PHI 1120 Lecture Notes - Lecture 13: Uniform Commercial Code, Caveat Emptor, Implied Warranty
7 Nov 2016
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1120, 10/20/16 dr. durham caveat emptor/let the buyer beware common law principle according to which sellers are not required to inform prospective buyers about the properties of the goods they sell. American legal system development of concept of an implied warranty (p. 149) All factual statements about the goods being sold are warranties. Sales are not valid or legally enforceable if the seller makes false statements about the goods s/he is selling. Any transaction carries with it the two implied warranties: 1) that the seller owns the goods s/he is selling and 2) the goods are merchantable (suitable for the purposes for which they are sold). (pp. Many local ordinances require that real estate sellers inform buyers about all known serious defects in property they sell. (p. 149) The federal trade commission prohibits deceptive sales practices that are likely to materially mislead reasonable consumers. (ftc statement 1983) (p. 149) 150-151) prima facie duty one"s actual duty, everything else being equal.
