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Tort Law

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Submitted By summisue
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Product Liability
(Music) [00:08]
Whatever kind of equipment you buy, you expect it to work for the purpose intended. [00:12] By selling or leasing an editing system to Quick Takes Video, Non-Linear Pro is implying that the system can be used to edit video. [00:20] How well it performs is another question. [00:23]
So… you know, Hal thinks that this Non-Linear editing system is going to cut the time on every project in half, [00:31] but since everything’s got to be digitized first, it, ah, may not save as much time as he thinks. [00:37]
Yeah, but you know, everything’s going digital these days, so, you know, we may as well get started. [00:42]
That’s true. [00:43]
You know, besides, once the video’s digitized, it should make editing a lot more fun. [00:48] Oh, you know what? I ran into John from Video to Go at Barney’s the other night, and he said that they have, like, all the A-Line systems, and he loves it. [00:58]
So I wonder why we didn’t use A-Line instead of Non-Linear Pro. That’s… [00:62]
Well, you know Hal. [00:64]
What? [00:65]
This is probably much cheaper. [00:67]
It’s true (laughs). [00:68]
Yeah. [00:69]
Ah, let’s just cut the, cut the lights, and ah… watch this tutorial, okay? [00:75] Oh, hold on, let me just make sure that the drive is in place. The manual’s really clear about this, okay? [00:79]
Okay. [00:80]
Let’s see if I can get this… OUCH! [00:82]
Oh, what happened? [00:84]
Oh man, I cut my finger on this sharp piece of metal down there. Jeez, I think it ought to come with a warning label. [00:90] Ah… shoot… no no no, I’ll get a bandaid later, I’ll just… let’s just get to this now. [00:97]
You sure? [00:98]
Yeah. [00:99]
Oooh. [01:00]
(Music) [01:08]
What is…? [01:09]
(Sighs) There is goes again. [01:17]
See, Hal, we’re never going to be able to finish this new version of the documentary with this system. [01:20] It doesn’t have enough memory to do more than five minutes of video at high resolution, and it crashes constantly. [01:26]
Now Janet, remember the rule: Ninety percent of the time it’s the operator… [01:30]
I know. I know. Ninety percent of the time it is the operator, not the equipment, but in this case I guarantee you it is the system. [01:37] I mean, it’s just a computer with software, but it’s got more bugs in it than a run-down apartment. [01:42]
You know, she’s right, Hal. I mean, there’s no way any production house can run on this stuff. [01:46]
Now how can you guys be sure you’re up to speed enough to know that? [01:49]
Because everybody in this department has had their one-day course with their trainer, has looked at the video tutorial, and has even read the manual, [01:57] which, as you know, is totally unheard of, but we all really wanted it to work out, and it doesn’t do any good. [01:62]
It runs in my mind, that guy from Non-Linear Pro said we’d be up and running in a day and a half, and we would be twice as fast. [01:71]
We’ve been playing around with this for two weeks, Hal. It just doesn’t work. [01:75]
It’s not even well designed. I sliced my finger open getting the drive in and out, see? [01:79]
Did you see a doctor? [01:80]
No… it’s just a cut. It’ll heal. [01:84]
Alright. Why don’t you call up that guy and have him come take this stuff away. [01:88]
Oh…Hal? I know it’s probably not the greatest time to mention this, but couldn’t we at least try out an A-Line system? [01:98]
Oh, yeah yeah yeah… [01:99]
Come on, let’s just get this stuff out of here first, okay? Then we can talk about that. [02:04]
Alright. [02:05]
(Music) [02:16]
It definitely seems as if they misrepresented the quality of the product. [02:21] And, as a result of that, they may be sued for breach of warranty. [02:28] While this may be a lease arrangement, the Uniform Commercial Codes warranty section applies to leases, [02:37] and, in particular, there is a provision for express warranties. [02:41] And that provision provides that whenever a seller or a lessor makes and express warranty as to the way a product will perform, [02:50] he is in essence guaranteeing that the product will in fact perform that way. [02:55] Now, in order to have an express warranty, there must be specific statements of fact, [02:60] not just mere opinions—“It’s a great product”—but specific statements of fact as to what that product will do. [02:67] And in this case, there seems to be some clear statements of fact about how easy the program is to learn. [02:74]
Any of your editors, if they’re computer savvy, they’re going to pick this up in a day, day and a half tops. [02:79]
The people at the company used the product for more than half a day, they read the manuals, and they were not able to figure out how to use the product. [02:87] So clearly the product did not live up to the standard that was set forth in the express warranty. [02:95]
If a product does not live up to its billing, the buyer or lessor can seek damages. [03:00]
When there is a breach of contract, when the product that’s being sold or leased doesn’t perform the way it’s supposed to, [03:07] there are a couple of different kinds of damages that the purchaser can recover. [03:13] One kind of damages would be damages for, we call the “benefit of the bargain,” [03:21] in other words, when he purchased that, he expected certain benefits from that purchase. [03:26] And if he can calculate what benefits he would have gained, had that product worked well, then he would be entitled to those damages. [03:36] An alternative way of looking at damages is to look at what did it cost him to have that good. [03:44] And in this case, because he had people who were working with the product, who were in essence engaged in useless work [03:53] because they could not finish the product that they were supposed to be producing, since this equipment wouldn’t work, [03:59] you’ve lost all the time that those workers spent. [03:62] And so you’d be entitled to damages in that respect, too. [03:67] Another option is what we call a rescission of the contract, and that’s not really damages. [03:74] But what it entitles the party to is to terminate immediately the contract, and to therefore have no more liability under the contract. [03:84]

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