0% found this document useful (0 votes)
14 views17 pages

Business Law I Class Notes Overview

This document provides an overview of the key concepts covered in a Legal Environment of Business Law I class, including: 1) The US court system with federal district, circuit, and supreme courts at the federal level and similar state-level courts. 2) The jurisdiction and types of jurisdiction (original, appellate, etc.) that different courts have. 3) The sources of law including constitutions, statutes, administrative agency law, and case law. 4) An overview of the civil litigation process from filing a petition through discovery, motions, trials, and post-trial procedures.

Uploaded by

srunyon01
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
14 views17 pages

Business Law I Class Notes Overview

This document provides an overview of the key concepts covered in a Legal Environment of Business Law I class, including: 1) The US court system with federal district, circuit, and supreme courts at the federal level and similar state-level courts. 2) The jurisdiction and types of jurisdiction (original, appellate, etc.) that different courts have. 3) The sources of law including constitutions, statutes, administrative agency law, and case law. 4) An overview of the civil litigation process from filing a petition through discovery, motions, trials, and post-trial procedures.

Uploaded by

srunyon01
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Legal Environment of Business Law I Class Notes

Thomas C Mann

209 W 6th Suite 8


Joplin MO 64801
782-0050 396-1647
Room 214 tcmann@[Link]

52 court systems
Fed- District (Complaint) - Court of Appeals (8 th)- Supreme Court
State- Circuit (Petition)-Court of Appeals- Supreme Court

Jurisdiction- The Power of the Court to hear the case


Original- Where the case is heard first (trial) (District, Circuit Courts)
Brief- Judge made an error
You can appeal when a judge makes an error
Supreme Ct is the court of original appeal and

Appellate- Transcript and briefs (Court of Appeal, Court of Appeal)

Writ of certiori – direct appeal to the Supreme court (all hear 100 case a year)

Federal District hears case that are to deal with the Constitution, Treaties and laws of the US

General/ Limited
Federal District is Limited circuit court is general
Federal
1) Laws, treaties & Constitution
2) Diversity of citizenship
a. >75000
b. Citizens of different states
Circuit
1) Probate
2) Juvi
3) Real Prop
4) Criminal
5) Muni
6) Traffic
7) Contracts

Four Sources of the Law


Constitution
Statutes- Fed Congress, Missouri General Assembly
Admin Agency Law
Case Law

Three Ways to Look at a Case


1) Substantively- rights and responsibility of parties
2) Procedurally- by using the rules of civil procedure and evidence to present case
3) Remedially- trying to figure out the outcome of the case for client

Steps of a Lawsuit
Circuit Court – Petition
1) File
a. The Duty to act a certain way
b. The breach of the duty
c. The breach of the duty proximately cause
d. There is injury
e. The prayer (summary )
f. File it with the clerk and gives one to the Judge, keeps one record and gives one to be
served
2) Serve the Lawsuit
a. Cop Sheriff
b. Certified Mail
c. Publication (News Paper)
3) Responsive Pleadings
a. Answer- general denial
b. Answer with an affirmative offence (legal justification)
c. Answer in a counter claim
d. Cross claim defendant sue each other

Discovery is where you find out what the other side is doing
3 kinds of Discovery
1) Interrogatory (questions) (pin point the credibility)
2) Motion to Produce – Person or Documents
3) Depositions – get information to pin point witness, get information about people who can’t be
there

2 kinds of Motion
1) Motion of Summary Judgment-
2) Motion in Limine

The History of the Law


Common law was kicked up (12 Writs)
Law of Courts (right to money and )

Judge Trial- Judge is decider of Facts and Law


Jury Trial- Judge is decider of Law and Jury decider of Facts

Right to Jury Trial


1) Criminal
2) 12 Writs (right to jury with common law)
3) Win a Statue
No right to Jury Trial
1) Administrative procedures
2) Equitable – have to show the legal remedy (money damages will not solve the problem)
Equitable proceeding (unclean hands)

Voir dire (Jury to see and say the truth)

Two different names ways to kick a person of a Jury


1) Challenges for cause
2) Preemptory Challenges

Burdon of Proof- The plaintive must present the proof


1) Beyond a reasonable doubt 95%
2) By clear and convincing evidence 75%
3) By preponderance of evidence 51%

Three Different kinds of Evidence


1) Testimony
2) Physical Evidence (only come in through the change of evidence)
3) Demonstrative (helps demonstrate the evidence)

Jury Instructions- made by both lawyers and Judge

Motion for directive evidence


Motion for Judge (NOV) Notwithstanding the

Writ of Execution- The sheriff goes out and levies (grabs) ;attachment (take their stuff) ; garnishment
(bank, employers)
Tendency of

Precedent-
1) Higher ups tells lowers what do to
2) Equals don’t tell equals what to do
3) States don’t tell States what to do

Cite: US(appellant)v(vs) Morrison(appellee) 529(report)US598(pg), 448(volume)


SCT964,38Led3d475(2000)yr case was ruled

Personal Jurisdiction-
1) In personam- money
2) In rem- who owns what
3) Quasi in rem- get money judgment from states where corporations didn’t have a main office or
factory

For corporations- for


1) Home offices
2) Factory
Long arm statute – State can get criminals from other states
1) contract
2) criminal

Supremacy Clause-
Taxing and Spending clause- frathingham
Commerce Clause-
1) Allows the Federal Government to leduslate where it has no power
2) Prevents states from unduly interstate

Commerce Clause 2 ways


1) Allows the Federal Government to have regulation where economic issues are
2) It allows the Supreme Court to unconstitutional that unduly

Three case the Supreme Court hears

Kassel vs Consolidated Fright Way- Iowa

Bill of Rights- free from the interference of the Federal Government

Due Process Clause

Defamation- Publication of false statement about other people- S


Public Figures- New York Times vs Sullivan had to prove it malleus- Knowledge of its Faulty or

Chapter 8 – Crimes
4 reasons for punishment
1) Reformation
2) Restitution
3) Restraint
4) Deterrence
a. Specific
b. General
2 things for a Crime
1) Mensrea (right mind)
2) Voluntary act

4 Mental States
1) Purposeful
a. Careful deliberation
2) Knowingly
3) Recklessly
4) Negligence

Felony
Misdemeanor
Felony
a) Ten to 30 in doc (department of correction)or life
b) 5-15 years
c) 1-7 year in doc or 1 year county jail
d) 1-4 years in doc or 1 year county jail

Misdemeanor

Defenses
1) Alibi
2) Intoxication (involuntary)
3) Insanity (difference between knowing right and wrong)
a. At the time of the crime
b. At the time of trail
4) A
5) Entrapment
6) Necessity
7) Consent
8) Mistake of Fact
9) Infancy
10) Statute of limitation

Contract- voluntary agreement between two people


1) Agreement

Chapter 13 Offer & Acceptance

What’s not an offer?


1) Social invitation unless it is the prom
2) Invitation to negotiate (first come offer is an offer)
3) Offers made in jest or anger
4) Promises to make a contract at a future date

Definiteness
1) Omitted terms can be implied by law- Fixtures (go with the house)
2) Divisible into parts (rent)
3) Lists –

Expectations
1) Requirements or output contract
2) Services are needed
3) Indeffenant durations
4) Open-terms sales contract

Terminating an offer
1) re
2) Counter offer
3) Rejection
4) Time period
5) Laps of time
6) Death of a party
7) Subsequent illegality

Revocation- when you cant


1) Firm offers by merchant
2) When the offery has done something to make it happen
3) Option contract- contract to make an contract

Acceptance Rule- mirror image rule


1) Unqualified acceptance

Unordered Goods- have to put it on a shelve and wait for them to ask for, if they ask for it you must
send it back

Mailbox Rule- an acceptance is effect upon dispatch, but revocation is effective only when received

Auctions-
1) When he talks he is inviting you to bid
2) Make an offer
3) Accept
4)
Rewards- cannot accept an offer by your performance without know

Chapter 15

What it is Consideration- what the promisor demands and receives as the price of his promise

What is not Consideration-


1) Moral obligation
2) Pre-existing duty rule
a. The contractor refuses to do the job without the payment of a bonus- if it is binding or
not –most courts say no consideration-
3) Accord & Satisfaction – when you write a check for part and write full and final payment on it
and the total amount is disputed
4) Past consideration-

Is consideration for contract


Hamer vs Sidway- Forbearance (Legal Detriment)

Adequacy of consideration – like it or not you’re stuck


1) Unconscionability (not a fair deal)
2) Evidence of fraud
3) Exchange of different quantity of same unit
4) If all else fails

Exception
1) Charitable contribution -Voluntary consideration
2) Commercial paper
3) Court papers
4) Promissory Estoppel

Test 2

Sept 30- 14
Oct 5 – 14/16
7- 17
12 – 18
14- 19 quiz
21 – 20
26 – Test 14- 20

Chapter 14 Capacity & Assent


6 groups
1) Minor
2) Void
3) Intoxicated (unless they wait too long after being sober)
4) Prison (convicts)
5) Aliens
6) Married women

When minor can avoid


1) Minor can set aside a contract aside anytime and a reasonable time after.
2) In most states you can’t set aside contract if you lie about your age
3) If he can’t return it he can get the fair market value

Effect of Avoiding a Contract on 3rd Parties


1) He is liable for damages to others

Ratification – he made an act that shows he wanted to stay in the contract after reaching age

Necessities-
1) Medical care
2) Substance (food, cloths, and lodging)

Assent- Same page on the contract


1) The enforceability of a contract may be affect my the mistake of both or one party or because of
the assent of one party was obtain fraud, undue influence,
2) The mistake of one party is not enough for to brake the contract, unless there is known fault
3) A mistake to expectation is not enough
4) A mistake of law is not enough
5) Mistake of identity to other party is not enough
6) A mistake in paper is not enough
7) The exception – an type o in a big government contact
Mistake of Both Parties
1) Over the same idem of subject matter
2) Over the main idem of subject matter

Misrepresentation
1) Innocent misrepresentation – is not enough to void the contract
2) Concealment- non discloser is not enough unless it is an unknown problems, fiduciary(greater
duty, confidentiality must tell) , or active concealment
3) fraud
a. making of a false statement
i. of fact
ii. with knowledge of its falsity
iii. with the intended for the listener to rely on it
iv. the listener does rely
v. there are damages

Undue Influence- don’t operate of free will (aging parent trusting child)

Duress
1) physical (violence or the threat of violence)that allows contract to be broken
2) Economic - when the victim is threatened with a loss for which acquit recover cannot be
attained by sewing the wrong due- it actionable

Chapter 16 Legality

When it’s legal its enforceable, when it’s illegal is unenforceable

Enforce the contract when it’s not enforceable


1) When we protect one of the parties that the law intended to protect
2) When the parties are of unequal guilt (like usury)
3) Collateral illegality- side issue, they set it aside from the main contract

Good Faith and Fairness


1) Lacks good faith- unconscionability – is unequal contract
2) Exculpatory Clause-(not responsible for action, attracting the public)

Regulation & Licensing – protect the public

The legal rate of interest in Missouri- 9%

Agreement not to compete- is valid as long as it’s not a restraint or trade in violation in the anti-trust
laws

Qunizy Contract is not a contract

Chapter 17 Form & Interpretation of contract

MYLEGS- Statues of Fraud


1) Marriage (complete disposure)
2) Contracts that cannot be performed in a year
a. When it does not have to be in writing
i. When no time is specified
ii. When performance what take a year
iii. The contracts have unlimited duration
iv. Terminable at will by either party
3) Sales of Land (if more than a year it does)
4) Executor (sign as personal executor)
5) Goods of $500 in value
6) Surety Ship (bonds)(exception- when the promise benefits the promisor rather than the debtor
that will enforce even though it is not in writing)

SAP(Exceptions of the 6)
1) Specially ordered goods
2) Admit –
3) Part performance – they performed part of the contract

What constitutes a writing-


1) Material terms
2) Signed by the party to be charged (the party trying to get out of the contract)
a. What constitutes a signature
i. Any mark that identifies a person or company
b. A check is not a sufficient memo

Parole Evidence Rule- oral evidence


(Exceptions
1) Incomplete contact
2) Fraud accident or mistake
3) Ambiguity -Misunderstanding of words
4) Conduct of the parties
5) Existence of the modification of the contract
6) Under the UCC prior course of dealing(prior contracts) and usage of trade(others do)

6 rules of interpretation of a contract


1) Follow the intent of the party
a. Test- what a reasonable person uses to decide what the words mean
b. The court should not rewrite a contract just not enforce it
c. A common word is give it meaning by found in the dictionary
d. Secrete intentions have no effect
2) Contract should be construed as a whole
a. If separate they must be incorporated by references
3) Specific terms rule over general terms
4) Implied terms
a. Court will not imply a term if it concludes that silence was intentional
i. Three things always imply
1. Act in Good faith
2. Details of performance
3. Acquiring the proper government permits
5) Three different types of writings
a. What is first is the closes to the contract (most resent)
6) A contract is strictly construed against the writing party

Chapter 18
3P who has benefited by the performance of a contract may enforce it against the original parties when
such was the intention to the contract- A and B make a K where B promise A that B will pay C, who is
not the original, C can enforce it to B

Only an intended beneficiary can be enforced, but not an Incidental

When original parties can change over end- They can’t change or revoke if the third party contract once
the

Assignment of Rights – complete transfer


Delegation of Duties- not a complete transfer

Assignment of Rights to Performance (OK UNLESS)


1) Performance is unique
2) When it’s to the personal satisfaction of a party
3) When the credit of the assignee is not credit worthy

Tidbits
1) An assignment takes place the moment that it is made
2) The assignee’s writes can never be greater than the assigners
3) Probation against assignment must be expressed

Chapter 19 Discharge

Conditions-

When the occurrence of an event affects the obligation of a contract it is a condition


Conditions Three Kinds of Conditions
1) Concurrent conditions- (At the same time) each person is obligated to perform at the same time
Each party can withhold performance until both parties agree
2) Conditions Precedent- Satisfy precedes the assistance of another contract
3) Condition Subsequence –

How do we get out of a contract?


1) Performance-
a. Payment by check is effect when it is presented for payment and honored
b. Secured (put up collateral for debt) vs unsecured debt- debtor makes a payment
toward- if the debtor specifies the creditor is stuck but if the debt does not specify then
the creditor gets to choose
c. Statute of limitation- in the State of Missouri it is 5years
d. Tendering- if you offer your performance
i. If it to do an act it is discharged
ii. If it is to pay money and they refuse to except, you still owe the money , but you
do not have to pay interest, court cost, attorney fees
iii. Time of performance (reasonable time)- unless you put time is of the essence
iv. The doctrine of Substantial Performance- when the defect is not willfully made
and when the total value of the partial performance do right is large compare
to the damages substance done through impartial , the court will not set aside
the contract but will give for damages
v. When the contract is done to the satisfaction to another party and they
unreasonably refuse to be satisfied we might be able to declare the contract
illusory (think it is capable but you can’t because the other part is not acting (in
Good Faith) reasonable)
vi. Guarantee- means that you liable to that
2) Mutual Agreement –
a. in the contract by the happening of the event
b. recession – by agreement both parties work it out
c. one party waves by failing to object
d. to substitute another document
e. novation
f. Accord in satisfaction- cash a check with paid in full
3) Impossibility-
a. Non-permanent Weather
b. Permanent
i. Subject matter is destroyed by no fault of either party
ii. When the law changes to making it illegal
iii. Death or disability in personal service contract is done
iv. Act of the other party prevents you from preforming
4) Operation of Law
a. altering
b. Destroy
c. Bankrupt
d. Statue of Limitation
e. Merger

5) Acceptance of a Breach - Bad way of getting


1) Anticipatory Breach- the occurrence of breach excuses the injured party from preforming if
the defaulting performance was a condition preceding to the duty of the injured party to
preform
2) Doctrine of Anticipatory Breach- when you breach before your performance is due

Chapter 20 Remedies

Damages-
1) Nominal
2) Compensatory
3) Punitive

Consequential Damages
1) Direct- only sue for direct result of damages
2) Consequential- only sue for events that are foreseeable

Mitigation of Damages- Lessen the effect of damages (if the injured party has the chance to mitigate and
does not that may hurt his case)

Liquidated Damages Clause- Clause that is put in the contract and will be followed if breached(if not
enforced then you must prove actual damages)
1) Actual damages are difficult to determine
2) It has to be called a Liquidated Damages
3) It has to be written in the contract
4) It has to be faith and reasonable- otherwise it is a penalty and unenforceable

Other Types of Remedies (money is not enough to settle)


1) We don’t allow a specific performance unless the subject matter is unique in nature

Test 3

10-28 22
11-2 22-23
11-4 24
11-9 25
11-11 26 Quiz 21-25
11-16 27
11-18 Test

Chapter 21 Personal Property

Acquiring Ownership
1)
2) purchase
3) gift
4) Will or inheritance
5) Accession

Gift- Three ways to a


1) The intent to make a gift
2) The delivery
3) The acceptance -
4) A gift given inter vivos- can not be taken away
5) A gift given causa mortis can be taken away if they live longer than they thought,

Joint Ownerships- More than one person owns


1) Tenancy in common // under common law
2) Joint tenancy with right of survivorship // under common law
3) The tenancy by the entirety –
4) 50/50 // community property States
Mislaid, Abandoned, Lost
1) Mislaid – misplace keys- the finder does not obtain the property
2) Lost- not voluntary misplaced – the finder has title over all others except the original owner- if
you don’t give it to them he can sue you for conversion
3) Abandoned property- the title is good against all including the original owner

Patten – for 17 years


Trade Marks- distinctive mark, model, device or emblem – forever-perpetual
Copy Rights- Good for the life + 50 years after the life of the inventor

Bailments- when you give your property with instructions to somebody and get it back- only kind of
1) Gratuitous- when you do it for free- he owes slight care
2) Mutual-benefit- he owes a reasonable care
3) Extraordinary- liable no matter what- hotel owners- common carriers (truck driver)-
warehousemen – They owe great care
For a bailment to work you have to deliver and acceptance
No bailment if you have the option of paying money instead of returning the property
When is the baily liable
1) If he doesn’t use the proper standard of care when he has the owners property
2) For unauthorized use
3) They are only liable for the goods ordinarily used in the container

Chapter 22

Document of Title
1) Bill of lading-
2) Air Bill
3) Warehousemen

Chapter 23

Nature and Legality

1) Subject Matter of Sales


a. Goods- consist of all forms of tangible personal property, including specially
manufactured goods
b. Nature Of Goods- Article 2 applies not only to contracts for the sale of familiar items of
personal property, such as auto mobiles or chairs, but also to the transfer of
commodities, such as oil, gasoline, milk, and grain.
c. Existing Goods- goods that are already grown and owned by the seller at the time of
transaction
d. Future Goods- all other goods, which include both goods that physically exist but are not
owned by the seller

2) Sale Distinguished from Other Transactions


a. Bailment – is not a sale because only possession is transferred to a bailee. Title to the
property is not transferred
b. Gift- is a gratuitous (free) transfer of the title to property
c. Contract for Services- such as painting a house is not a sale of goods
d. Contract for Goods and Services-

3) Formation of Sales Contracts


a. Necessary Detail for Formation-The minimum terms required for formation of an
agreement under the UCC are the subject matter and quantity(if there is more than one)
b. The Merchant versus Non-merchant Parties- Article 2 applies to all transactions in goods
it is applicable to sales by both merchants and non-merchants, including consumers.
Generally these areas of different treatment constitute the UCC’s recognition that
merchants are experienced have special knowledge of the relevant commercial practice
and often need to have greater flexibility and speed I their transactions.
c. Offer- Firm offer- An offer by a merchant cannot be revoked if the offer 1) expresses an
intention that it will be kept open 2)is in a writing and 3) is signed by the merchant
d. Acceptance- Manner-
e. Acceptance Timing- The mail box rule applies under the UCC not just for the use of the
same method of communication as that used by the offeror, but so long as the
acceptance is communicated.
f. Acceptance-Language-

Chapter 24
Nature of Goods
1) The identification of goods- means selected; The existence of goods- means
2) Future goods- goods not in existence that are subject to the contract
a. Terms of transactions- the seller is only required to make the goods available to the buy.
If the K calls for sends the of the goods to the buyer the – its required that the seller
delivers to K unde3r contract. Actual physical delivery at the destination is only required
when the contract so states. The K may also call for a document of title

Combined the Nature of Goods and Nature of Terms in 6 ways and relate to when risk of lost title and
unusable interest past to the buyer
1) Existing goods at the time of ID
a. No documented title- If the seller is a mutant the risk passes when the good is received;
if he is a non-mutant when the risk passes when the good pass
b. Title to existing id goods passes to the buyer at the time and place of contracting
regardless of delivery and payment are made at a later date. When the goods are in the
possession of the buy before contract is made the title passes when agreed, insurable
interest ends when title passes
2) Goods represented by the goods – the buyer has the insurable interest by the time
a. Goods held by a bailey- the risk of loss and insurable interest do not pass to the buy
until the bailey
b. Future Goods- marking for the goods- the seller doesn’t act for the benefit of the
shipping department to indicate which certain goods are to be sent under the order .
This act gives the buyer a property interest enough to insure the goods; non the risk of
lost or title passes to the buyer until shipment or delivery is made
3)
a. Contract for shipment to the buyer-
b. Contract for delivery at the destination
Self Service Stores
1) The store buy putting the goods on the shelves makes the goods available for cash, the grant to
license to the buy to the front of the store and buy them- the risk of loss is loss until the good
passes the place of payment
2) Autos – the transfer of title usual transfer

Damage or destruction
1) Damage to identify before the risk is passed- if without fault we can avoid the contract if it is
total, if in part then the buy has the option to void the contract or accept the goods subject to
an allowance but there is no breach- when the buy rejects non-conforming goods and the goods
are stolen the buyer is not liable unless the seller can show the buyers neglect
2) After the risk of loss passes – goes to buy
3) If the too unidentified goods- buyer

Sale on Approval is not a completed sale until approval

Sale of Return- it is a completed sale with the right to take it back

Consignments- the owner is not the seller, - the seller does not obtain title until the good is sold

Recording Statues – they are designed to notify the whole world that a prior transaction took place

Chapter 26 Oblig & Performance

Two obligations
1) Good Faith –(Article 1) honesty in fact and in the conduct of the transaction concerned
2) Insurance of the Property- the seller may agree to provide insurance on behalf of the buyer

Conditions Revisited
1) In most bilateral conditions are
2) In the case of a shipment contract there is a time in travel in between the
3) The duty of the sales contract may be subject a condition – one party may not be able to
perform until some event accurse or act is preformed- the seller duty to deliver the good is a
condition precedent to the buyer duty to accept the good

Anticipatory Breach Revisited- it can be retracted as long as the other party has not relied on it

Adequate Assurance of Performance- a written demand for insurance of your ability to perform
1) Letter of credit
2) Financial statement
3) Deposit
4) Post a performance bond
Within 30 days of making the demand if nothing is paid then the contract can be repudiated

4 obligations of seller Contract


1) Sellers duty to deliver the goods- the seller must permit the transfer of the goods to the buyer-
the place- sellers place of business the buyer can insist that all the good be delivered at once if
less is delivered the buyer can refuse to accept or if he accepts part he only has to pay for what
is received. The seller can cure defective tender with a curative if he gives timely notice
2) The buys duty to accept the goods- the buyer has the right of a reasonable time to inspect the
good. Acceptance doesn’t discharge the seller unless the is no timely complaint from the buyer
3) The buyers duty to pay for the goods- pay for the goods at the contract rate in US cash
a. Payment with commercial paper- conditional upon payment being honored
b. Escrow- a form of security
c. Electronic transfer
4) Duties with respect to transportation
a. FOB- Free On Board- delivery takes place of FOB – the seller remains at risk until the
FOB point
b. CIF- a lump sum – Cost Insurance Fraught
c. EX-ship – seller bares the responsibility until the goods live the ship
d. No arrival no sell

Assignment of a Sales Contract- the sellers assignee may or may not be liable by breach of original
seller- defense of the buyer against the sellers assignee- usually the sellers assignee is reliable for any
claim the buyer might have against the original seller. They have a prevision in the contract that says the
buyer agrees not to assert against the sellers assignee that he would have against the seller. Those
provisions are valid unless they are consumer goods

In cooperate- own the

Chapter 25 Warranty & Product

When goods prove defective or cause harm, who is liable for the harm caused by the sustained loss?
Harm can be caused to persons, property, or economic interest. Who can sue- at the common law
perivity of contract was required but the UCC abolished it and no innocent bystanders can sue.

Who can be sued- the manufacture, middle men, retailer, the maker of some component part

6 Theories- 3 Contract – 3Tort


Three in Contract
1) Express Warranty- forms part of the bases of a sale – the buyer purchases the goods under the
reasonable assumption that they were as stated by the seller-that statement has to be with
respect to quality capacity or other cares of the good, not a statement of option. What forms
they take – Oral statement, reading the label, signs, warranty, included in another document
Federal Regulations say that over $15
Limited Warranty- means you have to pay the postage to send it back
2) Implied Warranty- those made by the seller that are implied by law there are 4 that are for
everyone and 2 for merchants
a. Warranty of title- every seller warrants that the title is good and the transfer is rightful
b. Warranty against encumbrance- that means its free from any liens, or security issues
c. Warranty against conformation
d. Warranty against fitness for particular purpose-when the buyer relies on the sellers skill
or judgment to buy or sell suitable good- the seller knows of the purpose and the buyer
relies. A sell on the buyers specification does not apply because you are not relying on
the sellers input
e. Merchant only- Warrant against infringement – free from third parties from
infringement
f. Warranty of Merchant ability or fitness for normal use- that means the good is fit for
the ordinary purposes for which it’s sold
3) Express Guarantied Warranty-
Three in Tort
1)

Sell of food and Drink- fit for human consumption- the reasonable expectation test, foreign /natural
test
Sell of Second Hand Goods

Breach of Warranty-

Negligence Case- Four elements


1) Duty to make the product safely
2) Breach that duty by making it unsafely
3) The breach of the duty apparently cause the injury
4) There is injury

Per se- showing they broke the law establishes the first two elements

Failure to use due care when making the product


Failure to place adequate warnings
Faulty assembling and testing
Faulty design
Faulty selection of the material

I was going to tell you about that, I saw that today.

You might also like