Express and Implied Warranties
1. A warranty is a promise regarding the capabilities or performance of a product. Warranties can
arise expressly or by implication.
2. Express warranties
a. Express warranties are created by the language or actions of the s
i. The warranty may be disclaimed by using the term merchantable or language like as is or
with all faults.
ii. Merchantable goods are fit for normal use. They are of fair, average quality, reasonably
iii. Recall a mercha
Manufacturers, sellers and others have a duty to act as reasonable persons in bringing
products to market.
1. Negligence can occur in any facet of production and distribution but typically arises in
a. Design a product should be designed to be
Unique Circumstances of the Plaintiff
a. Consequential losses result from unique circumstances of plaintiff. They can include
lost profits. These must be foreseeable.
b. Incidental damages cover items like brokerage fees paid to locate replacement goods,
Classifications of Law
A. Criminal v. Civil
1. Criminal law involves conduct so threatening that society as whole responds.
2. Prosecuted by government.
3. Civil law regulates and enforces rights and duties between individuals or
between individual and go
Governing the Sale of Goods:
Ex. A contract for rugs in house to be cleaned.
If predominant purpose of contract is to supply services, common law rules apply.
There are Special rules apply to merchants. Merchants deal in goods of the kind, have
Additional Terms in Common Law:
1. Under common law, the mirror image rule applies. Under this rule, an acceptance that contains
additional or different terms is really a counteroffer.
2. The UCC uses the Battle of the Forms rule. This recognizes that the
Requirement for a writing.
1. Under common law, certain agreements must be in writing to be enforceable. This rule is
known as the Statute of Frauds.
2. Under the UCC, a writing is required for any contract for the sale of goods worth $500 or
A. Variations in state law meant interstate commerce could be complex.
B. In the 1940s, two groups of legal scholars began meetings to develop a common set of
laws to govern commercial transactions.
- Eventually these meetings led to release of the
Modifications Made to Law
a. Under common law, new consideration is required in order to modify a contract.
Example caterer agrees to supply chicken for event. Later agreement to supply
steak instead must be supported by consideration, such as payment of