After reading this chapter, you will be able to answer the following questions: What are express warranties? What is the implied warranty of title? What is the implied warranty of merchantability? What is the implied warranty of fitness for a particular purpose? Do warranties apply to third parties? Can warranties be disclaimed? | Chapter 25 Warranties Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 25: Warranties Warranty (Definition): Seller’s promise(s) regarding certain characteristics of good(s) sold 25- A warranty is a seller’s promise regarding certain characteristics of goods sold. 25- “Express” Warranty Versus “Implied” Warranty Express Warranty: Explicitly stated in contract Implied Warranty: Automatically (by operation of law) applied to contract An express warranty is explicitly stated in the contract, while an implied warranty is automatically, by operation of law, applied to the contract. 25- Types of Warranties Express Warranties 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 can give rise to express warranty Buyer’s reliance on seller’s representations generally means those representations become express warranties, and part of contract An express warranty is a description of a good’s physical nature or its use. An express warranty may be a material term of a written contract, but it may also be found in an advertisement or a brochure. Further, a salesperson’s oral promise concerning a good can give rise to an express warranty. A buyer’s reliance on a seller’s representations generally means those representations become express warranties, and part of the contract between the parties. 25- Sales “Puffery” Definition: Salesperson’s mere statement of opinion, rather than representation of facts “Puffing” generally does not create express warranty liability Sales “puffery” represents a salesperson’s mere statement of opinion, rather than a representation of facts pertaining to the goods sold. “Puffing” generally does not create express warranty liability. 25- Types of Warranties Implied Warranties of Title . | Chapter 25 Warranties Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 25: Warranties Warranty (Definition): Seller’s promise(s) regarding certain characteristics of good(s) sold 25- A warranty is a seller’s promise regarding certain characteristics of goods sold. 25- “Express” Warranty Versus “Implied” Warranty Express Warranty: Explicitly stated in contract Implied Warranty: Automatically (by operation of law) applied to contract An express warranty is explicitly stated in the contract, while an implied warranty is automatically, by operation of law, applied to the contract. 25- Types of Warranties Express Warranties 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 can give rise to express warranty Buyer’s reliance on seller’s .
