Performance: warranties Flashcards
Express warranties
Express warranties are promises that:
(1) affirm or describe the goods; and
(2) are part of the basis for the bargain.
The use of a sample or model creates an express warranty that the goods will be like the sample.
A statement of opinion or puffery, however, is not treated as creating an express warranty.
Express warranties: disclaimer
A general disclaimer of all warranties is insufficient to disclaim an express warranty—i.e., disclaimers that conflict with express warranties are ignored.
E.g., “all warranties, express or implied, are disclaimed,” are ineffective.
Implied warranty of merchantability
The implied warranty of merchantability applies—and applies only—when the seller is a merchant dealing in the goods at issue.
It warrants the goods are fit for ordinary commercial purposes.
The warranty can be disclaimed if:
(1) in writing; and
(2) with very conspicuous language mentioning “merchantability.”
Implied warranties: disclaimer
“As is” and “with all faults,” or similar language, serve to disclaim implied warranties.
Implied warranty of fitness for a particular purpose
The implied warranty of fitness for a particular purpose applies when a buyer relies on the seller’s expertise to select a special type of good for a special purpose.
The person extending this warranty by implication need not be a merchant.
Implied warranty of fitness for a particular purpose: disclaimer
A warranty that the goods are fit for a particular purpose may be disclaimed by a conspicuous writing. Such a writing need not refer to this warranty by name.
Express warranties: puffery
A statement of opinion or puffery is not treated as creating an express warranty.