Warranties Flashcards
Warranty of merchantability - UCC
In every sale of goods, unless expressly disclaimed, there arises a warranty that the goods will be merchantable, which means that they will be fit for the ordinary purposes for which such goods are used. To be merchantable, goods must be adequately contained, packaged, or labeled according to the contract and must conform to any promises or affirmations of fact made on the label. To be effective, a disclaimer must be part of the offer and acceptance process or must be agreed to by the buyer as a modification.
Express warranty
An express warranty will arise from any affirmation of fact or promise made by the seller to the buyer, or from any description of the goods, and any sample or model if the statement, description, sample, or model is part of the basis of the bargain.
Implied warranty of fitness for a particular purpose
An implied warranty of fitness for a particular purpose arises when (i) the seller had reason to know the particular purpose for which the goods are to be used and that the buyer is relying on the seller’s skill and judgment to select suitable goods; and (ii) the buyer in fact relies on the seller’s skill or judgment.