Themis Essay 4550 Flashcards
Article 2 of the UCC, as adopted by Virginia, applies to
the sale of goods, and warranties stemming from those sales.
Goods are defined as
all things moveable at the time they are identified under the contract between the buyer and the seller.
Under Article 2, warranty that the goods are merchantable is implied in a contract for their sale whenever
the seller is a merchant with respect to goods of that kind.
To be merchantable, goods must be
fit for their ordinary purpose and pass without objection in the trade under the contract description.
A breach of the warranty of merchantability must have been present
at the time of the sale.
To establish a breach of the implied warranty of merchantability in Virginia, the buyer must establish the following elements:
(i) the seller sold the goods;
(ii) the buyer was a person reasonably expected to use the goods;
(iii) the seller was a merchant of the type of goods sold;
(iv) the goods were not of merchantable quality at the time of the sale;
(v) the breach of warranty caused the buyer’s damages; and
(vi) within a reasonable time after the buyer discovered or should have discovered the breach, the buyer notified the seller of the breach.
The warranty for a particular purpose applies to
any seller, not just a merchant.
To establish an implied warranty of fitness for a particular purpose, the buyer must prove by a preponderance of the evidence that:
(i) the seller had reason to know of the particular purpose for which the buyer required the particular goods;
(ii) the buyer was relying on the seller’s skill or judgment to furnish appropriate goods; and
(iii) the buyer did in fact rely upon the seller’s skill or judgment.
To establish a breach of the implied warranty of fitness for a particular purpose, the buyer must prove by a preponderance of the evidence that:
(i) the seller sold the goods;
(ii) the buyer was a person who reasonably expected to use the goods;
(iii) the seller impliedly warranted the goods to be suitable for a particular purpose for which they were not suitable;
(iv) the breach of warranty caused damages; and
(v) the buyer notified the seller of the breach within a reasonable time after the buyer discovered or should have discovered the breach.
The warranty of merchantability can be disclaimed by
use of “as is,” “with all faults,” or similar language that makes plain that there is no implied warranty.
The disclaimer of the warranty of merchantability may be oral, but it must
use the term “merchantability” and must be conspicuous if in writing.
To specifically exclude the implied warranty of fitness for a particular purpose, the disclaimer must be
in writing and use conspicuous language.
Any affirmation of fact or promise made by the seller to the buyer that relates to the goods and becomes part of the basis of the bargain creates
an express warranty that the goods conform to that affirmation or promise.
When a warranty fails of its essential purpose, the buyer may seek
other remedies.
Under the UCC, a buyer must must notify the seller of his intention to return the goods within
a reasonable time.