Joe’s Supply Companymanufactures and sells elbow joints from its only location in NewYork. The elbow joints are sold throughout the United States and gointo homes, houses, apartments, office buildings, hospitals andother buildings. On January 1, 2007 Joe, CEO of Joe’s SupplyCompany, finds a new supplier for resin to make his elbow joints ata much lower cost. This will make his business competitive withother manufacturers who already have Chinese suppliers. Joe’sR&D director does some preliminary tests on the resin andultimately, the resin seems satisfactory. On February 1, 2007,Joe’s Supply begins manufacturing his elbow joints with the newresin and selling the newly formulated product over the internet,by mail and with walk-in customers. The elbow joints come with a 2year limited warranty and a disclaimer about consequentialdamages.
In June 2008, Joestarted to get reports from contractor customers that his elbowjoints were leaking and damage to property was occurring. Joe didnothing to investigate these claims. He simply sent the customers aletter with the final results on the resin and told them, they musthave installed the elbow joints incorrectly.
Can Joe be sued for the damage caused by the elbow joints? Ifso, describe the steps that Joe’s customer would have to take tosue Joe.
Can Joe’s customer sue the Chinese Company that made theresin?
If Joe did not want tobe sued what other dispute resolution procedures are available tohim and what do you think he should do?
If the government brought a criminal case against Joe’s Supply,can the corporation refuse to testify against itself under the5th Amendment? Can Joe refuse to testify? Can Joe refuseto hand over internal corporate papers such as the test results?Why?
