Chapter 14
merchantable goods must
1. pass w/o objection in trade under contract description 2. be fit for ordinary purpose 3. adequately contained,packaged,labeled 4. conform to promises made on labels
three ways express warranties are conveyed
1. statement/promise made by seller 2. description of goods 3. use of sample or model
three types of implied warranties
1. warranty of fitness for a particular purpose 2. warranty of merchantability 3. warranty that comes from a course of dealing or usage of trade
T or F: words such as warranty and guarantee are needed in a statement to be an express warranty
False
T or F: to take action with breach of warranty, you must know what they will do for you ahead of time
True
warranty
another name for guarantee
alternative b
any person injured by breach of warranty. not corporations
alternative c
any person or corporation injured by breach of warranty. sellers can only exclude THIS provision for corporations bu not individuals
limited warranty
any written warranty that does not meet the requirements for a full one. no free repair or replacement
implied warranties excluded by
as is, with all faults, having buyer examine goods prior to purchase
items non-merchantable ex
boat motor producing black smoke, contaminated cheese, food w/ glass
breach of warranty
breach of contract
duty to notify
buyers must notify a seller within a reasonable amount of time after defect is discovered
parol evidence rule
court may refuse to accept oral statements if a written contract exists
limited warranty ex
covers only parts not labor
usage of trade
customary ways parties have dealt with the past
merchantability must be mentioned specifically in order to
exclude the warranty of merchantability
alternative a
extends warranty to any person in family, guest, or household of buyer. not extended to corporations
true or false: private parties provide warranty of merchantability
false
magnuson-moss warranty act
gives federal protection to consumers when written express warranties are made interstate
implied warranty
guarantee of quality imposed by law. not in writing. under UCC only applies to goods sold, not contracts or services
consequential damages
losses that do not flow directly from an act but only from some of the consequences or results of the act
states that do not allow sellers to exclude implied warranties
ma, nh, ok, ri
only affecting interstate commerce
magnuson-moss warranty act
manufacturers must provide retailers
materials needed to meet warranty requirements
warrant of merchantability
merchant warrants that goods being sold are merchantable. only when seller regularly sells goods of that kind
goods over $10
must be labelled full or limited
express warranty
oral or written statement, promise, or other representation about the quality, ability, or performance of a product
privity of contract
people who contract directly with each other
full warranty
promises to fix or replace a defective product at no charge to the consumer
puffery
sales talk that does not qualify as warranty
must return full purchase price with sayings such as
satisfaction guaranteed, free trial offer, money back guarantee
express warranties apply to goods
sold or leased
full warranty becomes limited if
time is limited
T or F: written warranties on consumer goods > $15 must be available before purchase
true
t or f: the UCC has abolished the need for privity of contract
true
true or false: if someone buys stolen goods, the rightful owner is entitled to the return of the goods
true (breach of warranty of title)
warranty of title
when a merchant or private party sells goods and the seller warrants the title being conveyed is good and the transfer is lawful
warranty of fitness for a particular purpose
when seller knows the purpose for which the goods are needed - seller advises buyer on purchase
