C10. Warranties

Question 1

What is the general rule regarding warranties?

Answer 1

1) a party bears the risk of mistake when he is aware, at the time the contract is made, that he has only limited knowledge with respect to the facts to which the mistake relates but treats his limited knowledge as sufficient
 I. sell is sufficient. Overrides mutual mistake

2) a seller’s instruction and judgment is part of a sale; an implied warranty is made by the advice and instruction processed with the good. Must be fit for purpose described in 2-315
3) the implied warranty of merchantability is limited by an expressed warranty of conformity to a precise description supplied by the buyer, and if the latter warranty is not breached, neither is the former
4) use caps on express warranty mods (2-316)

5) where the seller is given reasonable opportunity to correct the defect or defects, and the good nevertheless fails to operate as should a new good free of defects, the limited remedy fails of its essential purpose
 I. limitations on remedies in a warranty is not valid
 ii. even over a contract mod denying service, buyer still has a right to receive what was expected and conscionable