ADM 477 Fit for Human Consumption Discussion

ADM 477 Fit for Human Consumption Discussion

Instructions/Descriptions

ADM 477 Fit for Human Consumption Discussion

ADM-477: Business Law

Getting Started

In April, Martha Smith purchased a 4-ounce bag of York’s baked banana chips from the York’s Fresh Market grocery store. York’s grows, prepares, and sells vegan snacks to its customers with the packaging statement, “Prepared with the cleanest, freshest ingredients.” Within 48 hours of eating the bag of banana chips, Martha became extremely ill with gastrointestinal pain. Martha was hospitalized and diagnosed with a serious Salmonella infection. Within a week, numerous other customers became ill with similar symptoms.

Upon closer investigation, the Salmonella outbreak was tracked back to tainted banana chips that were prepared and sold at York’s local food processing plant. York’s Fresh Market has since pulled the product from the shelves and instituted a product recall for the bags already sold to consumers. Martha’s estimated damages resulting from the infection and hospitalization are expected to exceed $80,000. What recourse does Martha have under the UCC breach of warranty provision?

Martha can sue for breach of express because the banana chips did not meet the quality standards advertised by York’s. York’s stated that its food was “prepared with the cleanest, freshest ingredients.” York’s therefore made an express warranty that the food could be safely consumed and that it was free of pathogenic bacteria like Salmonella.

Martha can sue for breach of implied warranty, as well. Companies have a duty to inspect their products for both quality and safety. Because York’s Fresh Market is a merchant involved in both manufacturing and selling vegan snacks, it makes an implied warranty to its customers that the food products are fit for human consumption.

Upon successful completion of the course material, you will be able to:

Describe the applicability of the Uniform Commercial Code (UCC) to contracts for the sale of goods.

Resources

Textbook: The Legal Environment of Business

Media: Contract Law

Video & Transcript: Tire Investigation Update: Feds Say Recall System ‘Completely Broken’

Video & Transcript: DirecTV Fine Print Leads to 1 Extraordinary Bill

Background Information

The goal of the UCC is to promote uniformity in laws among states governing contracts for the sale of goods. The UCC also imposes good faith and fair dealing requirements on merchants—sellers who deal of goods of that kind. The UCC imposes four warranties on sellers of goods:

Warranty of title: a promise that the seller has legitimate title to the goods being sold to the buyer

Express warranty: a promise (oral or written) made by the seller regarding the nature of the goods being sold to the buyer

Implied warranty of merchantability: seller’s promise to a buyer that the goods are fit for the ordinary purpose for which they will be used

Implied warranty of fitness for a particular purpose: an implied warranty by the seller that the goods are fit for the purpose for which they are being sold

Instructions

In your textbook, The Legal Environment of Business, read Chapter 11, “Domestic and International Sales.”

Review the media “Contract Law.”

View the following videos:

“Tire Investigation Update: Feds Say Recall System ‘Completely Broken’” (Transcript of the “Tire Investigation Update…” video.)

“DirecTV Fine Print Leads to 1 Extraordinary Bill” (Transcript of the “DirecTV…” video.)

Locate and research a case involving the Uniform Commercial Code’s implied warranty of fitness for human consumption.

Navigate to the threaded discussion and respond to the following prompts:

Briefly comment on the facts of the case you selected including any market or marketing actions relevant to the case, the question(s) of law before the court, the court’s ruling, and why you either support or oppose the court’s ruling.

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