COMM 393 Chapter Notes -Natural-Gas Processing, Breach (Security Exploit)

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23 Sep 2014
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Cullen settled claim against westcoast, third party claim by. Decision: units failed as a result of faulty manufacture by third party kato. Kato liable for defective goods, but not liable for consequential loss: the judge shouldn"t allow claim for reimbursement of costs incurred by westcoast. Reasons: breaches of the warranties of reasonable fitness for the purpose and of merchantable quality implied by s. 18a and b of the sale of goods act. Liability for such consequential" damages excluded by a term of kato"s printed contract of sale. Sga s. 18 implied condition of merchantability & fitness of purpose (defective generators: therefore judge awarded damage costs incurred in repairing. Sga s. 20 exclusion clauses: k is not liable for consequential damages: new good sold to business. Losses incurred by westcoast transmission were not foreseeable (consequential) to kato at the time of k with cullen. Sga s. 18 implied condition of merchantability & fitness of purpose (defective generators)

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