Warranties Flashcards
Elements of a warranty (4)
1) conclusively presumed material
2) must be strictly complied with
3) essential part of the contract
4) express on the face of the contract
True or False: Intent is not necessary for breach of warranty
True. It is a strict liability offense
Warranties act as a — — mechanism
Risk shifting
2 types of warranties
Express and implied
Creation of an express warranty
Actions and words
Two categories of implied warranties
Merchantability and fitness for purpose
Warranty of title against infringement
Unless otherwise agreed, seller warrants title will be good to goods and they are unencumbered by a security interest
Express warranty: 3 ways
1) affirmation or promise
2) description by seller part of basis of bargain
3) sample or model part of the basis of bargain
True or False: A seller must make a warranty for contract formation
False
True or False: Implied warranties do not depend on anything the seller does
True. Implied warranties will be valid regardless of seller conduct, unless they specifically do not warrant them
A warranty that goods shall be — is implied if seller is . . .
Merchantable
Merchant of goods of the kind
Requirements of Merchantability
A) pass without objection in the trade; b) of average quality; c) fit for ordinary purpose; d) even kind, quality, and quantity within all units; e) adequately contained, packaged, labeled; g) conform to promise or affirmations on label
Definition of fitness for particular purpose
If seller has reason to know of particular purpose for which goods are to be used and buyer is relying on seller’s skill or judgement to select goods
True or False: Express warranties are difficult, if not borderline impossible, to disclaim
True
How to exclude warranty of merchantability
Must mention merchantability explicitly and be conspicuous or via as is clause
