Warranties: Liability in Practice
Liability in Practice
Scenario 1: SuperKool is a company that makes air
conditioners and sells them out of its SuperKool stores. SuperKool also sells
used air conditioners of its own brand, which the company identifies as selling
“as is” with no express warranty. For the new air conditioners that
SuperKool sells,
1) What types of statements, duration, and disclaimers would
be typical to put in its express warranties and explain why.
2) What other types of warranties might apply under statute
or common law?
3) For the used air conditioners, does the “as is”
label absolve SuperKool of all liability if something goes wrong with the air
conditioner after purchase?
Scenario 2: What kind of liability does SuperKool have in
the following situation?
An elderly customer buys a new air conditioner and installs
it himself, but does not notice that after a month the air conditioner has
stopped blowing cool air. Two months after installing the air conditioner,
there is a heat wave and the customer dies of a heat stroke in the room in
which the air conditioner was installed.
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