Consumer Protection Law

Uniform Commercial Code The UCC is a large set of business statutes which simplified, clarified, and modernized many laws relating to commercial transactions.

UCC Under the UCC a buyer can accept goods in 3 ways 1. After a reasonable opportunity to inspect the goods, the buyer signifies to the seller that the goods conform to the contract or will be retained in spite of their nonconformity. 2.The buyer acts inconsistently with the seller’s ownership (for example, uses, consumer, or resells the goods). 3.They buyer fails to make an effective rejection after having a reasonable opportunity to inspect the goods.

Warranties An assurance that the seller makes about the product’s qualities or performance. Because they involve sales of goods, warranties are governed by the UCC. Product liability means affixing of responsiblitiy to compensate buyers, users, and even those standing nearby for injuries caused by a defective product.

Privity of Contract The relationship that exists between or among the contracting parties as a result of their legally binding agreement. At common law, warranty liability depended on the contract between the buyer and seller, who were said to be in privity of contract. The UCC broadened the common law rule so that all injured persons who are the buyer’s family, household, or guests may sue.

Recovering Damages A product liability suit may be based on a breach of warranty or on the torts of fraud, negligence or strict liability. The injured consumer may still have difficulty recovering damages. A person injured by a defective product is most likely to recover damages by relying on strict liability. There is no liability if the injury was a result of an unintended use of the product.

Types of Warranties (Express) Express Warranties-assurance of performance or quality expressly made by the seller Under the Magnuson-Moss Warranty Act, the Federal Trade Commission has established certain minimum standards that must be met by sellers who give written warranties on comsumer products that cost more than $15 and that normallhy are used for personal, fmaily, or household purposes.

Express Warranties Warranties must be made available to consumers prior to the sale of the item These warranties must include: –To whom the warranty is extended –Description of the product and any exclusions –What the warrantor will and will not do in the event of a breach of warranty –When the warranty begins and ends –Procedure to obtain perfomance of warranty obligations –Availability of informal methods of settling disputes –Limitation on how long implied warranties last –Exclusions or limitations on incidental consequences –“This warranty gives you specific legal rights, and yhou may also have oher rights which vary from state to state.”

Express Warranties An express warranty that obligates the seller to reapir or to replace a defective product withour cost to the buyer within a reasonable time is a full warranty. Any wararnty that provides less protection than a full warranty is a limited warranty, and the seller must identify as such.

Types of Warranties (Implied) While issuance of express warranties are at the discression of the seller, law compels all sellers to honor certain implicit, or nstated warranties, inorder to ensure minimal standards of contracutal performance. This is an implied warranty.

Implied Warranties Warranty of title-the seller warrants that he or she has the title to the goods and the right to transfer them Warranty against encumbrances-the seller’s warranty that the goods shall be delivered free of all claims of third parties of which the buyer is not aware at the time of contracting. Warranty of Fitness for a Particular Purpose-the seller’s warranty that the goods are reasonably fit for the purpose for which they are being sold.

Implied Warranties Warranty Against Infringement-a merchant makes an implied warranty that the goods in which she or he normally deals shall be dekivered to a buyer free of any third party’s claims for patent, copyright, or trademark infringement. Warrant of Merchantability-requires that the goods be fit for the ordinary purposes for which such goods are used.

Exclusion of Warranties Some goods may be sold without any warranty. To do so, the seller must refrain from making any express warranties, and use appropriate language that will exclude implied warranties. A disclaimer is a notice of exclusion.

Lemon Laws Warranties are augmented by consumer self-help laws called Lemon Laws. These laws protect consumers of vehicles mainly, but may extend to other consumer products in certain jurisdictions. These laws apply to products purchased this defects that after reasonably attempted, cannot be repaired.