Chapt. 25 quizlet PDF

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Chap. 25: Warranties Study online at quizlet.com/_9k7pb7 1.

Express Warranties

Any description of a good's physical nature or its use, either in general or specific circumstances, that becomes part of a contract:

5.

Implied Warranty of Title

6.

Implied Warranty of Trade Usage

An assurance created through well-accepted course of dealing or trade usage.

7.

MagnusonMoss Warranty Act

Requires that if seller decides to issue written warranty for consumer good, seller must specify whether warranty is "full" or "limited."

• Salesperson's oral promise concerning good can give rise to express warranty. • Buyer's reliance on seller's representations generally means those representations become express warranties and part of contract. 2.

3.

Express Warranty vs. Implied Warranty

Express Warranty: Explicitly stated in contract

Implied Warranty of Fitness for a Particular Purpose

Warranty that arises when seller knows purpose for which buyer is purchasing goods and buyer relies on seller's judgment to recommend/select certain product.

Applies to any consumer good sold for more than $10. 8.

Implied Warranty: Automatically (by operation of law) applied to contract

Implied Warranty of Merchantability

Implied warranty of merchantability: Warranty based on reasonable expectation of product performance.

Sales Puffing

9.

10.

Good purchased must:

Third-party Beneficiary of warranties

Seller's warranties may extend to:

Warranty Disclaimers and Waivers

Methods of Disclaiming/Waiving Warranties:

What is a Warranty?

Assurance by one party that the other party can rely on its representation of fact

• Pass without objection in trade/market for similar goods. • Be of fair quality (within the product's description). • Be fit for ordinary use. • Have even kind, quality, and quantity. Be adequately contained, packaged, and labeled. • Conform to promises made on package/product label.

Salesperson's mere statement of opinion, rather than representation of facts. Puffing generally does not create express warranty liability

• Seller does not have to be merchant to make this warranty. 4.

• Seller has good and valid title to goods. • Seller has right to transfer title free and clear of liens, judgments, or infringements of intellectual property rights of which buyer has no knowledge.

• May be found in advertisements or brochures. • May be material term of contract.

It assumes:

11.

• Buyer's household members and guests. • Any reasonable and foreseeable user. • Anyone injured by the good.

Seller does not make express warranties Seller disclaims implied warranties in clear, unambiguous, conspicuous language Buyer fails/refuses to examine goods Buyer fails to file suit within applicable statute of limitations period...