In 1997, Byer inspected a model home in the Country Estates subdivision on the outskirts of
Kerrville, Texas. The developer of the subdivision and builder of the homes was Great Homes Corporation
Among the brochures handed to Byer at the model home was one promoting a state of the art
security and fire warning system available as an "extra" to purchasers of the homes. The security and fire
system and all its components were manufactured by Protective Products, Inc. ("PPI"). The brochure
contained a statement that, "The foolproof sensing devices, which are the central feature .of the PPI system,
are placed in strategic locations throughout the house and instantaneously set off a silent alarm notifying the
police and fire departments in case of a fire or intrusion."
The brochure was published by PPI as a means of marketing the system and was handed to Byer at
the model home by a representative of GRC.
PPI had undertaken a concerted marketing campaign, emphasizing the effectiveness of the sensing
devices. PPI's marketing campaign induced ORC to promote the PPI system as the exclusive security and fire
system to be offered by GRC as an "extra" to be installed in the Country Estates subdivision at the option of
purchasers of the homes.
Byer contracted to purchase one of the Country Estates homes yet to be built. Convinced by what
she had seen in the brochure, she ordered the PPI system to be installed in the house. The availability of the
system was a significant inducement to her in deciding to buy the house.
Byer eventually moved into the house. In March 2000, while Byer was away, a fire broke out and
destroyed the house and its contents, resulting in $200,000 fire damage. Later inspection revealed that the
fire sensing devices had failed to activate the alarm. It was determined that, if the alarm had been activated,
the firefighters could have responded in time to limit the damage to about $5,000.
It was als