Warranties

Question 1

What are warranties?

Answer 1

Express or implied risk allocation devices within contract

Question 2

Implied warranty of merchantability

Answer 2

Plaintiff/buyer must prove
1. Buyer bought goods from def
Def was a merchant
Goods failed to be merchantable
- Would not pass without objection
- less than fair quality
- Are not fit for ordinary purposes
Failure to comply w warranty caused damage

Question 3

Fitness for a particular purpose

Answer 3

Buyer must prove
Seller had reason to know the buyer’s purpose
Seller had reason to know that the buyer was relying on the seller’s skills or judgment to furnish suitable goods
Buyer did in fact rely on the seller’s skills or judgment
Failure to comply w warranty caused plaintiff damage

Question 4

Disclaiming IWM

Answer 4

Merchantability
Must mention merchantability
Need not be writing, but if it is, must be conspicuous

Question 5

IWFPP

Answer 5

Must be in writing and conspicuous
Safe harbor: language to exclude all implied warranties of fitness is sufficient if it states, for example, that there are no warranties which extend beyond the description

Question 6

Disclaiming implied disclaimers

Answer 6

Magic words
All implied warranties are excluded by expressions like “as is” or “with all faults”
Patent defects: Before entering into contract the buyer has examined the goods or the sample or model as fully as he desired
Course of dealings/Perf/Trade usage
An implied warranty can also be excluded or modified by a course of dealing or course of performance or usage of trade