## Facts

- In December 1975, J. B. Jordan’s father bought a used 500-gallon propane storage tank from Canyon Gas and Appliance Co., a business selling new and used propane tanks.
- The tank was manufactured in 1947 and sold “as is,” without guarantees as to condition.
- On August 17, 1977, Sunnyslope Appliance Propane & Plumbing Supplies Co. serviced and refilled the tank at the father’s property.
- During filling, the hose disconnected, propane escaped, ignited, and exploded, destroying Jordan’s nearby house.
- Jordan alleged the tank’s shutoff valve was defective and unreasonably dangerous and sued under strict products liability.
- The trial court entered summary judgment for Canyon Gas on the ground that strict liability does not apply to dealers in used goods.

## Issues

1. Whether Restatement (Second) of Torts § 402A permits strict liability claims against a commercial dealer that sells a used product alleged to be defective and unreasonably dangerous.
2. Whether the “as is” nature of the used-product sale categorically removes the dealer from strict liability under § 402A.

## Decision

- The court reversed summary judgment for Canyon Gas and remanded.
- The court held that a commercial dealer in used goods may be strictly liable under § 402A for physical harm caused by selling a product in a defective condition that is unreasonably dangerous.
- The court rejected a categorical rule exempting used-goods dealers from strict liability solely because the product is second-hand.

## Legal Principles

- Under Restatement (Second) of Torts § 402A, strict liability may apply to one who sells “any product” in a defective condition unreasonably dangerous to the user or consumer or to property.
- The text and comments of § 402A do not create an exception for commercial sellers of used goods.
- Policy rationales supporting strict liability—loss distribution through pricing and insurance, and protection of purchasers harmed by defective products—can apply to commercial dealers who reintroduce used products into commerce.
- The fact that a product is used does not itself bar recovery; age, wear, and expected condition are relevant to whether the product is “defective” and “unreasonably dangerous.”
- The holding targets commercial sellers in the business of selling used goods, not casual or occasional private sellers.

## Conclusion

The Arizona Court of Appeals held that strict products liability under § 402A can extend to commercial dealers of used goods and reversed summary judgment that had exempted a used-tank dealer from strict liability as a matter of law.


Jordan v. Sunnyslope Appliance Propane & Plumbing Supplies Co., 660 P.2d 1236 (Ariz. Ct. App. 1983)