Its obligation under this warranty being limited to making good at its factory any part or parts thereof which shall, within ninety (90) days after delivery of such vehicle to the original purchaser or before such vehicle has been driven 4,000 miles, whichever event shall first occur, be returned to it with transportation charges prepaid and which its examination shall disclose to its satisfaction to have been thus defective; This warranty being expressly in lieu of all other warranties expressed or implied, and all other obligations or liabilities on its part, and it neither assumes nor authorizes any other person to assume for it any other liability in connection with the sale of its vehicles.

Mrs. Henningsen then heard a loud noise, the steering wheel spun in her hands, and the car suddenly veered and collided with a wall.

The court explained that the common law rule requiring privity stemmed from the pre-modern nature of markets, where buyers typically purchased directly from the maker.

The court reiterated that the public policy of New Jersey attached an implied warranty of merchantability to the sale of all goods.

Some law and economics scholars have criticized this result as it will ultimately raise prices as automobile manufacturers and dealers have to pay for implied warranty costs.

[citation needed] New Jersey courts, attorneys and scholars frequently cite Henningsen as the landmark case that established strict liability for defective products in the United States.