Warranties
Chapter 23
Express Warranties
• A seller’s or lessor’s oral or written promise
in connection with a sales or lease
agreement, as to the quality, description, or
performance of the goods being sold or
leased.
Express Warranties
• Under the U.C.C., express warranties arise
when a seller indicates to the buyer that the
goods conform to any affirmation or
promise of fact made about the goods.
• “Sales talk” and matters of opinion or
“puffing” are not considered warranties
(includes statement of opinions and value of
goods).
Magnusson-Moss Act
• No written warranty is required, but if there
is it must comply.
• For an express warranty to be a “full
warranty” it must provide unlimited repair
or replacement of any defects at no charge
to the consumer.
• Otherwise, a “limited warranty” is any
warranty which does not meet all of the
requisites for a full warranty.
Implied Warranties
• A warranty imposed by law or by
implication or inference from the nature of
the transaction or the relative bargaining
positions or circumstances of the parties.
Implied Warranties
• Good Title
• No Liens
• Fitness for a Particular Purpose
(These warranties apply to all sellers)
Implied Warranties
• Merchantability (Fit for Normal Use)
• No Infringements
• Prior Dealings or Trade Custom
(These warranties only apply to merchants)
Merchant defined under the UCC as a person
who deals in the kind of good involved in
the contract or a person who himself out as
having a particular skill or knowledge
peculiar to the practices or use of the goods
Disclaimers Of Warranties
• Waiver of Express Warranty
– Any oral or written express warranty may
be disclaimed by a clear and conspicuous
written disclaimer which is called to the
buyer’s attention at the time the contract
is formed.
Disclaimers Of Warranties
• Waiver of Implied Warranty
– Disclaimer must be clear and
conspicuous
– AS IS or WITH ALL FAULTS
– Specifically mention “merchantability” if
for implied warranty for merchantability
*Concept of unconscionability applies
Other Consumer Protection Laws
• Door-to-Door Sales- “cooling off period”
• Mail order sales- must ship orders within
time specified in catalog and notify if they
cannot
-Unsolicited sales attempts by shipping
goods become gifts
Warranties
End of Chapter 23