Business Law - Chapter 12

  1. What are the different types of warranties of title offered by the UCC
    • Good Title: Seller warrants that he/she has the right to pass good and rightful title to the goods
    • No Liens: A seller warrants that the goods sold are free of any liens, and a lessor warrants that the lessee will not be disturbed in her or his possession of the goods by the claims of a third party
    • No infringements: A merchant-seller warrants that the goods are free of claims that a patent, trademark, or copyright has been infringed
  2. When does express warranty arise under the UCC
    • seller or lessor indicates as part of the basis of the bargain any of the following:
    • affirmation or promise of fact
    • description of the goods
    • sample showing as  conforming to the contract goods
  3. Express written warranties covering consumer goods priced at more than $25 must be labeled as what?
    • Full warranty: free repair or replacement of defective parts
    • Limited Warranty: when less than full warranty is being offered
  4. What is implied warranty of merchantability
    when a seller or lessor is a merchant who deals in goods of the kind sold or leased, the seller or lessor warrants that the goods sold or leased are properly packaged and labeled, are of proper quality, and are reasonably fit for the ordinary purpose for which such goods are used
  5. what is Implied warranty of fitness for a particular purpose
    Arises when the buyer's or lessee's purpose or use is expressly or impliedly known by the seller or lessor, and the buyer or lessee purchases or leases the goods in reliance on the seller's or lessor's selection
  6. What warranties take precedence when there are overlapping warranties
    • Implied warranty of fitness for a particular purpose
    • express
    • implied
    • Exact or technical specifications
    • samples
    • general descriptions
  7. what are the different Warranty disclaimers
    • oral express warranty can be disclaimed in writing if the disclaimer is clear, conspicuous, and called to the buyer's or lessee's attention at the time the contract is formed
    • implied warranty of merchantability must mention the word merchantability
    • if it is in writing it must be conspicuous
    • disclaimer of the implied warranty of fitness must be in writing and be conspicuous
  8. What can manufacturer be liable for
    • failure to exercise due care to any person who sustains an injury caused by a negligently made (defective) product
    • fraudulent misrepresentation of a product
  9. what is the responsibility of a manufacturer
    Due Care
  10. What are the requirements to enforce strict liability
    • defendant sold the product in a defective condtion
    • defendant is normally in the business of selling that product
    • the product must be unreasonably dangerous to the user or consumer because of its defective condition
    • plaintiff must incur physical harm to self or property by use or consumption of the product
    • defective condition must be the proximate cause of the injury or damage
    • goods must not have been substantially changed form the time the product was sold to the time the injury was sustained
  11. what are the ways a product can be defective for it to enforce strict liability
    • in it manufacture
    • in its design
    • in the instructions or warnings that come with it
  12. When is a manufacture and supplier held under strict liability
    • manufacturer: liable for harm suffered by bystanders as a result of defective products
    • Supplier: strictly liable fore defective parts that, when incorporated into a produce, cause injury to users
  13. What are the defenses for product liability
    • preemption: produce that is subject to comprehensive federal safety regulations
    • assumption of risk
    • produce misuese
    • comparative negligence
    • commonly known dangers
    • knowledgeable user
  14. What are the requirements for  labeling and packaging
    • Manufacturers must comply with labeling or packaging requirements for their specific product.
    • All labels must be accurate and not misleading
Card Set
Business Law - Chapter 12
Chapter 12 - Warranties, Product Liability, Consumer Law