Warranties and Misc Flashcards
How are express warranties created?
Through affirmations of fact, promises, descriptions, or samples/models that become part of the basis of the bargain.
What does the warranty of title guarantee?
Can the warranty of title be disclaimed?
A: That the goods are free from security interests, liens, and other encumbrance, Yes, by specific language indicating the sale is limited to the seller’s rights.
What is the implied warranty of merchantability?
Goods must be fit for ordinary purposes, conform to the label, and be adequately packaged.
When does the implied warranty of fitness for a particular purpose arise?
When the seller knows the buyer’s specific purpose for the goods and the buyer relies on the seller’s judgment to select suitable goods.
How can the implied warranty of merchantability be disclaimed?
By mentioning “merchantability” in the disclaimer, which must be conspicuous if written.
Can warranties be excluded by phrases like “as is”?
Yes, unless the circumstances indicate otherwise, these phrases disclaim all implied warranties.
Who can claim breach of warranty as a third party?
Only the buyer’s immediate family and household members or guests.
What is the statute of limitations for breach of a sales contract or warranty?
Under the UCC Four years from when the cause of action accrues, which may be reduced to not less than one year by agreement.
Can a buyer with voidable title pass good title?
Yes, to a good-faith purchaser for value. (3rd party purchaser)
What is the rule for entrusting goods to a merchant?
Example, entrusting the fur coat to a consignment store
Entrusting goods to a merchant dealing in goods of the kind allows the merchant to transfer rights to a buyer in the ordinary course of business.
