Implied Warranty of Merchantability (Sales)

Question 1

Policy

Answer 1

If a merchant is selling goods, the customer is entitled to believe the goods will (i) meet a reasonable standard of quality, and (ii) perform its function

Question 2

6 standards (not all will be applicable in all situations)

Answer 2

First Standard: The goods are fit for the ordinary purpose for which such goods are used. The “ordinary purpose is what is reasonably foreseeable. [Note: This is the standard most often in controversy.]
Second Standard: The goods would pass without objection in the trade.
Third Standard: The goods are adequately contained, packaged, and labelled.
If it comes in a bottle, and the bottle explodes, the standard is not met.
Fourth Standard: In the case of fungible items (like bananas or oranges), the goods are of at least fair average quality.
Fifth Standard: The goods conform to the promises or affirmations of fact made on the container or label.
Sixth Standard: The quality of the goods runs with the variations permitted under the agreement (or under the usage of trade).

Question 3

The serving of food or drinks, goods or services?

Answer 3

goods.

Question 4

The test if the consumer is injured by something in manufactured food or drink

Answer 4

the consumer’s “reasonable expectations

Question 5

Could a product that achieved its purpose violate the warranty of merchantability because of its side effect?

Answer 5

Yes

Question 6

A merchantable product must be

Answer 6

safe for use.

Question 7

Drugs must contain

Answer 7

adequate warnings if they would not be safe for some users.

Question 8

There may be a breach of the warranty of merchantability if the product would cause a rash or other allergic reaction for a

Answer 8

“substantial number of people in an identifiable class.

Question 9

Crysco Oilfield Servs., Inc. v. Hutchinson-Hayes Int’l., Inc.

Answer 9

A claim for breach of implied warranty of fitness for a particular purpose requires knowledge by the seller that the goods will be used in a way that is separate from the general or ordinary use of the product.

Question 10

Wenner v. Gulf Oil Corp.

Answer 10

If an express warranty conflicts with a disclaimer of warranty, the express warranty controls.

Question 11

Lumber Mutual Ins. Co. v. Clarklift of Detroit, Inc.

Answer 11

Under the Uniform Commercial Code, a seller of goods may disclaim all implied warranties through a conspicuous “as is” clause in the contract.

Question 12

U.S. Aprons, Inc. v. R-Five, Inc.

Answer 12

A party seeking to rely on usage of trade to add terms to a contract must establish the existence and scope of such usage.