Farmers is pursuing three theories. First, negligence – that A.O. Smith didn’t take reasonable care in designing, testing, and marketing the heater, and didn’t give consumers clear enough warnings or instructions. Second, strict product liability – covering design defects, manufacturing defects, component defects, and a failure to warn, with Farmers alleging a safer alternative design was available and economically viable when the unit was built. And third, breach of warranty – both the express six-year manufacturer’s warranty and the implied warranties of merchantability and fitness for a particular purpose under the Uniform Commercial Code and Texas law.
