Warranties

Question 1

3 Types of Warranty

Answer 1

1. Express Warranty
2. Implied Warranty of Merchantability
3. Implied Warranty of Fitness for a Particular Purpose

Question 2

Definition of Warranties

Answer 2

Guarantee of quality of a product or service for a specified time period.

1. Guarantee of quality
2. Of a product (goods) or service
3. For a specified time period

Question 3

Elements of Express Warranty

Answer 3

1. Oral or written statement(s)
2. Given by a manufacturer or seller
3. Concerning the quality or nature of goods
4. Statements create a warranty that the goods will conform to the statements
5. If the goods are defective, it is a breach of contract

Question 4

Characteristics of Express Warranty

Answer 4

Methods/Ways Express Warranties Occur

1. Make specific promises about the goods/services
2. model or display of the goods/services
3. description of the goods/services
4. affirmation of facts about the goods/services

Question 5

Puffery Exception for Express Warranties

Answer 5

• “sales talk”
• Opinions (are not operative as causes of action)
• Commendations (affirmative recommendation)
• Example: “Best in class”

Question 6

Reliance under Express Warranties

Answer 6

• Reliance is not required in order to make a breach of warranty claim
• Party that allegedly gave the warranty can use lack of reliance as an affirmative defense
• (historically important, today it isn’t)

Question 7

Implied Warranty of Merchantability Elements

Answer 7

1. applies when a merchant (in comparison to express warranty where it could be a consumer selling a used product)
2. who regularly sells goods of a particular kind
3. impliedly warrants to a buyer:
   – a. Goods are of good quality
   – b. Goods are fit for ordinary purposes
   – c. Goods will pass without objection in the trade
4. If the goods are defective, it is a breach of contract

Question 8

Characteristics of Implied Warranty of Merchantability

Answer 8

• Fit for ordinary purpose
• Pass without objection in the trade

Question 9

Implied Warranty of Fitness for a Particular Purpose ELEMENTS

Answer 9

1. Created when a Buyer relies on Seller’s skill or judgment
2. To select suitable goods
3. Seller knows or has reason to know of Buyer’s reliance on Seller
4. Buyer made known to Seller the particular purpose of the goods
5. If the goods are not fit for the particular purpose, it is a breach of contract

Question 10

Sophisticated Buyer Exceptions

Answer 10

If the buyer is able to recognize mistake due to their sophistication, they have a duty to notify the other party.