LAW 525 Lecture Notes - Lecture 3: Summary Offence, Product Liability, Collateral Contract
28 Jun 2018
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LAW 525 – Chapter 3 – Product Liability
How businesses can avoid product liability: Quality control, product recall, product warnings
(labels), well drafted contracts
Privity – requirement that there be a contractual relationship between the parties
- Exception: representation made directly to the consumer that consumer responded to
may arguably create privity or collateral contract
Condition – a fundamental obligation imposed on a party to a contract, the performance of
which is vital/basic to the contract (core of the contract)
- Breach will permit a purchaser to cancel or rescind the contract, damages can also be a
remedy
Warranty – an expressed or implied promise or statement of fact about goods that is collateral
to the main purpose of the contract of sale
- Claim for damages
Remedies will differ depending on condition or warrant
R.S.O. – registered statue of Ontario (section 92 of the BNA act)
S.C. – statute of canada
Sale of goods act - implied conditions/warranties
- Goods are fit for a specific purpose (i.e. can’t sue tide pods form eating them)
- Goods are of merchantable quality
Indemnity – placing liability onto the manufacturer, passing on responsibility to someone else
Product liability in a claim for negligence must establish:
a) The defendant owed a duty of care
b) The defendant breached the requisite standard of care associated with the duty
c) The defendant’s breach cause the plaintiff’s damages
Basis of claim – plaintiff will have to establish that the manufacturer was negligent in either the
design or the manufacture of the products, or that it failed to warn of a danger
Pain and suffering damages are capped at $350,000
Common relationship for sale of goods: manufacturer -> distributor -> retailer -> consumer
Resch et al v. Canadian Tire
- Canadian tire (retailer), using the sale of goods act and tort of negligence
- Step father is the buyer but son cannot claim negligence because not a co-buyer
- Basis of sale of goods act: implied warrant of fitness (section 15)
- Only the buyer can recover damages
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Law 525 chapter 3 product liability. How businesses can avoid product liability: quality control, product recall, product warnings (labels), well drafted contracts. Privity requirement that there be a contractual relationship between the parties. Exception: representation made directly to the consumer that consumer responded to may arguably create privity or collateral contract. Condition a fundamental obligation imposed on a party to a contract, the performance of which is vital/basic to the contract (core of the contract) Breach will permit a purchaser to cancel or rescind the contract, damages can also be a remedy. Warranty an expressed or implied promise or statement of fact about goods that is collateral to the main purpose of the contract of sale. Remedies will differ depending on condition or warrant. Registered statue of ontario (section 92 of the bna act) Goods are fit for a specific purpose (i. e. can"t sue tide pods form eating them)
