Question

Allison purchased a portable propane stove from locally owned Sport and Camping Supply (SCS). SCS had purchased the stove from a wholesaler, who had purchased it from the manufacturer. The stove was defective and Allison was injured when it exploded. After proper notice, Allison sued the manufacturer for breach of warranty of merchantability. Alison was able to sue the manufacturer directly because her state had abolished the contract requirement of ____________________privity.

		Horizontal
		Vertical
		Primary
		equitable

Answer 1

The answer is “vertical”.

Explanation: Vertical privity is a legal relationship between companies in the chain of distribution of a product. In this case if vertical privity was in force then Allison would could not have directly sued the manufacturer. This is because existence of a vertical privty would have resulted in creating joint liabilities for entities in the vertical chain.