1. Read the following fact pattern:

The owner of a party boat, crew members and paying customers (fishermen) on the Big MayFlower, a party boat located in Shark River, Belmar, New Jersey, file a products liability claim, based on a breach of warranty, against the manufacturer of a boat and engine when the engine suddenly blows up due to a engine valve leak (a manufacturing defect is proven to be the source of the product defect). The owner, Mr. Smith, the crew members and fishermen are hurt very badly when hot water escapes from the defective engine valve and scalds more than 25 percent of their bodies. During discovery, the Glotz Boat and Engine Works, the manufacturer of the boat and engine, provides the court and you with a signed disclaimer (initialed by the buyer, Sam Smith) that essentially relieves the manufacturer from "any and all responsibility for consequential damages, including injury to the person, as a result of any failure on the part of its engine or of the boat."

1. What is the warranty of merchantability?
2. Are the crew members and customers covered by the warranty of merchantability? Under which rule?
3. 3. Would this signed warranty disclaimer be effective to bar a claim for damages by Mr. Smith? That is, can a manufacturer disclaim liability for consequential damages for personal injury under these circumstances? (Consider the purpose for which the boat was purchased... was it a consumer or a producer good?)
4. 4. Suppose that Smith had purchased the boat instead as a pleasure craft and not for a business use? Would that change the result if a member of his family had suffered severe injury?
5. 5. Suppose this had been a strict liability case. Can a manufacturer disclaim its liability in a strict liability case? Does this lead you to any conclusions? What might they be?????