Overview

Article 2 of the Uniform Commercial Code (UCC) governs the sale of goods, setting rules for formation, performance, and risk of loss. Product liability law overlays Article 2 by imposing tort-based duties on manufacturers and sellers to ensure safe products for consumers.

Key Concepts

• UCC Scope: Applies to contracts for the sale of tangible, movable goods (not services or real estate).
• Warranties:
  • Express Warranty – Affirmation of fact or promise about goods.
  • Implied Warranty of Merchantability – Goods fit for ordinary purpose (§2‑314).
  • Implied Warranty of Fitness for Particular Purpose – Seller knows buyer’s specific need (§2‑315).
• Risk of Loss: Shipment vs. destination contracts; FOB terms; passage upon delivery to carrier or tender at destination.
• Product Liability Theories: Negligence, strict liability (Restatement §402A), breach of warranty.
• Defect Types: Manufacturing, design, and failure‑to‑warn defects.
• Defenses: Assumption of risk, comparative fault, misuse, statute of repose.

Step‑by‑Step Example

Scenario: HomeChef, Inc. sells an electric pressure cooker online. The user manual omits a warning about releasing steam. A buyer is burned when the lid opens prematurely. What claims and defenses arise?

Step 1 – UCC Warranty: Implied warranty of merchantability breached—cooker not reasonably safe.

Step 2 – Strict Liability: Failure‑to‑warn defect; manufacturer liable without proving negligence.

Step 3 – Negligence: Duty to design adequate warnings breached; causation & damages satisfied.

Step 4 – Defenses: If user ignored bold “Do Not Force Open” label, comparative fault may reduce recovery.

Answer: Buyer can sue under strict liability and breach of warranty; damages potentially reduced by comparative negligence if misuse proven.

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