1. Explain what claims the court sees as a basis for warranty claims. 2. Why does the...

Question:

1. Explain what claims the court sees as a basis for warranty claims.

2. Why does the disclaimer about the beer’s production source not apply?


Anheuser–Busch Companies, LLC (defendant or AB), is the brewer of Beck’s beer. Beck’s originated and was brewed in Germany from 1873 until 2012 when the defendant began brewing Beck’s in St. Louis, Missouri.

The plaintiffs are consumers of Beck’s who purchased Beck’s “in reliance on representations contained on [the] packaging and Beck’s history of being an imported beer from Germany.” However, AB argues that the label on the beer reads, “Product of USA, Brauerei Beck & Co., St. Louis, MO.” and that the words “BRAUEREI BECK & CO., BECK’S © BEER, ST. LOUIS, MO” appear on the bottom of the Beck’s Beer carton.

The plaintiffs argue that it is in a font that is too small and difficult to read, its illegibility is further exacerbated by the fact that it is in metallic white print on a metallic silver background and it is blocked by the carton. AB moved to have the consumers’ complaint dismissed.

JUDICIAL OPINION

O’SULLIVAN, Magistrate … AB submitted demonstrative samples of twelve ounce bottles and cans of Beck’s for the Court’s inspection. The undersigned (the judge) found that the “Product of USA” disclaimer as printed on the actual cans and bottles themselves is difficult to read. Depending on the angle from which the viewer looks at the product, the “Product of USA” disclaimer can be obscured by overhead lighting because the disclaimer is printed in a white font against a shiny, metallic silver background. By contrast, the “Product of USA” disclaimer printed on the label appearing on the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) certification is visible at any angle because the words are printed on a gray, matte background. The “Product of USA” disclaimer is blocked by the carton. A consumer would have to either open the cartons of twelve-pack bottles and twelve-pack cans or lift the bottle from the six-pack carton in order to see the “Product of

USA” disclaimer. A reasonable consumer is not required to open a carton or remove a product from its outer packaging in order to ascertain whether representations made on the face of the packaging are misleading.

The Court further finds that the statement “BRAUEREI BECK & CO., BECK’S © BEER, ST. LOUIS, MO” may not be sufficiently descriptive to alert a reasonable consumer as to the location where Beck’s is  brewed. Although this statement contains the words “St. Louis, Mo[.],” there is nothing in the statement which discloses where Beck’s is brewed. Even assuming, arguendo, that the statement “BRAUEREI BECK & CO., BECK’S © BEER, ST. LOUIS, MO” is sufficiently descriptive as to the location of the brewery, it is printed underneath the carton. A reasonable consumer may not necessarily look at the underside of the carton in deciding whether to purchase a product.

In sum, the undersigned finds that the “Product of USA” disclaimer on the label and the statement “BRAUEREI BECK & CO., BECK’S © BEER, ST. LOUIS, MO” underneath the carton do not warrant the dismissal of the plaintiffs’ state law consumer protection claims.

Next, the defendant argues that the statement “Brewed under the German Purity Law of 1516” is true because: German Purity Law has nothing to do with place of production or source of ingredients. This law simply concerns the type of ingredients used to brew beer (water, hops, barley, and yeast). And there is no dispute that Beck’s has always been, and continues to be, brewed with these basic ingredients.

Defendant went one step further to bolster the German identity of Beck’s [B]eer by prominently adding the claim “Brewed Under the German Purity Law of 1516.” This claim is false. The German Purity Law of 1516 allows only the inclusion of barley, hops and water in beer, and Beck’s contains yeast and other ingredients and additives. …………………..

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Business Law Principles for Today's Commercial Environment

ISBN: 978-1305575158

5th edition

Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene

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