TuffGrip ran an advertisement for its brake pads in several national automotive

Question

TuffGrip ran an advertisement for its brake pads in several national automotive industry journals. The ad listed a range of prices for the brake pads and a few technical specifications. At the bottom, the ad stated that TuffGrip had no liability in the event of a malfunction. Three large mechanic chains purchased the brake pads after seeing the ad, and signed standard TuffGrip purchase orders. Many of the brake pads that these mechanic chains installed in customer’s cars failed, causing severe injuries to drivers who could not stop their cars. TuffGrip claimed it had no liability. Is TuffGrip correct?

a. No, TuffGrip is liable unless the purchase orders also included the limitation of liability. b. No, TuffGrip is liable because the chains that purchased the brake pads had no notice that TuffGrip had disclaimed liability. c. Yes, TuffGrip is not liable because the limitation of liability was a term clearly stated in the ad. d. Yes, TuffGrip is not liable because they sold the brake pads to other merchants.

Explanation / Answer

a. No, TuffGrip is liable unless the purchase orders also included the limitation of liability.

Though it was mentioned in ad, I can deny that I placed order after watching ad. Hence, it is important to mention such clause in purchase orders to bring TuffGrip in covering side.

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