Warranties

Question 1

What are the three types of warranties?

Answer 1

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

Question 2

What is an express warranty?

Answer 2

An express warranty is created by a seller’s guarantee or affirmation. Puffery or an opinion does not create an express warranty - “my cell phone has great battery life”

Question 3

What is an implied warranty?

Answer 3

An implied warranty is created at sale and may be based on merchantability or fitness for a particular purpose

Question 4

What is an implied warranty of merchantability?

Answer 4

guarantees that the product is merchantable and is automatically created when the seller is a merchant

Question 5

When are goods “merchantable”?

Answer 5

When they are fit for the ordinary purposes for which such goods are used

Question 6

What is an implied warranty for fitness of a particular purpose?

Answer 6

guarantees that the goods are fit for the buyer’s particular purpose and is created when the buyer relies on the seller’s skill or judgement

Question 7

What is the function of a disclaimer in relation to a warranty?

Answer 7

A disclaimer may negate or limit the warranty for a sale of goods. Any written disclaimer must be conspicuous

Question 8

How can an express warranty be waived?

Answer 8

Through an explicit disclaimer using clear and reasonable words

Question 9

How can an implied warranty of merchantability be waived?

Answer 9

explicitly - by the seller’s explicit words and must include the term “merchantability”

implicitly - by the language of the sale or by the buyer’s inspection of the goods i.e. selling “as is”

Question 10

How can an implied warranty of fitness for a particular purpose be waived?

Answer 10

explicitly - Through the seller’s written language

implicitly - by the language of the sale or by the buyer’s inspection of the goods i.e. selling “as is”