Exam 21: Sales and Lease Warranties

The warranty of title,which is automatically imposed by the UCC,includes the following elements:

Language such as "there are no warranties that extend beyond the description on the face hereof" is insufficient to disclaim the fitness warranty.

Elvira went to the local discount store for her weekly shopping,picking up a number of items.Over the next few days,she had problems with several items.She had purchased a combination phone and answering machine,but when she opened the box,she noticed that the one inside was different than the one pictured on the package.The one inside was lacking several features of the one pictured on the box.When she opened a box of crackers to snack on before dinner,they did not look nearly as appetizing as the ones pictured on the box.Also,she prepared some brownies from a mix,but her brownies looked nothing like the ones pictured on the box.Upon closer inspection,she noticed that on the bottom of the box for the phone,it said,"The picture is for illustration purposes only.The picture might show features not included on this particular phone.Please refer to the features list on the side panel for the features on this model." Discuss whether any warranties were breached.

The statement "This painting is worth $10,000" does not create a warranty.

Implied warranties may not be disclaimed with general language,such as "as is" or "with all faults."

Under the implied warranty of merchantability,which of the following is true?

Written disclaimers must be conspicuously displayed to be valid.

The implied warranty of fitness for a particular purpose need not meet the buyer's or lessee's expressed needs.

Which of the following is true about warranty disclaimers?

Should the size of a package amount to a warranty that the contents fill the container as much as practicable? There are numerous products where the packaging contains much dead space,such as in a potato chip bag.What do you think?

The implied warranty of merchantability includes a warranty that goods delivered in groups are of a consistent quality.

John bought a used bicycle from a bicycle dealer for $600.The sale was made "'as is,without warranties of any kind" with no other mention of warranties.John had some problems with the gears shifting,so he took it back to the store,at which point a store employee refused to return it because it was stolen before the store received it.Have any warranties been breached?

The implied warranty of fitness for a particular purpose is applicable to:

Molly bought a used car from Best Auto Co.While Molly was shopping there,the salesman showed her a car,which he said was a 1998 Chrysler.The salesman also said,"This is the best car in town," and,"This car is worth at least $9,000.I had it appraised last week for $9,200.Any other appraiser would say it is worth $9,500,at least.The engine is in great shape,and it has just had a tune-up." Molly paid $8,000 for the car.Shortly after purchasing the car,when receiving the paperwork,Molly learned that it was a 1997 Chrysler,that it was worth only $6,000,and that it was not the best car in town.Discuss whether any express or implied warranties apply here.

Warranties may not be disclaimed.

Where a seller has breached a warranty,what is the buyer's normal measure of damages?

Mary contracted to buy a used tractor for $12,000.Mary was told that the engine on the tractor had been used 1,100 hours,when if fact it had been used 2,500 hours.If the tractor's engine had actually been used only 1,100 hours,it would have been worth $14,000 when she bought it.Given the 2,500 hours,the tractor was worth only $9,000 when she bought it.Mary used it for most of a season before it began having problems.She discovered the discrepancy in hours from maintenance records at another dealership.When discovered,the tractor had 2,950 hours,and it was worth only $7,500.How much can Mary recover on a breach of warranty claim?

Which of the following is true about express warranties?

It is not necessary to use formal words such as "warrant" or "guarantee" in order to create an express warranty.

Tom owns a hardware store at which he sells power tools.Tom sells a cordless drill to Victor who takes it home.Victor is injured when he uses it because the drill is defective.Victor can sue Tom for a breach of the implied warranty of merchantability.