Dam Good Adventures operates a helicopter tour business near Lake Mead, Nevada. Lake Mead is the site of Hoover Dam. Dam Good has purchased 5 helicopters over the 27 years it has been in business and its mechanic has rebuilt the engines on all of the
helicopters. In addition, Dam Good's mechanic has altered the timing mechanisms on the helicopters so that they are able to hover longer and with less noise, two features that are important for tourists. One of Dam Good's helicopters crashed over Lake Mead, killing the pilot and the four passengers on board. Discuss liability and theories of liability.
Students should discuss the alteration of the helicopters as a potential bar to recovery from the manufacturer because the alteration means that the helicopters were not in the same condition when they crashed as when they left the manufacturer. Students should also discuss that neither the passengers nor the pilot were purchasers of the helicopter - product liability 402A is therefore their avenue of recovery and Dam Good might have some liability for negligence for its alteration. The manufacturer could defend on the grounds of alteration. The UCC theories might be used between Dam Good and the helicopter manufacturers, but really could not be used by the passengers and pilot - they are not purchasers or even using the product as a member of a household. The pilot might have a better chance of recovery despite no privity if he/she is an employee of Dam Good.
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