Warranties Flashcards
What is a warranty?
A promise about a term of the contract that explicitly shifts the risk to the party making the promise
Can a party disclaim all warranties?
Yes
What is an express warranty?
A promise that affirms or describes the goods and is part of the basis of the bargain (unless its merely the sellers opinion)
What is the effect of a sample or model?
Creates an express warranty that the goods sold will be like the sample
When is the implied warranty of merchantability triggered?
Only when the seller is a merchant dealing in goods at issue
What does the Implied Warranty of Merchantability warrant?
That goods are fit for ordinary commercial purposes
Can a merchant disclaim the Implied Warranty of Merchantability?
Yes
How does a merchant disclaim the Implied Warranty of Merchantability?
VERY CONSPICUOUS LANGUAGE and “merchantability” term
What does the Implied Warranty of Fitness for a Particular Purpose warrant?
Goods will satisfy the special purpose
When is the Implied Warranty of Fitness for a Particular Purpose triggered?
When a buyer relies on a seller’s expertise to select a special type of good that will be used for a special purpose
Can a non-merchant extend the Implied Warranty of Fitness for a Particular Purpose by implication?
Yes, as long as the buyer relies on any seller’s expertise
Can the Implied Warranty of Fitness for a Particular Purpose be disclaimed?
Yes
How must the implied Warranty of Fitness for a Particular Purpose be disclaimed?
Disclaimer must be in writing and CONSPICUOUS
What is the difference when disclaiming a warranty for fitness of a particular purpose, and the Implied Warranty of Merchantability?
Both need to be in writing and CONSPICUOUS, but only the Implied Warranty of Merchantability needs to say the word “merchant”
What is a condition
Another way to shift risk by stating that one party’s contractual obligation will only kick in if some future event takes place
Can conditions be implied?
Yes, they can be express or implied
What is the most important implied condition?
Constructive condition of exchange
Name the 3 types of warranties?
Express Warranty
Implied Warranty of Merchantability
Implied Warranty of Fitness for a Particular Purpose
How are express conditions created?
Express conditions are created by language in the contract.
Look for words like”only if”, “provided that”, “on the condition that”
Fill in the blank: Conditions must be __________ ___________ unless the condition is somehow excused
Strictly satisfied
What is the preferred approach to whether a condition has been satisfied?
Objective standard
What standard is used when the contract involves aesthetic taste
Subjective Standard
