Transcript Chapter 28
Chapter 18 Defective Products What are Express and Implied Warranties? • Warranty -A statement about the product’s qualities or performance that the seller assures the buyer is true. • Express Warranty -An assurance of quality or promise of performance explicitly made by the seller. • Full Warranty -An express warranty that obligates the seller to repair or to replace a defective product without cost to the buyer and within reasonable time. • Limited Warranty -Any warranty that provides less protection that a full warranty. • Implied Warranty -An implicit, unstated warranty obligation imposed on all sellers in order to ensure minimal standards of contractual performance. What are 9 things seller are supposed to make available to a consumer when they buy products? • To whom the warranty is extended. • A description of the product and any excluded parts. • What the warrantor will and will not so in the event of a breach of warranty. • When the warranty begins and when it ends. • The step-by-step procedure to follow to obtain performance of warranty obligations. • The availability of any informal methods of settling disputes. • Any Limitation on how long implied warranties last. • Any exclusion or limitation on how incidental or consequential damages. • The word “This warranty give you specific legal rights, and you may also have other rights which vary from state to state. Are Sellers’ Claims Always Warranties? • Puffing -Exaggerated sales talk. • What is meant by: “Caveat Emptor”? • Caveat Emptor -Let the buyer beware. • Caveat Venditor -Let the seller beware. • Good Faith -Honesty in business conduct and transactions. What Warranties Are Implied By Law In All Sales? • Warranty of Title • Warranty Against Encumbrances – Encumbrances -claims of third party • Warranty of a Fitness for a Particular Purpose – A) personally selects the goods – B) orders the goods according to the buyer’s own specifications – C) does not rely on the skill and judgement of the seller, because of independent testing or for other reasons What Express Warranties Can Be Made By All Sellers? • Warranty of Conformity to seller’s statement or promise • Warranty of Conformity to Description, sample, or model When and How May Warranties Be Excluded? • Refrain form making any express warranties. • use appropriate language that will exclude implied warranties. What Additional Warranties Are Implied By Law For Merchants Only? • Warranty Against Infringement • Warranty of Merchantability – Warranty of Merchantability -the requirement that goods are fit for the ordinary purposes for which such goods are used. – Disclaimer -notice of exclusion What Is Product Liability? • Privity of contract -relationship or connection that exists only between or among the contracting parties as a result of their legally binding agreement • Product Liability -Responsibility for injury caused by a defective product, based on warranty, fraud, negligence, or strict liability