Chapter 21 - The Uniform Commercial Code: Warranties

Question 1

Express Warranty

Answer 1

• Warranty made in writing or verbally.

- Representations of the seller can create express warranties.

Question 2

Gupta v. Asha Case

Answer 2

• Gupta and freinds in restaurant Asha to buy samosas.
• They specify that they needed to be vegetarian, no meat.
• Employee says there is not meat but the go hom and eat them and there was meat in them.
• The court held that the restaurant was liable for breach of express warranty even though it was oral. Gupta won.

Question 3

Puffery

Answer 3

• Puffery does not constitute an express warranty.

- Exaggerated salesmanship

Question 4

Implied Warranties

Answer 4

• Applies to merchants

- Even if not stated, the law presumes warranty.

Question 5

-Implied Warranty of Merchantability

Answer 5

• If I buy a product, I should expect it will do what it is supposed to do.
• Warranty implies goods will perform according to ordinary purpose for which the good was intended.

Question 6

Rothing v. kallestad Case

Answer 6

• Rothings bought hay from Kallestad to feed horses and 19 horses died.
• Horses died of botulism from hay.
• Was Kallestad a merchant? Court decided that Kallestad was a merchant so it was an impllied warranty of merchantibility and the hay didn’t live up to it’s purpose.

Question 7

Implied warranty of fitness for a particular purpose

Answer 7

1. Seller represents a good will work for a particular purpose communicated to the seller by the buyer. If it doesn’t work, then the seller is in breach.
   - Applies to those who would know or have credibility to have someone believe what they’re saying.

Question 8

Implied warranty of Title

Answer 8

• The seller warratns that he or she has good title to the product being sold.
• No thrid party will claim ownership of the good after the sale.

Question 9

Limitations on warranties.

Answer 9

1. Seller can exclude warranties through conspicuous language (WE HEREBY EXCLUDE)
   - 2. One way to exclude all warranties is to put AS IS on the product.

Question 10

Salazar vx. Mitsubishi

Answer 10

• Bought a car with a used engine.
• Car smoked and lost oil from the beginning.
• Engine had a 90 day warranty, but she didn’t know of the warranty.
• Went back to car place after 90 day period.
• She had signed a paper when she bought the car that did have conspicuous language that excluded all warranties.
• She didn’t initial it.
• Salazar won because she hadn’t initialized it and the seller messed up because the loimitations didn’t quite work.

Question 11

Warranties and 3rd parties

Answer 11

-Warranties may extend to 3rd party beneficiaries