(3) Contracts: Warranties in Sales of Goods Contracts

Question 1

Express Warranty

Answer 1

Under Article 2 of the UCC a seller is liable for a breach of an express warranty. An express warranty is created when: (1) seller makes an affirmation of fact, promise, or description, or provides a sample; (2) which relates to the goods; AND (3) becomes part of the basis of the bargain.
*Any disclaimer will be disregarded when the express warranty and the disclaimer cannot be reconciled.
*A negation or limitation is inoperative to the extent that such construction is unreasonable (aka they are ignored if it conflicts with the warranty clause).

Question 2

Can a warranty be made after a contract to sale?

Answer 2

YES, a warranty can be made after the contract for sale.

Question 3

Does the opinion of the seller create an express warranty?

Answer 3

NO, the opinion of the seller doesn’t create an express warranty.

Question 4

Rule & Exception

Implied Warranty of Merchantability

Answer 4

Rule: Under Article 2 of the UCC, an implied warranty of merchantability is implied for all sales of good contracts when the seller is a merchant and therefore the goods must be fit for their ordinary purpose.

Exception: A seller may disclaim the implied warranty of merchantability with conspicuous language such as “as is” or “with all faults” or other language that puts the buyer on notice. Either in writing or orally (orally if using the word merchantability).

Question 5

Define “Conspicuous Writing”

Implied Warranty of Merchantability

Answer 5

a reasonable person would have noticed it.

Question 6

Rule & Exception:

Implied Warranty of Fitness for a Particular Purpose

Answer 6

Under Article 2 of the UCC an implied warranty of fitness for a particular purpose is created when (1) the seller knows or has reason to know of the buyers particular purpose for which the goods are required; AND (2) the buyer relies on the sellers skill of judgement to select or furnish suitable goods.

Exception: An implied warranty for fitness for a particular purpose may be disclaimed or excluded by a conspicuous writing using general language.

Question 7

Does a seller need to be a merchant for the Implied Warranty of Firtness for a Particular Purpose to apply?

Answer 7

NO, the seller does not need to be a merchant.