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Vlases, a coal miner who had always raised small flocks of chickens, spent two years building a new two-story chicken coop large enough to house four thousand chickens.

After its completion, he purchased two thousand two hundred one-day-old chicks from Montgomery Ward for the purpose of producing eggs for sale. He had selected them from Ward's catalog, which stated that these chicks, hybrid Leghorns, were noted for their excellent egg production. Vlases had equipped the coop with brand-new machinery and had taken further hygiene precautions for the chicks' health.

Almost one month later, Vlases noticed that their feathers were beginning to fall off. A veterinarian's examination revealed signs of drug intoxication and hemorrhagic disease in a few of the chicks. Eight months later, it was determined that the chicks were suffering from visceral and avian leukosis, or bird cancer, which reduced their egg-bearing capacity to zero. Avian leukosis may be transmitted either genetically or by unsanitary conditions.

Subsequently, the disease infected the entire flock. Vlases then brought suit against Montgomery Ward for its breach of the implied warranties of merchantability and of fitness for a particular purpose.

Ward claimed that there was no way to detect the disease in the one-day-old chicks, nor was there medication available to prevent this disease from occurring.

Is Montgomery Ward liable under a warranty and/or strict liability cause of action? Explain.

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M92196488

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