Only $35.99/year

Business Law Exam 2

Terms in this set (43)

Express: Representations concerning the quality, condition, description or performance potential of the goods
The goods conform to any affirmation of fact or promise
Can also be found in ads, brochures, promotional materials, oral or written statements
The express warranty must be the basis of the bargain (the thing finally nudges the buyer to purchase the item)
Statements of facts create express warranties
Statements of opinion and value/worth (puffing, sellers talk "it's worth a fortune") do not create an express warranty
A reasonable person is more likely to rely on a written statement made in a Ad that an oral statement made by a sales person
Implied:Created by inference from the nature of the transaction or the relative situations or circumstances of the parties
Can be for merchantability (merchant in the business of selling the particular goods (water ski's) warrants that they are reasonably fit for a particular purpose)
Does not apply to "non merchants" (garage sale)
Merchantable goods must be reasonably fit for the ordinary purposes for which such goods are used
The goods must be of at least average, fair or medium grade quality, and must pass without objection for goods in the trade or market place of the same description
Goods must be adequately packaged and labeled, and must conform to the promises or affirmation of facts contained on the label
Knowledge of the defect by the merchant is not a requirement
Merchantable food is supposed to be fit to eat on the basis of consumer expectations
We expect to find a cherry pit in a cherry pie, not a severed finger (from a bull frog)
Implied Warranty of Fitness for a particular purpose
Seller knows of the purpose of the use and the buyer relies on their skill and/or judgment
Particular purpose is different than ordinary purpose