lecture notes ch. 23

Lecture notes ch 23 - CHAPTER 23 Title:BusLawSeal.eps Creator:Adobe Illustrator(R)13.0 Preview:ThisEPS picturewasnotsaved withapreview(TIFFor

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C HAPTER 23 Warranties and Product Liability C HAPTER O UTLINE I. Types of Warranties If parties have not agreed to limit or modify remedies available to a buyer on a seller’s breach of war- ranty, a buyer can sue to recover damages.  Under some circumstances, a breach can allow the buyer to  rescind an agreement. A. W ARRANTIES OF T ITLE Provisions similar to the following apply to leases [see UCC 2A–211(1), 2A–214(4), 2A–516(3)(b),  2A–516(4)(b)]. 1.Good Title Generally, sellers warrant that they have good title to the goods they sell and that the transfer  of title is rightful [UCC 2–312(1)(a)]. 2.No Liens Sellers warrant that goods will be delivered free of encumbrances of which a buyer is unaware  at the time of contracting [UCC 2–312(1)(b)]. 3.No Infringements A merchant warrants that goods are free of any third person’s patent, trademark, or copyright  claim;   this   warranty   does   not   apply   to   buyers   who   furnish   specifications   for   specially  manufactured goods [UCC 2–312(3), 2–607(6)]. 127
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128           INSTRUCTOR’S MANUAL TO ACCOMPANY  BUSINESS LAW , ELEVENTH EDITION 4.Disclaimer of Title Warranty These warranties can be disclaimed or modified by specific language [UCC 2–312(2)]. B. E XPRESS W ARRANTIES Express warranties arise if a seller indicates goods will conform to— An affirmation or promise of fact. A description. A sample or model [UCC 2–313, 2A–210]. ✩★✩ A NSWER TO V IDEO Q UESTION L TR . A ✩★✩ Discuss whether the grocery store’s label of a “Party Platter for Twenty” creates an express warranty under the UCC that the platter will actually serve twenty people. Express warranties can be found in a seller’s (or lessor’s) advertisement, brochure, or  promotional material.  They can also be made orally or included in a contract provision.  The seller does  not have to use words such as  warrant  or  guarantee .  Under the UCC, a seller creates an express  warranty by making representations concerning the quality, condition, description, or performance  potential of the goods that become part of the basis of the bargain [UCC 2–313, 2A–210].  Here, the  seller (Oscar) described the goods on the label of the product as a “Party Platter for Twenty.”  The buyer  (Melnick) indicated in the video that he relied on this statement when purchasing the platter for his  party (thus, it was part of the basis of the bargain).   This constitutes an express warranty that the  platter should satisfy the food needs of a party for twenty people. As Oscar correctly explained to  Melnick,   however,   the   terms   of   the   warranty   are   that   the   platter   will   serve   twenty   normal, 
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This note was uploaded on 09/05/2011 for the course LAW 3000 taught by Professor Ms.zarac.sette during the Spring '11 term at Hawaii Pacific.

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Lecture notes ch 23 - CHAPTER 23 Title:BusLawSeal.eps Creator:Adobe Illustrator(R)13.0 Preview:ThisEPS picturewasnotsaved withapreview(TIFFor

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