Business Law- Ch. 21 Pg. 349

What are the 3 warranty disclaimers?

1. "As is" disclaimer 2. Disclaimer of the implied warranty of merchantability 3. Disclaimer of the implied warranty of fitness for a particular purpose.

Express warranties are created when : (3)

1. Facts or promises are made about the goods. 2. Any description of the goods. 3. Any model or sample of the goods.

What are the two tests used for determing whether there has been a breach of the implied warranty of fitness for consumption?

1. Foreign substance test 2. Consumer expectation test

What are the 6 requirements used for determining whether there has been a breach of the implied warranty of merchantability?

1. Goods must be fit for the ordinary purpose for which they are used. 2. Goods must be adequately contained, packaged and labeled. 3. Goods must be an even kind, quality, and quantity within each unit. 4. Goods must conform to any promise or affirmation of fact made on the container or label. 5. The quality of the goods must pass without objection in the trade. 6. Fungible goods must meet a fair average or middle range quality.

Warranty of fitness for a particular purpose is implied at the time of contracting if (3)

1. The seller or lessor has reason to know the particular pupose for which the buyer is purchasing the goods or the lessee is leasing the goods.' 2. The seller/lessor makes a statement that the goods will serve this purpose. 3. The buyer/lessee relies on the seller's or lessor's skill and judgment and purchases or leases the goods

What is a statement of opinion (puffing)?

A commendation of goods, made by a seller or lessor, that does not create an express warranty.

What is a foreign substance test? (cherry pie/nail)

A foreign object in that product causes injury to a person. A test to determine merchantability based on foreign objects found in food.

what is conspicuous when it comes to warranty disclaimers?

A requirement that warranty disclaimers be noticeable to a reasonable person.

Who is reliable for the express warranties made by manufactures of goods it sells?

A retailer

What is a warranty?

A seller's or lessor's express or implied assurance to a buyer or lessee that the goods sold or leased meet certain quality standards.

What is a warranty disclaimer?

A statement that negates express and implied warranties.

What is implied warranty of fitness for human consumption?

A warranty that applied to food or drink consumed on or off the premises of restaurants, grocery stores, fast-food outlets, and vending machines.

Express warranties are made to entice consumers and others to

Buy or lease their products.

Warranties can either be (2)

Implied or expressed

Implied warranty of fitness for a particular purpose, applies to (2)

Merchants and non-merchanys

Does a statement of opinions (puffing) or affirmation of value of goods create an express warranty?

No

what is an implied warranty?

Not expressly stayed in sales or lease contract but instead implied by law.

what is warranty of no security interests?

Sellers of goods automatically warrant that the goods they sell are delivered free from any third-party security interests, liens or encumbrances that are unknown to the buyer.

All implied warranties are created by

The law

A manufacture is not liable for express warranties made by wholesalers and retailers unless?..

The manufacture authorizes or ratifies a warranty.

Express warranties are created by

The seller or lessor

True/false. Sellers and lessors are not required to make express warranties

True

What establishes certain warranties that apply to the sale of goods?

UCC- Article 2

What establishes certain warranties that apply to the lease transactions?

UCC- Article 2A

What is a consumer expectation test?

What a consumer would expect to find or not find in food or drink that he or she consumes. A test to determine merchantabilty based on what the average consumer would expect to find in food products.

what is warranty of no interference?

When goods are leased, the lessor warrants that no person holds a claim or an interest in goods that arose from an act or omission of the lessor that will interfere with the lessee's enjoyment of his leasehold interest.

what is an implied warranty of fitness for a particular purpose? (Old lady and bench)

a warranty that arises where a seller or lessor warrants that the goods will meet the buyer's or lessee's expressed needs.

What is a express warranty?

a warranty that is created when a seller or lessor makes an affirmation that the goods he or she is selling or leasing meet certain standards of quality, description, performance, or condition.

If the seller/lessor fails to meet a warranty, the buyer or lessee can sue for

breach of contract

Where there's a breach of warranty, the buyer/lessee may sue the seller/lessor to recover... (2)

compensatory damages. Personal injuries done by breach of warranty

what are compensatory damages?

damages that are equal to 1. the difference between the value of the goods as warranted 2. and the actual value) of the goods accepted at the time and place of acceptance

This type of warranty attaches to the sale or lease of goods if the seller or lessor has made statements that the goods will meet the buyer's or lessee's needs or purpose

implied warranty of fitness for a particular purpose.

Express warranties can be made

orally, written or inferred from the seller's conduct.

Under implied warranty of fitness for a particular purpose there is a breached of warranty if (old lady and bench)

the goods does not meet the buyer's or lessee's needs or purpose.

Buyers and lessees can recover for breach of an express warranty if

the warranty induced the buyer to purchase the product the lessee to lease the product.

What is warranty against infringements?

unless otherwise agreed, a seller or lessor who is a merchant regularly dealing in goods of the kind sold or leased automatically warrants that the goods are delivered free of any third-party patent, trademark, or copyright right claim.

what is an implied warranty of merchantability?

unless properly disclosed, a warranty that is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased, as well as other assurances. (Seller has to be a merchant)

what is warranty of good title?

unless they properly disclaim warranties, sellers of goods warrant that they have a valid title to the goods they are selling and that the transfer of title is rightful.