Warranties (UCC Art. 2)

Question 1

Express Warranty

Answer 1

Seller is liable for breach of an express warranty & CANNOT be disclaimed by seller.

An express warranty is created when:

1) Seller makes an affirmation of fact, promise, description, or provides a sample,
2) Relating to the goods, AND
3) That becomes part of the basis of the bargain.

• No intent is needed to create an express warranty, or that seller use the words “warranty” or “guarantee”.
• An opinion DOES NOT create an express warranty.

Question 2

Implied Warranty of Merchantability

Answer 2

All goods sold by a merchant (dealing in goods of the kind) must be fit for their ordinary purpose.

− Disclaimer of Warranty→Must do so expressly in a conspicuous writing (i.e. “as is” or “with all faults”).

Question 3

Implied Warranty of Fitness for a Particular Purpose

Answer 3

Applies when:

1. Seller knows (or has reason to know) of the buyer’s particular purpose for which the goods are required; AND
2. Buyer relies on the seller’s skill or judgment to select or furnish suitable goods.

Question 4

Implied Warranty of Fitness for a Particular Purpose May be Disclaimed by:

Answer 4

May be Disclaimed by:

a) a conspicuous writing; OR
b) waiver by the buyer – if defects can be

discovered by a reasonable inspection.

Question 5

Warranty of Title

Answer 5

warrants that title:

1) shall be good/rightful; AND
2) is free from any security interests, liens, or

encumbrances.

*May be expressly disclaimed by specific language or circumstances.

Question 6

Limiting Damages for Breach of Warranty

Answer 6

is ALLOWED, so long as not unconscionable at the time the contract was formed. (2) Exceptions:

1. Limiting a buyer’s remedy for personal injuries for consumer goods is presumed to be unconscionable.
2. The limited remedy fails of its essential purpose.