Warranties and Product Liability (Warranty of Title UCC 2-312 (Warranty…
Warranties and Product Liability
Warranty of Title
Automatically arise in most commercial sales transactions
No infringements: (no intellectual property rights - patents, trademarks etc.)
Warranty title Disclaimer
Generally be disclaimed only w/
"specific language" (e.g. "I'll not give you the title").
may disclaim if they are obvious to clearly indicate disclaimer of title, such as a sheriff's sale.
Circumstances: (I don't know what I own, so......)
What might be other example of "specific language"
No liens: (legal tools we can use to show you owe money to someone) (will get details later)
Statements that create express Warranty:
Oral or Written - NO Need word "warrant" or "guarantee"
Any affirmation or promise
Any sample or model
Basis of Bargain:
To create an express Warranty, the affirmation of fact must become the "basis of the bargain"
The buyer must rely on warrant when they enters into K.
Statements of Opinion and Value
Generally excludes "puffing"
e.g. "best car in town"
Implied Warranty of Merchantability
Automatically arises f/ merchants
Goods are of avg., fair, or medium-grade
fit for ordinary use of that good
adequately packaged and labeled
conform to promises on label
have a consistent quality and quantity among the commercial units
Implied Warranty of Fitness for a Particular Purpose
arise by any seller who:
knows the particular purpose for which the goods are being bought; and
knows the buyer is relying on seller's skill and judgment to select suitable goods.
Implied Warranty Arising from the Course of Dealing or Trade Usage
arise when both parties to a K have knowledge of a well-recognized trade custom. Court infers that both meant that......
Magnuson-Moss Warranty Act
FTC (federal trade commission) enforces; attorney general or consumer can bring action
Modified UCC for
Only applied when
are made by
(including a service K)
If goods more than $10 label "full" or "limited."
If goods more than $15 Seller must make additional disclosures (Info about warrantor)
Full Warranty: Seller MUST
Limited Warranty MUST be conspicuous
if limit time of only, MUST say, e.g. "full twelve-month warranty"
UCC implied Warranties:
IWoM and IWoFPP cannot be disclaimed if there is an express warranty, but you can limit the time if it matches the time limit of the express warranty
When the warranties are consistent: they are construed as cumulative
Conflicting Warranties: express warranties displace implied warranties except implied warranties of fitness for a particular purpose
Warranty Disclaimers and Limitations on L
If they were never made (evidential matter)
If a clear written disclaimer in K w/ specific, unambiguous language and called to B's attention
(BOLD CAPS UNDERLINE)
Disclaimer of the implied warranty of Merchantability
Disclaimer of the implied warranty of fitness
Buyer's or Lessee's examination or refusal to inspect
Warranty disclaimers and unconscionability
Statutes of Limitations
Action for breach of warranty
Begins to toll at tender
B must notify S within a reasonable time
B must sue within 4 years after cause of action accrues. (can be lessened, but not extended)