Warranties (UCC Art. 2)

Question 1

warranty of title

Answer 1

warrants that title:
1. shall be good/rightful, AND
is free from any security interests, liens, or encumberances

NOTE: may be disclaimed by specific language or circumstances

Question 2

express warranty

Answer 2

seller is liable for breach of an express warranty
- CANNOT be disclaimed by seller

Question 3

creation of express warranty

Answer 3

an express warranty is created when:
1. seller makes an affirmation of fact, proimse, description, or provides a sample,
2. relating to those goods, AND
3. that becomes part of the basis of the bargain

NOTE: NO intent is needed to create an express warranty or that seller use the words “warranty” or “guarantee”
- an opinon does NOT create an express warranty

Question 4

implied warranty of merchantability

Answer 4

all goods sold by a MERCHANT (dealing in goods of the kind) must be fit for their ordinary purpose
- merchant seller will be liable for breach

Question 5

implied warranty of fitness for particular purpose

Answer 5

applies when:
1. seller knows (or has reason to know) of 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 6

disclaimer for implied warranty

Answer 6

must do so by:
1. a conspicuous writing,
2. “as is” or “with all faults” type language,
3. waiver by the buyer - if defects can be discovered by a reasoanble inspection, OR
4. course of dealing, course of performance, or usage of trade

NOTE: applies to implied warranty of merchantability & fitness for a particular purpose

Question 7

limiting damages for breach of warranty

Answer 7

is ALLOWED so long as NOT unconscionable @ time the K was formed
- Exception 1: limiting buyer’s remedy for personal injuries for consumer goods is presumed to be unconscionable
- Exception 2: the limited remedy fails of its essential purpose