BLAW 341 Test #3

Implied Warranty of Merchantability

( A store or seller that normally sells goods of the kind) •Merchant seller makes an implied warranty of merchantability of goods that are of the kind in which they deal •Provides that the goods are reasonably fit for the ORDINARY purposes for which they are used, pass without objection in the trade under the contract description, and are of fair, average quality - Buy from merchant -> automatically comes with warranty - Normal time it lasts is how long warranty lasts

lapse of time

( Late acceptances -> New Offer) - Offeror may specify the time within which the offer is to be accepted - Unless otherwise terminated, the offer remains open for the specified time - Upon the expiration of that time, the offer no longer exists and cannot be accepted - Any purported acceptance of an expired offer will serve only as a new offer - If the offer does not state the time within which the offeree may accept, the offer will terminate after a reasonable time - Determining a reasonable time is a question of fact, depending on the nature of the contract proposed, the usages of business, and other circumstances of the case

Duration of Offers

( Offers can be terminated prior to acceptance) - Offer confers upon the offeree a power of acceptance, which continues until the offer terminates - Ways in which an offer may terminate other than by acceptance: - Lapse of time - Revocation - Rejection - Counteroffer - Death or incompetency of the offeror or offeree - Destruction of the subject matter to which the offer relates - Subsequent illegality of the type of contract the offer proposes

Definitness

( Quantity is most important term to the UCC, most likely won't enforce if not) - Terms of a contract, all of which are usually contained in the offer, must be clear enough to provide a court with a reasonable basis for determining the existence of a breach and for giving an appropriate remedy - Where the courts have intended to form a contract, the courts will attempt to find a basis for granting a remedy - The more terms that the parties leave open, the less likely it is that they intended to form a contract - Material terms would include the parties, subject matter, price, quantity, quality, and time of performance

Silence of Acceptance

( Some unique situations can be. Industry standards/norms, course of dealing) - Offeree is generally under no legal duty to reply to an offer - Silence or inaction does not indicate acceptance of the offer - By custom, usage, or course of dealing, however, the offeree's silence or inaction may operate as an acceptance, and a contract is formed

Firm Offers under the UCC

( What is subject matter of contract) - Firm offer is a written promise not to revoke an offer for a specified period of time - Merchant is bound to keep an offer to buy or sell goods open for a stated period (or if no time is stated, a reasonable time) not exceeding three months if the merchant gives assurance in a signed writing that the offer will be held open - Enforceable even if no consideration is given to the offeror for that promise

Option Contracts

( common law rule) - Option is a contract by which the offeror is bound to hold open an offer for a specified period of time - Must comply with all of the requirements of a contract, including the offeree's giving of consideration to the offeror

Advertisements

( not valid offers) - No offer when merchant announces that they have goods for sale, describes the goods, and quotes prices - Invites public to make offers to buy the goods - General advertisements are not offers because - They do not contain a promise, and - They leave unexpressed many terms that would be necessary to the making of a contract - Seller is not free to advertise goods at one price and then raise the price - Advertisement may constitute an offer if it contains a definite promise of something in exchange for something else and confers a power of acceptance on a specified person or class of persons

Common Law

(All Real Estate) •Contracts are primarily governed by state common law •Everything outside the scope of the UCC •Employment contracts, service contracts, insurance contracts, contracts involving real property, and contracts for the sale of intangibles such as patents and copyrights

Contract

(All contracts are promises, not all promises are contracts) Contract is a binding agreement that the courts will enforce Promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law, in some way, recognizes a duty - Promise manifests or demonstrates the intention to act or to refrain from acting in a specified manner - Breach is a failure to properly perform the agreement All contracts are promises; not all promises are contracts

Implied Warranties

(Based on circumstances) Created circumstances under which the sale was made •Not found in the language of the sales contract or in a specific statement or promise by the seller •Arises out of the circumstances under which the parties enter into their contract and depends on factors such as the type of contract or sale entered into, the seller's merchant or nonmerchant status, the conduct of the parties, and the applicability of other statutes

Failure to Warn

(If you can make product safer in a cost effective way, you must) •Seller is under a duty to warn of a product's possible danger, to provide adequate directions for its safe use, and to package the product safely •Duty to give a warning arises from a foreseeable danger of physical harm that could result from the normal or probable use of the product and from the likelihood that, unless warned, the user or consumer would not ordinarily be aware of such danger or hazard •Cannot escape liability with a warning if the product could have been made or designed safer in a cost-effective manner

Promissory Estoppel

(Want to avoid it, Hail Mary) - Definition: doctrine enforcing some non-contractual promises - Requirements: promise made under circumstances that should lead the promisor reasonably to expect that the promise would induce the promisee to take definite and substantial action, and the promisee does take such action - Remedy: court will enforce the promise to the extent necessary to avoid injustice

Express Warranties

(Words) Created by a statement of fact or promise made by seller to the buyer •Explicit undertaking by the seller with respect to the quality, description, condition, or performability of the goods •Statement of fact or a promise that relates to the goods, a description of the goods, or a sample or model of the goods •Oral or in writing

Uniform Commercial Code (UCC)

- "Battle of the Forms" - Focuses on the intent of the parties - If the offeree does not expressly make their acceptance conditional upon the offeror's assent to the additional or different terms, a contract is formed - If both the offeror and offeree are merchants, such additional terms may become a part of the contract provided that they do not materially alter the agreement and are not objected to either in the offer itself or within a reasonable period of time - If either of the parties is not a merchant or if the additional terms materially alter the offer, then the additional terms are merely construed as proposals to the contract - Different terms proposed by the offeree will not become part of the contract unless accepted by the offeror

Acceptance of Offer

- Acceptance of an offer is essential to the formation of a contract - Once an effective acceptance has been given, the contract is formed - Acceptance of an offer for a bilateral contract is some overt act by the offeree that manifests their assent to the terms of the offer - If the offer is for a unilateral contract, acceptance is the performance of the requested act with the intention of accepting

Output Contract

- Agreement of a buyer to purchase a seller's entire output for a stated period

requirements contract

- Agreement of a seller to supply a buyer with all their requirements for certain goods

Mutual Assent Common Law

- An acceptance must be positive and unequivocal - It may not change, add to, or subtract from, or qualify in any way the provisions of the offer - It must be the mirror image of the offer - Any communication that attempts to modify the offer is not an acceptance but a counteroffer, which does not create a contract

CounterOffer

- Counteroffer is a counterproposal from the offeree to the offeror that indicates a willingness to contract but on terms or conditions different from those contained in the original offer - Operates as a rejection and a new offer - Inquiry about the possibility of obtaining different or new terms is not a counteroffer and does not terminate the original offer - Conditional acceptance - Accepts the offer but expressly makes the acceptance contingent upon the offeror's assent to additional or different terms

Death or Incompetency

- Death or incompetency of either the offeror or offeree ordinarily terminates the offer - On the death or incompetency of the offeror, the offeror no longer has the capacity to enter into a contract; thus, all outstanding offers are terminated - Death or incompetency of the offeree also terminates the offer

Destruction of Subject Matter

- Destruction of the specific subject matter of an offer terminates the offer

More requirments of strict liability in tort

- Does not depend upon a contract - Does not require reliance by the injured user or consumer on any statements made by the manufacturer or seller - Not limited to persons in the buyer-seller relationship - No notice of the defect is required to have been given by the injured user or consumer - Not subject to disclaimer, exclusion, or modification by contractual agreement - Liability for injury to person and damage to property, not commercial loss

Communication of Acceptance

- For bilateral contracts, the offeree's acceptance must be communicated to the offeror - For unilateral contracts, notice of acceptance to the offeror is typically not required, unless the offeree has reason to know that the offeror has no adequate means of learning of the offeree's performance with reasonable promptness and certainty, then the offeree must make reasonable efforts to notify the offeror of acceptance or lose the right to enforce the contract

Preliminary Negotiations

- If a communication creates in the mind of a reasonable person in the position of the offeree an expectation that their acceptance will conclude a contract, then the communication is an offer - If not, then the communication is a preliminary negotiation - Statement that may indicate a willingness to make an offer is not in itself an offer - Offeror must demonstrate an intent to enter into a contract, not merely a willingness to enter into a negotiation

Subsequent Illegality

- If performance of a valid contract is subsequently made illegal, the obligations of both parties under the contract are discharged - Illegality taking effect after an offer has been made, but prior to acceptance, terminates the offer

basis of the bargain

- If statements, promises, descriptions, samples, or models are part of the buyer's assumption underlying the sale, reliance by the buyer is presumed. - Statements or promises made by the seller subsequent to the sale may become express warranties.

Stipulated Provisions in the Offer

- If the offer specifically stipulates the means of communication to be used by the offeree, then the acceptance must conform to that specification - Rule that an acceptance is effective when dispatched or sent does not apply in cases in which the offer provides that the acceptance must be received by the offeror - Effective moment is when the offeror receives the acceptance

Defective Acceptances

- Late or defective acceptance does not create a contract - After the offer has expired, it cannot be accepted - Late or defective acceptance does constitute a new offer - Original offeror must accept the new offer by manifesting their assent to it

Promissory Estoppel

- Noncontractual promise may be enforced when it is made under circumstances that should lead the promisor reasonably to expect that the promise will induce the promisee to take action in reliance on it

Offer

- Offer is a definite undertaking or proposal made by one person to another indicating a willingness to enter into a contract - Offeror - Person making the proposal - Offeree - Person to whom the proposal is made - When it is received, the offer confers on the offeree the power to create a contract by acceptance, which is an expression of the offeree's willingness to comply with the terms of the offer - Outstanding offer creates no rights or duties until it is accepted

Essentials of an offer

- Offer need not take any particular form to have a legal effect - It must - Be communicated to the offeree, - Manifest an intent to enter into a contract, and - Be sufficiently definite and certain

Effective Moment

- Offer, a revocation, a rejection, and a counteroffer are effective when they are received - Acceptance is generally effective upon dispatch - Mailbox Rule - Unless the offer specifically provides otherwise, the offeree uses an unauthorized means of communication, or the acceptance follows a prior rejection

Communication

- Offeree must know about the offer - Offeror must communicate the offer in an intended manner - Communication must be made or authorized by the offeror - Offer need not be communicated by words - Conduct from which a reasonable person may infer a proposal in return for either an act or a promise amounts to an offer - Offer may be made to the general public - No person can accept such an offer until and unless they know that the offer exists

Revocation

- Offeror generally may cancel or revoke an offer at any time prior to its acceptance - Notice may be given by any means of communication and effectively terminates the offer when received by the offeree - Offer made to the general public is revoked only by giving the revocation publicity equivalent to that given to the offer - Notice of revocation may be communicated indirectly to the offeree through reliable information from a third person that the offeror has disposed of the property they have offered for sale or has otherwise placed himself in a position indicating an unwillingness or inability to perform the promise contained in the offer

Mutual Assent

- Parties typically demonstrate mutual assent via an OFFER and ACCEPTANCE - One party makes a proposal by words or conduct to the other party, who agrees by words or conduct to the proposal - Contract exists if both parties' actions indicate a recognition by each of them of the existence of a contract - Courts apply an objective standard to determine assent

Rejection

- Rejection of an offer is a manifestation by the offeree of their unwillingness to accept - Offeree is at liberty to accept or reject the offer as they see fit - Communicated rejection terminates the power of acceptance - Rejection may consist of express language or may be implied by language or conduct

Intent

- To have legal effect, an offer must manifest an intent to enter into a contract - Intent of an offer is determined objectively from the words or conduct of the parties - Based upon what a reasonable person in the other party's position would have believed - Beware of jokes, excited utterances, and invitations for offers

Variant Acceptances

- Variant acceptance is one that contains terms different from or additional to those in the offer - It receives different treatment under common law and the UCC

Acceptance following a prior rejection

- When an acceptance follows a prior rejection, the first communication that the offeror receives is the effective one

Unauthorized Means

- When the method of communication used by the offeree is unauthorized, the traditional rule is that acceptance is effective when and if received by the offeror, provided that it is received within the time during which the authorized means would have arrived

Authorized Means

- Where the language in the offer or the circumstances do not otherwise indicate, an offer to make a contract shall be construed as authorizing acceptance in any reasonable manner - Authorized means is usually any reasonable means of communication

Irrevocable Offers of Unilateral Contracts

- Where the offer contemplates a unilateral contract - promise for an act - injustice to the offeree may result if revocation is permitted after the offeree has started to perform the act requested in the offer and has substantially but not completely accomplished it - If offeror does not know of the offeree's performance and has no adequate means of learning of it within a reasonable time, the offeree must exercise reasonable diligence to notify the offeror of the performance

Open Terms

- With respect to agreements for the sale of goods, the UCC provides standards by which the courts may determine omitted terms, provided the parties intended to enter into a binding contract - Offer for the purchase or sale of goods may leave open particulars of performance to be specified by one of the parties - Any such specification must be made in good faith and within limits set by commercial reasonableness

Requirements of strict liability in tort

1. Defendant was engaged in the business of selling a product such as the defective one; 2. Defendant sold the product in a defective condition; 3. Defective condition made the product unreasonably dangerous to the user or consumer or to his property; 4. Defect in the product existed when it left the defendant's hands; 5. Plaintiff sustained physical harm or property damage by using or consuming the product; and 6. Defective condition was the proximate cause of the injury or damage.

Requirements of a contract

1. Mutual Assent 2. Consideration 3. Legality of Object 4. Capacity - Some contracts must be in writing - Statute of Frauds •Most oral agreements are binding and enforceable - Must be an absence of invalidating conduct •Duress, undue influence, misrepresentation, or mistake

When court is unsure of contract, what do they presume?

A bilateral contract

Mirror Image Rule

A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.

Statutory Irrevocability

Certain offers are made irrevocable by statute

Plaintiff's Conduct

Contributory negligence of the buyer is no defense to an action against the seller for breach of warranty. Voluntary Assumption of Risk -If the buyer discovers a defect in the goods that may cause injury and nevertheless proceeds to make use of them, he will not be permitted to recover damages from the seller for loss or injuries caused by such use.

Belden, Inc. v. American Electronic Components, Inc.

Court of Appeals of Indiana, 2008 - Manufacturer has standards that supplier said they met - Suppliers change wire insulation and didn't notify the change, causes wires to crack - Breach of express warranty - Course of dealing: ongoing realtionship with someone can create an express warranty - Every month supplier gives same product, then changes it or doesn't meet that expectation

Bouton v. Byers

Court of Appeals of Kansas, 2014 - Woman offered job as a law professor - Dad offers her farm if she works for him, she quits job, two have a falling out, she sues because he transferred rights - It has to be in writing to transfer real estate if not its enforceable - Entered into oral agreement, I know it should have been in writing but I relied on my dad's lie - Court enforced contracts

Sherrod v. Kidd

Court of Appeals of Washington, 2007 - Kid bit by dog, they sue owner - Owner went to family and granted $25K - Family of child bitten did not respond, both parties went to arbitration - Arbitration granted $16,000 - Offer only open for reasonable time, moment award was decided, it was binding

Warranty of Title

Created by the existence of a sale •Seller implicitly warrants that •Title conveyed is good and its transferable, and •Goods are subject to no security interest or other lien of which the buyer did not know at the time of contracting •Lien is a claim on property by another for payment of debt

Quasi-Contract - Contract Implied in Law

Definition - an obligation, not a contract, that is imposed to avoid injustice. Requirements - a court will impose a quasi-contract when (1) the plaintiff confers a benefit upon the defendant, (2) the defendant knows or appreciates the benefit, and (3) the defendant's retention of the benefit is inequitable. Remedy - the plaintiff recovers the reasonable value of the benefit she conferred upon the defendant. - Would have to pay reasonable amount for action done

Consideration

Each party must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange

Buyer's Examination or Refusal to Examine

If the buyer inspects the goods before entering into the contract, implied warranties do not apply to defects that are apparent on examination. No implied warranty on defects that an examination ought to have revealed when the buyer has refused to examine the goods.

Steinberg v. Chicago Medical School

Illinois Court of Appeals, 1976 - Steinberg applied for Chicago Medical School - Sent $15 application fee, School accepted application but denied him - He sued for breach of contract - He said they considered his family's wealth and donation - He read a pamphlet on how the school would review his application - Applicant made offer, school reviewed it accepting - Binding contract present consideration $15, legal, both capacity - Create a warranty/contract from their stated application review process - Applicant won breach of contract against school

Valid Contract

Meets all of the requirements of a binding contract

Contract dealing example

Monday - Offer Sent Tuesday - Offer Received Wednesday - Acceptance Sent Thursday - Revocation Sent Friday - Revocation Received Saturday - Acceptance Received - Contract entact on Wed, acceptance before revocation

Acceptance after rejection example

Monday - Offer sent Tuesday - Offer received Wednesday - Rejection Sent Thursday - Acceptance Sent Friday - Rejection Received Saturday - Acceptance Received - No contract, rejection at first - Late or defective acceptance is a new offer

Is silence acceptance?

No, silence is not acceptance

Manufacturing Defect or Production Defect

Occurs when the product is not properly made. It fails to meet its own manufacturing specifications.

Capacity

Parties must have contractual capacity

Express and Implied Contracts

Parties to a contract may indicate their assent either in words or by conduct implying such willingness - Express Contract Parties manifest assent in words - Oral or in writing - Implied in Fact Contract Contract formed by conduct Both contracts are equally enforceable

Mutual Assent

Parties to a contract must manifest by words or conduct that they have agreed to enter into a contract - Offer and Acceptance

Legality of Object

Purpose of a contract must not be criminal, tortious, or against public policy

Description, Sample, and Model

Seller can create an express warranty by use of a description of the goods that becomes a part of the basis of the bargain. -Seller expressly warrants that the goods shall conform to the description. When a sample or model is a part of the basis of the bargain, the seller expressly warrants that the goods sold shall conform to the sample or model. -Sample is a good that is actually drawn from the bulk of goods that is the subject matter of the sale. -Model is offered for inspection when the subject matter is not at hand; it is not drawn from the bulk.

Statement Regarding the Value

Statements regarding the value of the goods or the seller's opinion or recommendation of the goods does not create a warranty. Express warranty may be created if seller states the price at which the goods were purchased from a former owner or in which she gives market figures relating to sales of similar goods. Expert seller's opinion may create an express warranty.

Output and Requirements Contracts

Such agreements are enforceable by the application of an objective standard based upon the good faith of both parties - Legal duty to act with honor and integrity

Lefkowitz v. Great Minneapolis Surplus Store, Inc.

Supreme Court of Minnesota, 1957 - Fur coats normally $100, at 9am on saturday first 3 people in line $1 - He is first in line, store says they only sell to women - Sues for breach of contract - contains capacity, fur coat + $1 = consideration, Legal, Was it a valid offer? - Specificity of ad constitutes an valid offer - He accepted offer with actions of showing up and attempting to purchase

Osprey L.L.C. v. Kelly-Moore Paint Co., Inc.

Supreme Court of Oklahoma, 1999 - May use US postal mail or deliver renewal in person - Tenant faxed the renewal, Landlord never saw the fax - Tenant sued the Landlord - Since it was MAY instead of MUST any form is possible

IN RE L.B. Trucking, Inc.

United States Bankruptcy Court, 1994 - Farmer wants cheapest product thats going to work - Nitrogen base or water base herbicide, offer waterbase and farmer selected - seller promised about water base and used nitrogen base - breach of express wrranty, implied warranty of merchantability, implied particular purpose - herbicide company sued farm because farm went bankrupt and never received payment - Breach of contract, farm counter claimed and farm won because of damages

Montz v. Pilgrim Films & Television, Inc.

United States Court of Appeals, Ninth Circuit, 2011 - Pitching idea to go around country and find ghosts - One of the Networks he pitched to came out with show ghost hunters - No express agreement, implied in this filed that you tell someone your idea and they use it, you are entitled to compensation

Kelso v. Bayer Corporation

United States Courts of Appeals, Seventh Circuit, 2005 - Used product everyday, made problems much more worse - Product box says do not use product for 3 days straight - He used for getting nasal damage - Warning, clear and understandable to reasonable person, prevents liability

Types of Warranties

warranties of title, express warranties, implied warranties

Implied Warranty of Fitness for a Particular Purpose

•Applies to ANY seller, whether they are a merchant or not •Arises if at the time of contracting the seller had reason to know the buyer's particular purpose and to know that the buyer was relying on the seller's skill and judgment to select suitable goods •Buyer need not specifically inform the seller of their particular purpose; it is sufficient if the seller has reason to know it •Specific purpose not ordinary purpose

Notice of Breach of Warranty

•Buyers are required to notify the seller of any breach of warranty, express or implied, as well as any other breach, within a reasonable time after they have discovered the breach or should have discovered it •If the buyer fails to notify the seller of any breach within a reasonable time, they are barred from any remedy against the seller

Bilateral Contracts

•Contract is formed by an exchange of promises •Each party is under a duty to the other •Promisor •Promisee

Executed Contract

•Contract that has been fully carried out by all of the applicable parties

executory contract

•Contracts that are partially, or not entirely, performed by one or more of the parties

Voidable Contract

•Defective, but the law permits one or more of the parties to avoid the legal duties the contract creates •If contract is voided, both parties no longer have legal duties under the agreement

Design Defect

•Despite the product being produced as specified, the product is dangerous or hazardous because its design is inadequate •Design of the product is evaluated based on the dangers that the manufacturer could have known at the time they produced the product •Example: Ford Pinto •Movie

Disclaimers of Warranties

•Disclaimer must be positive, explicit, unequivocal, and conspicuous •Seller cannot provide an express warranty and then disclaim express OR implied warranties •Warranty of title may be excluded only by specific language or certain circumstances •To exclude or to modify an implied warranty of merchantability, the language of disclaimer or modification must mention merchantability and, in the case of a writing, be conspicuous •Conspicuous means that a reasonable person against whom the disclaimer is to operate ought to have noticed it •To exclude or modify an implied warranty of fitness for a particular purpose of the buyer, the disclaimer must be in writing and conspicuous •Court will invalidate disclaimers it considers unconscionable

Void Contract

•Does not meet all of the requirements of a binding contract •No contract - No legal effect

Uneforceable contract

•If breached, law provides no remedy •Statute of Frauds

Statute of Repose

•Laws limit the period for which a manufacturer is liable for injury caused by a defective product. •Typically 6 to 12 years •After the time period has elapsed, a manufacturer ceases to be liable for such harm

Subsequent Alteration

•Liability exists only if the product reaches the user or consumer without substantial change in the condition in which it was sold

Merchant Sellers

•Liability is imposed only upon a person who is in the business of selling the product involved •Does not apply to an occasional seller •Strict liability also applies to the manufacturer of a component that is used in a larger product if the manufacturer of the finished product has made no essential change in the component

Unreasonably Dangerous

•Liability only applies if the defective product is unreasonably dangerous to the user or consumer •Unreasonably dangerous product is one that contains a danger beyond that which would be contemplated by the ordinary consumer who purchases it with common knowledge of its characteristics •Not whiskey, but whiskey with gasoline •Not tobacco, but tobacco with marijuana •Not butter, but butter with poisonous fish oil

Strict Liability in Tort

•Merchant sellers are liable for personal injuries and for property damage that result from selling a product in a defective condition, unreasonably dangerous to the consumer, even though the seller has exercised all possible care in the preparation and sale of their product •Focus on the product, not the conduct of the manufacturer

Misuse or Abuse of the Product

•Misuse or abuse occurs when the injured party knows, or should know, that they are using the product in a manner the seller did not contemplate •Misuse or abuse must not be foreseeable by the seller •If foreseeable, seller must take measures to guard against it - Only liable for foreseeable damage or injury

Tort Reform

•More than half of the states have limited the punitive damages that a plaintiff can collect in a product liability lawsuit

Unilateral Contracts

•Only one of the parties has made a promise •Results from the exchange of a promise either for performing an act or from refraining from doing an act

Defective Condition

•Plaintiff must prove a defective condition in the product •Plaintiff must show that, at the time that they were injured, the condition of the product was not substantially changed from the condition in which the manufacturer or seller sold it

Voluntary Risk Assumption

•Plaintiff's express or implied consent to encounter a known danger •Defendant must show that •Plaintiff actually knew and appreciated the particular risk or danger the defect created; •Plaintiff voluntarily encountered the risk while realizing the danger; and •Plaintiff's decision to encounter the known risk was unreasonable

Article 2 of the Uniform Commercial Code (UCC)

•Sale of personal property (goods) •Sale consists of the transfer of title to goods from seller to buyer for a price •Present sales and contracts to sell goods at a future time •Goods are tangible personal property

Plaintiff's Conduct

•Seller cannot defend a strict liability lawsuit on the basis of a plaintiff's negligent failure to discover a defect or to guard against its possibility •In comparative negligence states, damages may be apportioned

What must a buyer prove in a warranty action?

•Warranty existed, •Warranty has been breached, •Breach of the warranty proximately caused the loss suffered, and •Notice of the breach of warranty was given to the seller.

Warranties

•creates a duty on the part of the seller to ensure that the goods that they sell will conform to certain qualities, characteristics, or conditions •In a warranty action, the buyer must prove •Warranty existed, •Warranty has been breached, •Breach of the warranty proximately caused the loss suffered, and •Notice of the breach of warranty was given to the seller. •Sellers are not required to warranty goods •Buyer may reject or revoke acceptance of the goods •Either way, buyer may recover damages: personal injury, damage to property, and economic loss