Legal Problem Advanced Electronics Corp AEC
Manufactures display screens for use in electronic devices and got a profitable
contract with a Chinese instrument company. AEC made an oral contract with
Specialty Packaging, Inc. (Specialty) under which Specialty would supply the
packing cases needed for AEC- shipments to China. Specialty made a substantial
number of packing cases following AEC- specifications. AEC thereafter stopped
production of its screens and refused to take delivery of any cases. When
Specialty sued for breach of contract, AEC argued that the contract could not be
enforced because the contract was not in writing.
Will Specialty succeed in its breach of contract suit against AEC? Why or why
not?
Legal Problem 2: Lois Cranston lived in an apartment with
her sons in Las Vegas. The hot water supply to their apartment was heated by a
BestBuilt water heater, which had a temperature control device on its exterior,
manufactured by Hanson Devices (Hanson) and sold to BestBuilt. Larry Landlord,
the owner of the apartment building, had purchased and installed the water
heater. The water heater was located in the basement of the apartment.
Extensive warnings were provided on the water heater itself and in the manual
given to Landlord at the time of his purchase. The warning on the water heater
read "CAUTION: Hot water increases the risk of scald injury." The heater itself
contained a picture of hot water coming from a faucet with the words "DANGER"
printed above it. In addition, the water heater had a statement on it:
Water temperature over 120°F can cause severe burns instantly or
death from scalds. Children, disabled, and elderly are at highest risk of being
scalded. Feel water temperature before bathing or showering. Temperature
limiting valves are available, see manual.
In the BestBuilt manual, a similar warning appeared.
On October 1, 1992, 15-month-old Billy Cranston was being bathed by his
15-year-old brother, David. When the telephone rang, David left Billy alone in
the bathtub. No one else was home with the boys, and David left the water
running. Billy was scalded by the water from the tap. Billy and his mother
brought suit against BestBuilt and Landlord, alleging defects in the design of
the water heater and Landlord- failure to warn her about the heater- dangers.
Can Lois prevail in a product liability lawsuit against BestBuilt and Hanson?
Why or why not?
Legal Problem 3: A buyer purchased an engine to operate an
irrigation pump. A label on the engine stated that it would produce 100
horsepower. The buyer needed an engine that would generate at least 80
horsepower. In actual use in the buyer's irrigation system, the engine generated
only 60 horsepower. The buyer sued the seller for damages. The seller raised the
defense that no warranty of fitness for the buyer's particular purpose of
operating an irrigation pump had arisen because the seller did not know of the
use to which the buyer intended to put the engine. Also, the buyer had not
relied on the seller's skill and judgment in selecting the particular engine.
Did the seller of the engine have any liability based on warranties? Why or
why not?
Need 3) Would like at least one court case to reference.
USA 
India