Exam 23: Warranties

An implied warranty can arise as a result of a well-recognized trade custom that a court could infer the parties intended to apply to their contract.

Precision Parts Corporation and competitive merchants who deal in goods of the same kind assert that their products are of the proper quality. This is

Because a warranty imposes a duty on the seller, a breach of warranty is a breach of the seller's promise.

An express warranty can be created only by an express warranty provision in a sales or lease contract.

In many states, in a lemon-law dispute submitted for arbitration according to the program in a vehicle manufacturer's warranty, the decision of the arbitration panel is binding on

Determining whether a statement constitutes an express warranty can depend on the context in which the statement was made.

A warranty that the law derives by inference from the nature of a transaction or the relative situations or circumstances of the parties is

Home Remodel Inc. and Ivan enter into a contract for a sale of countertops. Home, a merchant who deals in goods of the kind sold, notes that its goods come with an implied warranty of merchantability. Under the UCC, this means that the goods are reasonably

If it is unreasonable for two warranties to be considered consistent, the intention of the parties determines which is dominant.

A salesperson's statement of fact about goods, such as a product's capability, made during the bargaining process, is not an express warranty.

Brass Inc. sells seventy-six trombones to Community Band. To avoid liability for most implied warranties, Brass should state in writing that the trombones are sold

In an action based on breach of implied warranty, a buyer must show that the warranty existed and its breach proximately caused the damage sustained.

Because each type of warranty is created in a different way, the manner in which a warranty can be disclaimed varies with the type of warranty.

Packaged Foods Inc. and competitive merchants who deal in goods of the same kind imply that their products are properly packaged and labeled. This is

A court is most likely to infer that both parties to a sale or lease of goods intended for a well-recognized trade custom to apply to their contract

An express warranty arises when a seller or lessor indicates that the goods are the "best" of the kind of goods sold.

Warranties of title arise automatically in most sales contracts-a thief breaches the warranty by selling stolen goods.

A seller's statement of opinion or recommendation about goods, such as a medical device's appropriateness for an unapproved use, is not an express warranty.

Cato, a salesperson for Durable Sportswear Corporation, tells Elan, a buyer for Footwear Inc., that Durable's athletic shoes are made of certain materials. This is

Holiday Corporation sells Idyll-brand campers and trailers. Under most circumstances, Holiday will be presumed to have warranted that its title to the goods is