BBG 231 Lecture Notes - Lecture 10: Tunxis Community College, Cherry Pie, Implied Warranty
6 Jan 2021
School
Department
Course
Professor
Tunxis Community College
Business Law
Notes
Warranties can be expressed (written down) or implied. Regardless they are promises that the
seller makes about the goods being sold
Title Warranties – seller is guaranteeing 3 things in regard to title or ownership
• they have good title to give
• there are no leans on those goods (ex. Not responsible for previous loans in buying a car)
• ONLY MERCHANT GAURANTEE THIS: there are no infringements on that title
Express Warranty – openly stated to the buyer from the seller, usually about quality of the goods.
Center around 3 main areas
• Affirmations or promises (claims something the goods sold can do. Ex this watch is
waterproof)
• Goods conform to some specific description in the contract or in an advertisement
• Goods conform to or are the same as any model that is shown to the customer
The Basis of the Bargain – the create an express warranty, if a reasonable buyer would view the
representations as made as central of the agreement, that is enough to have an express warranty
Puffery – NOT considered basis of warranty. Opinions in contracts (“this is the best radio ever”,
ends up being fifth.)
Implied Warranties – the law derives by inference from the nature of the transaction or the
relative s situations or circumstances of the parties only applies to
merchants
• Merchantability – goods that are being sold are fit for the ordinary purposes in which the
goods and types of goods are bought and sold (if you buy a basketball it must bounce and
fits through a hoop)
•
However those expectations should include some impurities (cherry pit in cherry pie, bones in a
fish)
• If product is not Merchantability, then the buyer can recover for all damages that comes
from that defect (illness, medical cost)
Implied warranty of merchantability.
1.Seller is merchant
2.Seller has reason to know of particular purchase
3.THE BUYER HAS TO PROVE THAT THEY RELIED ON THE SELLERS KNOWLEDGE
AND JUDGEMENT TO SELECT THE RIGHT PRODUCT FOR THEIR PURPOSE
If a company says this item is sold as is, or with all faults, then this is no guarantee on product
