Question Details

Legal Problem 1: 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.
 
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