Product Liability Terms and Definitions

Warranties Fitness and merchantability The two most important warranties created by U.C.C. Article 2 are the warranty of merchantability (2-314) and the warranty of fitness for a particular purpose (2-315). The warranty of merchantability is a promise that the goods are fit for the ordinary purpose for which goods of that type are used. Design Defect If the actual design of a product makes it unreasonably dangerous, then every product with that design is defective. For example, the poor design of the Ford Pinto is what made it defective, and because the design was common to all Pintos, they were all defective in design. US CPSC U.S. Consumer Product Safety Commission, they monitor products and issue recalls Express Warranties Promises stated outright by the manufacturer or seller. They are usually in advertisements or on a product’s packaging. Assumption of Risk This means that you knew of the risks in using the product, but you decided to use the product anyway. Secret warranties In dealing with defects in autos & new car parts sometimes free repairs are not publicized, they are called "secret warranties." Some states have passed laws requiring vehicle owners be notified of secret warranties. Extended warranty A service contract is sold separately and is a promise to pay for certain repairs or services. Service contracts are usually high-profit add-ons, costing hundreds to more than $1,000. Prescription Drug Any donated, previously dispensed, prescription drug Shall not have been adulterated, misbranded, or stored under conditions contrary to standards established by the United States Pharmacopoeia or the product manufacturer. Implied Warranties Not stated outright by the manufacturer or the seller. For example, you might have an Implied Warranty of Merchantability, which promises that your product is good for its ordinary purpose. Online Pharmacies If an online pharmacy requires you to waive your legal rights in order to do business with it, reconsider your purchase. A waiver of liability should not be necessary to receive your drugs.

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	Did You Know?
	At the end of 2002, CPSC had reports of 5,239 ATV related deaths Deaths and injuries associated with all-terrain vehicles (ATVs) have shown an increasing trend in the last several years. This was an increase of 698 deaths from 2001. These additional reported deaths occurred during the years 1999 to 2002. Of these reported fatalities, about one-third were children under 16 years old. Fourteen percent were under 12.