3 types of Implied Warranty Warranty of merchantability Warranty of fitness for

3 types of implied warranty warranty of

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3 types of Implied Warranty Warranty of merchantability Warranty of fitness for a particular purpose Warranty of title
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Warranty of Merchantability An unwritten promise that the item sold is at least of average quality for that type of item Example: A radio must play, a saw must cut, a freezer must keep food frozen This warranty is always implied unless the seller expressly disclaims it Be especially wary of goods marked w/disclaimers such as “as is” or “final sale” Using a disclaimer, a seller can legally avoid responsibility for the quality of the product
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Warranty of fitness for a particular purpose Exists when a consumer tells a seller before buying an item what the specific purpose of the item will be A salesperson who sells an item w/this knowledge has created an implied warranty that the product will work for the stated purpose Example: - Suppose you tell a salesperson you want a waterproof watch, which you then buy—an implied warranty of fitness has been created—if you go swimming & water leaks into the watch, the warranty has been breached
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Warranty of title A seller's promise that he/she owns the item being offered for sale & is not selling stolen property Seller’s must own the goods in order to transfer title or ownership to the buyer If a person sells stolen goods, the warranty of title has been broken
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Consumers who are harmed by products may be able to sue for damages because the manufacturer or seller has breached the warranty Consumers may also be able to recover damages based either on the negligence of the manufacturer or seller or on a legal theory called strict liability
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If you fully examine goods—or have the opportunity to do so— before making a purchase, the implied warranty may not apply to those defects you should have discovered during the inspection Therefore, carefully inspect any goods you buy for defects Be especially carefully with used cars Courts usually do not interpret the implied warranty of merchantability to provide much protection in used-car sales Consumers should shop carefully for an express warranty when buying a used car It is wise to have a mechanic you trust examine the car before you purchase it Carefully read all instructions that come w/a product If you fail to use the product properly, or if you use it for an improper purpose, you may invalidate the warranty
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Background—Consumer Protection Most people think they have no remedy for a defective product unless an express warranty has been provided The implied warranty of merchantability provides a legal remedy & may actually extend beyond the duration of any express warranty
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The implied warranty of merchantability, as codified in the Uniform Commercial Code & adopted in some form by the legislatures in all 50 states, terminates the common-law idea of caveat emptor, or “let the buyer beware” In fact, in response to the growth of government regulation, some critics of consumer protection describe the contemporary marketplace with the somewhat tongue-in-cheek paraphrase “let the seller beware”
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Problem 24.1 – Page 285
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