Amazon Faces Warranty Claims Over Remote-Control Boat Fire

An insurance company may proceed with a claim that Amazon.com breached an implied warranty for a remote-control racing boat sold on its site that allegedly caused a house fire, a federal court in Indiana ruled.

Indiana Farm Bureau Insurance Co., which paid an Indiana couple’s insurance claim for property damage, alleged that Amazon was a merchant of the boat set and that the sale carried an implied warranty of merchantability, the U.S. District Court for the Southern District of Indiana said in an order entered in the docket Monday.

Amazon won dismissal of several claims, including a strict liability claim. ...