MGMT 520 Legal, Political and Ethical Dimensions of Business
Week 3
Week 3 DQ 1 Breach of Warranty (Graded)
Arvo Lake, a retired 71-year-old man, bought an air conditioner in May. The unit was installed and operated according to the manufacturer’s specifications. Unbeknownst to Lake, the unit contained a hole in the refrigeration system that allowed Freon, the coolant, to escape from the unit. By August, the unit had ceased cooling, and Lake’s residence reached a temperature of at least 96 degrees Fahrenheit. The heat caused Lake to suffer from hyperthermia, which caused circulatory failure and then death. The executor of Lake’s estate sued the manufacturer of the air conditioner for damages resulting from breach of warranty.
Which warranties, if any, has the manufacturer of the air conditioner breached?
For a manufacturer to be liable for consequential damages caused by a breach of warranty, the consequential damages must be foreseeable to the manufacturer.
Was Lake’s death a foreseeable consequence of the air conditioner’s failure to operate properly?
Week 3 DQ 2 Environmental Liability and Due Process (graded)
In 1979, Paul and John Reardon purchased 16 acres of land located next to a manufacturing plant in Massachusetts. In 1983, a state environmental agency, responding to a citizen’s report, tested soil samples from both properties and discovered extremely high levels of polychlorinated biphenyls (PCBs) on the plant site and on the Reardons’ property where it bordered the site. Shortly thereafter, the Environmental Protection Agency (EPA) cleaned up the contaminated areas. In 1985, the EPA notified the Reardons that they might be liable for clean-up costs. An EPA investigation of the property in 1987 revealed that some soil was still contaminated. This time, the Reardons cleaned up the property themselves.
Week 3 Assignments:
MGMT 520 Week 3 Case Nadel et al v Burger King (1050+ Words)
MGMT 520 Week 3 CHRISTOPHER NADEL CASE
