Business and Personal Law

Chapter 7: Consumer Law and Contracts

Case Study Extended Practice

1. The plaintiff and defendant are both in the market to sell medical foot pumps. The plaintiff sued the defendant for patent infringement. The plaintiff and the defendant agreed to settle the case. A provision of the settlement agreement required the defendant to deliver its inventory to the plaintiff. The defendant only wanted to turn over the inventory it had in its possession. The plaintiff wanted the entire inventory, including the saleable inventory. The plaintiff’s theory was that the sale of goods carried along with it implied warranties of merchantability and fitness. Is the plaintiff entitled to the entire inventory? Novamedix, Ltd. v. NDM Acquisition Corp., 166 F.3d 1177.
2. Goodwin wanted to buy a backhoe. He contracted with a bank that was selling one. The contract contained an express warranty that the backhoe was a 1990 model. After he purchased it, Goodwin discovered that it was actually a 1987 model. Goodwin sued the bank for breach of express warranty. What is he entitled to recover? Goodwin v. Durant Bank & Trust Co. 952 P.2d 41 (OK).
3. A woman purchased an automatic coffeemaker that she had seen on display in a store. She assembled it according to the instructions. She used it properly, again according to the instructions. She noticed that water was very slow going into the upper bowl, or sometimes the water didn’t go in the upper bowl at all. The next time she used it, the coffeemaker exploded in her face and severely injured her. Should she recover from the seller of the coffeemaker? McCabe v. Liggett Drug Co., 112 N.E.2d 254 (MA).