attachment-9.ashx - BUSINESS LAW TEST #4 MATERIAL...

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BUSINESS LAW TEST #4 MATERIAL >CHAPTER 21: >PRODUCT LIABILITY: goods that have caused injury REMEDIES: (1) WARRANTY: assurance provided in a sales contract (2) NEGLIGENCE: REFERS TO UNREASONABLE CONDUCT BY DEFENDANT (3) STRICT LIABILITY: prohibits defective products weather defendant acted reasonably or not. >EXPRESS WARRANTY: seller creates with words or actions -Whenever a seller CLEARLY INDICATES to a buyer that goods being sold will meet certain standards >3 WAYS TO CREATE EXPRESS WARRANTY (1) Affirmation of fact of promise (2) With description of goods (3) With sample or model -Buyer must demonstrate that what the seller did was on the bash of the bargain >AFFIRMATION OF FACT OR PROMISE -Any affirmation of fact or any promise can create an express warranty -Affirmation of fact is about the nature of quality of of goods, such as “this car will accelerate form 0-60 in 8.3 sec” -Promise ex. “We guarantee this AC will cool your building to 72 regardless of outdoor temp” -Common problems in cases of express warranty is to separate true affirmations of fact form ere sales puffery or seller’s opinion, which creates NO express warranty More likely to be an affirmation of fact if: (1) It is specific and can be proven true or false -It is written -Defects are not obvious -Seller has greater expertise >DESCRIPTION OF GOODS -Any description of goods can create an express warranty >SAMPLE OR MODEL-any can create an express warranty >BASIS OF BARGAIN: the seller’s conduct must have been part of the bargain -To prove an express warranty, buyer must demonstrate that they two parties included the statements or acts in their bargain -Buyer must have relied on seller’s statements -Seller who chooses to make statements about his good will be held to them, unless the seller can convince the courts that he should not be liable >IMPLIED WARRANTIES: those created by the code itself, not b any act or statement of the seller -Code concluded that good should generally meet certain standards of quality, regardless of what the seller did or did not sell. I.e. creates an implied warranty of merchant ability and an implied warranty of fitness >IMPLIED WARRANTY OF MERCHANt ABILITY -Unless extended or modified a 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 kin
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-Merchantable: goods are fit for the ordinary purposes for which they are used -Important principles: (a) Unless extended or modified means that the seller does not have a chance to escape this warranty (b) Merchantability: goods must be fit for normal purchases (c) IMPLIED means that they law itself imposes this liability on the seller -A merchant with respect to goods of that kind means that the seller is someone
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attachment-9.ashx - BUSINESS LAW TEST #4 MATERIAL...

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