this case. Disclaimers are often included in sales contracts by the manufacturers. 409982591 409918885 RE: Week 3Discussion 1 - Legal Professor Devine Claims and Defenses 11/14/2012 8:39:13 AM Very true, Julie. If only we had the specific warranties in this case, but we can assume there were express warranties in the A/C paperwork. Ginger 409496700 408985226 RE: Week 3Discussion 1 - Legal Garrett Jones Claims and Defenses 11/13/2012 7:54:59 AM There are 5 elements that the Lake Estate must prove to win at trial: 1. The Duty- is a legal obligation imposed on an individual that they adhere to a standard of reasonable care. 2. Breach of Duty- determination that the defendant fell short of that standard or breached that duty for the plaintiff to recover on the basis of negligence. 3. Causation- After establishing breach of duty, the plaintiff must also establish that the breach of duty was the cause of damages. 4. Proximate Cause- Some cutoff cause must be drawn between the causation and events that contribute to the injury of the plaintiff. 5. Damages- The plaintiff must be able to show damages that resulted from the defendants negligence. 409807987 408985226 RE: Week 3Discussion 1 - Legal Anthony Fletcher Claims and Defenses 11/13/2012 7:50:21 PM Modified:11/13/2012 7:51 PM I agree with Garrett and everybody else here regarding the Strict Tort Liability: Product Liability. The product was defective, and should be covered under the manufacturer's warranty. I think the Lake Estate has a lot to prove here though. While it isn't in question whether or not the product was defective and caused the heat to rise, what is in question is why wasn't anything said about the high temperature level earlier. There are many unknowns in this situation. First off, even though Arvo was 71 years old, it doesn't state whether or not he was an able-bodied person and whether or not he was able to walk around and take care of himself, nor does it state that he needed constant monitoring. If he had needed constant monitoring, an able-bodied individual would have noticed the temperature level and not neglected to deal with it. Had nobody else visited his home over the course of 3 months to realize the high temperature level? Like Garrett said, it doesn't take a genius to know an air conditioner isn't working when it is 96 degrees. Depending on the proximity to the air conditioner, Arvo could have been close to it the majority of the time, thus inhaling the freon as it leaked. Freon can be a very deadly chemical. Further evidence stating the EXACT cause of death needs to be determined. Was it strictly the heat level that caused the death, or did the inhalation of freon also affect the outcome? Obviously further details regarding the exact situation are needed prior to the Lake Estate being able to prove enough to win the trial. Below is a link to some of the side effects to freon inhalation, which could be relevant to the case. http://www.livestrong.com/article/174753side-effects-of-breathing-freon-or-otherrefrigerants/ 409509504,409958 409188317 408955467 RE: Week 3Discussion 1 - Legal Conne Mcclure Claims and Defenses and Death 11/12/2012 5:23:24 PM Garrett, If Mr. Lake did the opposite then it would of been his fault because he misused the product and did not use the product based on manufacturer recommendations. So in the case of freezing to death it would be the Mr Lake fault for misuse of the unit. Since we do not know the medical history of Mr Lake or any underlying conditions we have to assume that Mr. Lake was in good health for a man of 71. I believe under "normal" working conditions if the air conditioner was working properly Mr. Lake would not of died circulatory failure. So I blame the unit malfunction and therefore the manufacturer, As a person ages into their 70's they start to loose their ability to maintain their heat, so they like it to warmer than you or I would feel comfortable. Mr. Lake might of liked the warm temperature and may not of realized what was happening to him because it happen over a period of time. So yes Mr. Lake death could be seen as foreseeable consequence. 409958370,409887 409509504 409188317 RE: Week 3- Professor Devine 11/13/2012 8:38:05 AM Discussion 1 - Legal Claims and Defenses and Death Class: Conne has done a good job of mentioning possible legal defenses for the A/C manufacturer based on Mr. Lake's own conduct. So, as we identify possible legal claims, what possible legal defenses might be raised and what are their respective elements? Ginger 409958370 409509504 RE: Week 3Discussion 1 - Legal Garrett Jones Claims and Defenses and Death 11/14/2012 7:06:55 AM Modified:11/14/2012 7:07 AM Some of the possible legal defenses the A/C manufacturer may use are Contributory Negligence, Comparative Negligence, and Assumption of Risk. The A/C manufacturer could use contributory negligence, which in short states that if a person was injured in part due to his/her own negligence the injured party would not be entitled to collect any damages from another party who supposedly caused the accident. The manufacturer could also use comparative negligence, which determines responsibility and damages based on the negligence of every party directly involved in the accident. Lastly the manufacturer could use assumption of risk which would say that Mr. Lake took the risk of injury onto himself and absolved potential defendants from any liability. All 3 defenses would have to show in some way Mr. Lake was aware of the malfunction and did nothing to report it or correct the problem, or that Mr. Lake misused the product all together. 409983579 409887265 409509504 RE: Week 3Discussion Linda Sue Martin 1 - Legal Claims 11/13/2012 9:59:51 PM and Defenses and Death There might be two possible defences. One approach is the Contributory Negligence, the complete defense. There defense might be Mr. Lake's misuse of the AC, or perhaps the failure to report its failure and get it repaired. But one of my concern's is the expression "consequential damages must be foreseeable." Many people lose the use of their AC, but they don't all die. That would not be a foreseeable consequence of the failure of the AC. 409983579 409887265 RE: Week 3Discussion 1 - Legal Professor Devine Claims and Defenses and Death 11/14/2012 8:42:37 AM Linda Sue and Garrett: You're hired! The A/C manufacturer wants you all on its team! Seriously, good work identifying possible defenses. So, how do these play out in a lawsuit? A defendant may first challenge the plaintiff's ability, through evidence, to prove each element of his claims. So, for example, if just one element of the four needed to prove a negligence claim can be disproven by the defendant, then the plaintiff will lose on that claim. Alternatively, as you all have pointed out here, the defendant may raise affirmative defenses. The defendant then must prove these defenses by a preponderance of the evidence. The jury will then decide who wins on which claims and defenses. Ex: Lake Estate sues for negligence; Defendant raises comparative negligence on the basis that Mr. Lake should have noticed the increasing heat and taken steps to repair the unit and/or remove himself from the deadly situation. The jury awards $100k in damages, but finds the plaintiff 40% responsible and the defendant 60% responsible. In this case, the Lake Estate can only collect $60k. Ginger 409797371 408630236 RE: Week 3Discussion 1 - Legal Blanche Meriweather Claims and Defenses 11/13/2012 7:34:51 PM I agree; I think negligence because any conduct of omission or neglect that results in damages. Strict liability is absolute liability for conduct with few if any, defenses available. The activity itself, while sometimes necessary, imposes strict liability on the contractor undertaking the project. 408852841 406485825 RE: Week 3Discussion Julie Hicks 1 - Legal Claims and Defenses 11/11/2012 10:08:31 PM In this case, Strict Tort Liability: Product Liability Under Section 402A will apply. Part 2 of 402A states that Liability results for physical harm even when sellers have exercised all possible care in producing the refrigeration system. The fact that the seller is in the business of making this product and someone is injured results in the liability. No negligent error or omission is required as an element of proof for recovery. Section 402A applies to defective conditions regardless of the precautions taken by the manufacturer. The type of defect that air conditioner case would fall into would be "Errors in manufacturing, handling, or packaging of the product". 409254120,409480 409117689 RE: Breach of Warranty 0 Antonia Whittler 11/12/2012 3:11:14 PM Modified:11/12/2012 3:13 PM Prof. Devine and class, The warranties that the air conditioner manufacturer breached are any that were provided in the warranty documents, as well as the implied warranties. The implied warranties are provided below: Warranty of Merchantability – This warranty “means that the seller promises that the product will do what it is supposed to do. For example, a car will run and a toaster will toast.” Retrieved on November 12, 2012 from www.ftc.gov/bcp/edu/pubs/consumer/products/pro17.shtm. For the case at bar, the air conditioner will provide air to cool down the location in which it is placed. Warranty of Fitness for a Particular Purposes – This warranty “applies when you buy a product on the seller’s advice that it is suitable for a particular use. For example, a person who suggests that you buy a certain sleeping bag for zero-degree weather warrants that the sleeping bag will be suitable for zero degrees.” Retrieved on November 12, 2012 from www.ftc.gov/bcp/edu/pubs/consumer/products/pro17.shtm. As with the case at bar, the air conditioner should be suitable for use in hot weather, that is often seen in the summer months, which include August, the month that Mr. Lake died from the failure of the air conditioner working properly. To answer the second part of this question, one must first ask what is foreseeable? “Foreseeability exists if the actor, as a person of ordinary intelligence, should have anticipated the dangers his negligent act creates for others. Importantly, ‘foreseeability requires more than someone, viewing the facts in retrospect, theorizing an extraordinary sequence of events whereby the defendant’s conduct brings about the injury.’” (p. 303). Looking at the above-mentioned definition I would have to say that the death was a foreseeable consequence of the air conditioner’s failure to operate properly. The foreseeability test: “The leading test for proximate cause focuses on whether the defendant should have reasonably foreseen, as a risk of her conduct, the general consequences or type of harm suffered by the plaintiff. In essence, the foreseeable harm test requires (1) a reasonably foreseeable result or type of harm, and (2) no superseding intervening force. The extent and the precise manner in which the harm occurs need not be foreseeable.” Retrieved on November 12, 2012 from www.lexisnexis.com/lawschool/study/outlines/html/torts/torts12.htm. Air conditioners are used so that people will not be too hot. When it is too hot people need to keep cool so that nothing happens to their health or well-being. If a person cannot stay cool the individual can be harmed with an illness due to being overheated. In the case at bar, the consumer suffered from hyperthermia, which caused circulatory failure and died. “Hyperthermia is elevated body temperature due to failed thermoregulation that occurs when a body produces or absorbs more heat than it dissipates. Extreme temperature elevation then becomes a medical emergency requiring immediate treatment to prevent disability or death.” Retrieved on November 12, 2012 from www.en.wikipedia.org/wiki/Hyperthermia. The first prong is satisfied because Lake’s illness – hyperthermia – is a reasonably foreseeable result or type of harm and there was no superseding intervening force. The air conditioner was purchased and installed correctly. Thus, yes Lake’s death was a foreseeable consequence of the air conditioner’s failure to operate properly. 409480623,409510 409254120 409117689 RE: Breach of Warranty Colleen Walker 11/12/2012 6:55:06 PM Going more in depth on the warranty of merchantability I definitely think this is the one that executor of the estate can claim. The seller is promising by selling the product that it will do what it's suppose to do. It clearly did not do what it was suppose to do in this case. It did not work and was faulty, and even caused a man's death. The manufacturer is definitely at fault. 409510170,409688 409480623 409254120 RE: Breach Latrice Donaldson of Warranty 11/13/2012 6:49:00 AM Good morning Colleen. I must have really missed something in my reading of Chapter 10 because I stated in my post that the express warranty was breached, but the class members that have posted are stating that the implied warranty was breached. After reading Antonia's and your post, I will add that the policy behind the implied warranty of merchantability is basic: sellers are generally better suited than buyers to determine whether a product will perform properly. Holding the seller liable for a product that is not fit for its ordinary purpose shifts the costs of nonperformance from the buyer to the seller. This motivates the seller to ensure the product's proper performance before placing it on the market. The seller is better able to absorb the costs of a product's nonperformance, usually by spreading the risk to consumers in the form of increased prices. I am in the process of going back over the chapter; perhaps I will have a change in opinion. Reference: http://legal-dictionary.thefreedictionary.com/Warranty+of+merchantability 409688573,409983 409510170 409480623 RE: Breach Professor Devine 11/13/2012 8:40:05 AM of Warranty Latrice, Antonia, and Colleen: Good identification of the various types of warranties and the elements of a breach of warranty claim for the Lake Estate. Can the Lake Estate seek damages for Mr. Lake's injuries and ultimate death on a breach of warranty claim? If not, what are the possible remedies to this type of claim, class? Ginger 409983870,410420 409688573 409510170 RE: Breach Conne Mcclure of Warranty 11/13/2012 4:34:03 PM The Lake estate can seek damages from the manufacturers and the installer. I was thinking why didn't the licensed installer notice the leak, when he/she installed the system. So the estate could file suit against manufacturers and company that installed the unit into the home. 410420192,410640 409983870 409688573 RE: Breach Professor Devine of Warranty 11/14/2012 8:43:33 AM Depending on the specific facts, you are right, Conne. And under strict product liability, anyone/entity in the chain of sale (manufacturer, wholesaler, retailer) may be held responsible. Do you all think this is fair, especially to the retailer with no knowledge of the product defect? Ginger 410420192 409983870 RE: Breach Julie Hicks of Warranty 11/15/2012 6:45:07 AM Even though the wholesaler or retailer where Mr. Lake bought the air conditioner may not have manufactured it, the retailer may still be liable for selling him a defective product. Lot of times, distributors and retailers do make considerable changes to the original product before selling it to the customers. The changes may include not only overall design and manufacturing additions, but also component parts, packaging, labeling and warnings etc. So, we can't absolve the retailer from their responsibility irrespective of whether they had prior knowledge of the product defect or not. 410640568 409983870 RE: Breach James Pha of Warranty 11/15/2012 4:41:48 PM I use to work in Electronic sales, and so many units are being pushed out meaning being sold. There is really no way for the retailers to test every unit to make sure there is no defects. That's why retailers offer a return policy or exchange policy if the unit is bad out of the box they can exchange or return it. This way the retailers can send the unit back for reinburstment and customers get what they paid for a working unit. In this situation, where Lake's people want to hold the retailers accountable for the incident. I think it's really out of anyone control of knowing the ac unit was going bad. The manufacture and whoever they have contract to do the installation should be held accountable for the event. If the Lake's people investigate further, I'm sure they will be able to make a better decision as who would be held accountable for the death of Lake. 411069773,411558 410623934 409983870 RE: Breach Blanche Meriweather of Warranty 11/15/2012 4:04:19 PM great point Professor; Conduct that falls below the standards of behavior established by law for the protection of others against unreasonable risk of harm. A person has acted negligently if he or she has departed from the conduct expected of a reasonably prudent person acting under similar circumstances. In order to establish negligence as a cause of action. under the law of TORTS, a plaintiff must prove that the defendant had a duty to the plaintiff, the defendant breached that duty by failing to conform to the required standard of conduct, the defendant's negligent conduct was the cause of the harm to the plaintiff, and the plaintiff was, in fact, harmed or damage. 411558386 411069773 410623934 RE: Breach Linda Sue Martin of Warranty 11/16/2012 11:57:05 AM Good point Blanche. I had similar thoughts. Under the assumption that the installer performed the installation according to manufacturer specs, stated in the case, and he performed all the necessary pressure test on the line, and it passed; than the installer should be off the hook for liability. A leak that took 4 months to release the entire amount of gas, would be a very small hole, considering the unit was in use. I agree with my classmates, further investigation may be required to determine how the hole was introduced in the line. It is going to be a hard case to resolve based on negligence. Speaking to the professor question "is it fair to hold everyone accountable?", basically yes, with considerations. If the retailer takes possession of the product before it is delivered to the customer than he may have stored, handled, or damaged the product while in his possession. Hence the idea of direct shipment to the customer. If the retailer is only acting as a paper processor for transactional purposes, it is unfair to the retailer to make him liable for the product. 411558386 411069773 RE: Breach Professor Devine of Warranty 11/17/2012 3:10:34 PM Linda Sue: Ultimately, the goal of strict product liability is intended to provide consumers with legal recourse. The product manufacturer and seller are in a better position to prevent defects in the first place. Ginger 410633542 410623934 RE: Breach Conne Mcclure of Warranty 11/15/2012 4:26:38 PM Professor and Blanche, I believe the estate can prove breached of duty because the installer did not perform on normal standards. The unit would of been tested after it was installed and hole in the unit would of been detected. Also, depending upon where the hole is located in the unit the installed would of seen the hole. There is negligent upon the part of the installer too. 411574052 409983870 RE: Breach Antonia Whittler of Warranty 11/17/2012 3:47:22 PM Prof. Devine, In all honesty, I do not believe that this is fair to retailers who may sell products without any knowledge of a defect that the products may have. I really feel that only the manufacturer of the parts and/or product should be held strictly liable. The only way a retailer should be held liable is if it knows about the defect and continues to sell the product or does not have a recall public announcement done after it is made aware that products that were sold from its store may have a defect within them. While a lot of states adopted laws based on the Restatement Section 402A that held retailers liable also, there was a public outcry from the sellers after their expenses started to increase, especially for their insurance rates. Courts reasoned that because the retailers were within the distribution chain within the selling of goods and reaped benefits they too should be held accountable. People knew where they purchased the products from, which provided them with greater security to be able to provide the court with jurisdiction of these in state retailers than many manufacturers that may be located out of state so they became the main targets of lawsuits. Legislatures began to put a stop to this and now only twenty-five states and Washington,D.C. have strict liability laws that apply to retailers also. “Insurance rates were skyrocketing, they said, and Mom-and-Pop businesses were being driven out of business. Some of this was true, while other of it was exaggeration. But, in the end, many states did enact tortreform legislation that granted greater legal protection to nonmanufacturing sellers.” Retrieved on November 17, 2012 from www.marlerclark.com/pdfs/chain-ofdistribution-liability.pdf. The laws in a nutshell: 25 states – strict liability applicable to all, including retailers 9 states – pass-through statutes, protects retailers w/ no knowledge or suspicion 13 states – proof of negligence on part of retailer 3 states – no strict liability Retrieved on November 17, 2012 from www.marlerclark.com/pdfs/chain-ofdistribution-liability.pdf 412297735 411948737 409983870 RE: Breach Christopher Nordone of Warranty 11/18/2012 11:51:43 AM I think it is completely fair for the retailer to be held responsible under strict product liability. Even though the retailer may not know of the defect in the product, having them included in the liability for a defect will make the retailer more socially responsible and encourages them to do research on the products they are selling and the companies they are coming from. In this way the retailer is responsible for making sure the manufacture has a good history of making quality products instead of a history of faulty and defective products. Also depending on the defective, the retailer may have even been responsible for the defect if the product was damaged or mishandled after the retailer received the product. 412297735 411948737 RE: Breach Professor Devine of Warranty 11/18/2012 10:04:30 PM Excellent look at the public policy bases for holding the retailer, as well as the manufacturer, responsible, Christopher. Of course, with mass packaging on many products, even the retailer has little opportunity to inspect. But the retailer has better opportunity than consumers. Ginger 409245122 0 RE: Breach of Latrice Donaldson Warranty 11/12/2012 6:43:45 PM Modified:11/12/2012 7:11 PM Good evening Dr. Devine and class members. First, let me state that the air condition unit that Mr. Lake purchased clearly was a defective unit. To address the first question, which asks "Which warranties, if any, has the manufacturer of the air conditioner breached?", I think that the express warranty was breached. According to the textbook, an "express warranty, as provided in the Uniform Commercial Code (UCC) is a promise, either written or oral, by the manufacturer as to the quality, abilities, or performance of the air conditioner (UCC §2-313)(Jennings)." From my interpretation of this definition, I summise that the quality of the air conditioner is what has been breached on behalf of the manufacturer. I can only assume that an inspector of the refrigeration system did not catch the hole, which subsequently went undetected and furthermore was not detected until after the death of Mr. Lake. For an air conditioner to properly cool, freon is a must and if the freon seeped out due to the hole in the refrigeration system, then the unit will not cool as it was promised to do. Another important factor in this scenario is timing. Mr. Lake purchased the unit in May and by August. This three month time span makes me wonder as to what size the actual hole was; I will assume that the hole was a pin-head size hole, which would explain why the freon seeped out slowly and sometime during the third month of having purchased the unit, the unit's freon level was gone or extremely low, which did cause the unit not to work effectively. To address the second questions which asks "Was Lake's death a foreseeable consequence of the air conditioner's failure to operate properly? I think that Mr. Lake's death was a foreseeable consequence of the air conditioner's failure to operate properly. I can only assume that a medical autopsy was performed to determine that Mr. Lake suffered from hyperthermia, which is defined as a temperature greater than 37.5-38.3 ºC (100-101ºF), which in all likelihood means that Mr. Lake succumbed due to a heat stroke. The manufacturer of the air conditioner had to predict or expect the ultimately harmful result of their actions due to the defective unit. I am not stating that it was an intentional act; however, they knew the potential consequences that could arise if a unit did not operate as it should. Reference: http://online.vitalsource.com/books/9781133170624/page/330 http://definitions.uslegal.com/f/foreseeable/ http://medical-dictionary.thefreedictionary.com/hyperthermia 412071798 409386310 Breach of Warranty 0 Joseph Waldrup 11/12/2012 9:45:35 PM Which warranties, if any, has the manufacturer of the air conditioner breached? The warranty the manufacturer of the air conditioner breached was the "implied warranty of merchantability." Was Lake's death a foreseeable consequence of the air conditioner's failure to operate properly? I would say that Lake's death wasn't a foreseeable consequence of the air conditioner's failure to operate properly. True enough, if the coolant would not have escaped from the unit, it possibly could have saved him, but we can't pin point if that "really" caused him to die. He could have died from another unknown source, or perhaps natural causes. By the unit going out, I do believe it added to his death. 412071798 RE: Breach of Warranty 409386310 Chelsey Houwen 11/18/2012 4:33:41 PM But if the coolant leak out; he should have notice the room getting hot. Since, the temperature reached about 96 degrees. So, when I the cashier if I want to buy a 1 year warranty; what kind of warranty is that? 409945190,411123 409511751 Foreseeability 0 Professor Devine 11/13/2012 8:45:08 AM Class: In the initial question this week, we are asked about foreseeability. The issue of foreseeability is an important one in this scenario. First, what do "actual causation" and "proximate causation" mean and what types of evidence in the Lake case might prove these elements of a negligence claim? Second, there is the issue of foreseeability--was it foreseeable that a defect in the A/C would ultimately cause Mr. Lake's death? You will see in our discussion that issues of liability are rarely easy or black and white. There are different facts, different laws, different interpretations, and different nuances, as well as all of the "what ifs." As always, we will be digging deeper into the facts in order to understand the applicable law. We need to know more than the facts given. The question of "foreseeability" is a critical one. Manufacturers must live with the present litigious environment that surrounds products that don't work, and personal injuries that sometimes occur because of faulty products. The air conditioner leaked, and we will continue to debate over whether or not this is a breach of the implied warranty of merchantability. Remedies for such a breach are normally limited to the value of the product itself. Consequential damages are allowed only if the damages themselves are foreseeable. In a negligence claim, proximate or actual causation must be proven. How far in the causation chain should we permit foreseeability to go? Several in the class may conclude that they do not believe Mr. Lake's death was a foreseeable consequence of the failure of the A/C to work properly. The Palsgraf decision in our text presents the majority and dissenting opinions the respective views on this issue. What do you think? Should the law of foreseeability focus on the conduct of the injured as well as the conduct of the manufacturer who breached a warranty? Do you see issues of foreseeability in the Lake case and in the Dole case (I am posting a link to the Dole spinach case below)? I post the link to the Dole complaint (the document that starts a lawsuit and is filed with a civil court), so you can see what a complaint looks like in format and substance and get an idea of how these legal claims we are talking about this week look in a lawsuit. http://news.findlaw.com/hdocs/docs/spinach/zientekdole91706cmp.html Ginger 409945190 RE: Foreseeability 409511751 Latrice Donaldson 11/14/2012 5:37:32 AM Good morning Dr. Devine. Actual causation refers to a cause or factor without which the event could not have occurred. It is also termed as but for cause or cause in fact or factual cause. The but-for test is often used to determine actual causation. With the case of Arvo Lake and the defective air conditioner, the question is if the manufacturer of the unit is responsible for Mr Lake's death ; this presents the question if the defective AC unit the direct cause of Lake's death? Proximate cause is the primary cause of an injury. It is not necessarily the closest cause in time or space nor the first event that sets in motion a sequence of events leading to an injury. Proximate cause produces particular, foreseeable consequences without the intervention of any independent or unforeseeable cause. It is also known as legal cause. Some evidence of the Lake case that may help prove elements of negligence are (1) the hole that was in the refrigeration system of the unit, and the required freon had seeped out, (2) the time span of the unit being purchased, properly installed, and when the unit began to malfunction; from the month of May to the month of August), (3) after the unit stopped cooling, the inside home temperature reached an excessive 96 degrees Fahrenheit, which caused hyperthermia, which led to his untimely death. Was it foreseeable that a defect in the AC would cause the death of Lake. In an injury/death resulting from the defective design of a product, the claim is that the product functioned as it was designed but the design, itself, was negligent. That is reasonable manufacturer should have known that the design of the product was defective (inspection done before leaving manufacturing location), this according to a group of New York attorneys. References: http://www.gairgair.com/lawyer-attorney1428005.html http://definitions.uslegal.com/a/actual-cause/ http://legal- dictionary.thefreedictionary.com/proximate+cause 411123860 RE: Foreseeability 409511751 Dana Smicklas 11/16/2012 2:26:54 PM I think foreseeability could depend on whether or not the type of air conditioning unit had incurred similar issues in the past. For instance if ten other units has the same problem as Mr. Lake's then I would say that it was foreseeable that something like this could happen. However, if what happened to Mr. Lake's unit was the first unit to ever have this happen, then no the event was unforeseeable. Companies do ris assessments so that they know what the risks are with their products: http://productliabilityprevention.com/images/2-RiskAssessmentandProductLiability.pdf 411674659 RE: Foreseeability 409511751 Stephanie Knights 11/17/2012 7:07:25 PM Actual cause is the cause of something that actually happened. For instance, the cause of a person’s death was cancer. However, the proximate cause is the cause of the cancer was smoking, because if the person didn’t smoke they might not have gotten cancer. In relation to the Lake case, the proximate cause would be the assumption that the leak in the air condition caused Mr. Lake’s death. This is because the Freon leaking from the air condition caused he system not to function properly. However, the actual cause of death was hyperthermia, but this would have happened even if the air condition was never installed. http://answers.yahoo.com/question/index?qid=20080109141443AA7PV ZK 409783972 Re:Breach of Warranty 0 Natia Wilkins 11/13/2012 7:15:44 PM I believe the manufacturer has committed a strict liability in tort because under section 402A of the restatement of torts it states: (1) One who sells any product in a defective condition unreasonably dangerous to the user or consumer....is subject to liability for physical harm..." (page 336, Business: It's Legal, Ethical, and Global Environment; Jennings) I also believe that Arvo had a part in this too. When his residence started to become heated, Arvo should have discontinued the use of the unit and sent it back to the manufacture for a refund or replacement. 409866098 Breach of Warranty 0 Carletta Jones 11/13/2012 9:21:27 PM The manufacturer of the air conditioner breaches the warranty of the products design and the design defects. Design defects is basically a product that has exposed the users of that product to experience unnecessary risk. Mr. Lake was exposed to a faulty product due to design defect and a breach of warranty on the manufacturers part. Mr. Lake's death was foreseeable due to the air condition having faulty defects. It is the responsibility of the manufacturers to provide all foreseeable risk and potential consequences that could occur with their products. 411989393,411612 Loser Pays? 409985073 0 Professor Devine 11/14/2012 8:47:49 AM Class: In some countries, a "loser pays" system is in place with respect to civil lawsuits. Do you think this is a legal scheme that the U. S. should consider? Would it deter some of the frivolous lawsuits we are discussing this week? Ginger 411989393 RE: Loser Pays? 409985073 Stephanie Knights 11/18/2012 1:35:16 PM The ‘loser pay’ system is basically when the losing side contributes to the cost of the prevailing opponent. This is practice in many European countries, but has not been adopted in the United States. While there are some cost a benefit to the legal systems in other nations, the loser pay system is outweighed by is unforeseen disadvantages. For instances, this systems may encourage side bets and/or split fees between the magistrates and legal teams. Additionally, in some nations the loser pay system has caused another market to form, which is the ‘legal expense insurance’, just in case you happen to be a losing plaintiff in a legal matter. In my opinion, the United States should not ever adopt this practice because it would discourage people from using the legal system to resolve conflicts legally, if fear of losing and having to pay more than what was lost. http://www.pointoflaw.com/loserpays/overview.php 411612955 RE: Loser Pays? 409985073 Carletta Jones 11/17/2012 5:11:15 PM Yes, I agree with the idea that using the loser pay system in the United States would help to deter frivolous lawsuits. Many people in the United States feel that it is a simple alternative to file lawsuits for every single thing, or situation that they feel is unfair or any type of wrong doing. “A loser pays system could be an important part of a larger effort to reduce litigation cost, discourage meritless lawsuits, and better align tort law with its goal of deterring socially harmful conduct. The rest of the world uses the loser pays or ‘English rule’ system,” the report said. “It’s time the United States adopts one as well.” http://legalnewsline.com/tort-reform/217740-report-loser-pay-rule-would-curbfrivolous-lawsuits 412124436 412009134 RE: Loser Pays? 409985073 Linda Sue Martin 11/18/2012 2:23:16 PM My concern would be for the lower income population who do have a legitimate case but may be afraid of the risk. When one enters into a case it is not known how it will be settled. If the plaintiff knows they maybe responsible for all court costs, then they might not enter into the lawsuit. This might work well for frivolous cases, but I'm more concerned about the legitimates cases that will not be pursued. Some times our laws are redefined because David fought the giant and won. And, in my opinion, we need these cases to exercise our legal muscles and help it to grow. 412124436 412009134 RE: Loser James Pha Pays? 11/18/2012 6:01:01 PM Hi Linda, you bring up an interesting point about how this loser pays system could push the lower income that could possibly have a legitimate case away because they could somehow lose and cant afford the fees... My initial thoughts were this could possible eliminate cases that are pointless and could also prevent people just making claims. Then, I read your post and it made more sense. This system wouldn't be fair for everyone. In the system we have now, I do agree with you that we need the cases that people aren't afraid of big corporations or anything. Keep corporations and even government themselves in check. I found this in doing more reading about the Loser Pays system, "IF LOSER PAY BECAME THE STANDARD IN THE U.S., it would probably create a market for insurance covering the plaintiff's risk of losing and having to pay a winning defendant's costs. That is what happened in England, where many injury victims protect themselves against the threat of losing by obtaining after-the-event legal insurance, the cost of which can be transferred to the defendant if a victim wins. As a result, loser pays has had little effect on these litigants. If successful plaintiffs in the U.S. could collect attorneys' fees from defendants, the value of their claims would rise and more than offset the cost of insurance. Attorneys might advance the cost and absorb it in the relatively rare event that they lost the case." http://www.legalaffairs.org/printerfriendly.msp?id=923 I was thinking, the loop whole for more fraud could actually rise as well... Just thinking, with a new system put in place there will only be more wholes that are open for people to make money by fraud and new regulations to be put in place. Just seems like a whole mess to go though... 410518254 RE: Loser Pays? 409985073 Antonia Whittler 11/15/2012 11:38:34 AM Prof. Devine’s Loser Pays: Class: In some countries, a “loser pays” system is in place with respect to civil lawsuits. Do you think this is a legal scheme that the U.S. should consider? Would it deter some of the frivolous lawsuits we are discussing this week? Prof. Devine and class, Although we are not considered a loser pays country there are several states that have loser pay systems and in all states the opposing party can ask that the other party pay for attorney’s fees, as well as certain sanctions if possible. Two states that the “loser pays” system is very well known in are Alaska and Texas. “The one place in the U.S. that has had extensive experience with a loser-pay system is Alaska. Under Alaska’s rules, losers have to pay a portion of the winning side’s costs.” Retrieved on November 15, 2012 from www.legalaffairs.org/printerfirndly.msp?id=923 Texas expanded the loser pays rule because Texas courts have the authority to order the losing party to pay the attorney fees and costs for the winning party, depending on the circumstances. Advocates for the “loser pays” system argue that it will cut down on frivolous lawsuits. Because it is a very litigious society our courts are congested with so many lawsuits that it would be beneficial in our society if a “loser pays” system is established to cut down the lawsuits. However, it was noted that the law being used in Alaska did not cut down the number of lawsuits filed. Texas just enacted the law in 2011 so I’m not sure that one year has been enough time to determine the effects of the law on the cessation of frivolous lawsuits. “According to its proponents, the law implements several measures designed to streamline litigation in Texas courts and allow litigants to resolve their disputes quickly and cost effectively.” Retrieved on November 15, 2012 from www.apps.americanbar.org/litigation/litigationnews/top_stories/080811-texas-loserpays-rule.html. It will be interesting to see the results in a few years! 411395399 410617144 RE: Loser Pays? 409985073 Anthony Fletcher 11/15/2012 3:47:23 PM I agree with what the others have said about not creating a "loser-pays" system. While the idea, in concept, is a good one and serves a purpose, it would be difficult to standardize because every individual case is different. Yes, the law would deter unnecessary lawsuits from happening, but for those lawsuits that are legitimate it could potentially penalize one party but not the other in a case where both parties are partially at fault. For this reason, the percentage rule is used because it can better penalize each party on a case by case basis. Under the percentage rule, the losing party could still end up with 100% of the legal bills if they were found completely at fault. 411395399 410617144 RE: Loser Bryan Anderson Pays? 11/17/2012 7:55:47 AM I completely understand and agree with the “loser pays” philospophy. I believe that there should be some repercusions for individuals to for frivolous lawsuits. The court system becomes extremely congested with these cases and the cost to taxpayers is outragous. However, I believe the reason we haven’t seen a dropoff in these types of cases being brought on the court system is because of the ridiculous payouts. Because of these types of payouts, even with a “loser pays” rule its still worth it for these individuals to “roll the dice.” If they lose they may have to pay a few thousand dollars in lawyer and court fees, but if they win it could be a multi million dollar payday. To some of these individuals the risk is worth the potential reward. 411007643 410414991 RE: Loser Pays? 409985073 Latrice Donaldson 11/15/2012 6:14:24 AM Good morning Dr. Devine. Before reading up on the "loser pays" system, I immediately said no to the question "Should the U.S. consider this legal scheme?" After researching the topic, I did read that the "loser pays" legal scheme would definitely deter a great portion of the frivolous suits that take up unnecessary time and costs a great deal of money. I also read that the "loser pays" legal scheme would only be beneficial to wealthy individuals or major corporations. This is why I stand beside my answer NO. The most important aspect of the article, in my opinion, is for the less financial fortunate individuals (plaintiff, for example) who end up in court versus the more financial fortunate individuals (defendant, for example), the strategy of the prosecutors and the defense attorney would be swayed and the litigation fees would become more astronomical. For anyone that is interested in reading this article, it is located at http://phys.org/news/2012-11-loser-pays-all- criminal-cases-wealthy-defendants.html. Reference: http://phys.org/news/2012-11-loser-pays-all-criminal-cases-wealthy-defendants.html 411007643 410414991 RE: Loser Professor Devine Pays? 11/16/2012 9:10:03 AM Good analysis so far on the "loser pays" option, class. There are pros and cons--elimination of some frivolous lawsuits yet possible deterrence of meritorious lawsuits due to the risk when involving a judge or jury. Ginger 411176227 RE: Loser Pays? 409985073 Christopher Nordone 11/16/2012 4:50:30 PM After reading this article: http://communities.washingtontimes.com/neighborhood/conservingfreedom/2011/aug/25/rick-perry-revives-hope-tort-reform/, which reviews Texas implementing the loser pays system, I think I agree that a loser pays system is something that the US should consider as being standard. The points that the article brings up which makes me favor a loser pay system include the greed that the current american system encourages with people to sue for anything in order to make money, the amount of pointless lawsuits people file and the fact that legal costs can become greater than the cost of damages someone may legitimately be suing for. 410074723 RE: Loser Pays? 409985073 Colleen Walker 11/14/2012 1:08:32 PM I don't think that the US should consider a "loser pays" system with respect to civil lawsuit. Definintly in some cases the loser in the case needs to pay for what they did wrong, but not in all cases. I like the fact that the US has a % fault kind of way to do things so that the percent of at fault is what you have to pay. Although I know people who have had car accidents that they didn't like this type of dealing with it b/c they didn't get 100% back on what damages they had, but it was partly thier fault, so it makes sense to me. 410763535,411558 410151604 RE: Loser Pays? 409985073 Joseph Waldrup 11/14/2012 4:33:45 PM This is a very interesting rule that I had not heard about prior to this discussion. In my opinion, adopting a "loser-pays" rule would likely be feasible only if the rule applied to defendants who are wealthy. A loser-pays-all rule could deter some crime when it's applied to either a corporation or an individual with deep pockets. But when defendants are not wealthy, such cost-shifting would not work. On the defendants side, the problem is that a significant percentage of the accused in the U.S. are not wealthy and they might not have the financial resources to repay the prosecutor's costs, should they be found guilty. So that might explain why this is not an issue we hear about too often in the U.S. For that minority of cases, having a loser-pays-all rule in place could lead to greater criminal deterrence as well as a reduction in legal errors, which may benefit some of those civil lawsuits. Most people will think twice if they know they'll have to pay back the costs of their prosecution if they lose. If you force companies to pay for the prosecutor's legal costs, they might be less likely to settle, or more likely to invest more money on criminal litigation, so the probability of losing goes down. I do not think this rule would benefit the U.S. 411558901 410763535 410151604 RE: Loser Jamie Blea Pays? 11/15/2012 7:58:33 PM I would agree with Joseph that this rule would not necessarily benefit the United States. Although, now adays many people want to take any small argument to court and this could deter that thought- as if they lose they will be paying in addition to their normal court costs. As Joseph mentioned, this may not matter to those with already "deep-pockets" and may only be a bump in the road. However, it could lead to less settlements outside of court as both the prosecutor and defendent would want to win as not to pay. 411558901 410763535 RE: Loser Professor Devine Pays? 11/17/2012 3:11:49 PM Modified:11/17/2012 3:12 PM Like Texas, many other states have engaged in tort reform. Have your states? Check it out: http://www.atra.org/legislation/states. Some argue that tort reform may be an important step in bringing down health care costs. Ginger 410229612,411020 409999077 0 RE: Breach of Jaye Ambrose Warranty 11/14/2012 9:31:57 AM Modified:11/14/2012 9:43 AM The breached could be based on design defects of the air conditioner. For the manufacturer to be liable for damages caused by this breach of warranty, the manufacturer must show that they have complied with federal and state regulations on on the product and that adequate instructions were provided on the proper use of installing, servicing and care for the product. It would also be helpful if the manufacturer used the latest technology and designs available within the industry and has met those standard s in designing its products. Manufacturers have the ability to warn buyers of the potential dangers that can result from the use of their product because buyers are not likely to realize the potential dangers or threats that can occur as a result. If the manufacturer failed to provide necessary regulations under the Consumer Product Safety Commission (CPSC), then I would believe the faulty air conditioner could be a foreseeable consequence of Lake's death. 411020221 410229612 RE: Breach of Warranty 409999077 Chelsey Houwen 11/14/2012 7:00:44 PM All the air conditioners should have come with instructions. There should have been a section, included with the instructions, for warnings, which will or should have given buyers a heads up on what could possible happen with the air conditioner, as well. I also understand that some individuals do not read the warning labels. 411020221 410229612 RE: Breach Joseph Waldrup of Warranty 11/16/2012 9:45:21 AM Very god point Chelsey. Most of these companies that construct products that we use on a daily basis print out these warning labels with a ton of writing on them. I know I am guilty of not even looking at some of those labels. If the manufacturer of the A/C unit did not include any special instructions or warning, shame on them. If they did, even it had small print, they may be covered because they actually included it. 410330143,410452 410174726 Negligence 0 Bryan Anderson 11/14/2012 5:23:09 PM Absolutely the manufacturer is liable as the warrenty was breached. I do believe that the company is responsible for consequencial damages that resulted from the damaged equipment. When the company projected the potential consequences from such a malfunction i doubt that they thought that it would result in death, but it did. Mr Lake bought the product with the expectation that it would provide cool air. The product did not work as designed, thus they should be held responsible. 410452428,412338 410330143 RE: Negligence 410174726 Edwin Scales 11/14/2012 9:38:20 PM The Breach of Duty, under Element One, is that the manufacturer breached that duty for the plaintiff to recover on the basis of negligence. The manufacturer’s Quality Assurance department should have found the defect in their model. In addition they should engage in thorough contracts with specific delivery companies to reduce the change of improper behavior with random appliance deliveries. This is one of the saddest types of negligence cases because the appliance killed the consumer since the Standard of Care was not met. I can imagine the executor will file suit for punitive damages. 412338036 410452428 410330143 RE: Negligence Colleen Walker 11/15/2012 8:40:25 AM I agree that the manufacturer's quality assurance's department should be to blame. There was obviously a mess up somewhere that let this air conditioner go out to the customer's home and then in turn kill him. This will definintly give the company a huge problem with a bad public image as well as law suits. The company needs to find out where the problem came from, how to deal with it, and how to get their public image up. 412338036 410452428 RE: Negligence Kim Ornder 11/18/2012 11:35:15 PM I cmpletely agree that the manufacture is to blame. They both caused the problem and are in the position to make steps to prevent it from happening again. Even if they did not anticipate that any malfunction would result in death it did and they are responsible for that outcome. 410373835 Warranty 0 Michael Como 11/14/2012 11:15:45 PM Class, many of you have replied with great answers and I agree that this is a defective product. While reading the text, two areas stand out to me, the implied warranty of merchantability and the implied warranty of fitness for a particular purpose. These seem similar to me, but the merchantability is where a merchant says a product will work and the other warranty of fitness says that the product will work for the particular purpose it was designed for. The air conditioner was faulty and did not work as it was implied to function. I can understand where some see negliegence on the part of Arvo, but the main issue is the air conditioner did not work as it was designed to work and the company should be held liable for damages that came as a result. 411807181,411900 410690308 Warranty 0 Chelsey Houwen 11/15/2012 6:11:26 PM Well, unless the manufacturer knew the product was lemon (something was wrong with it); then, I would consider that to breach of the warranty or contract. To believe it or not some company sell lemons. That is why have some many recalls on products. One example would be Toyota. Yes, Lake's death could have be somewhat foreseeable because he or someone should have recognize the room getting hotter. Now, this is a lesson to the manufacturer that they need to double their work before shipping them out to the stores. 411900535 411807181 410690308 RE: Warranty Edwin Scales 11/17/2012 11:01:33 PM The requirements of warranty determine what a seller must do to ensure they are not in breach or warranty. First the company, or seller, used skills or judgments is use of the goods. Second, the buyer relies on the seller’s skill and judgments. Most importantly, seller had reason to know of buyer’s reliance. Finally, the seller recommends use to the buyer. The air conditioner did not work and was subject to warranty. 411900535 411807181 RE: Warranty Professor Devine 11/18/2012 9:34:30 AM Importantly, there is a privity requirement in a warranty claim, so only the consumer can bring such a claim. Also, breach of warranty claims are limited to economic loss rather than compensation for personal injuries. Ginger 411316165 410695024 Breach of Warranty 0 Stephanie Knights 11/15/2012 6:18:57 PM Federal Magnuson-Moss Act: This is a limited warranty concerning the consumer which regulates the length of the purchaser and user warranties. While this act does cover the manufacturer it does not prohibit the purchaser for filing a lawsuit under the Uniform Commercial Code (UCC), while under the manufacturer’s written warranty. There are several other warranties that cover the consumer as well as the manufacturer. However, it is the consumer’s responsibility to make sure the system is cooling the space properly. Unfortunately, in the case of Mr. Lake, there are no grounds to hold the manufacturer liable for his death. The air condition unit had been installed for three months, so during that time someone would have to notice the air condition unit was not working properly. http://www.justanswer.com/business-law/4k3rc-superkool-company-makes-air-conditionerssells.html 411316165 410695024 RE: Breach of Warranty Edwin Scales 11/16/2012 10:14:11 PM The refrigerator is a large, heavy, technical appliance. This package would fall under the Express Warranty for the delivery alone. The manufacturer should ensure the product quality because they made a promise to the quality, abilities or performance of the product. The family visited a showroom and they observed a display model. They could read the refrigerator’s features and specifications for the appliance. The manufacturer and store are responsible to ensure the machine performs within guidelines. These abilities all affirm that the buyer has express warranty that the product works correctly. 411324740,412117 "You be the Judge" 411005998 0 Professor Devine 11/16/2012 9:05:13 AM Class: I have inserted the Lake decision in Docsharing. You be the judge--how would you have ruled? Ginger 412117545,412145 411324740 411005998 RE: "You be Linda Sue Martin the Judge" 11/16/2012 10:39:48 PM There are a couple of observations that I have made after reading the decision. The first is the idea that the plaintiff did not make the complaint with special circumstances. This was mentioned a couple of times. And at one point stipulates that the case might have resolved differently if the "complaint alleged special circumstances." This leads me to wonder if the decision was complete. I found the comments on foreseeability particularly enlightening. Especially considering our comments on the topic. The fine point centers on the definition of the term as found in the Winnett v. Winnett case. It seems that foreseeable means "that which is objectively reasonable to expect" not necessary what possibly could happen. With that understanding it is easy to understand how the argument against product liability failed. It is not reasonable to expect the owner to die if the AC should cease to function. Overall, I find the decision logical and in-line with the law. Admittedly, there were perspectives that I would not have considered. Its a hard thing to read, but once on a roll it is interesting. 412145004 412117545 411324740 RE: "You Michael Como be the 11/18/2012 5:50:41 PM Judge" Linda Sue, after reading the decision, I have to agree with your assessment. I think the plaintiff failed to show what the special circumstances are in this case for Arvo Lake. Why would he have had difficulty that someone else would not have had with this appliance? If they could have shown that Arvo was impaired in some way if it was true, then maybe they could have used that as a reason why the company was liable for death. I agree that an air conditioner is not a life saving device and that death from using an air conditioner is not a foreseeable occurrence. 412145004 412117545 RE: "You be the James Pha Judge" 11/18/2012 6:31:09 PM Hey Michael... I think you hit it on point with your last statement, "an air conditioner is not a life saving device and that death from using an air conditioner is not a foreseeable occurrence." Also like Linda said, the decision base on the claims made by the plainitiff a lone and the defendants claims seems pretty obvious what the outcome would be. I do agree that, if the Lake's estate could have gone a different direction with this case, maybe they would have the outcome weighted their way more. From the ARVO case, "Another way of formulating this concept is to say that every time a product injures a consumer, that consumer is disappointed, i.e., the product has failed to live up to the consumer's expectations, but that does not automatically impose liability upon the manufacturer. " I agree with this statement until proven... Just because there are so many other factors that can take place and is involved. It is hard to say a lone that the product failing a lone cause the death... Maybe with more investigation, other things would appear that the could have been other things that lead to the Lake's death. 411392801 411005998 RE: "You be Bryan Anderson the Judge" 11/17/2012 7:46:08 AM Initially reading the discussion topic, I was very much convinced that “Heat Controller Inc” was to blame for the death. After reading the courts decision and their reasoning, I can understand why they disnt find Heat Controller Inc responsible. In my opinion, the main reasons they sided with Heat Controller Inc are “the manufacturer did not intend for its product to be a life-support device. And “an air-conditioner may on occasion serve to prevent people from overheating and dying, but its purpose is incidental to their intended use.” So I had originally vilified Heat Controller Inc in the man’s death but after reading the reasoning, I agree with the courts decision. 411559885,411998 411239202 411005998 RE: "You be Julie Hicks the Judge" 11/16/2012 7:20:42 PM After going through the Lake decision, I would somewhat now agree and go alongwith the court decision. The court stated that In determining whether a duty exists, it must apply a foreseeability test. An ordinary consumer would not expect to be killed by an air conditioner which is defective. Failure to blow cold air does not make an air conditioner "unreasonably dangerous". Air conditioner manufacturers reasonably would believe that if an air conditioner failed to blow cold air, the purchaser might flip the switch a time or two, or perhaps unplug it or perhaps call a repairman and when all failed the purchaser could be expected to walk outside. So, it concluded that Lake's death was not a proximate result of defendant's breach of warranty and thus not a proper case in which consequential damages can be sought. I agree because we can't consider the air conditioner as "Life Support Device". It served its purpose and there could be a situation where it malfunctioned and it is the duty of the plaintiff to take precaution or call someone immediately rather than succumb to death. 411998086,411584 411559885 411239202 RE: "You be the Professor Devine Judge" 11/17/2012 3:14:09 PM Thanks for weighing in here! Class: As further information, a lawyer who used to teach this course wrote the following letter: Subject: Estate of Arvo Lake case Dear Paula Newcomb, Esquire: Hi! I am an attorney in Decatur, IL, and an Instructor for Keller School of Management of DeVry University. I teach Business Law and Ethics. An appellate case which you handled, (Estate of Arvo Lake v. Heat Controller Inc), is the subject of one of the topics we cover in our class--breach of warranty and product liability. The students in my class are curious about what happened after the case was remanded back for the jury to decide foreseeability and whether the a/c was unreasonably dangerous. I wondered if you would mind just letting me know what happened in the subsequent trial, or if your client ended up settling with the defendants. Thank you for your time. I would really appreciated knowing how this turned out! Here is the response: The judge who dismissed this case for failure to state a cause of action (which we appealed) always thereafter referred to this as the case of the killer air conditioner. We settled; for a mere $5,000, as Mr. Lake was a bachelor, no children, few heirs and his family members were not especially interested in a trial and could not realistically claim loss of companionship. The attorney I had worked for as a law clerk, David Garavalia, was Mr. Lake's friend and his executor. I began this case as the clerk, and finished it after I graduated. Mr. Garavalia and I felt that Mr. Lake's death was unnecessary, and Mr. G. had personal knowledge that the A/C was new, and that Mr. Lake actually had great difficulty bearing the heat. It is of great interest to me that it is the subject of a law class. I felt then and do now, that it was foreseeable that certain persons would rely on the working of the A/C just as you expect the brakes of your car to work. Thanks for the note. Paula Newcomb Does this information change your analysis and conclusions about this case? What do you all think about assessment of the "economics" of the value of Mr. Lake's life? Unfortunately, this is part of a wrongful death analysis. I thought you all might be interested in how the "economic value" of someone's life is calculated, particularly since Mr. Lake was elderly. It is sad but a fact. Here is an excellent article about the value of life and monetary calculation in personal injury and wrongful death lawsuits. http://www.behan.ws/lifevalue.htm Ginger 411998086 411559885 RE: "You be the Linda Sue Martin Judge" 11/18/2012 1:56:33 PM Good to know the final judgement. I find the settlement to be surprising low. Though I was not expecting a large settlement, the amount suggest it was not even large enough for the estate to reclaim expenses for the trial. Though on the other hand, the judges comment do make it clear that and AC is not a life sustain piece of equipment and should not be used as such. I did find the life economic value interesting. I had assumed that the life expectancy was considered as well as earnings projections. Did not consider the value would take into consideration the retirement figures, or even unemployment, and perhaps even vacation pay. Seems to fairly comprehensive. The settlement would have no doubt, been larger if Mr. Lake had been younger. 411584720 411559885 RE: "You be the Blanche Meriweather Judge" 11/17/2012 4:11:34 PM Wow Professor; I never knew how the value of life and Monetary calculate in a personal injury and wrongful death lawsuits. It's sad to say if you don't have a great job and education as well as your age, you're not worth anything. Thats saying you have to be young, educated and have a great job to be worth something. 411900791,412121 411740353 RE: 411005998 Dana Smicklas 11/17/2012 8:57:10 PM "You be the Judge" When I first read the case, I did feel bad for the man, seeing as he was in his 70's. However, as the judge states, not every 70 year old person is feeble or incapacitated and therefore age should have no bearing on the case. I agree with that point and I think that's why a substantial frivilous cases are brought forth. For instance, if a woman lived along and the same thing happened to her, could she claim that because she is a woman and not knowledgeable about air conditioners that she wasn't able to fix it or know that it had a problem? Therefore, the man's age should not have anything to do with the case. The case should be based on whether or not the unit was defective and caused the man's death and if the unit was defective, was the company aware of the potential for that issue before they sold him that unit. 412121835,412300 411900791 411740353 RE: "You be the Professor Devine Judge" 11/18/2012 9:35:22 AM Modified:11/18/2012 9:35 AM Still, Dana, you make good points. If it were determined that Mr. Lake had diminished capacity, this may impact the success of defenses such as comparative negligence. It is sad how many individuals, particularly elderly, die in this country from heat related deaths. Ginger 412300340 412121835 411900791 RE: "You be the Anthony Fletcher Judge" 11/18/2012 5:57:05 PM Maybe I missed it this discussion or maybe it wasn't mentioned, but what about the effects of this situation on the business that sold the air conditioner? I would assume they tested the product prior to the sale, but between the manufacturer and the retailer the product could have been damaged in the distribution cycle. I think it is important to discuss this side of the story as well. Mr. Lake could have purchased the air conditioner from a retailer, in which case the product probably spent some time in numerous places after the manufacturing plant. What would happen in this case if the manufacturer could prove the product was not defective prior to shipment? If they could prove this, then would the distributor or the retailer also be partially liable? While defects are typically rare due to quality assurance, the defect in this air conditioner is a fairly common one, and can be easily caused by mishandling. What if the product was accidentally damaged while being installed by the customer or a family member? Maybe the retailer itself installed the product. Additional information is again needed to determine liability. Brand image is at risk here for the company. No company ever wants a situation on their hands like this one, because it turns into bad press and ultimately diminished sales because of the bad word-of-mouth. 412300340 412121835 RE: "You be the Professor Devine Judge" 11/18/2012 10:09:05 PM Anthony: This is where we look back at the elements of the strict product liability claim. One element that must be proven is: "the product is expected to and does reach the user or consumer without substantial change in the condition in which it is sold." If this element (along with the others) is proven, then the manufacturer can be held legally responsible. Proving this is difficult, which is why product liability cases typically require expert witness testimony. However, you did identify other parties that may provide an "intervening/superseding cause" defense for the manufacturer, such as damage in installation by a third party installer or by the consumer. If proven, this defense (among others) may reduce or eliminate the manufacturer's liability. Ginger 411899413 0 Week 3 Discussion 1 Professor Devine - Wrap Up 11/18/2012 9:30:39 AM Class: Thanks for your thoughts this week. Interesting discussion! We discussed TCO C: Given an example of corporate liability arising from the sale of defective and dangerous products, develop a business strategy that includes ethical considerations to minimize liability for claims of product liability and breach of warranty. For the midterm and final exams, be sure that you consider the elements of possible legal claims--negligence, strict product liability, breach of warranty, and wrongful death. Also, review possible defenses, such as assumption of the risk, contributory and comparative negligence, intervening causes, statutes of limitations and repose, and misuse of product. An additional defense that we have not discussed this week is the doctrine of governmental or sovereign immunity. In many cases, governmental entities and officials may be held to be "immune" from lawsuits and liability for acts within the scope of their office. For example, in one case, a patrol officer had stopped to ticket a driver. A truck collided into the back of the patrol car and then sued for his own injuries. The court held that the officer and the City were immune from suit and liability under the doctrine of governmental immunity. Ginger _u=8678735;_dt=6 0C-90-A5-93-23-10