Disney Case Essay

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1. Facts: Videotape is recorded magnetically. The magnetic particles that constitute the recorded image are bound to the tape’s polyester base. The binder that holds the particles to the base breaks down over time. This breakdown, which is called sticky shed syndrome, causes the image to deteriorate. The Walt Disney Co. made many of its movies available on tape. Buena Vista Home Entertainment, Inc, sold the tapes, which it described as part of a “Golden Collection” or “Masterpiece Collection.” The advertising included such statements as “Give Your Children the Memories of a Lifetime- Collect Each Timeless Masterpiece!” and “Available for Limited Time Only!” Charmaine Schreib and others who bought the tapes filed a suit in an Illinois state court against Disney and Buena Vista, alleging, among other things, breach of warranty. The plaintiffs claimed that the defendants’ marketing promised the tapes would last tapes would last for generations. In reality, the tapes were as subject to sticky shed syndrome as other tapes. 2. Issue: Did the ads create and express warranty? In whose favor should the court rule on this issue? Explain. [ Schreib v. The Walt Disney Co., _N.E.2d_(I11.App. 1 Dist. 2006)] 3. Decision: Disney’s quoted statement that the tapes would last a “lifetime” led Schreib to interpret this statement as a reason to create an “Express Warranty” though his “affirmation of promise of fact”. Such a statement is more of an opinion or puffery, therefore the court would rule in favor of Disney. 4. Reason: Disney’s statement that the tape would last a “lifetime” is either opinion or puffery and cannot form an “Express warranty”. Also, the cost of the tapes were more than likely under twenty-five dollars thus the Magnuson-Moss Warranty Act would not impose either a Full or Limited warranty on the tapes that, from research of the sticky shed syndrome,

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