Business Law Chapter 25

Seller's promises regarding certain characteristics of goods sold (assurances by one party that the other party can relly on its representations of fact)

Explicitly stated in the contract

Automatically (by operation of law) applied to contract

1. has good and valid title of goods2. has the right to transfer title free and clear of any liens, judgments or infringements of intellectual property rights of which the buyer does not have knowledge

-Description of good's physical nature or its use-May be found in advertisements or brochures-may be material term of contract-Salesperson's oral promise concerning good -Buyer's reliance on seller's representations

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

1. Implied Warranty of Merchantability2. Implied Warranty of Fitness for Particular Purpose3. Implied Warranty of Trade Usage

Definition: warranty based on reasonable expectation of product performance(must have purchased or leased goods from a merchant)
Good purchase must:1. Pass without objection in trade/market for similar goods2. Be of fair quality (with product's description)3. Be fit for ordinary use4. Have even kind, quality and quantity5. Be adequately packaged and labeled6. Conform to promises made on package/label

Definition: Warranty that arises when seller knows the purpose for which the buyer is purchasing the good, and buyer relies on sellers judgment to recommend/select certain product
Seller does NOT have to be a merchant to make this warranty

Definition: warranty that arises as a result of generally accepted trade practices

Sellers warranties may extend to:1. Buyer's household members and guests2. Any reasonable, foreseeable user3. Anyone injured by good.
(Third Party Beneficiaries of Warranties)

Methods of Disclaiming-seller does not make express warranties-seller disclaims implied warranties in clear, unambiguous, conspicuous language
Buyer may wave warrnaties if:-buyer fails/refuses to examine goods-buyer fails to file suit within applicable statute of limitaitons period (4 years)

Provides that if seller decides to issue written warranty for consumer good, seller must specify whether warranty is full or limited (for any good >$10) if silent, it is presumed to be a full warranty
(for any good>$15) warranty must disclose number of items of information--names and addresses of the warrantors, any limitations on the warranty and the proedures required to activate warranty remedies in readable easil-understood langauge.