Warranties

Question 1

What is a warranty?

Answer 1

A promise about a term of the contract that explicitly shifts the risk to the party making the promise

Question 2

Can a party disclaim all warranties?

Answer 2

Yes

Question 3

What is an express warranty?

Answer 3

A promise that affirms or describes the goods and is part of the basis of the bargain (unless its merely the sellers opinion)

Question 4

What is the effect of a sample or model?

Answer 4

Creates an express warranty that the goods sold will be like the sample

Question 5

When is the implied warranty of merchantability triggered?

Answer 5

Only when the seller is a merchant dealing in goods at issue

Question 6

What does the Implied Warranty of Merchantability warrant?

Answer 6

That goods are fit for ordinary commercial purposes

Question 7

Can a merchant disclaim the Implied Warranty of Merchantability?

Answer 7

Yes

Question 8

How does a merchant disclaim the Implied Warranty of Merchantability?

Answer 8

VERY CONSPICUOUS LANGUAGE and “merchantability” term

Question 9

What does the Implied Warranty of Fitness for a Particular Purpose warrant?

Answer 9

Goods will satisfy the special purpose

Question 10

When is the Implied Warranty of Fitness for a Particular Purpose triggered?

Answer 10

When a buyer relies on a seller’s expertise to select a special type of good that will be used for a special purpose

Question 11

Can a non-merchant extend the Implied Warranty of Fitness for a Particular Purpose by implication?

Answer 11

Yes, as long as the buyer relies on any seller’s expertise

Question 12

Can the Implied Warranty of Fitness for a Particular Purpose be disclaimed?

Answer 12

Yes

Question 13

How must the implied Warranty of Fitness for a Particular Purpose be disclaimed?

Answer 13

Disclaimer must be in writing and CONSPICUOUS

Question 14

What is the difference when disclaiming a warranty for fitness of a particular purpose, and the Implied Warranty of Merchantability?

Answer 14

Both need to be in writing and CONSPICUOUS, but only the Implied Warranty of Merchantability needs to say the word “merchant”

Question 15

What is a condition

Answer 15

Another way to shift risk by stating that one party’s contractual obligation will only kick in if some future event takes place

Question 16

Can conditions be implied?

Answer 16

Yes, they can be express or implied

Question 17

What is the most important implied condition?

Answer 17

Constructive condition of exchange

Question 18

Name the 3 types of warranties?

Answer 18

Express Warranty

Implied Warranty of Merchantability

Implied Warranty of Fitness for a Particular Purpose

Question 19

How are express conditions created?

Answer 19

Express conditions are created by language in the contract.

Look for words like”only if”, “provided that”, “on the condition that”

Question 20

Fill in the blank: Conditions must be __________ ___________ unless the condition is somehow excused

Answer 20

Strictly satisfied

Question 21

What is the preferred approach to whether a condition has been satisfied?

Answer 21

Objective standard

Question 22

What standard is used when the contract involves aesthetic taste

Answer 22

Subjective Standard