Business Law Ch 10

  1. design defect
    A defect that is found in all products of a particular design and renders them dangerous..
  2. express warranty
    Any description of a good’s physical nature or its use, either in general or specific circumstances, that becomes part of a contract.
  3. fails to provide adequate warnings
    A defect in which the product is not labeled to indicate that it can be dangerous.
  4. implied warranty of merchantability
    An assurance, inferred in every sale unless clearly disclaimed, that merchantable goods will conform to a reasonable performance expectation. The purchaser must have purchased or leased the good from a merchant.
  5. implied warranty of fitness for a particular purpose
    An assurance, inferred in any UCC sale, that when a seller/ lessor knows or has reason to know (1) why the buyer/lessee is purchasing/leasing the goods and (2) that the buyer/ lessee is relying on him or her to make the selection, the buyer/ lessee has an enforceable warranty if such assurance is false.
  6. manufacturing defect
    A defect in an individual product that makes the product more dangerous than other, identical products.
  7. market share theory
    A firm’s fractional share of the relevant market.
  8. strict product liability
    Under this, courts may hold the manufacturer, distributor, or retailer liable for any reasonably foreseeable injured party.
  9. warranty
    (1) An assurance, either express or implied, by one party that the other party can rely on its representations of fact. (2) In sales, a binding promise regarding a product in the event that the product does not meet the manufacturer’s or seller’s promises.
Card Set
Business Law Ch 10
Business Law Ch 10