Merchantable Quality CASES

Law books in a law library

Grant v Australian Knitting Mills [1935] UKPC 2 (21 October 1935)

Dr Grant suffered severe dermatitis from a chemical irritant in woollen underpants, a latent manufacturing defect. He successfully sued the retailer in contract and the manufacturer in negligence, significantly widening the 'neighbour principle' from Donoghue v Stevenson to include general consumer products. Facts The appellant, Dr Grant, purchased two pairs of woollen underpants manufactured by the first respondent, Australian Knitting Mills Ltd (AKM), from a retailer, the second respondent, John Martin & Co Ltd. After wearing the underpants for a week without washing them first, he developed an acute and severe case of dermatitis. Medical evidence established that the dermatitis

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Hardwick Game Farm v Suffolk Agricultural and Poultry Producers Association Ltd [1968] UKHL 3 (08 May 1968)

Contaminated groundnuts were sold through a chain of contracts for use in animal feed, ultimately killing a farmer's pheasants. The House of Lords held that goods with a latent toxic defect are not of 'merchantable quality', establishing liability up the supply chain. Facts The case concerned a series of ‘chain’ contracts originating from Brazilian groundnut meal which was unknowingly contaminated with a fungus producing a poison, Aflatoxin. The meal was sold by importers (Gagniere & Co. and others) to merchants (Henry Kendall & Sons), who sold it to compound feed manufacturers (Grimsdale & Sons). Grimsdale used the meal to create