...Torts and Warranties James.Oliver78 AIU Online Abstract This is an essay about a story of the four wrongs, and the invasion of privacy. It is about a Harvard Law Review article and what the newspapers in 1890 had to do with it. The differences and similarities of the four wrongs which make-up the invasion of privacy principle, and then on towards the world of warranties and what they mean. How warranties affect our lives in today’s society and a brief description of what the buying customer can expect from a warranty. The essay ends with what defective products do to business and the legal system. How a defective product is defined legally, and how it affects profits of a business. Last but not least, a comment about the buying public, the business, brand name, and the lawyers that make-up a business in today’s world. Invasion of Privacy There exists a story involving invasion of privacy and it dates back to the 1800s, in Boston, Massachusetts. The story starts with a young married couple by the name of; Mr. and Mrs. Samuel D. Warren. Mr. Samuel D. Warren was a young lawyer who inherited a paper manufacturing business. At the time, he was partners in a prestigious law firm with his Harvard classmate, Mr. Louis D. Brandeis. There came a time when, Mr. S. D. Warren decided he would have to devote more time and energy to his paper manufacturing business and less time with his practice of law. Mrs. Samuel D. Warren was a pillar in elite high society...
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...Expressed warranties protect the buyer from false claims from sellers in an attempt to make a sale. Sellers are responsible for any goods that do not live up to the expressed warranties guaranteed to buyers. When consumers purchase goods they expect them to accomplish certain goals. The Keller’s, in this case purchased a 7 ½ ton dehumidifier from Inland in an attempt to “clear the air” near the pool in their athletic club for which Inland promised that the system would achieve. However, the system did not accomplish what it set out to do and therefore the Keller’s can sue for breach of an express warranty. The Keller’s received other bids but had multiple meeting with Inland’s president to see if the smaller, cheaper, dehumidifier would meet their expressed needs. Inland went as far as bringing in a manufacturer for the dehumidifier to close the deal with the Keller’s. They both assured the Keller’s that their system would work to combat the issues they had. The president of Inland went one step further and wrote a letter solidifying that the system would rid them of the overall bad air and sweating walls. The Keller’s relied on these promises and ultimately purchased the system from Inland which in the end did not live up to the expectations assured. The sales pitch by Inland amounted to an express warranty. A warranty is a contractual assurance that goods will meet certain standards. An express warranty is one that the seller creates with his words or actions. (Beatty,...
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...CASE STUDY: IMPLIED WARRANTY Case Study: Implied Warranty In this paper, Keller v. Inland Metals All Weather Conditioning, Inc. case will be reviewed to determine if Inland Metals made an express warranty and if they breached it. A warranty is “a guarantee that goods will meet certain standards” (Beatty, 2008, p.231). Warranties can be written or an oral agreement that is given by the seller or manufacturer to the buyer. When the seller’s actions or words convey that the goods will meet specific criteria, it is an express warranty. To take it one more step further, when “the seller knows that the buyer plans to use the goods for a particular purposes, the seller generally is held to warrant that the goods are in fact fit for that purpose” (Beatty, 2008, p.233) is called an implied warranty of fitness for a particular purpose. Please refer to Beatty (2008) textbook for a summary of Keller v. Inland Metals All Weather Conditioning, Inc. case on page 231. The Keller’s solicited a request for proposal from Inland and another contractor to address the hot, humid, and foul smelling air in their pool area at their fitness club. When Inland’s proposal came back at a lower cost for a 7 ½-ton dehumidifier, they were concerned about the performance of this unit as the other contractor recommended a 10-ton dehumidifier. Inland’s president and a representative from the machine’s manufacturer came back and reassess the use of the 7 ½ ton dehumidifier for the Keller’s pool area...
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...Chapter 21 Warranties and Product Liability • Warranty, which is an assurance provided in a sales contract • Negligence, which refers to unreasonable conduct by the defendant • Strict liability, which prohibits defective products whether the defendant acted reasonably or not. A warranty is a contractual assurance that goods will meet certain standards. An express warranty is one that the seller creates with his words or actions. The UCC establishes that the seller may create an express warranty in three ways: (1) with an affirmation of fact or a promise; (2) with a description of the goods; or (3) with a sample or model. In addition, the buyer must demonstrate that what the seller said or did was the basis of the bargain. A statement is more likely to be an affirmation of fact if: • It is specific and can be proven true or false. Suppose the brochures of a home builder promise to meet “the strictest building codes.” Since there is a code on file, the builder's work can be compared to it, and his promise is binding. • It is written. An oral promise can create an express warranty. But promises in brochures are more likely to be taken seriously. Statements in a written contract are the likeliest of all to create a binding warranty. • Defects are not obvious. If a used car salesman tells you that a car is rust free, when the driver's door is pockmarked with rust, you should not take the statement seriously— since a court will not, either. • Seller has greater expertise...
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...Car Warranty Accruals Joshua McClellan, November 16, 2015 Car Warranty Accruals Joshua McClellan, November 16, 2015 Inaccuracies in generating cost estimates Inaccuracies in generating cost estimates Memorandum: To: Chase Chasington, General Warranty Manager, Ford Co. From: Joshua McClellan, Accounting Date: November 16, 2015 Subject: Warranty Estimates and Costs Here is the report I put together to summarize the current state of warranty costs in the car industry. It is as we suspected. Warranty accrual methods are inaccurate at best, and actual warranty costs are very different from estimated amounts. I believe this can be remedied with time and effort, however. I hope the information presented in this report will help you to convince the higher ups that changes are needed to make accurate cost and profit projections. The solution to this problem, although clear, is not easily defined. We will need to take further action to fully define what steps need to be taken to better estimate warranty costs. I am grateful to the help of my fellows in the accounting department. Their assistance in gathering data on costs was invaluable. I also appreciate the opportunity you gave to stand out by approving my request to research this topic. Table of Contents Page iii: Executive Summary Page iv: List of Illustrations Page v: Introduction Page v: Warranties and Accruals Page x: Actual costing Page xi: Recalls Page xii: Warranties and Sales Page...
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...| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | If you are not satisfied with a product that you purchase from Nextbook, please see the below procedures for a return/exchange on the product. 1. If you purchased a product and you are not satisfied with the product, please return the product to the location you originally purchase the product. Nextbook is unable to accept any return on a product that was not purchased directly from Nextbook. 2. If product was purchased directly from Nextbook and you are not completely satisfied, please follow the below procedure: 2.1. Return/exchange must be done within 15 days of receipt of goods. 2.2. Please send a letter to Nextbook indicating the problem/dislike of the product. Please include a copy of the original packing list and we will issue a credit within 10-14 days of receipt of goods. 2.3. Indicate whether you want a credit or if you want to exchange the product for a different product. If so, indicate which product you want in place of it. 2.4. If you want an exchange vs. the credit, please indicate the item you would like to...
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...TransAmerica Oil Corporation v. Lynes, Inc & Baker International Corporation Case Brief Issue: This is a case of breach of an express warranty, subsequent decision, and appeal in the State of Kansas and the issue is whether or not breach of an express warranty warrants an award of damages under the Uniform Commercial Code. Facts: Harold Brown, TransAmerica's president, purchased 10 production injection packers typically used for temporary purposes, but advertised as a permanent solution. With most shipments, an invoice was included that contained language disclaiming express or implied warranties and limiting the purchaser's remedies. The statute of limitations pursuant to this case is four years. Under Kansas law, advertising may form a part of an express warranty. The written documents the defendants rely on were each titled "Sales and Service Invoice." The introductory sentence on the face of the invoice above the signature line for the purchaser's agent [**10] begins, "I certify that the above materials or services have been received." That sentence also purports to require the person signing to declare that he or she is authorized to sign the memorandum as agent of the owner or contractor. These words indicate that the document is a delivery receipt and possibly a billing statement, but not a fully integrated contract. The sentence above the agent's signature line also declares that the "materials or services have been received on the terms and...
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...Conditioning, Inc. All Metal was contacted by Keller as they had some issues of foul smelling near the pool and the air near the pool was hot and humid. But after the defendant (All Metal) installed a de-humidifier near the pool to treat the quality of the air, they still had same complaints as they did before they installed it. So Keller sued and trial court found that inland had breached an express warranty. A warranty is a contractual assurance that the goods will meet certain standards. It is usually a seller or manufacturer who gives it to a buyer and buyer relies on it. A warranty could be oral or written or both at same time reassuring the buyer of his contractual agreement. And EXPRESS WARRANTY is one that the seller creates with his words or actions. Whenever a seller clearly indicates that goods being sold will meet certain standards, seller has created an Express Warranty. Seller is bound by the his words and actions. So when All Metal sold a de-humidifier to Keller, they thoroughly explained the functionality of their product to Keller. That is Express warranty created by words. The problem of hot and humid air, foul smelling and water beads is very common and de-humidifier will be able to treat the air and make customers satisfied, if it is installed. Also, Inland’s president visited the site and reassured the same thing in letter citing out the all the reasons to buy their product. He expressly mentioned it all the air problems will be over. So Keller’s de-humidifier...
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...to account for extended warranty and service contracts is the most consistent with the actual sales transaction involving products extended warranty contracts. This approach is the most consistent for four reasons as we can see with Circuit City Stores, Inc. First, pricing of the sale of an extended warranty is an integral part of pricing of related products. As we can see with Circuit City the joint sale of products and warranties was indeed an integral part of their corporate strategy and by selling extended warranties and service contracts to a portion of their customers, Circuit City could price their products more competitively. [p2] A second reason why the partial revenue approach is more appropriate is because the sale of such warranties and contracts almost all the time accompany the purchase of a related product (as with Circuit City). A third reason, Circuit City could see that the profit margin on selling extended warranties was high in comparison to the profit margin of selling just the product itself as in the following example about Circuit City’s warranties. Example: Sales price of warranty- $100 Actual cost of warranty- $20 Profit = $80 Lastly, similar to the previous reason, the estimated costs to be incurred to render services or repairs under the warranty could be estimated with a high degree of reliability. As in the above example, Circuit City was very confident that the actual costs incurred on an extended warranty was just 20% of the entire...
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...WEATHER CONDITIONING, INC. You be the Judge Cindi Garlington 5/13/2013 An express warranty is one that the seller creates with his words or actions (Beatty, 2008). If a seller clearly says that the goods will meet certain standards, he has implied warranty. In the case of Brian and Clarice Keller, Inland has definitely implied a warranty by assuring the 7.5 dehumidifier would work both by the representative and the president of the company. The president then wrote a letter to the Keller’s stating that “This ducted system will rid you of the sweating walls and eliminate those offensive odors, and overall ‘bad air’.” He then went on to tell them that other indoor pools have had the same problem and their problems were eliminated by using one of these systems. The president then assured him that the air problems should be over and customers should be satisfied and happy. Just the word “should” could cause problems for the Keller’s in the written word from the president. Orally he had said the ducted system would work so the express warranty has definitely been made. I found this case rather interesting because to me it was so obvious that the express warranty was there and there was no real reason to have to take it to court. I looked up online and found out the court’s rulings on the case. This is what I summarized from the ruling. An express warranty by the seller can be created by any affirmation of fact or promise made by the seller to the buyer...
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...representative visited the club and assured Keller the 7 ½ ton dehumidifier would work and submitted a letter stating the same thing. Later, Keller still had the same problem and complaints about the air near the pool being hot, humid, and foul smelling. Keller decided to sue. Analysis 1 When you look at warranties it is a contractual assurance that goods will meet certain standards (Beatty 2013). As the text state, an express warranty is one that the seller creates with his words and actions (Beatty 2013). There was a breach and an express warranty was made. Keller had a problem that the 7 ½ ton dehumidifier was too small. Inland sent the president and a representative and orally told Keller that the 7 ½ ton dehumidifier would work. Inland also wrote in a letter stating “this ducted system will rid you of the sweating walls and eliminate those offensive odors, and overall bad air. The text also states, whenever a seller clearly indicates to a buyer that the goods being sold will meet certain standards, they have created an express warranty. As Dykas a state, UCC section 2-313 specifies that two criteria be met to create express warranties (Dykas 1991). Express warranties are created by affirmation, promise, description, and sample (Dykas 1991). Second, the affirmation, promise, description or...
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...supervision as well as for providing necessary information regarding the project & also for her support in completing the project. SALE OF GOODS ACT, 1930 CONTENTS I. Contract of Sale of Goods II. Overview III. Characteristics of a Contract of Sale of Goods IV. Sale v/s Agreement to sell V. Sale v/s Hire Purchase VI. Sale v/s Contract for Work and Labor VII. Kinds of Goods VIII. Perishing of Goods IX. The Price X. Modes of Price fixing XI. Agreement to sell at Valuation XII. Earnest or Deposit XIII. Stipulations as to Time XIV. Document of Title of goods XV. Conditions and Warranties XVI. Misrepresentation and Stipulation XVII. Conditions v/s warranties XVIII. When condition can be treated as warranty XIX. Implied Conditions XX. Warranties XXI. Implied Warranties XXII. Doctrine of Caveat Emptor XXIII. Exceptions to Doctrine of Caveat Emptor HISTORY BEHIND THE ACT * Sale of Goods act is a very old mercantile law. The Contracts of Sale of Goods was initially covered in Indian Contract Act, 1872 (Chapter V11) * Since the Indian Contract Act itself was a part of English Common Law, law relating to sale of goods followed the English Law * With developments in mercantile transactions, the law was altered and a separate ‘Sale of Goods Act’ came into existence on 1st July, 1930. It extends to the whole of India (except the State of Jammu and Kashmir) * General provisions...
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...This VEHICLE LEASE AGREEMENT is made on the day of , 20 , by [name of owner] of [address of owner] (hereinafter known as the "Owner") and Churchill rent-a-car Ltd(hereinafter known as the "Company"). The Company and the Owner shall collectively be known herein as "the Parties". 1. BACKGROUND The Owner will hand over the vehicle (hereinafter known as the “Acquired Vehicle”), under the terms and conditions set out below. The Company will lease the Acquired Vehicle, offered by the Owner, under the terms and conditions set out below. 2. TERMS AND CONDITIONS The Parties intend to be legally bound by this Agreement. The terms set out as follows: A. Description of the Acquired Vehicle 1. Make: 2. Model: 3. Body Type: 4. Body Colour: 5. Year of registration: 6. Mileage at date of Agreement: 7. Vehicle Identification Number ("VIN"): B. Terms & conditions of Contract 1. The term of the lease of the Acquired Vehicle is from: / / 20 to / / 20 . (hereinafter known as the “Term”). A copy of this Agreement will be given to the Owner. 2. The Term can be extended if a supplementary Agreement is made in writing and is signed by both Parties. 3. The minimum review term of the lease agreed between the Company and the Owner is months. 4. If this Agreement is broken for any reason...
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...SN5410, SN54LS10, SN54S10, SN7410, SN74LS10, SN74S10 TRIPLE 3-INPUT POSITIVE-NAND GATES SDLS035A – DECEMBER 1983 – REVISED APRIL 2003 PRODUCTION DATA information is current as of publication date. Products conform to specifications per the terms of Texas Instruments standard warranty. Production processing does not necessarily include testing of all parameters. Copyright 2003, Texas Instruments Incorporated POST OFFICE BOX 655303 • DALLAS, TEXAS 75265 1 SN5410, SN54LS10, SN54S10, SN7410, SN74LS10, SN74S10 TRIPLE 3-INPUT POSITIVE-NAND GATES SDLS035A – DECEMBER 1983 – REVISED APRIL 2003 2 POST OFFICE BOX 655303 • DALLAS, TEXAS 75265 SN5410, SN7410, TRIPLE 3-INPUT POSITIVE-NAND GATES SDLS035 – DECEMBER 1983 – REVISED MARCH 1988 POST OFFICE BOX 655303 • DALLAS, TEXAS 75265 3 SN54LS10, SN74LS10, TRIPLE 3-INPUT POSITIVE-NAND GATES SDLS035 – DECEMBER 1983 – REVISED MARCH 1988 4 POST OFFICE BOX 655303 • DALLAS, TEXAS 75265 SN54S10, SN74S10, TRIPLE 3-INPUT POSITIVE-NAND GATES SDLS035 – DECEMBER 1983 – REVISED MARCH 1988 POST OFFICE BOX 655303 • DALLAS, TEXAS 75265 5 MECHANICAL DATA MCFP002A – JANUARY 1995 – REVISED FEBRUARY 2002 W (R-GDFP-F14) CERAMIC DUAL FLATPACK Base and Seating Plane 0.045 (1,14) 0.026 (0,66) 0.260 (6,60) 0.235 (5,97) 0.080 (2,03) 0.045 (1,14) 0.008 (0,20) 0.004 (0,10) 0.280 (7,11) MAX 1 14 0.019 (0,48) 0.015 (0,38) 0.050 (1,27) 0.390 (9,91) 0.335 (8,51) 0.005...
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...involving equipment and extended warranties. Circuit City matches up almost perfectly with the five criteria in Exhibit 2. They incur the selling costs, they have a service network in place and warranty expenses are forecasted with a great deal of accuracy. Very few customers go above the allocated cost of the service warranty, thus Circuit City does not employ a deductible. After a warranty is purchased, Circuit City’s cost and profit can be expensed with a reasonable degree of accuracy. The uncertainty is so low, it’s almost as if the warranties were like any other physical product, and can be treated as such under Approach No. 1. With all of this in place, it would be unnecessary to use Approach No. 2 (deferral of revenue). Circuit City warranties are not comparable to insurance contracts as stated in Exhibit 3, because unlike the insurance contracts, Circuit City warranties are paid up front, and in full, and buyers cannot cancel their warranty or renegotiate the terms after their warranty has expired. Circuit City also has enough experience and data to show that warranty expenses are very predictable and hardly deviate from their expectations. It is almost like selling another product, where the cost and profit are known well in advance. I would steer clear of Approach No. 3 (partial revenue recognition) as Circuit City warranties do not match up with most criteria necessary for this approach. I.e. only 40-70% of customers buy warranties, and this depends on the products...
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