(Sales) Implied Warranty of Fitness for a Particular Purpose Flashcards
Whether this warranty will be implied in a particular case is a question of
fact
Does the seller have to be a merchant for this warranty to apply?
no
The implied warranty of fitness for a particular purpose may arise when
the buyer will use the goods for a specific or particular purpose.
In contrast, there may be an implied warranty of merchantability (which was discussed in the prior class)
when the goods will be used for their ordinary purpose.
3 elements for the implied warranty of fitness for a particular purpose to arise:
Element #1: Seller has reason to know of the buyer’s particular purpose;
Element #2: Seller has reason to know that the buyer is relying on the seller’s know; skill and judgment to select the goods to buy; and
Element #3: The buyer actually relied on the seller in choosing the goods.
The policy for implying warranties is to
fulfill customer expectations
the language to disclaim implied warranties generally must be
conspicuous. Language generally is conspicuous if it can reasonably be expected to draw the customer’s attention.
Some ways to make language conspicuous:
(i) in all caps; (ii) contrasting type-set or font; (ii) set off with symbols that catch the customer’s attending [Prof Note: and I would add having the customer initial or sign the clause.]
Whether language is conspicuous is a question for
judge
UCC?
2-315
Does the seller need to be a merchant
No
Will this warranty be implied if the buyer is using the item for its ordinary purpose?
NO (ysco Oilfield v. Hutchinson-Hayes])
