Warranty Flashcards
2-314. Implied Warranty of Merchantability
1) warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind
2) Goods to be merchantable must be at least such as
a) pass without objection in the trade
b) fungible goods - fair average quality
c) fit for the ordinary purpose
d) run of even kind quality and quantity within each unit and amount all units involved
e) adequately contained, packaged, and labeled as the agreement may require
f) conform to the promise or affirmations of fact made on the container or label
2-315. Implied Warranty Fitness for Particular Pupose
1) Seller knows of particular purpose
2) Buyer relying on seller skill or judgement to select or furnish suitable goods
2-102
applies to the transaction in goods
2-105
Goods: movable at the time of identification other than money
includes crops, unborn animial babies, goods severed from reality
2-315
Implied Warranty of Fitness
Implied Warranty of Fitness (2-315)
1) seller has reason to know a particular pupose
2) which the goods are required
3) buyer relying on the seller skill or judgment
Implied Warranty of Fitness Comments
Cmt. 1: Buyer must actually be relying on seller, but does not have to “bring home” to seller the particular purpose
Cmt 2: Particular purpose = specific use by buyer peculiar to nature of business
Cmt 6: Must be excluded by a conspicuous writing
2-314
Implied Warrnty of Merchantibility
Implied Warranty of Merchantability (2-314)
- Warrnty goods are merchantable if seller is merchant with repect to the goods of that kind
- Mechantable goods must
a. pass without objection in trade under K description &
b. if fungible, be fair average quality &
c. be fit for ordinary purpose &
d. run of even kind, quality, and quantity &
E. adequately contained, packages, label as agreement may require &
f. Conform to promsis.affirmations on lable - implied warranties can arise from course of dealing and trade usage
Imp. War. of Merchant. Comments
Cmt 2: Look at meanin gof terms in K in the trade
Cmt 3: isolated slaes do not cary IWM buy sellers have good faith olibation to disclose know defects
Ctm 9: Keep in mind trade usage may allow substantial variation in goods
Cmt 12: course of dealing and trade usage IWM can be excluded (see 2-316)
Cmt 13: Breach of warrnaty must be the proximate cause of the loss sustained
2-313
Express Warranties
Express Warranties 2-313
- Created by:
a. affirmation of fact or promise
b. description of goods OR
c. sample or model
That are part of basis of the bargain - No formal words needed, but affirmation of value or seller’s opion not a warranty
Express Warranties Comments
cmt 1: didckered terms are nearly impoosible to disclaim
cmt 3: need clear proof if an affirmation of fact has been taken out of the agreement
cmt 4: descriptions given great weight (2-316)
cmt5: tech. specs, prior dealing, trade usage all can be used as descriptions
cmt 7: langauge used AFTER closing can become a modification
Cmt 8: Remedieis also exiti in fraud and misrepreation for false statements of value
Notice Requirement
i. Where tender has been accepted (a) buyer must within a reasonable time after discovers or should have discovered any breach notify the seller of the breach or be barred from remedy
Reasonable time for merchant vs. regular buyer under notice requirement
merchant shorter time than regualar buyer
