Chapter9: warranties

A warranty is another name for a guarantee. warranty can be divide in two types and they are: Express warranty and Implied.

I.Express warranties: an express warranty is an oral or written statement or other representation about the quality of a product. Express warranties arise in three different ways: by a statement of fact, by a description of the goods, and by sample.

1- statement of fact: whenever a seller of goods makes a statement of fact about the goods to a buyer as part of the transaction,an express warranty is created,the seller’s statement is treated legally as a guarantee that the goods will be as they were stated to be, this is true whether the seller is a merchant or not. if the goods are not as they were stated to be, the seller has breached an express warranty.

2-description of the goods: any description of the goods that is made part of the basis of the bargain creates an express warranty that the goods will be as described

3- sample it is a common practice of salespeople to show samples of their products to prospective buyers, when sample becomes part of the basis of the bargain, an express warranty is created,the seller warrants that the goods that will be delivered are the same as the sample.

2-implied warranties: an implied warranty is a warranty that is imposed by law rather than by statement, descriptions, or sample given by the seller. It arises independently and outside the contract.

There are three types of implied warranties : 1- the implied warranty of merchantability. 2- the implied warranty of fitness for a particular purpose. 3- implied warranty that is derived from a course of dealing or usage of trades.

Case: Hassan bought a secondhand car for $3,500from Ibrahim, private party. Hassan drove the car home,parked it in her driveway, and turned off the engine. The next morning,the car would not start. The automobile mechanic who was called to try to start the car informed Hassan that it would cost $1,200 to repair the car so that it would start properly.

Hassan can not sue Ibrahim for breach of warranty of merchantability because Ibrahim was not merchant.