chapter 23 - Chapter 23 1. Overview a. A warranty is an...

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Chapter 23 1. Overview a. A warranty is an assurance of fact upon which a party may rely i. Warranty of title ii. Express warranty iii. Implied warranty of merchantability iv. Implied warranty of fitness for a particular purpose v. Implied warranty arising from the course of dealing or trade usage 2. Warranties of title a. Automatically arise in most commercial sales transactions b. UCC 312 creates 3 warranties i. Good titles ii. No liens iii. No infringements 3. Warranty title disclaimer a. Title warranty can generally be disclaimed only with specific language in contract b. Circumstances may be obvious to clearly indicate disclaimer of title, such as a sheriff’s sale 4. Express warranties a. Can be oral or written – do not have to use the words “warrant” or guarantee” i. Any affirmation or promise ii. Any description iii. Any same or model b. To create an express warranty, the affirmation of fact must be become the “basis of the bargain” c. And buyer must rely on warranty when he enters into contract 5. Statements of opinion and value
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a. Generally excludes “puffing” – best can in town, not an express warranty b. However, expert opinion is not puffery 6. Implied warranties a. Inferred at law based on the circumstances or nature of the transaction. Under the UCC, merchants warrant the goods they sell are “merchantable” or fit for ordinary purpose for which such goods are sold 7. Implied warranty of merchantability a. Automatically arises from merchants b. Goods are of average, fair, or medium – grade c. Adequately packaged and labeled d. Conform to promises on label e. Have a consistent quality and quantity among the commercial units f. It doesn’t matter if the seller knew the defect existed
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This note was uploaded on 12/02/2010 for the course GBA 362 taught by Professor Roberson during the Spring '10 term at Sam Houston State University.

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chapter 23 - Chapter 23 1. Overview a. A warranty is an...

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