74. United Automobile Corp. manufactures a 1998 Weep four-wheel-drive vehicle, and sells it to Dealer, who resells
Question:
74. United Automobile Corp. manufactures a 1998 Weep four-wheel-drive vehicle, and sells it to Dealer, who resells it to Tim. The car comes with no express warranties by United, and with whatever implied warranties are implied by law in such sales. Tim, after using the car for a year, sells it to Peggy. One day, due to a defect in the design of the Weep’s radiator, the radiator becomes clogged, the engine temperature heats up to an unbearable extent, and the engine catches fire. (There is no evidence that United was negligent in the way it designed the radiator — the flaw in design only became apparent long after Peggy’s Weep was made, after a couple of fires like the one in Peggy’s car.)
Peggy escapes the car without injuries, but the car is completely destroyed by the fire. Can Peggy recover for the value of the car against United? If so, on what theory?
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