Warranties

Question 1

What is a warranty?

Answer 1

A warranty is a promise about a term of the K that explicitly shifts the risk to the party making the promise.

Question 2

Three Types of UCC Warranties

Answer 2

1. Express
2. implied warranty of merchantability
3. implied warranty of fitness for a particular purpose

Question 3

What is an express warranty?

Answer 3

An express warranty is a (1) promise that (2) affirms or describes the goods, and (3) is part of the basis of the bargain, unless it is merely the seller’s opinion

Example: use of a sample or model creates an express warranty that goods will be like sample

Question 4

Implied warranty of merchantability

Answer 4

Triggered whenever seller is a MERCHANT dealing in the goods at issue. Warranty only promises that the goods are fit for ordinary commercial purposes.

Can be disclaimed ORALLY/WRITING if very conspicuously done so and uses term “merchantability.”

Question 5

Implied warranty of fitness for a particular use.

Answer 5

The warranty of fitness for a particular purpose is implied whenever the seller has reason to know that:

(i) the buyer has a particular use for the goods, AND (ii) the buyer is relying upon the seller’s skill to select the goods.

A disclaimer MUST be in writing and be conspicuous.