Question

3. What is a warranty of merchantability and how is it applied to both the seller and buyer of goods? Give an example.

4. How are merchant and manufacturers’ liability impacted by the federal Magnuson-Moss Act?

5. We read in Touchstone p 494-95 about a lung cancer victim who sued cigarette makers for harm from her 45 year habit. How was product liability defined in the trial—do you agree with the appellate court decision?

Answer 1

3. The warranty of merchantability guarantees that the product is valid and will work as per expectation. This warranty helps the seller to express the quality of his product while placing it in the market. The buyer gets the warranty about the credibility of the product. For example: A seller sells a bucket by promising its durability. The consumer will judge various buckets based on the durability feature.

4. The Magnuson-Moss Warranty Act f the year 1975 is the law passed to protect the consumer warranties related to products. As per this law, it is the responsibility of the merchant or manufacturer to provide detailed information to the consumers about the warranty coverage of the product.

As the merchant or manufacturer of the product, a individual is liable to:

• Provide a written warranty either in full capacity or limited capacity with the specific titles of “full” or “limited”
• The coverage of the warranty must be specific, accurate and clear
• Warranty must be present with the product at the time of selling so that the consumer can read the same before buying

5. In the trial, the plaintiff had to prove the harm and health injury caused by the product consumption. This proved that the cigarette company was liable for the loss and hence had to pay the punitive damages.

I partially agree with appellate court’s decision. In this case, the liability needed to be shared by the plaintiff as well as the defendant. The consumer needs to be aware about the harm that a product can cause and accordingly delve the consumption. The cigarette companies issue the warning of health harm on the cigarette packet. So the product harm has been highlighted by the manufacturer itself. it is the duty of the consumer to consciously consume such products in moderation.