A representative of ADT Security Services met with John and Elaine Rose and told them that they would never lose their house to a fire and that the alarm and fire detection system would save the lives of the Roses’ dogs and family members in the event of a fire. John Rose and ADT entered into a two-page written service agreement in which ADT agreed to install an alarm system and provide security and fire detection service. Two months later, the Roses’ house caught fire, presumably after being struck by lightning. The ADT smoke alarms in the house failed to transmit a fire alarm signal and the house burned to the ground. In the resulting lawsuit, ADT argued that the service agreement Rose signed expressly contradicted and disclaimed any representations made by the ADT salesperson. Further, it argued the disclaimer in the agreement specifically disclaimed both “the implied warranties of merchantability and fitness” and was printed in bold, capital letters. Had the implied warranties been properly excluded?
Subject: MKTG1130-Business Regs and Compliance
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