Key cases: Moorman Manufacturing Co. v National Tank Co. – Illinois, 1982 (435 N.E.2d 443); Huron Tool & Engineering Co. v Precision Consulting Services, Inc. – Michigan, 1995 (532 N.W.2d 541); Determan v Johnson – Iowa, 2000 (613 NW2d 259)
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| Courtesy Wikimedia Commons “We believe it is preferable to relegate the consumer to the comprehensive scheme of remedies fashioned by the Uniform Commercial Code [governing business contracts], rather than requiring the consuming public to pay more for their products so that a manufacturer can insure against the possibility that some of his products will not meet the business needs of some of his customers.”- Justice Thomas Moran, in Moorman “Fraud in the inducement presents a special situation where parties to a contract appear to negotiate freely – which normally would constitute grounds for invoking the economic loss doctrine– but where in fact the ability of one party to negotiate fair terms and make an informed decision is undermined by the other party’s fraudulent behavior.” -Judge Michael Kelly, in Huron Tool “[T]he line
between tort and contract must be drawn by analyzing interrelated factors such
as the nature of the defect, the type of risk, and the manner in which the
injury arose. These factors bear
directly on whether the safety-insurance policy of tort law or the
expectation-bargain protection policy of warranty law is most applicable to a
particular claim.” -Justice Marsha Ternus, in Determan |
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