Warranties

Question 1

What is a warranty?

Answer 1

A warranty is an express or implied promise that something in furtherance of hte contract is guaranteed by one of the contracting parties.

Question 2

What does a warranty do?

Answer 2

At its most basic level, a warranty is, in essence, an allocation of risk. That is to say, a party who makes a warranty accepts the risk of the untruth of the subject matter of that warranty.

Question 3

Breach of warranty is similar to a . . .

Answer 3

strict liability offense, with no proof of bad intentions, fraud, or reliance are required for liability.

Question 4

In your own words, what is an express warranty?

Answer 4

An express warranty is a warranty created by the seller’s overt actions or words.

Question 5

What section of the UCC governs the creation of express warranties?

Answer 5

2-313

Question 6

What is warranty of title?

Answer 6

Except as otherwise agreed, seller warrants that title shall be good and its transfer rightful and that the goods won’t have any competing security interests or liens encumbering them.

Question 7

what section governs warranty of title?

Answer 7

2-312

Question 8

What is the summary of 2-313(1) for express warranties?

Answer 8

Any promise, affirmation, description, or sample that is part of the basis of the bargain is an express warranty, unless it is merely the seller’s opinion or commendation of the value of the goods.

Question 9

What does using a sample or model do for express warranties?

Answer 9

The use of a sample or model will create a warranty that the goods the buyer is to receive will be like the proffered sample or model.

Question 10

Can an express warranty be made after the contract is entered?

Answer 10

Yes, an express warranty can be made subsequent to the contract for sale. Although this would modify the original agreement, under the UCC, no consideration is needed to make a modification enforceable.

Question 11

What is the short version for warranty of title?

Answer 11

In every contract for sale of goods, the seller warrants that he/she has good title to the goods.

Question 12

What is the short version of warranty of merchantability?

Answer 12

If a merchant, seller impliedly warrants that goods are sold merchantable, i.e., that they meet basic standards, inclduing suitability for their ordinary purpose.

Question 13

What section governs the implied warranty of merchantability?

Answer 13

2-314

Question 14

What is the short version of warranty of fitness for particular purpose?

Answer 14

Seller who has reason to know that (1) buyer intends to use the goods for a particular purpose and (2) that buyer is relying on seller’s skills or judgment in selection of suitable goods impliedly warrants that the goods are fit for that particular purpose.

Question 15

What section governs implied warranty of fitness for particular purpose?

Answer 15

2-315

Question 16

What section governs disclaimer of warranties?

Answer 16

2-316

Question 17

How are express warranties disclaimed?

Answer 17

Through words or conduct as long as it’s not unreasonable. Disclaimer clauses that grossly conflict with express warranties (e.g., all warranties, express or implied, are disclaimed”) are ignored.

Question 18

What are three ways in which both implied warranties can be disclaimed?

Answer 18

1. with language like “as is” and “with all faults” that puts buyer on notice of disclaimer
2. when buyer has examined or refuses to examine the goods
3. by course of dealing or course of performance or usage of trade

Question 19

Specifically, how is the implied warranty of merchantability disclaimed?

Answer 19

Must mention “merchantability”. Does not have to be in writing, but if it is in writing, has to be conspicuous.

Question 20

Specifically, how is the implied warranty of fitness for purpose disclaimed?

Answer 20

Must be in a conspicuous writing.

Question 21

When is a writing conspicious? What rule?

Answer 21

A writing is conspicuous if presented in a way that a reasonable person would have received notice of it (2-201(b)(10))