Contract and product liability law
Apply contract and product liability law to a business scenario.
Scenario
Mowers, Inc., a fictional company, has a flourishing lawn care business. The business has two full-time employees who have been with the company for five years. All employees are trained on using the lawn equipment and, upon being hired signed a waiver-of-liability contract limiting liability for the company. The owner, Brian, tells his employees “Not to worry – the company will protect you!”
One employee, Lori, was on the job cutting a lawn. Lori was riding a mower, a Ferrari 2000, which was three years old and in good working condition. The step-up on the mower had writing on it with a warning sticker to replace the sandpaper liner for traction every three years due to normal wear and tear. It was replaced every three years as required.
Lori stepped down off the rider, slipped because of moisture from the grass, and severed her pinky toe on the mower blade. When she fell to the ground, the mower continued through the grass and proceeded by itself to cut and mulch a neighbor’s prize roses. Peta, the neighbor, was preparing for a rose competition with a potential grand prize of $10,000.
Instructions
Consider the above scenario and write 3-4 pages in which you make the following determinations. Make sure to cite and explain the law for each determination.
Pursuant to contract law requirements, determine whether the waiver of liability signed by Lori is a valid contract and whether verbal assurances by Brian become part of the contract. Support your response.
Determine whether Peta, the plaintiff, has a product liability case against the manufacturer for each of the following defects. Support your response.
Design.
Manufacturing.
Failure-to-warn.
Determine whether Lori, the employee, has a claim for injuries and whether the employee can recover pain and suffering damages per tort or worker’s compensation law. Support your response.
Sample Solution
Waiver of Liability and Verbal Assurances
The validity of the waiver of liability signed by Lori is a critical issue.
Generally, waivers are enforceable if they are clear, unambiguous, and voluntarily signed by the party waiving their rights. However, the effectiveness of the waiver can be challenged in several ways:
- Clarity and Scope: The waiver must explicitly cover the specific risk of injury associated with operating the mower. If the waiver is overly broad or ambiguous, it may not be enforceable.
- Voluntariness: The waiver must be freely and knowingly signed without coercion or duress. If Lori felt pressured to sign the waiver due to her employment status, it may be deemed invalid.
- Public Policy: Some jurisdictions have laws that limit the enforceability of waivers for certain types of activities, such as those involving essential services or public safety.
Brian’s verbal assurance, “Not to worry – the company will protect you,” may create an issue of contract modification or waiver. While generally, oral modifications to written contracts require consideration, the specific circumstances and jurisdiction may impact the enforceability of Brian’s statement. If the court finds that Brian’s statement induced Lori to rely on the company’s promise of protection, it could potentially negate the waiver or create a separate contractual obligation.
Product Liability Claim by Peta
Peta may have a product liability claim against the mower manufacturer based on several theories:
- Design Defect: If the mower’s design inherently created an unreasonable risk of harm, such as a propensity to continue operating without the operator, a design defect claim could arise.
- Manufacturing Defect: If the mower was defectively manufactured, such as a faulty brake or steering mechanism, a manufacturing defect claim could be asserted.
- Failure to Warn: If the mower’s warning about the sandpaper liner was inadequate or misleading, a failure-to-warn claim might be viable.
To prevail in a product liability case, Peta must generally prove that the product was defective, the defect caused her injuries, and she suffered damages.
Lori’s Claim for Injuries
Lori may have a claim for workers’ compensation benefits as she was injured while on the job. Workers’ compensation is a no-fault system, meaning employees give up the right to sue their employer for workplace injuries in exchange for guaranteed benefits. However, the specific amount of compensation available will depend on the jurisdiction’s workers’ compensation laws.
While workers’ compensation generally provides benefits for medical expenses and lost wages, it may not cover pain and suffering damages. To recover these damages, Lori might explore other avenues, such as a claim against a third party (e.g., the mower manufacturer) or a claim against the employer if the waiver is found to be invalid or unenforceable.
It’s important to note that this analysis is based on general principles of law and may vary depending on the specific jurisdiction and facts of the case. Consulting with an attorney is essential to obtain tailored legal advice.