The Health and Safety Laws in the USA Assignment

The Health and Safety Laws in the USA - Assignment Example Consultation Paper on Civil Liability for Unsafe Products presented by The Law Reform Commission of Hong Kong, Product Liability sub-committee (1998) under 2.10 states, â€Å"Provided the consumer has a direct contractual nexus with the seller, the consumer is entitled to damages if the other party has broken an express or implied term of the contract.† In the present case, though the assurance of Edward, â€Å"rich people from the PRC had a plan to purchase classical oil paintings from Hong Kong in the near future for resale in the PRC† was not included in the agreement, it is implied that the oil painting is of merchantable quality. According to section 11(2) of the Control of Exemption Clauses Ordnance, even the liability for breach of implied condition of merchantable quality cannot be excluded or restricted by a contract term. Edward further said that there would be a very great demand for this particular classical oil painting owned by him and thus an appreciation of at least three times in value within 6 months. Eventually, no rich people from the PRC purchased the classical oil painting. The classical oil painting in fact depreciated in value. Therefore, there is a case for liability for breach of implied condition of merchantable quality. Also, Edward has induced Fred to buy the oil painting through his assurance and forecast which could be construed as negligence in giving assurance or forecasting appreciation in the value of the oil paintings.   In addition to the implied condition of merchantable quality, the Control of Exemption Clauses Ordinance (Cap. 71) also deals with liability in tort for negligence.