Warranty arises that goods will conform to the sample or model o Basis of the

Warranty arises that goods will conform to the sample

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Warranty arises that goods will conform to the sample or model o “Basis of the bargain” – If the buyer requests a promise from the seller that the moods meet certain standards AFTER the sale has been made, the promise becomes “part of the bases of the bargain” o Disclaimers: really hard · Implied warranties – created through the mere act of selling and is imposed on the seller by law o Purpose is to protect buyers who suffer economic and commercial losses when products fail to serve their needs o Specific representations about a product haven’t been made o Consumer has been guided by the belief that his or her purchase is suitable for their needs o Implied warranty of merchantability – goods are merchantable if the seller is a merchant with respect to the type of goods being sold § Merchantable = goods are fit for the ordinary purpose for which such goods are used § Doesn’t guarantee goods will be of the highest quality, just suitable for ordinary use § Average or medium grade § Many courts base their decision on the “reasonable expectation” of the consumer o Implied warranty of fitness for a particular purpose – liability is greater A "Warranty of Merchantability" and a "Warranty of Fitness for a Particular Purpose" are both implied warranties (unspoken, unwritten promises). The Warranty of Merchantability is a promise that the vehicle will do what it is supposed to do. This covers the basic functions of the car, such as running. A breach of this warranty exists only if the dealer sold the vehicle to you with an existing condition. The Warranty of Fitness for a Particular Purpose would apply if the dealer sold a vehicle to you promising that it would serve a certain purpose, such as hauling a trailer or a boat. The vehicle must be able to serve that purpose or the deal may have broken this warranty. § This warranty arises if these conditions exist: · The seller had “reason to know” of the particular purpose for which the goods were purchased · The seller also had reason to know that the buyer was relying on the seller’s skill or judgement for a to furnish suitable goods o Disclaimers:
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§ Disclaimer by language § Disclaimer by examination § Disclaimer by custom or usage § Limitation on damages · Warranties of title o The title conveyed shall be good and its transfer rightful o Goods shall be delivered free from any security interest or other lien or encumbrance of which the buyer at the time of contracting has no knowledge o Goods don’t infringe on the patents, copyrights, or trademarks of a third party · Conflicting and overlapping warranties – buyer doesn’t have to choose among them; can take advantage of all or any · Defenses: o Privity defense – the direct relationship between buyer and seller § Warranties don’t run with the goods § Chain of sales § Today: all parties in chain of distribution are now usually responsible to the last buyer for failure of the goods to live up to the standards of warranties, especially for personal injuries § Innocent bystanders – now bystander’s can also get recovery if they are affected o
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