Article 2 - Warranties and Prodct Liability Flashcards
Implied Warranty for a specific purpose
Disclaimer
Also called as salesperson’s warranty - When the buyer explains his need and purchases as per seller’s recommendation
Must be conspicuous and in writing
What is Implied Warranty of Merchantibility
Also called as the
“restaurant food quality”
Disclaimer
In an AS-IS sale, only implied warranties of Merchantability and Specific Purpose is disclaimed
M-Can only be made by the Merchant
N-Nature - ordinary use - kind - quality- quantity-labeled, packaged and conforms to the description on the package
Must mention the word “merchantibility”
can be oral or in writing and conspicuous
Strict Tort Liability
Requirements -
Negligence Tort Liability
The affected party need not be privy to the contract. Friend - Party - Tainted Turkey - Both you and friend can sue
product must be defective enough to be dangerous.
- Should be manufacturer or seller
- It reached directly from the manufacturer or seller in the same defective condition, not tampered with in between
Additional Information -
* Contributory negligence by buyer does not prevent legal action * Does not have to prove negligence *Privity of contract is not important
All requirements as Strict Tort Liability, plus 1 - Knowledge of the defect - Manufacturer and Seller know of the defect
UCC SAles Article -
Express Warranties
Implied Warranties
Description of Goods
Conformance of Bulk to Sample
Affirmations of facts or promises
Specific purpose
Merchantibility - Title, devoid of defects, ordinary purpose
Usage of Trade
Express Warranty
Express warranties must be part of the basis of the bargain between buyer and seller - meaning - In addition to being statements of fact or promises of performance, whatever is stated or written must be important to the buyer in making the decision to buy.