Stanislaus County,California awarded a contract for the construction of a water treatment plant to Black & Veatch.Black & Veatch purchased pipe for installation to and from the plant from a supplier who worked with representatives from Black & Veatch to determine a pipe that would work for the soil and weather conditions near the plant.Black & Veatch followed the suppliers recommendations.After the plant opened,there were significant problems with the pipes' failure rates.Which of the following statements is correct?

Question

Quizplus · Accepted Answer

The supplier may have liability for breach of implied warranty of fitness for a particular purpose. Although there is no direct contract between the supplier and the county, the supplier may be held liable under the doctrine of third-party beneficiary or under the theory of negligent misrepresentation. The supplier worked closely with Black & Veatch representatives to determine a suitable pipe and made recommendations, which Black & Veatch followed. As a result, the county may be able to make a claim against the supplier for the defects in the pipes. Option A is incorrect because the lack of a direct contract does not necessarily preclude liability. Option C is incorrect because modern law recognizes several exceptions to the privity rule. Option D is incorrect because Black & Veatch, as the contractor, has a duty to ensure that the materials used were suitable for the job and may be held liable for selecting and installing defective pipes.

Stanislaus County,California Awarded a Contract for the Construction of a Water