business law 13-2

business law 13-2 - Historical and Social Setting: In both...

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Historical and Social Setting: In both sales and lease law, a warranty is an assurance by one party on the existence of a fact which the other party can rely. The Uniform Commercial Code (UCC) has many rules which govern warranties as they appear in sales and lease contracts. A seller can make express warranties when they make representations concerning the quality, condition, description, or performance ability of the goods. Implied warranties arise from the law, based on the circumstances of the sale rather than the seller’s express promise. Implied warranty of merchantability is a warranty that goods being sold or leased are reasonably fit for the general purpose for which they are being sold or leased. It includes that they are properly packaged and labeled, and are of proper quality. The implied warrant of merchantability automatically arises in every sale or lease of goods made by a merchant who deals in goods of the kind that are being sold or leased. A merchantable good is a good that are reasonably fit for the ordinary purposes for which such goods are
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business law 13-2 - Historical and Social Setting: In both...

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