MGMT 520 Week 3 Breach of Warranty DQ 1 Devry
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?
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