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Joe purchases a defective chain saw from retailer House Station Home Improvement, Inc. (House Station)...

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Finance

Joe purchases a defective chain saw from retailer House Station Home Improvement, Inc. (House Station) that results in serious injury to his right arm. House Station purchased the chain saw from its manufacturer, Steele Outdoors, Inc. (Steele). Which of the following is true regarding privity of contract and whether Joe can recover from Steele?

  • Joe is not in privity of contract with Steele and will therefore not be able to recover from the manufacturer.

  • Since Joe is in privity of contract with House Station, his sole (and ultimately successful) cause of action is against the retailer.

  • Since Joe is in privity of contract with both House Station and Steele, he can likely recover from both the manufacturer and the retailer pursuant to the theory of joint and several liability.

  • Although Joe is not in privity of contract with Steele, he can likely recover from the manufacturer.

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