ADM 477 Indiana Wesleyan University Fit for Human Consumption Discussion

ADM-477: Business Law

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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:

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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.

    1/27/22, 11:20 AM
    Preview Rubric: Course Discussions – 4WI2021 Business Law (ADM-447-01B) – Indiana Wesleyan University
    Course Discussions
    Course: 4WI2021 Business Law (ADM-447-01B)
    Criteria
    Quality
    Level 4
    Level 3
    Level 2
    Level 1
    15 points
    12 points
    8 points
    4 points
    (13–15 points
    possible)
    (9–12 points possible)
    (5–8 points possible)
    (0–4 points possible)
    Your posts show some
    development, and
    some critical thinking
    is evident.
    Your posts show
    nominal development
    and only the
    beginnings of critical
    thinking.
    Your posts show no
    development and
    mostly reiterate what
    the textbook or others
    have said.
    Your questions and
    observations add to
    the discussion by
    expanding the ideas of
    others.
    Your questions and
    observations do not
    clearly add to the
    discussion.
    Your questions and
    observations detract
    from the discussion.
    5 points
    4 points
    2 points
    0 points
    (5 points possible)
    (3–4 points possible)
    (1–2 points possible)
    (0 points possible)
    Your initial post is
    made by the fourth
    day of the workshop.
    Your initial post is
    made by the fifth day
    of the workshop.
    Your initial post is
    made by the sixth day
    of the workshop.
    Your initial post is
    made by the seventh
    day of the workshop.
    Your posts are well
    developed and provide
    clear evidence of
    critical thinking.
    Your questions and
    observations add
    greater depth to the
    discussion by
    introducing new ideas.
    Timeliness
    https://brightspace.indwes.edu/d2l/lp/rubrics/preview.d2l?ou=158670&rubricId=488081&originTool=quicklinks
    Criterion Score
    / 15
    /5
    1/3
    1/27/22, 11:20 AM
    Criteria
    Interaction
    Preview Rubric: Course Discussions – 4WI2021 Business Law (ADM-447-01B) – Indiana Wesleyan University
    Level 4
    Level 3
    Level 2
    Level 1
    20 points
    17 points
    13 points
    9 points
    (18–20 points
    possible)
    (14–17 points
    possible)
    (10–13 points
    possible)
    (0–9 points possible)
    You respond to at least
    two classmates as well
    as all instructor followup questions directed
    to you.
    You respond to two
    classmates and some
    of the instructor
    follow-up questions
    directed to you.
    You respond to two
    classmates but not to
    instructor follow-up
    questions directed to
    you.
    You are clearly
    collaborative by taking
    the initiative to
    respond to classmates’
    questions, providing
    clarification and
    insight on issues in the
    discussion.
    You are collaborative
    in some situations and
    show some initiative in
    workshop discussions.
    You show little
    initiative in the
    discussion, and your
    presence is not
    collaborative.
    Total
    https://brightspace.indwes.edu/d2l/lp/rubrics/preview.d2l?ou=158670&rubricId=488081&originTool=quicklinks
    Criterion Score
    / 20
    You do not respond to
    the postings of others
    in the discussion.
    / 40
    2/3
    1/27/22, 11:20 AM
    Preview Rubric: Course Discussions – 4WI2021 Business Law (ADM-447-01B) – Indiana Wesleyan University
    Overall Score
    Total Points
    0 points minimum
    https://brightspace.indwes.edu/d2l/lp/rubrics/preview.d2l?ou=158670&rubricId=488081&originTool=quicklinks
    3/3

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