Breach of Warranty
Select two of the scenarios. Support your responses with appropriate cases, laws, and other relevant examples by using at least one scholarly source from the SUO Library in addition to your textbook for each scenario. Do not copy the scenario text into the paper. Label the beginning of each scenario with the number you selected (e.g., Scenario 1). Cite your sources in APA format on a separate page.
Scenario 1 – Breach of Warranty
Bethany was looking for a birthday gift for her husband, Lars. Lars loved to smoke cigars; however, Bethany knew nothing about them. While Bethany was looking around the Purple Haze, a tobacco shop, the owner suggested that Bethany try the newest cigar imported from Haiti. The owner stated that the cigar is just like Cuban cigars. After some hesitancy, Bethany asked the owner to smoke one. The cigar had a surprisingly aromatic smell and it lasted much longer than expected. Bethany purchased a box of the cigars and gave them to her husband on his birthday. When Lars smoked one of the cigars, it gave off a bitter obnoxious smell and was consumed in less than four minutes. When Bethany saw this, she was upset and asked Lars to try another cigar. The same situation was repeated with offensive smell and the cigar burning down very quickly like a cigarette.
After Bethany tried unsuccessfully to return the cigars for a refund, she filed a small claims court action against Purple Haze. The case was based on the failure of the purchased cigars to conform to the sample, breach of the implied warranty of merchantability, and the misleading statement “just like the Cuban cigars.”
Scenario 2 – Statute of Frauds
Ginny Klein orally agreed to purchase a security system for her business from IHK. The price for the system was $45,000. Klein wanted to use the system to monitor activity of persons entering and exiting the facilities. The sale of the system also included a one-time setup service visit priced at $1,000. The total contract price amounted to $46,000. The security system was delivered and set up, and Klein paid $46,000. Afterwards, Klein discovered that she could obtain the same goods and services from another seller for a total contract price of $38,750. Klein now seeks rescission of the contract, based on the fact that more than $500 in goods was involved in the sales transaction, that the contract between IHK and her company was subject to the statute of frauds and that the oral agreement between them was therefore unenforceable. Klein wants to return the system to IHK, and receive reimbursement of $45,000 (She is willing to waive his claim to reimbursement for the $1000 setup service visit.)
Scenario 3 – Product Liability
Karl was not a licensed plumber, but occasionally installed hot water heaters as part of his handyman business. Karl installed a new 50-gallon hot water heater manufactured by Rheem for Alana, a single mother with two children. Warnings were provided in large bold letters on a metal plate on the water heater. Similar warnings were provided in the manual Karl provided to Alana at the time of installation. The warning on the water heater read “CAUTION: HOT WATER CAN SCALD.” The heater itself contained a picture of hot water coming from a faucet with the words “DANGER” printed above it.
Karl set the temperature to 110°F. The next day, 4-year-old Shannon was being bathed by her 12-year-old sister, Joy. When Joy received a call on her cell phone, she left Shannon alone in the bathtub with the water running. Shannon was scalded by the water from the tap. Shannon’s mother brought suit against Karl and the manufacturer. alleging defects in the design of the water heater and Karl’s failure to warn her about the heater’s dangers.
Name your document SU_BUS2038_W2_LastName_FirstInitial.doc. Submit your document to the Submissions Area by the due date assigned