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Express warranty

contractual promise about nature or potential of product that gives right of recovery if product falls short of a promise that was a basis of the bargain

Bait and Switch

using cheaper, unavailable product to lure customers to store with a more expensive one then substituted or offered instead

Federal Trade Commission

federal agency responsible for regulating deceptive ads

Wheeler-LEa Act

federal law that allows FTC to regulate "unfair and deceptive acts or practices"

Celebrity endorsement

FTC area of regulation wherein products are touted by easily recognized public figures

Consent decree

voluntary settlement (document) of FTC complaint

Implied warranty of merchantability

warranty of average quality, purity, and adequate packaging given in every sale by a merchant

Implied warranty of fitness for a particular purpose

warranty given in circumstances in which the buyer relies on the seller's expertise and acts to purchase according to that advice


act of negating warranty coverage


direct contractual relationship between parties

Strict Liability

standard of liability that requires compensation for an injury regardless of fault or prior knowledge

Restatement ( Second) S 402 A

American Law Institute's standard for imposing strict liability for defective products


standard of liability that requires compensation for an injury only if the party responsible knew or should have known of its potential to cause such injury

Punitive Damages

damages beyond compensation for knowledge that conduct was wrongful


product liability defense for plaintiff using a product incorrectly

Contributory negligence

conduct by plaintiff that contributed to plaintiffs injury; serves as a bar to recovery

Comparative negligence

negligent conduct by plaintiff serves as a partial defense by reducing liability by percentage of fault

Assumption of Risk

defense to negligence available when plaintiff is knew of risk and engaged in risky conduct anyway.

Consumer Product Safety Commission

federal agency that regulates product safety and has recall power

Uniform Product Liability Act

proposed federal statute that would limit product liability suits and recovery

5 ways to claim Product Liability

1)Express Warranty
2) Implied warranty of merchantability
3)Implied warranty of fitness for a particular purpose
5) Strict Liability

Defenses for Strict Liability

1)Assumption of Risk
2)Contributory Negligence
3)Comparative negligence
4)Misuse (can be found in any of the above 3)

Castro vs. QVC Network Inc. ( A turkey of a Pan: Liability on Thanksgiving Day

Case 11.1 the issue of product liability is one of representations via ad statements.

Does Listerine Prevent Colds? Warner-Lambert CO. Vs. FTC

Case11.2 Corrective advertising requires a seller to correct the unsubstantiated claims made in previous ads.

Case 11.4 Mitchell vs. TGI Friday's Clamming Up Because of Shell-Shock

Case about reasonable expectation, who ever eats oyster can reasonably anticipate and guard against eating such a piece of shell.

Greif vs. Anheuser-Busch Companies, Inc. ( is Beer Inherently Dangerous?) Case 11.5

deals with a related issue of whether beer producers are liable for accidents caused by those who are drunk from imbibing the product.

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