Warranties (Sales)

Question 1

Damages for Breach of Warranty of Title

Answer 1

Generally recover what you would have if there had been no breach.

Question 2

Exception to the general rule

Answer 2

If there are “exceptional circumstances,” recover the value at the time of dispossession. This could be a benefit if the value is going up (as in the art heist case), or a disadvantage (as in the car case).

Question 3

some statements a seller might make that would not be an express warranty

Answer 3

• Opinion;
• Puffing ;
• Statements of value; and
• Future prediction.

Question 4

Whether a particular statement is a warranty or a statement of opinion is a question of

Answer 4

fact

Question 5

Does the seller have to be a merchant in order to make an express warranty

Answer 5

NO

Question 6

Whether goods satisfy the implied warranty of merchantability is an amorphous
concept. It always depends on the context. It can depend on the

Answer 6

• Product;
• The standards of the trade;
• The time and place, and
• The price.

Question 7

UCC 2-314 lists 6 criteria that the goods must satisfy to be merchantable:

Answer 7

• Test #1: Pass without objection in the trade;
• Test #2: Be fit for the ordinary purpose for which such goods are used;
• Test #3: Run within the variations permitted by the agreement (or usage of trade);
• Test #4: Are adequately contained, packaged, and labelled’
• Test #5” Conform to the promises or affirmations of fact made on the product’s container or label, if there are any; and
• Test #6: In the case of fungible goods (such as bananas or applies), the goods are of fair average quality within the description (taking into account the price).